Mitsubishi Electric Sales Canada Inc.

First Solar

Sanyo Canada

Timminco

October 21, 2010 08:01 ET

Increased Cost of Solar Power to Ontarians, 9000 Fewer Jobs & $2 Billion Less Investment in the Ontario Solar Industry in 2011 and Beyond

TORONTO, ONTARIO--(Marketwire - Oct. 21, 2010) - An independent research study completed for a group of Canadian and international solar photovoltaic manufacturers including First Solar, Mitsubishi Electric Sales Canada, Sanyo Canada, Timminco and the Canadian division of a global electronics corporation that manufactures solar inverters has shown that the Ontario Domestic Content provisions of Ontario's Feed-In Tariff program will likely result in:

  • increased costs for solar energy projects of all sizes,
  • 9000 fewer jobs, and
  • $2 billion less investment in Ontario renewable energy projects. 

These harsh consequences are the result of the punitive 60% Ontario Domestic Content requirement set by the Ontario government for 2011.

The study suggests that solar panels and other solar energy system components will be in short supply in 2011 as experienced best in class solar manufactures leave Ontario or are not able to sell their products into the Ontario solar market. As a result, the study indicates solar panel prices are likely to increase substantially, by up to 25% in 2011. This is certainly not fair for Ontario electricity ratepayers who are funding this solar incentive program through higher electricity rates and those same customers are not able to purchase best in class solar technologies at competitive global prices. It is also likely many projects will be cancelled or postponed as investor returns decline below an acceptable level due to higher solar project costs in 2011. 

This translates into the potential for 9000 fewer jobs and 2 billion less invested into Ontario's solar market due to this protectionist trade measure. Such a measure will ensure the Ontario government will not achieve its green energy job growth objectives and has in fact prevented other Canadian provinces and many other foreign solar product manufacturers from doing business in Ontario. "This will have serious international trade implications for Ontario and Canada as Japan, the European Union and United States all join forces to fight this protectionist trade measure in Ontario," said Takashi Sato, President & CEO of Mitsubishi Electric Sales Canada inc.

The CFO for Timminco a Canadian company, Robert Dietrich commented that, "Canadian companies like Timminco are required to manufacture in Ontario even though they have Canadian manufacturing operations in Quebec, Ontario's largest domestic trading partner. When one province like Ontario implements trade restrictions that impact Canadian manufacturers in other provinces, that's a very narrow view of optimizing Canada's manufacturing sector and promoting job growth in manufacturing."

Contact Information

  • For further inquiries regarding this joint global solar
    product manufacturing release please call:
    Michael LeBoldus
    905 475 3411