Solar

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Contents

Overview

Solar power captures energy directly from the sun and converts it into either electricity or heat.

How it works

Plans and Actions

Plans

What are the current policies about Solar Photovoltaic Cells in British Columbia?

British Columbia’s Climate Action Plan provides various opportunities for Solar Photovoltaic (PV) cells to be integrated into eco-efficiency programs, such as the Community Action on Energy Efficiency Program, LiveSmart BC Energy Efficiency Program, Remote Community Clean Energy Program, and Towns for Tomorrow Program, and policies, such as Greening Government Buildings, despite Solar PV power not being specifically mentioned. There is significant room for Solar PV power implementation within the parameters of the BC Energy Plan. It states that “all new electricity generation projects will have zero net greenhouse gas emissions” and that renewable energy will account for at least 90% of all energy generated (Climate Action Plan 47).

Within the Climate Action Plan there are a few programs specifically targeted for solar energy. The Solar for Schools program is designed to educate students about and to provide them with clean energy. The Province of BC is working with solar industries to install solar energy structures on the roofs of schools to power themselves. Their goal is to have “solar roofs on 100,000 residential and commercial buildings province-wide by 2020” with schools included in their goal (Climate Energy Plan 38). As well, this program educates students on the potential of solar energy to power their homes. This program will have two benefits for solar power: first it will provide a larger market for Solar energy generation structures which will hopefully help to reduce their costs and second it will help increase public awareness about adopting clean energy alternatives.

The Province is also supplying financial incentives, such as PST exemptions for solar PV collector panels, and financial resources totaling $5 million in the 2008 Budget “to support the expansion of solar thermal energy systems in BC” (Climate Action Plan 49).

BC Hydro delivers two main programs, Net Metering and Standing Offer, for renewable energy projects. Net Metering targets small clean energy projects (less than 0.05 megawatts of capacity), to produce energy for buildings and to sell the excess energy to BC Hydro. Standing Offer is the larger scale equivalent of Net Metering for projects with a capacity over 0.05 megawatts.

Solar PV projects are slowly being implemented across BC. As mentioned earlier, there is the Solar for Schools program. Also, in Vancouver trash-compacting cans have been equip with solar panels to power the compacting of the garbage. However, there is a lack of specific policies and regulations to promote and manage the use of Solar PV cells in commercial, industrial, residential and public buildings. This is a challenge because people do not know enough about Solar PVs to use this technology and businesses are not necessarily inclined to change their practices without great public support or government policies. Solar PV specific policies should be developed by local or national governments to encourage the adoption of these projects residentially and commercially. As well, regulations should be developed to manage the appropriate use of Solar PV panels.

What is the most effective policy mechanism to increase the adoption of Solar PV systems?

Feed-in tariffs, direct capital subsidies and tax credits are the three main financial-oriented policy measures to facilitate the use of grid-connected Solar PV systems.

The International Energy Association (IEA) has undertaken comprehensive research on Solar Photovoltaic (PV) energy systems across the world. Germany is an exemplar country because it has the most annual PV installations in the world. IEA states this is because “market support measures promoting grid-connected rooftop systems and large PV power plants by means of a PV electricity feed-in tariff”(“Trends in Photovoltaic” 11). Feed-in tariffs are a “minimum guaranteed price per kilowatt hour that an electricity utility has to pay to a private, independent producer of renewable power fed into the grid” (Rowlands 55). Feed-in tariffs have become the primary policy measure for the adoption of grid-connected Solar PV systems, in countries such as Germany, Austria, Australia and the United States, because “the measure encourages efficient production of PV electricity with the output from the PV system being monitored and recorded, and has consequently been promoted as the performance-based market support measure”(“Trends in Photovoltaic” 30).

