Land sought for solar energy projects

Andy Comber

An information board shows solar panels that are used to convert sunlight into electricity. Gengrowth, a Toronto-based private energy company, held an information session in Essex July 28. The company is seeking partnerships with local landowners who are willing to host solar power projects on their property.

By Andy Comber - August 5, 2009

A Toronto-based renewable energy developer that is already involved in several wind power projects is seeking land to lease for small-scale solar power projects. Gengrowth held a number of information sessions across the county last week, including one in Essex on July 28.

"This is totally new," said Jeffery Segal, vice-president of development and construction with Gengrowth, speaking of the solar projects.

Solar power is produced by collecting sunlight and converting it into electricity. Sunlight is collected using solar panels, which are large flat panels made up of many individual solar cells. Numerous systems and solar cells are in development around the world.

Segal said Gengrowth is planning to move into the development of solar power, maintaining their focus on Southwestern Ontario where they have several wind energy projects in various stages of development.

Gengrowth provided copies of its "micro-solar" lease agreement contract, which detailed terms and conditions for the project, including site access, location and use of leased area, and rent payment. The agreements are for 20 years with certain conditions.

"You are effectively the landlord and we are the tenant," said Segal, speaking of the lease agreement.

Gengrowth would pay any additional property taxes assessed to landowners due to the project, Segal said. Income earned by participating landowners, however, would be subject to income tax and be the responsibility of the landowner.

"The minimum is 1500 square feet, up to an acre," said Segal, speaking of the size range of the proposed projects.

According to the lease agreement, Gengrowth would pay rent equal to 5 per cent of the gross revenue generated by the project, or landowners could opt for a straight minimum rent payment of 28 cents per square foot.

An example set out in the contract says that if the number of square feet located directly underneath the solar panels used by the project is 43,560 square feet, the size of an acre, "then the minimum rent payment would equal $12,197."

Currently, Gengrowth has no solar power project under development. Segal said the company would not buy any solar panels until they are ready to install; Gengrowth wants to use the most advanced systems available.

"First we need the landowners," said Segal, speaking of the need to find suitable land to lease for the solar projects before pursuing the next steps, including acquiring a contract with the Ontario Power Authority (OPA). He said landowners would receive their first payment one year and 30 days from the signing of the contract.

Segal stressed that landowners could not place the solar panels over highly productive agricultural land. Because the solar panels are relatively light in weight, no access roads would be needed for their installation or regular maintenance.

Like many renewable energy companies, Gengrowth is anxiously awaiting the finalized version of the Ontario Green Energy Act, expected in the next four to eight weeks.

The OPA has stated that the Green Energy Act (GEA) includes a proposed feed-in tariff program (FIT) that would guarantee specific prices for energy generated from renewable sources and drive investment to Ontario.

Those tariffs would include prices for renewable energy in Ontario generated from biomass, biogas, landfill gas, waterpower, solar and wind. Currently the price paid for a ground-mounted solar project, no greater than 10-megawatts (MW) in size, would be 44.3 cents per kilowatt-hour (kWh).

Gengrowth is holding meetings across Essex County and Southwestern Ontario until Aug. 6. An information session was held in Harrow July 27.