Alberta’s residential solar industry has chugged along for decades without government support.

That dry spell finally drew to a close on Monday, when the provincial NDP government announced a two-year, $36 million rebate program to help bring down the costs for residents, business and nonprofits who want to install solar projects.

By 2020, the number of solar installations on rooftops is expected to increase from 1,800 to 10,000 systems, which will create about 900 jobs and reduce greenhouse gas emissions by a half million tonnes (or the same as taking 100,000 cars off the road). The program is funded through the province's carbon tax revenue.

“It’s the first time individuals and businesses across the province will have support to install solar and have the independence of being able to generate their own electricity,” said Sara Hastings-Simon, the director of the Pembina Institute's clean economy program.

Rebate Program Will Pay 75 Cents Per Installed Watt, Up to 30% of Cost

The 21-minute announcement was fairly short on details, with many of the specifics being worked out by the new Energy Efficiency Alberta agency. But the news is already being heralded as a “milestone” and “very significant” by solar advocates.

“Consumers are already excited about solar,” says David Kelly, CEO of SkyFire Energy, who was at Monday’s announcement. “There’s a lot of pent-up demand: people have been waiting for a program. And the industry is ready to deliver.”

In February 2016, the provincial government announced a $5.5 million rebate plan for municipalities and farms. Demand quickly outstripped available incentive programs for such sectors; the program is expected to fund 160 projects in total.

The Solar Energy Society of Alberta estimates that a solar photovoltaic system can be installed to accommodate an average household’s electricity demand — estimated at 7,200 kilowatt hours (kWh) per year — for about $18,000. The initial cost can be a deterrent for residential and business owners.

That’s where the new rebate program will come in, significantly reducing the payback period (cutting the current 15 to 20 year payback timeframe by about 30 per cent).

Minister of Environment and Climate Change Shannon Phillips, who announced the news on Monday, noted in the press conference that the rebate program will allow for rebates of 75 cents per installed watt, up to 30 per cent of total solar installation costs for residential and 25 per cent of solar installation costs for businesses and nonprofits.

Kelly notes that such figures aren’t as generous as some other jurisdictions. But that’s a good thing, he suggests, as you don’t want to “create a gold rush mentality for solar.”

Alberta Aims to Generate 30% of Electricity Via Renewables by 2030

It might sound a bit counterintuitive. But it’s something that Rob Harlan, executive director of the Solar Energy Society of Alberta, explains is necessary to prevent problems around quality and safety due to the industry expanding too quickly.

“Traditional electrical training doesn’t include a lot about solar technology yet,” he says. “Electricians need to have a little bit of additional training to do these systems well. If it becomes too lucrative too soon, you get a lot of sales and marketing people dominating the industry.”

The rebate program is just a small part of the province’s push to green its energy system, with the overall target of a complete phase-out of coal-fired power and 30 per cent renewable generation by 2030.

Larger solar projects have also become increasingly popular; the “connection queue” for the Alberta Electricity System Operator (AESO) hit 681 megawatts (MW) in September, and 1,453 MW in December.

That doesn’t guarantee that proponents will follow through with the project, but is certainly represents a solid measure of interest.

Hastings-Simon says the new rebate program will also benefit people who don’t choose to install solar, as it will reduce costly electricity generation during peak times and the need to build new transmission infrastructure.

More Can Be Done to Encourage Microgeneration, Advocates Say

In late December, the province amended the legislation on microgeneration, or small-scale generation for personal consumption, with excess power sold back to the grid.

The tweaks included increasing the size limit (from one MW to five MW) and allowing for solar systems to connect to adjacent sites (as opposed to having to be literally on the roof of the consumer). But some advocates suggest the micro-generation regulation be further amended to allow for the potential growth of residential solar.

“Right now, the microgeneration law limits system size to your past year’s consumption,” Harlan says. “We’d like to see that lifted. It’s important to limit system size by things like fuses, conductors and transformers: basic safety and technological issues. But why not allow somebody who has a commercial building with a large roof to sell it with solar modules and help clean Alberta’s grid?”

Pembina’s Hastings-Simon agrees, noting that it would be hugely helpful to make it possible to size systems larger than the load they’re immediately connected to.

That would mean that someone wanted to build a solar project with their neighbours, they could build it a central nearby location even if it’s not directly connected to each of their houses (but is instead connected via the distribution grid). In addition, “virtual net metering” would allow someone to have “virtual ownership of a solar panel” with credit applied to your electricity bill.

“Those are some of the things that help community solar take off,” she says.

