USING LOCAL IMPROVEMENT CHARGES TO FINANCE SOLAR PHOTOVOLTAIC SYSTEMS IN CANADA
DOI:
https://doi.org/10.15173/esr.v22i1.3308Keywords:
Local improvement charges, solar PV, Property Assessed Payments for Energy RetrofitsAbstract
Despite rapidly falling costs, financing remains a serious barrier to the diffusion of distributed solar photovoltaics (PV) in Canada, a promising low-carbon electricity generation technology. We assess the potential of one financing program model, Property Assessed Payments for Energy Retrofits (PAPER), for the deployment of PV. This program design leverages Local Improvement Charges as a mechanism for financing energy investments, whereby annual income or cost-savings typically outweigh annual loan payments. We find there is significant potential for these programs to facilitate the deployment of PV in Canada. We conclude with recommendations linked to 6 possible objectives for PV-inclusive PAPER programs
References
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Barbose G., N. Darghouth, S. Weaver and R. Wiser (2013) “Tracking the sun vi: An historical summary of the installed cost of photovoltaics in the United States from 1998 to 2012,” Report from Lawrence Berkeley National Laboratory. Report no. LBNL-6350E, July.
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Headen R.C., S.W. Bloomfield, M. Warnock and C. Bell (2011) “Property assessed clean energy financing: The Ohio story,” The Electricity Journal, 24:1:47-56.
Hill A.J., M. Malkova, F. Boulanger, C. Maynes, M. Poirier, and P. Dunsky (2013) “Local improvement charge (LIC) financing: Pilot program design for residential buildings in Ontario,” Report for CHEERIO Working Group, Montreal: Dunsky Energy Consulting.
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International Energy Agency (IEA) (2010) “Technology roadmap: Solar photovoltaic energy,” Report, International Energy Agency, France.
International Energy Agency (IEA) (2013) “Tracking clean energy progress 2013,” Report, International Energy Agency, France.
Ipsos-Reid (2010) “City of Toronto home energy efficiency financing survey,” Available at: http://www.cleanairpartnership.org/files/Ipsos%20Reid%20survey%20--%20final_0.pdf (accessed 20 Mar 2013).
Kothari K (2013) “Cheerio LIC program evaluation qualitative research study,” Available at: http://www.cleanairpartnership.org/files/CHEERIO%20Qualitative%20Study%20-%20April%202013.pdf (accessed13 May 2013).
Luukkonen P., P. Bateman, J. Hiscock, Y. Poissant, D. Howard, and L. Dignard-Bailey (2013) “National survey report of PV power applications in Canada 2012,” Report for Task 1: Exchange and dissemination of information on PV power systems to International Energy Agency Co-Operative Programme On Photovoltaic Power Systems, 12 June.
Managan K. and K. Klimovich (2013) “Setting the PACE: Financing commercial retrofits,” Available at: http://www.institutebe.com/InstituteBE/media/Library/Resources/Financing%20Clean%20Energy/Setting-the-PACE-Financing-Commercial-Retrofits.pdf (accessed 4 July 2013).
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Miller, G. (2013) “Building momentum: provincial policies for municipal energy and carbon reductions,” (Toronto: Report from Environmental Commissioner of Ontario).
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Ontario Power Authority (2013) “FIT and microFIT program,” Available at: http://microfit.powerauthority.on.ca/ (accessed 20 Oct 2013).
Persram S. (2011) “Property-assessed payments for energy retrofits: recommendations for regulatory change and optimal program features,” Report for David Suzuki Foundation. Report ISBN 978-1-897375-36-5.
Poissant, Y. and P. Luukkonen, P (2014) “National Survey Report of PV Power Applications in Canada 2013,” International Energy Agency Photovoltaic Power Systems Programme, St. Ursen, Switzerland.
Speer B. (2012) “Residential solar photovoltaics: Comparison of financing benefits, innovations, and options,” Report for National Renewable Energy Laboratory. Report no. NREL/TP-6A20-51644, October.
White S. (2012) “Is this solar power program a money saver?,” The Globe and Mail. 6 September, 12.
Yukon (2008) “Rural electrification policy and guidelines,” Available at: http://www.community.gov.yk.ca/property/retp_guide.html (accessed June 4 2013).
Zimring M., L. Hoffman and M. Fuller (2010) “PACE status update,” Report for Lawrence Berkeley National Laboratory. Report No. LBNL-082010, 11 August, Berkley California.
Azadian F. and Radzi M. (2013) “A general approach toward building integrated photovoltaic systems and its implementation barriers: A review,” Renewable and Sustainable Energy Reviews 22: 527-538.
Axsen J. and Kenneth S.K. (2013) “Connecting plug-in vehicles with green electricity through consumer demand,” Environmental Research Letters 8:1: 014045.
Barbose G., N. Darghouth, S. Weaver and R. Wiser (2013) “Tracking the sun vi: An historical summary of the installed cost of photovoltaics in the United States from 1998 to 2012,” Report from Lawrence Berkeley National Laboratory. Report no. LBNL-6350E, July.