The best programs for implementing Solar PV systems include both feed-in tariffs and market support mechanisms. Feed-in tariffs are advantageous because they promote the expansion of the capacity of Solar PV, they provide guaranteed payments for electricity over a certain amount of years which attracts investors, they encourage small-scale adoption of PV systems, they are geography-neutral, and they are administratively-efficient (Rowlands 56,7, 8). Methods of stimulating the economy include: increasing public awareness, and providing preferential treatment for Solar PV users. These support services are within the CRD’s Community Energy Plan’s goals: to “educate and engage residents and businesses” (Capital Region Community Energy Plan 4). Thus, the CRD has the mandate to adopt these methods to indirectly stimulate the PV market. As well, the CRD has committed to partnering with other groups, such as BC Hydro and the Province of BC. These partnerships are important because each organization provides different aspects of the project. For example, BC Hydro can establish feed-in tariffs and the CRD can create non-financial incentives. The CRD can learn about strategies for effective cooperation as outlined in Ontario’s Renewable Energy Standard Offer Program (RESOP) and about lessons learned, such as the need for long-term Provincial PV strategy (“Ontario’s Standard Offer Program”). However, PV should not be the sole focus for renewable energy policies in Canada because it cannot meet all the energy requirements, instead “a comprehensive strategy for sustainable electricity development will require a portfolio of responses” (Rowlands 65).

BC is lacking Solar PV-specific policies, which is undermining the widespread adoption of Solar PV as a competitive renewable energy. However, the CRD has the ability to create a Solar-PV bylaw or include a specific Solar PV target in their energy plans. Factors that can undermine feed-in tariffs in the CRD are the cheap price of Hydro, the potential reliance on grants for financing-which can be vulnerable to political changes, the short-term government support for Solar PV programs (for example a 10-year financing program)-which detracts PV investors from investing in that market, and the CRD’s limited capacity to directly influence market mechanisms. Other policy mechanisms, such as Direct Capital Subsidies and Tax Credits, are inadequate despite reducing up-front costs, because they do not influence PV system performance, they do not address the customer’s willingness to pay for PV systems and they inflate prices as they subsidize the rich (“Trends in Photovoltaic” 31).

In conclusion, the criteria for effective policy measures is: do they support both the producer of the energy and the energy industry? The feed-in tariff is the best mechanism for addressing these needs. The CRD’s role in feed-in tariffs is to create local incentives and policies specifically for Solar PV, to facilitate a smooth and sustainable adoption of PV through providing support services, to build partnerships with energy groups and government agencies, and to create awareness locally to promote the adoption of Solar PV. Ultimately, I do not argue that the CRD focuses all their renewable energy plans on Solar PV, but instead that PV is an integral and explicit part of a regional varied energy policy.



Why has solar PV electricity not yet taken off in BC? What are the barriers to individual homeowners implementing this technology, and how can they be addressed?


The two main factors that are keeping BC from adopting solar PV technology with greater rapidity are: the cheap cost of generating power through hydroelectric dams, and a lack of policy tools to make renewable energy feasible and competitive (BCSEA). Canada has greater PV potential than either Germany or Japan, the two world leaders in solar energy usage, indicating that Canada is not lacking in solar resources but in policies that will allow people to take advantage of solar energy (NRCan). BC also has the manufacturing capabilities, as 3 of the 4 largest producers of solar PV systems are based in the province: Xantrex, Carmanah, and Day4Energy. The current policy of the BC Energy Plan sets the target that at least 90% of all electricity generated in province must continue to come from clean or renewable sources. Much of this target is already met because hydroelectricity falls under the category of “clean sources” (BC Energy Plan) and the Plan does not include any binding mechanisms to force an increase in renewable energy. BCHydro offers net-metering that provides small-scale solar generators (5 KW or less) 5.4 cents per kWh and PST exemption. BC lacks an enhanced feed-in tariff and Canada as a whole is without direct capital subsidies to renewable energies, Renewable Portfolio Standards with a PV requirement, or building sustainability standards that are mandatory (IEA). Furthermore, government funding for solar technology is largely aimed at solar hot water heating. In comparison, Germany uses an enhanced feed-in tariff that has allowed solar technology to take off despite the fact that it is not yet economical. This tariff is backed by the national target for renewable energies of 12.5 % by 2010 and 20% by 2020 (IEA). Renewable technologies have not yet reached grid-parity and although this point is thought to occur in some countries within the next 5 to 10 years, the application of solar technologies is not cost-effective at the present time in Canada (CanREN). BC has the solar potential, the technology, and the manufacturing ability to be on par with Germany in the production of solar energy. What needs to be addressed is lowering the cost of a system for the average residential application in the CRD, which costs about $6-$8 per watt for the solar panels themselves. In the CRD Community Energy Plan, residential and transportation uses take the greatest amount of energy at 36% each. Introducing incentives such as those given through the Solar BC program but for solar electricity generation will help make solar cheaper for residents, but ultimately a feed-in tariff similar to Germany’s is needed because of the high cost of solar compared to hydroelectric. The price of technology is decreasing, and with increased government incentives working in tandem with a feed-in tariff, as well as a pricing system for carbon emissions, systems will start to be more cost-effective.



