Item - 2013.PE22.9

The purpose of this report is to seek Council approval for revisions to the City's partnership program with Toronto Hydro Electric System Limited (Toronto Hydro), underway since 2010, to install solar photovoltaic (PV) systems on City facilities.  The program is carried out via the provincial Feed-in Tariff (FIT) program, through which the electricity generated by the installations is sold under contract to the Ontario Power Authority (OPA).  The installations will generate revenue for the City throughout the 20 year life of the OPA contract, and will pay back the City's original investment in approximately eight years.  Council has approved $8 Million for the City's portion of the program, of which $3.2 Million has been spent or committed to date.

Recent changes to FIT will improve the likelihood that City projects will receive contracts from the OPA, but will require adjustments to the business arrangement between the City and Toronto Hydro.  Under the current agreement, the City can own a maximum of 49 percent of the new installations. Under the amended agreement, the City will become the majority (51 percent) owner. 

The report also seeks authority to reallocate $4.4 Million from the original program to the new program, and $400,000.00 to finance the installation of six small solar installations on City facilities under the OPA microFIT program.  These installations will take place outside of the Toronto Hydro partnership program, and will be 100 percent owned by the City.  Funding reallocation is required at this time to ensure timelines imposed by the microFIT program are adhered to.