City of Toronto (2013) “Proposed energy efficiency retrofit program public consultation report,” Report to Toronto. Report No. 16651, August. Available at: http://www.toronto.ca/teo/pdf/public-consultation-report.pdf (accessed 10 Nov 2013).
Duffy F. and H. Fussell (2011) “This Green House,” Report for Columbia Institute. Report ISBN 978-0-9784309-7-9, 11 May.
Halifax Regional Municipality/Solarcity (HRM) (2013) “Frequently asked questions - HRM’s Solar City program,” Available at: http://www.halifax.ca/environment/SolarCity/documents/WebFAQs-SolarCity-Jan232013.pdf (accessed 15 July 2013).
Headen R.C., S.W. Bloomfield, M. Warnock and C. Bell (2011) “Property assessed clean energy financing: The Ohio story,” The Electricity Journal, 24:1:47-56.
Hill A.J., M. Malkova, F. Boulanger, C. Maynes, M. Poirier, and P. Dunsky (2013) “Local improvement charge (LIC) financing: Pilot program design for residential buildings in Ontario,” Report for CHEERIO Working Group, Montreal: Dunsky Energy Consulting.
Hydro Ottawa (2013) “Insurance requirement,” Available at: http://www.hydroottawa.com/generation/microfit/insurance/ (accessed 20 Nov 2013).
Infrastructure Ontario (2013) “LIC program flyer,” Available at: http://www.cleanairpartnership.org/files/IO%20LIC%20Program%20Flyer.pdf (accessed 20 Jan 2014).
International Energy Agency (IEA) (2010) “Technology roadmap: Solar photovoltaic energy,” Report, International Energy Agency, France.
International Energy Agency (IEA) (2013) “Tracking clean energy progress 2013,” Report, International Energy Agency, France.
Ipsos-Reid (2010) “City of Toronto home energy efficiency financing survey,” Available at: http://www.cleanairpartnership.org/files/Ipsos%20Reid%20survey%20--%20final_0.pdf (accessed 20 Mar 2013).
Kothari K (2013) “Cheerio LIC program evaluation qualitative research study,” Available at: http://www.cleanairpartnership.org/files/CHEERIO%20Qualitative%20Study%20-%20April%202013.pdf (accessed13 May 2013).
Luukkonen P., P. Bateman, J. Hiscock, Y. Poissant, D. Howard, and L. Dignard-Bailey (2013) “National survey report of PV power applications in Canada 2012,” Report for Task 1: Exchange and dissemination of information on PV power systems to International Energy Agency Co-Operative Programme On Photovoltaic Power Systems, 12 June.
Managan K. and K. Klimovich (2013) “Setting the PACE: Financing commercial retrofits,” Available at: http://www.institutebe.com/InstituteBE/media/Library/Resources/Financing%20Clean%20Energy/Setting-the-PACE-Financing-Commercial-Retrofits.pdf (accessed 4 July 2013).
Ministry of Energy (2013) “Achieving balance: Ontario’s long-term energy plan,” Queen’s Printer for Ontario, Toronto.
Moore M., A.Turcotte, J. Winter, and P.B. Walp (2013) “Energy and energy literacy in Canada: A survey of business and policy leadership,” (SPP Research Paper 6-10). Available at SSRN: http://ssrn.com/abstract=2241063 (accessed 3 Oct 2013).
Miller, G. (2013) “Building momentum: provincial policies for municipal energy and carbon reductions,” (Toronto: Report from Environmental Commissioner of Ontario).
Natural Resources Canada (NRCan) (2012) “Photovoltaic potential and solar resource maps of Canada,” Available at: http://pv.nrcan.gc.ca/index.php?m=r (accessed 3 July 2013).
Ontario Power Authority (2013) “FIT and microFIT program,” Available at: http://microfit.powerauthority.on.ca/ (accessed 20 Oct 2013).
Persram S. (2011) “Property-assessed payments for energy retrofits: recommendations for regulatory change and optimal program features,” Report for David Suzuki Foundation. Report ISBN 978-1-897375-36-5.
Poissant, Y. and P. Luukkonen, P (2014) “National Survey Report of PV Power Applications in Canada 2013,” International Energy Agency Photovoltaic Power Systems Programme, St. Ursen, Switzerland.
Speer B. (2012) “Residential solar photovoltaics: Comparison of financing benefits, innovations, and options,” Report for National Renewable Energy Laboratory. Report no. NREL/TP-6A20-51644, October.
White S. (2012) “Is this solar power program a money saver?,” The Globe and Mail. 6 September, 12.
Yukon (2008) “Rural electrification policy and guidelines,” Available at: http://www.community.gov.yk.ca/property/retp_guide.html (accessed June 4 2013).
Zimring M., L. Hoffman and M. Fuller (2010) “PACE status update,” Report for Lawrence Berkeley National Laboratory. Report No. LBNL-082010, 11 August, Berkley California.
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2017-09-11
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