Actions

The University of Victoria currently uses solar panels at the McKinnon Gym. These panels are used to heat the gym's showers and pool. This initiative makes the McKinnon Gym one of the first facilities to install this technology. [1]


Napa Valley College installed a 1.2 MW photovoltaic solar array Napa Valley photovoltaic solar on its campus, saving the college $300,000 annually on its electric bills.


Resources

  1. ↑ University wins award for green initiatives. http://communications.uvic.ca/uvicinfo/announcement.php?id=20 (Accessed February 23, 2008).

Berry, Trent. “Net Metering in British Columbia:” White Paper for BC Hydro. Vancouver: Compass Resource Management Ltd, 26 May 2003. 5 October 2008 <http://www.bchydro.com/planning_regulatory/acquiring_power/net_metering. html> This paper is a comprehensive analysis of Net Metering programs. It describes Net Metering as a good tool for facilitating the capture of excess energy from energy projects independent of BC Hydro. It also states some places have adopted Net Metering because it looks good for public perception without doing a thorough cost-benefit analysis.

“Information: Solar Links.” Canadian Solar Industries Association. 5 October 2008 <http://www.cansia.ca/Default.aspx?pageId=139835> This association’s website is a helpful resource because it lists a variety of Federal and Provincial incentives for adopting solar energy as well as a detailed list of resources, such as case studies, reports and initiatives about Solar energy.

Climate Action Plan. Province of British Columbia. 2008. This document outlines BC’s plan to combat climate change and reduce our ecological footprint. In regards to energy, it outlines plans (such as the BC Energy Plan), programs (such as Towns for Tomorrow and LiveSmart BC Energy Efficiency Plan), and incentives and grants for financing ‘green’ initiatives (such as BC Local Government Grants Program and Green City Awards). This is a helpful reference document for people, businesses and organizations to consult for most ‘green’ initiatives by the BC government.

“Energy Source: Solar Energy.” The Pembina Institute. 2007. 5 October 2008 <http://re.pembina.org/sources/solar> This website provides a good summary of the many dimensions of Solar Energy ranging from technical descriptions to cost analyses to Canadian examples to links for related organizations and general information.

Pegg, Kevin. “Sustainable Energy: Solar PV.” BC Sustainable Energy Association. 5 October 2008 <http://www.bcsea.org/sustainableenergy/solarpv.asp> This website provides a range of brief information about Solar PV panels. It is also gives their honest opinion of the strengths and weaknesses of the panels.

Smiley, Eric. “Building Integrated Photovoltaic Solar and Small-Scale Wind.” Green Energy Study for British Columbia Phase 2: Mainland. BC Hydro, October 2002. 5 October 2008 <https://www.bchydro.com/planning_regulatory/energy_ technologies/green_energy_research.html> This paper written by BCIT for BC Hydro is a feasibility study for implementing Solar PV projects in BC. It argues that because Solar PVs are so expensive that the non-economic benefits should be initially emphasized to customers. However, the Solar PV industry is increasing, thus the price is forecasted to fall to 50% of its current price.

“Standing Offer Program.” BC Hydro. 6 October 2008. 5 October 2008 <http://www.bchydro.com/planning_regulatory/acquiring_power/standing_offer_pr ogram.html> This website outlines the program, eligibility, application process, additional resources, and contact information for the Standing Offer program through BC Hydro. It provides the necessary information to plan a clean energy project.

Tomlinson, Nicole. “Vancouver puts the squeeze on street trash.” Vancouver Sun. 27 September 2008. 10 October, 2008 <http://www.canada.com/vancouversun/story. html?id=974e7079-1d97-4c4c-95eb-45de13e038d6> This articles discusses the implementation of solar panels on trash-compacting garbage cans in the City of Vancouver, BC. It will be interesting to monitor this project to assess it’s cost-benefit feasibility and its environmental impact for future projects.



Policy Plans in BC:


  • Capital Region Community Energy Plan. 2007. 9 October 2008 <http://www.crd. bc.ca/climatechange/documents/crdenergyplan.pdf>.

This document provides Initiatives (4-2, 4-3) under its vision statement that specifically relate to renewable energy demonstration projects and pilot projects that may have funding from provincial or federal agencies.

