I had an interview with Graham Findley of 3G Energy this is what he had to say about sustainability of O.P.A. MicroFIT initiative

"MicroFIT is sustainable but it requires an attitude adjustment within the Local Distribution Company world (think Hydro One). These guys limit the market penetration of renewables to about 7 % based on historical average minimum load patterns. Their logic is weird – they say the transmission system cannot tolerate current flow reversal so they need to keep renewables to a minimum.  In all most countries, renewable targets are at 20% and heading to 40-50% in the next two decades. Not in Ontario, despite the Green Energy Act. The grid guys are just protecting their turf and staying in their old fashioned bunkers. We need politicians who understand this game and can blow the whistle on it. If the targets are raised to allow as much as 30%, watch out! Renewables will then be a major contributor to lowering Ontario’s energy costs and creating a sustainable energy industry.  Already there is a political constituency that is advocating for renewables, particularly microFIT – farmers. They love it.

     Keep in mind that renewable energy is cheap once you pay for the equipment, since there are no fuel, secondary health or equipment disposal costs. That cannot be said for coal, gas, diesel or nuclear fuels."

Is the MicroFIT initiative sustainable?

                 Determining the sustainability of the MicroFIT program can be viewed from different perspectives. From the homeowner’s perspective, the program is sustainable and very profitable. This is because the Power Authority will pay the home owner 80¢ per kw/hr of electricity generated from his/her project. Homeowners are allowed to install up to 10kw/hr systems on their roof.  If you calculate the amount of electricity that can be generated for a 10kw system as much as $1000 per month can be earned. With the cost of system being between $60,000-$80,000, a homeowner could potentially earn as much as $200,000 over the period of their 20 year contract.

                From the perspective of the hydro company, the program does not seem sustainable. This is because they are buying electricity for 80¢ and selling it for 8¢. While this seems to make no sense at all, it works because the hydro utility does not have to pay for the construction and upkeep of the energy source, that cost has been shifted on to the homeowner. Because our electricity over the long term will be generated by the sun, the wind and other renewable resources we will no longer need to extract coal, oil, gas and other stuff from the earth.