#Alberta Advantage: Solar Rebates Give Homeowners a Boost https://t.co/4jHLDiB5IA @james_m_wilt #ableg #cdnpoli #solarpower @GridWorksEnergy pic.twitter.com/1iPvJnBqei

— DeSmog Canada (@DeSmogCanada) March 1, 2017

Solar Rebates Available by Mid-April

The next step for the rebate program is a Request for Proposal to identify a third party contractor to administer the program.

Minister Phillips emphasized in the press conference that projects will have to meet program requirements, with the details established by the agency this spring; she said it’s on the consumer to figure out if their building is a good fit for solar, solicit multiple bids from companies and do due diligence “to protect themselves as consumers.”

She added that people will be able to register for the program by mid-April, and that rebates will be retroactive to that time.

“It was a little short on details but it sounds, from what they spoke about and what was in the press release, that it’s going to be fairly comprehensive,” Kelly concludes.

Image: Alberta Minister of Environment Shannon Phillips participates in a solar demonstration at Gridworks Solar Energy Training Centre. Photo: Government of Alberta via Flickr CC BY-NC-ND 2.0

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A renewable energy economy may emerge from the heart of Canada’s oil industry thanks to announcements made in Alberta’s provincial budget last week. The budget promises spending $51.5 billion in 2016 despite resource royalties projected to be as low as $1.4 billion, representing a 90 per cent drop.   The province pledged $2.2 billion for clean infrastructure, $645 million for energy efficiency and unveiled an expanded carbon levy that the government estimates will generate $3.4 billion for renewable energy development. An additional $195 million has been set aside to help First Nations communities transition off coal and onto cleaner sources of energy.   “We’re very proud of our climate leadership plan as a progressive way to bend the curve on carbon,” Finance Minister Joe Ceci said in a press conference Thursday.   Sara Hastings-Simon, director of the clean economy program at the Pembina Institute, commended the province’s decision to expand the carbon levy to beyond industrial emitters.   “We know it is the most efficient way to reduce emissions in the province,” she said.

Although Alberta was the first jurisdiction in North America to implement a carbon tax, the levy applied only to emitters producing more than 100,000 tonnes of greenhouse gas emissions. New changes to the “polluter pays” legislation means the levy will now be economy-wide and set to scale up from $15 to $30 per tonne by 2018. 

The government forecasts the scaled-up tax will generate $9.6 billion in gross revenue over five years.   Hastings-Simon said the new legislation — which taxes all consumers at the same rate as industry — includes a rebate option for small consumers and lower income Albertans.   “At the end of the day 60 per cent of Albertans are not going to owe anything under the system,” Hastings-Simon said, adding the program is likely help the province work towards its climate targets.   “With a flat rebate you’re incentivizing folks to reduce emissions further as they end up with more money in their pockets as they reduce emissions.”   The province will also start up a new agency, Energy Efficiency Alberta, that will help homeowners reduce emissions in their households.   On Thursday Minister Ceci announced the $3.4 billion generated from the carbon levy would be dedicated to clean energy projects through a bidding system adjudicated by the Alberta Electric System Operator. Bidding will start at the end of the year.    “By combining private sector incentives, the market guides you to where you should be investing government money,” Hastings-Simon said.   Greenpeace Canada climate and energy campaigner Mike Hudema said the new tranche of funds could definitely help jumpstart the province’s renewable energy sector.   “Alberta is finally going to take advantage of the tremendous renewable energy potential that it has,” he said.   He added the government should ensure money is also available to community-based projects. Structural change, to address the way energy is owned in the province, should also part of this new system, he said.   “We need to see a prioritization on municipal, farmer association and First Nation ownership so that the benefits are flowing into our communities rather than out of them,” Hudema said.   The government did set aside $195 million specifically for First Nations’ energy transition, but there has been no indication of how that money will role out.   Jesse Cardinal of Keepers of the Athabasca said she hopes that however those funds are delivered, the process be done in consultation with First Nations.   “Consultation is making a plan together, so I would hope that’s how Alberta is going to go with that $195 million,” Cardinal said. “Different First Nations have different ideas of how they want to move away from coal.”   Cardinal was instrumental in establishing a solar program the Fort Chipewyan First Nation now operates. In 2014, securing funding for the $14,000 project was not easy, she said.   Now two more First Nations, the Beaver Lake Cree First Nation and Fort McMurray First Nation, are looking to implement their own solar projects.   The government’s current funding outline includes specific solar project targets and Cardinal hopes the road will be easier for First Nations going forward.   “That’s the next step we need to take is to ensure dollars are available for everybody,” she said. “This is one step of many steps, the beginning of a long road ahead of how we need to change.”

Image: Premier Rachel Notley and Finance Minister Joe Ceci host a pre-budget town hall in Fort McMurray, the home of the Alberta oilsands. Province of Alberta/Flickr.

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