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Jun 23
2010

DCR Extensions; or, The Manufacturer's Lament

Posted by: Justin Cummings

Tagged in: Untagged 

An interesting bit of news came our way earlier this week, and we thought we'd share it with you.

As you may know, the Ontario Power Authority, since the introduction of the FIT and microFIT programs, has instated what they call Domestic Content Regulations (DCR) on all solar PV projects sold in Ontario. As indicated on the OPA website, these requirements ensure that a portion of your project is produced or manufactured right here in Ontario. What percentage of your project must be Ontario-made depends on its size, and when the application was submitted.

Here's where it gets interesting: since the OPA has been flooded with applications for solar projects, they have extended the deadline by four months for certain sizes of installations (specifically, mid-size FIT projects of around 250kW). According to this article from the Wall Street Journal, the change means "developers of mid-sized projects now have until April 30, 2011 to reach the 50% threshold and April 30, 2012 to meet the 60% target". Our eagle-eyed readers will have noticed the conspicuous lack of deadline extensions for other projects (especially microFIT). There's no certainty, but it seems likely that - considering the popularity of the microFIT program - deadline extensions for smaller systems must also be on the way. After all, manufacturers are very reluctant to invest in a program with an uncertain future.

What's even more interesting is that some companies, who are installing large projects, are actually readying themselves to manufacture their own products. Once their applications have come through, they will build plants and produce their solar systems themselves.

Time, it seems, is running out. If the OPA does not make extensions to microFIT and other FIT projects, already-disenchanted manufacturers will leave solar installers and their clients up the proverbial creek. And that wouldn't be very good for anyone.

Think Clearly!


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