  • Province of British Columbia. “BC Climate Action Plan” 2008. 10 October 2008

<http://www.livesmartbc.ca/attachments/climateaction_plan_web.pdf>. This document provides the province-wide policies to reduce GHG emissions such as the goal to reduce emissions by 33% by 2020. These policies then give legs to projects like ours within the CRD.

  • Province of British Columbia. “BC Energy Plan” 2007. 10 October 2008

<http://www.energyplan.gov.bc.ca/PDF/BC_Energy_Plan.pdf>. This document focuses on nine energy conservation and efficiency policies, some of which relate to renewable energy, such as Energy Efficiency Standards for Buildings, the Innovative Clean Energy Fund, and CAEE. It sets a target to acquire 50% of BC Hyrdo’s energy through conservation by 2020.


Information/Examples of the implementation of policy:


  • Kelly, Liz. “Six Solar Communities Set Shining Example.” SolarBC 24 September 2008.

10 October 2008 <http://www.solarbc.ca/blog/liz-kelly/2008/09/24/six-solar-communities-set-shining-example>. This article was helpful mainly for comparative purposes between Saanich and some of the other communities and what they are doing with their solar projects. The majority focus on solar thermal, which is not as meaningful for our group. Overall, SolarBC supports the BC Energy Plan conservation target to acquire 50% of BC Hydro’s resource needs through conservation by 2020.

  • Lavoie, Judith. “Saanich, Tofino earn cash to expand solar projects.” Times Colonist 25 September 2008 <http://www.canada.com/ victoriatimescolonist /news/story.html>.

This article was used because it illustrates that there is money to be made in innovation when it comes to renewable energy generation, specifically from the provincial government and from LiveSmart BC Green City Awards. It is useful to know where future funding may come from if the CRD expands its solar electricity generation.

  • LiveSmart BC Province of British Columbia. 6 October 2008.

<http://www.livesmartbc.ca/>. This site provides links to the different provincial energy plans, news releases concerning energy, and incentives programs provided through BC Hydro. It is an important hub for research.

  • Ministry of Energy, Mines and Petroleum Resources. “LiveSmart BC Helps Small

Businesses Go Green” News Release 6 October 2008. 10 October 2008 <http://www2.news.gov.bc.ca/news_releases_2005-2009/2008SBR0048-001525.htm>. This article talks about the Public Sector Energy Conservation Agreement (PSECA) and the $75 million pledged to retrofit public sector buildings in the Energy Efficient Business Strategy (EEBS). It would be interesting to investigate what solar panels could add to these retrofits in the province’s goal to have a carbon neutral public sector by 2010.

  • --- . “Clean Energy Efficiency Program Supports 62 Communities” News Release 25

September 2008. 10 October 2008 <http://www2.news.gov.bc.ca /news_releases_2005-2009/2008EMPR0057-001457.htm >. This release describes how six communities are being funded by a $5 million investment in SolarBC, however, the $20,000 received by each community will largely go towards solar hot water, not solar electricity generation.

  • --- . “$22 Million for Energy Efficiency Retrofits” News Release 24 September 2008. 10

October 2008 <http://www2.news.gov.bc.ca/news_releases_2005-2009/2008EMPR0056-001446.htm>. This article is an add-on to the information about the PSCEA and so far the business retrofits do not consider solar energy generation.

  • Office of the Premier and the Ministry of Energy, Mines and Petroleum Resources.

“Communities Awarded Funding to Expand Solar Projects” News Release 24 September 2008. 10 October 2008 <http://www2.news.gov.bc.ca/ news_releases_2005-2009/2008OTP0232-001441.htm>. These chosen communities (our focus is on Saanich) will be “flagship solar communities” in leadership and innovation. The increased use of solar energy technology is part of a broader sustainable energy strategy to curb greenhouse gas emissions by 33% by 2020.


Information on Incentives for Solar Energy:


This site is really helpful because it contains a page of links to case studies, different applications of solar technology and energy institutes or research centers. It also contains pages listing step-by-step guides for residents and contractors that can be used.

  • ecoENERGY for Renewable Power. Government of Canada. 2008. 9 October 2008

<http://www.ecoaction.gc.ca/ecoenergy-ecoenergie/power-electricite/index-eng.cfm>. This site provides information on federal incentives for renewable energy, but it is quite general and not that user-friendly.


