Solar-panel industry stuck in limbo waiting for Alberta government incentives

GeoffDomenicohoped 2016 wouldbe a banner year for his solar-panel installation company, KCP Energy, with growth in residential solar panels expected to double in Alberta. In the end, sales actually fell for that side of the business.

The provincial government had said it would unveil an incentive program for people to use solar panelson their homes and garages. Such a policy could create a huge opportunity for the solar-panel industry in the province, but right now the sector is hurting as customerswaitfor the government to roll outthe details about the new policy.

I think a lot of people are going to go through some pretty lean months at the start of this year.- Matt Lisac, National Solar Distributors

"We definitely noticed even starting back in June of last year, people were starting to ask about the incentives," said Domenico. "They were really unwilling to commit until they understood what the incentive was going to be."

Geoff Domenico hopes the provincial government gets the residential solar incentive policy right.

8 years ago

Duration 0:28

Alberta's solar installation industry is in limbo waiting for the government to unveil the residential incentives, according to the founder of KCP Energy.

KCP Energy now has a growinglist of customers who are delaying their purchase of solar panels.

"We do start to wonder," said Domenico, "if people are actually going to go a different direction and choose not to proceed with solar, or perhaps have made decisions already to spend their dollars elsewhere."

• Billions expected to be spent on green energy in Alberta, Saskatchewan
• Geothermal pitched as Alberta's next big energy source

Layoffs possible

The industry is in limbo ascustomers want to know the size of the government's program, the value of the incentives and when they can apply.Unless the government unveils those detailssoon, there could be job losses in the sector.

"A lot of people are going to go through some pretty lean months at the start of this year," said MattLisac,president of National Solar Distributors in Edmonton, a wholesaler of solar panel equipment across Western Canada.

Lisacguesses the industry has seen sales drop by about 50 per cent in recent months compared with a year ago.

Alberta's solar industryshould be thriving, given theNDP government's emphasis on renewable energy and reducing greenhouse gases. Its climate leadership plan includes a carbon tax, shutting down coalpower plants by 2030 and cappingoilsandsemissions.

The provincial government is also investing in large-scale renewable energy projects andcommitting$9million to help municipalities, Indigenous communitiesand farmers install solar panels.

• Net-zero egg barn with solar energy opens in Alberta
• Tough challenge to implement Alberta's ambitious climate plan

Announcement coming soon

The Alberta government has not said how much money could be made available for residential installations, although Environment Minister Shannon Phillips said an announcement is coming in the "next few weeks." She has heard some of the complaints from those in the solar-panel installation industry, including a few businesses in her riding of Lethbridge-West.

"We are working as quickly as we can to make sure that the program has all of the right elements to it," said Phillips. "We are more interested in getting it right than getting it fast."

Shannon Phillips says an announcement on residential solar incentives is a few weeks away.

8 years ago

Duration 0:51

Alberta's environment minister says she has heard complains from the solar industry, which is experiencing a drop in business while people wait for the new government incentives.

Some businesses see the value in being patient with such an important policy, but they also don't want to suffer much longer with lacklustre residential sales.

Alberta's solarindustry has grown in recent years and further expansion is anticipated once the incentive program is announced. The provincial government recently loosenedthe rules around micro-generation,increasing theproduction limit from one megawatt to five megawattsand letting a micro-generating system power more than one building.

• Alberta homeowners could sell solar for profit under rule change

There are more than 1,700 wind, solar and other small-scale micro-generation systems running in houses and other sitesin Alberta. Since 2009, micro-generation has increased by about 70 per cent each year, on average, according to the provincial government.