| Category: | Wind - Contract Pricing |
| Subject: | Wind Turbine Questions (Sub #276) |
| ID: | 10678 |
| Date: | 8/13/2009 |
| Question: |
The feed-in tariff programs proposed wind contract price of 13.5 cents & the standard offer program wind SOP price of 11.08 cents are contradictory. It would make sense to wait for the feed-in Tariff Program yet you mention I can still have a chance to be part of SOP before the launch of FIT. Why would I want to if SOP is only 11.08 cents & is a 20 year contract & both have inflation adjustments? Why do you have two different prices?
I believe the Ontario power authority should compensate both renewable wind energy and solar PV equally. The cost comparison of 13.5 cents wind to 80.2 cents solar /KWH is ridiculous. I am in the country. It would be my advantage to use wind. If I was in the city it would be my advantage to use solar. Why is there such a big discrepancy? |
| Answer: |
The Standard Offer Program is currently only open to projects under 10kW. This is because the launch of the FIT Program is expected very soon. Once the FIT has been launched, the SOP will no longer be in effect and there will only be one price.
Wind energy and solar PV have different rates because each technology has very different costs associated with purchasing, installing and maintaining the project (solar PV panels are much more expensive than wind turbines) . The prices are in fact designed to compensate all technologies equally - this means that at the end of the 20 year contract, a wind project would earn approximately what a solar PV project would earn (after recovering the costs of purchasing, installing and maintaining the project). |