Comparative Solar Projects in Portland, Oregon:


This site provides Oregonians with a searchable database of licensed contractors by what kind of service you need and where you live. I have yet to find a comparable site for BC.

  • The Solar Now! Campaign. City of Portland, Oregon: Office of Sustainable

Development. 2008. 9 October 2008 <http://www.portlandonline.com /OSD/index.cfm?c=43478>. This site is great for comparison purposes. Under the Energy Trust of Oregon, homeowners can receive up to $10,000 for solar projects, which can cover over 50% of the cost depending on the system. It also provides specific information packets to people based on the information they give and solar permitting information. They have a work group under the Bureau of Development Services that helps to clarify and formalize the permitting process for residential and commercial projects. Finally, they provide the option of a Third Party Ownership Model that allows a separate business or investor to own the pv system on a building. This option could have a potential in BC.

Policy Resources:

Ayoub, Josef, Sylvain Martle and Dr. Lisa Dignard-Bailey. “National Survey Report of PV Power Applications in Canada: 2006.” International Energy Agency. 2007. 23 October 2008 < http://iea-pvps.org/> This report outlines the contributions of Ontario’s Renewable Energy Standard Offer Program (RESOP) for the enhancement of Canada’s Solar PV industry. Particularly, this is useful for the CRD because the CRD can use their strategies for cooperation amongst groups when designing and adopting renewable energy-policies. In addition, it lays out the structural-components of feed-in tariffs within RESOP, which can help the CRD structure a similar plan. This implicates that feed-in tariffs are within the capacity of the CRD to implement certain facets of the plan. 

Capital Region Community Energy Plan. The Sheltair Group. 2007.24 October 2008
<http://www.crd.bc.ca/climatechange/communityenergyplan.htm>

The CRD’s Community Energy Plan is important when recommending policy options for the CRD because it outlines their main objectives and their regional initiatives. Thus, it is important to know the CRD’s limitations of authority and mandate when recommending different policy options.

Haas, R, W. Eichhammer, C. Huber et al. “How to promote renewable energy systems successfully and effectively.” Energy Policy. 32(2004): 833-839. 23 October 2008 from Science Direct <www.sciencedirect.com> This paper targets EU policy-making, however its general recommendations can be applied to Canada. In particular they argue that a variety of policy mechanism are need to successfully adopt renewable energy services. These include: monitoring and evaluating support services, providing long-term (with a specific timeline) support services, and providing larger subsidies upfront and reducing them after program maturity. These strategies and suggestions are useful for the CRD because most of them fall within the CRD’s mandate and capacity, thus they can be incorporated into a CRD renewable energy policy.

“Ontario’s Standard Offer Program.” Ontario Power Authority. 5 August 2008. 24 October 2008 <http://www.powerauthority.on.ca/sop/Page.asp?PageID=122&ContentID=6621&SiteNodeID=412&BL_ExpandID=190> Ontario’s Renewable Energy Standard Offer Program is a good example of renewable energy policy with a feed-in tariff. It was established in 2006 to make small-scale renewable energy systems easier to development and cheaper to finance. It has significantly reached its energy target in the first year, however they are currently evaluating the effectiveness of the program. The main concern in relation to Solar PV is that its approach is unsustainable. Thus, they recommend creating a long-term Provincial strategy for PV in order for feed-in tariffs to have prolonged impact. This is important feedback for the CRD because it cements their plan to work with and lobby the Provincial government as outlined in their Community Energy Plan.

Parker, Paul. “Residential solar photovoltaic market stimulation: Japanese and Australian lessons for Canada.” Renewable and Sustainable Energy Reviews. 12(2008): 1944-1954. 23 October 2008 from Science Direct <www.sciencedirect.com> This paper stresses the necessity for the Canadian government to adopt a Solar PV market-stimulating policy because it appears to be the only mechanism Canada is neglecting, which restricts it from becoming a world-leading producer and consumer of Solar PV. This focus can provide an opportunity for the CRD because they have the mandate, capacity and willingness to pressure the Federal and Provincial governments to provide the necessary market stimulating policies.

