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Solar energy to Canada

(Last updated: 27 May 2009)

Trends and opportunities

The market

The photovoltaic market

Due to Canada’s history of low-cost electricity, the domestic photovoltaic market has not grown as rapidly as elsewhere. Canadian firms have, however, secured a significant share of the international market with a variety of novel technologies, products and services, while catering to the emerging domestic market. Canada can offer expertise in:

  • Manufacturing process technologies for raw materials, solar cell and solar module   production.
  • Photovoltaic (PV) manufacturing equipment and automation expertise.
  • High efficiency solar-LED (light emitting diode) lighting systems.
  • Novel photovoltaic module products.
  • Hybrid concentrator PV-active solar thermal systems.
  • Expertise in the design of solar electric systems for off-grid, remote or northern locations.
  • Design of solar electric systems for large-scale grid-tied applications.
  • Consulting services for site assessment and load analysis.
  • Portable solar chargers for consumer electronics (Industry leading solar charge controllers, inverters, rectifiers and other balance of system components).
  • Installation of off-grid power systems for rural telecommunication systems.

These strengths have resulted in project success domestically and internationally. Canada’s domestic PV market is dominated by off-grid applications and has averaged 20%+ growth annually over the past decade. However, in recent years there’s been increased demand for on-grid applications. Canadian industry, academics, and government are actively engaged in PV research and development.

The solar thermal market

Canada’s solar industry is an innovator in the active solar thermal field range of scalable and versatile technology products, and an array of design, and installation services that include:

  • Turnkey solar heating systems for various commercial, industrial, institutional and residential.
  • Solar collectors for domestic and commercial water heating.
  • Solar air collectors for space heating and ventilation applications.
  • Solar air heating systems for crop drying and other industrial applications.
  • Solar pool heating systems for residential, commercial and institutional applications.
  • Solar water heaters for year-round use, even under extreme cold weather conditions.

Through market-driven research and development, Canadian companies developed technologies, which established them as experts in several ‘green’ solar heating applications. Canada focuses its research and development activities toward low-temperature (<60 0C) heating applications, large-scale seasonal storage, and concentrating solar collectors for integrated heat and power. Market growth is expected in Canada in the near future.


(Source: Natural Resources Canada)

Opportunities

Photovoltaic


In Canada, solar projects are considered easier than wind farms to grind through the approvals process as they do not require an environmental assessment. While municipality approval is needed, solar farms are currently allowed to be placed on agricultural- or industrial-zoned land. As of 31 May 2008, there were 198 Ontario Power Authority Standard Offered Contracts issued for solar projects, totalling 470MW. Ontario offers solid feed-in tariff rates at CDN$420/MWh for solar power since 2006, through its Renewable Energy Standard Offer Program.


In April 2008, SkyPower and SunEdison Canada announced the official groundbreaking of First Light, a 19MW Ontario-based solar farm that will be one of the largest solar PV parks in North America. With an anticipated commissioning date of April-June 2009.


OptiSolar Canada is developing three Ontario-based solar projects with a combined capacity of 90MW to be operational in 2010. OptiSolar has an additional 60MW of signed Ontario Power Authority contracts, although no project announcements have been made to date for these contracts.


Pod Generating Group is developing several Ontario solar projects with a total capacity of 60MW, primarily near Sault Ste. Marie. The expected installed capital cost of the project is CDN$360 million or CDN$6 million per MW (Source: Scotia Capital: Alternative & Renewable Energy Report, pg. 245-246).

Related opportunities


Recent and emerging green power policy initiatives, such as the Ontario Standard Offer Program and similar provincial programs being discussed, are expected to help drive growth.

Solar thermal

Canadians support the active solar thermal industry and demand for its products is increasing, with incentive programs in place at the federal, provincial and municipal levels of government.


The ecoENERGY for Renewable Heat program supports the use of energy more efficiently, boost renewable energy supplies and develops cleaner energy technologies, which supports solar thermal heating. The ecoENERGY for Renewable Heat program is a four-year CDN$36 million investment. Incentives are offered to the industrial/commercial/institutional sector to install active energy-efficient solar air and/or water heating systems (Source: www.ecoaction.gc.ca/ECOENERGY-ECOENERGIE/heat-chauffage/index-eng.cfm).


One of the incentives launched by ecoENERGY in Ontario is the Solar Thermal Heating Incentive. This incentive provides a rebate to organisations in the commercial, industrial or institutional sectors, which install a qualifying solar water or solar air heating system. (Source: www.ecoaction.gc.ca/ecoenergy-ecoenergie/heat-chauffage/on-osthi-ioscst-eng.cfm). The above incentives may present opportunities for Australian companies who are export ready in the relevant sectors.

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Tariffs, regulations and customs

The Canadian Customs Tariff is based on the World Customs Organization's Harmonized Commodity Description and Coding System (HS). It is suggested that companies review the Canada Border Service Agency (CBSA) website in greater detail to identify any import duties that may apply to their products.


It’s also recommended that companies seek a final ruling from CBSA prior to shipping any product. Contact CBSA.


General Canada import requirements
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Marketing your products and services

Market entry

Canada is a very open economy that is receptive to new ideas due in part to a strong import culture and deep history of working with other nations. There are, however, a few points to consider:

  • Treat Canada as a highly competitive, mature and demanding market that has similar expectations in terms of readiness, competitiveness, and communication when compared to the USA and EU markets.
  • Don’t automatically assume that Canada is the perfect ‘spring board’ into the US market. It can be, but many companies find that Canada is a high performing market on its own that can be very rewarding. 
  • Be humble in your approach and do your research first – as much as Canadians enjoy dealing with Australia the ideas and solutions presented must make sense for the market, be competitive, and show clear ROI.
  • Understand that Canadians prefer to establish rapport, and that relationships are key.
  • Prompt response and easy communication is expected.
  • Although Canada and Australia share almost the same legal systems it is proactive to have a legal and taxation contact that can assist quickly when needed.

There are several focused and broad tradeshows and conferences in Canada. These events are a good medium to obtain an understanding of the market and to showcase products/ technologies:

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Links and industry contacts

Solar energy-related resources

Canadian Association for Renewable Energies – www.renewables.ca 
Canadian Solar Industries Association – www.cansia.ca 
The Ontario Sustainable Energy Association – www.ontario-sea.org

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Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

  • Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
  • Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
  • Administers the Export Market Development Grants scheme.
  • Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
  • Provides advice to the Australian Government on its trade and investment development activities.
  • Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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Austrade makes no warranty, express or implied as to the fitness for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any information contained in this document. Any consequential loss or damage suffered as a result of reliance on this information is the sole responsibility of the user.