Rowlands, Ian H. “Envisaging feed-in tariffs for solar photovoltaic electricity: European lessons for Canada.” Renewable and Sustainable Energy Reviews. 9(2005): 51-68.24 October 2008 from Science Direct <www.sciencedirect.com> This paper analyzes different policy measures for the effective implementation of Solar PV systems in Europe. It concludes that feed-in tariffs have substantial potential as one mechanism for Canada to include in a renewable energy portfolio. There are weaknesses associated with all policy mechanisms, thus a portfolio of various policy mechanisms is more resilient and effective. This is important to the CRD because it not only examines the details for implementing a feed-in tariff system in Ontario, but it stresses the need for multiple mechanisms or incentives in a varied energy portfolio.

“Trends in Photovoltaic Applications: Survey report of selected IEA countries between 1992 and 2007.” International Energy Agency. 2008. 23 October 2008 <http://iea- pvps.org/> The IEA has developed a comprehensive analysis on the state of Solar PV production and implementation in various countries within a 15 year period. Pertaining to policy, it specifically analyzes the effectiveness of policy measures, such as feed-in tariffs and government subsidies. They conclude that the most effective tool is feed-in tariffs. The IEA is a source of accurate information; thus they are a useful resource for the CRD because they compare the effectiveness of policy measures and constraints in expanding the use of Solar PV. Their research can act as a legitimate guide for the CRD when they create a renewable energy plan.


Further Resources



Information on Solar Potential and Costs for Residents in Canada:


  • Canadian Forest Service. “Photovoltaic Potential and Solar Resource Maps of Canada.”

Natural Resources Canada. 9 June 2007. 21 October 2008 <https://glfc.cfsnet.nfis.org/mapserver/pv/search.php?prov=bc&l=c&NEK=e>. This site provides PV municipal rankings in terms of yearly PV potential in major Canadian cities and major cities worldwide. Regina, Saskatchewan, tops the chart in Canada, with 1361 kwh potential, and Victoria, BC comes in 12th with 1091 kwh potential, which is still more than Tokyo, Japan (885 kWh) or Berlin, Germany (848 kWh). This is a great resource to show that Victoria has the potential to be a leader in solar energy if the policies are put in place to outweigh the high initial costs at this time. The site also illustrates the potential of specific municipal districts across Canada, which would be helpful to gage the importance that solar PV would have to each municipality within the CRD and to see which municipalities would have a harder time making it cost effective.

  • Canadian Renewable Energy Network. “Photovoltaic: Using Photovoltaic in Cottages

and Lodges.” Natural Resources Canada. 9 June 2006. 21 October 2008 <http://www.canren.gc.ca/tech_appl/index.asp?CaID=5&PgID=264>. This site provides information on the costs of the different parts of PV systems, as well as estimates of the initial cost of a PV system, though there is a large range because this technology is very site-specific. The general number for cost is $13 per watt (estimated between $10-$15) for the panels and associated equipment. It provides information for choosing the right system, but also states “the application of these technologies [solar PV] is not cost-effective at the present time.” This is important to remember, as cost seems to be the major barrier at this point and is a major consideration for the CRD. However, as the technology develops it will decrease in down in cost and a report found in the IEA provides further information on projected costs.

  • ---. “Photovoltaic Systems: A Buyer’s Guide.” Natural Resources Canada. 26 July 2007.

21 October 2008 <http://www.canren.gc.ca/prod_serv/index.asp? CaId=101&PgId=559>. This document provides a lot of background information as well as some interesting comparison cases between powering a summer cabin compared to the energy needs of a year-round residence. It provides a good reminder that residents pay 6.41 ct/kwh for hydroelectric power. In order to effect change in the energy consumption of CRD residents, solar would need to be implemented in an on-grid format and so understanding the average energy consumption and patterns are important and this document provides a good foundation.

This report provides the explanation that BC is lagging behind in implementing solar PV because of lack of policy and high costs of the technology. It gives approximate costs ($6-$8 per watt for PV panels alone) and the environmental impacts of PV panels. It explains that in 1999 Greenpeace “conducted an audited study of the PV production process used by Siemens… the conclusion was the energy required to produce a PV module was recovered in approximately 14 months of use of said module.” Environmental costs of developing PV panels are of importance if the CRD plans to use more solar technology in the future. These costs will greatly impact if this kind of energy is sustainable or not. More research is being done of this front.

Current Policies in Place Regarding Solar PV Energy (Canada and Europe):


  • International Energy Agency. “National Status Reports 2007.” IEA Photovoltaic Power Systems Programme. 20 July 2007. 21 October 2008 <http://www.iea-pvps.org>.

This site is very useful for comparison purposes because it lists the National Reports for 2007 of the 23 countries participating in the IEA Photovoltaic Power Systems Program. It allows for comparison of the policies, prices, different solar potentials, projects and futures of solar PV energy amongst Germany, Canada, the UK and many others.

Germany’s Report provided information on how Germany became the country with the highest annual PV installation worldwide. This development was possible because of the “Renewable Energy Sources Act (EEG),” which facilitates enhanced tariffs for new installed PV systems that are now standing at 49.2 €ct/kwh and will drop annually by 5% to stimulate price reduction. Germany also has policies such as net-metering, investment funds for PV and laws for energy efficiency standards of new buildings. The report also explains that because policy measures are in place, the German PV industry is now its fastest growing industry and today approximately 10,000 companies employ 42,000 employees.


Canada’s report provided interesting information about how solar PV technology is growing. There has been a 25% average annual growth of the PV market in Canada since 1993. Also, module prices have declined from $11.09 in 1999 to $5.36 in 2006, or an average annual price reduction of 9% over the 7-year period. Canada's total PV power installed capacity increased by 31% in 2006 and the 2006 domestic PV module sales volume increased by 31% from 2005. The 2006 export PV module sales decreased 44% from the previous year. Total PV sales in Canada, including both domestic and export sales show a 2% increase over the previous year. Furthermore, the report explains that there was an 11% increase in manufacturing employment in Canada in 2006 (equipment, PV and balance of system products) so that PV production now employs 1080 people.The largest manufacturers are Xantrex, Carmanah, Day4Eenergy and ICP Global. This report detailed that the largest module sales domestically occurred in the off-grid market (both residential and non-residential) with about 90% of market share. The remaining 10% attributed to sales in the on-grid distributed market, which should remind us that there will need to be some kind of feed-in tariff to make it more economical for residents to have grid-tied PV power. Total public budgets in Canada showed a 6% increase of $450,00 in 2006 from 2005 (IEA). This is due to a federal government $5 million investment over 5 years to the Solar Research Buildings Network as well as to a private sector project to develop and demonstrate high purity solar grade silicon. However, information provided on the CanSIA website presented this information compared to spending in other renewable technology fronts to show that solar PV energy is one of the least funded in Canada.


The report for the UK gave information on how the Energy Policy for Europe adopted in 2007 is being implemented within the UK. One of the targets for the Policy is to increase renewable energy to 20% of the total consumed. The government committed to the Renewables Obligation (RO), which requires licensed electricity suppliers to source 7.9% of their sales from renewables for 2007/2008. This percentage will rise to 15.4% in 2015/2016. Changes to the RO introduces in 2007 will make it easier for small generators, such as PV systems, to sell energy to suppliers. Microgenerators (under 50 kw), including PV, will receive 2 RO certificates for each Mwh produced, instead of one. Suppliers can meet their RO in one of two ways: by paying a current buyout price of $34.30 GBP/Mwh that rises each year or presenting RO certificates (ROCs) sold by renewable generators. The money collected in the buyout fund in recycled to those suppliers who presented ROCs. This kind of system is interesting because it could be implemented in BC to help push solar PV energy into a path that makes it economical within the next decade or so, as is projected for certain countries that already have polices such as this one underway.

Solar BC incentives include up to $1625 (SolarBC contractors will provide a $1,000 discount at the point of sale and a further $625 are available from the Federal ecoEnergy Retrofit and the LiveSmart BC programs)for a solar hot water heating system, which costs around $4,500 to $7,000. There is also the option of a low interest-financing loan from TD Canada Trust. These kinds of options need to be available to residents installing systems for solar PV energy. These incentives, combined with a feed-in tariff would allow solar energy to grow in BC.

This document is several years old and thus is not as relevant to the current discussion about solar PV, but it is still interesting to consider the information it provides on how solar has been one of the most under-funded energy technologies in Canada. In 2004, the government spent only 5% of its energy R&D budget on renewable energy. In that same year, Germany spent 27%, the US spent 13% and the Netherlands spent 11%. A much larger chunk of federal spending went to Canada's subsidies, fiscal incentives and direct spending to oil, gas and nuclear industries. While these numbers might be out-dated, these kinds of spending trends continue in Canada and make the implementation of solar energy much more difficult compared to the work done in Germany, for example, and despite the fact that BC has a higher solar PV potential. Government funding is essential to making PV energy possible in the CRD because this technology relies on regulations and tariffs because it is not economical.

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