Rethinking Energy Conservation in Ontario – Results:Ontario Solar Thermal Heating Incentive (OSTHI)
| In November, 2010, the ECO released volume 2 of its Annual Report on the progress of activities in Ontario to reduce or make more efficient use of electricity, natural gas, propane, oil and transportation fuels. Click here for more information on this report, including videos and communications materials. | |||||
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The Ministry of Energy is promoting growth in clean and renewable sources of energy for space and water heating through the Ontario Solar Thermal Heating Incentive (OSTHI). The government has allocated $14.4 million to be available via rebates under the OSTHI program from June 20, 2007 to March 31, 2011. The fund was established to encourage entities in the industrial, commercial and institutional (ICI) sectors to install solar thermal heating equipment in Ontario.
The OSTHI program matches funding provided by the federal government’s ecoENERGY for Renewable Heat program - providing up to $400,000 per solar water installation and $80,000 per solar air installation. Through funding from both the federal and provincial governments, participants can receive as much as $800,000 per solar water installation and $160,000 per solar air installation. The total corporate maximum incentive for multiple installations from these programs is $2 million. To be eligible for this funding, an applicant to OSTHI must be an ICI entity situated in Ontario and have submitted an application to Natural Resources Canada (NRCan) for the ecoENERGY for Renewable Heat program on or after June 20, 2007. October 1, 2010 was the last date to submit an application to either program.
Since this initiative focuses on space and water heating, it targets energy reductions for multiple fuels that are currently used for these purposes. These fuels can include natural gas, propane, electricity, and heating oil. The application of solar thermal technology is economic for larger energy users. Targeting the ICI entities, which often have open areas for installations and/ or require large amounts of heated water, has the potential for large reductions of energy generated from conventional sources. Solar heating systems are also typically more cost-effective for larger buildings, so the incentives needed to induce a switch to solar heating may be smaller for entities in this sector, when measured as a percentage of the solar heating system’s total cost.
To facilitate the application process, NRCan has the primary responsibility for administering this program.
| What is solar thermal heat |
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| Solar thermal collectors are different from solar photovoltaic cells. Solar photovoltaic cells transform the solar energy into electricity, which is then used as an energy source. By comparison, solar thermal collectors absorb the sun’s energy and transform it into usable heat by transferring the heat either directly to air or to a heat-transfer fluid. The use of fans or pumps is needed to transport the heated air or fluid either to a storage device or for direct use. For most buildings, a traditional heating system would still be needed to supplement the solar heating system, particularly during periods of extreme weather. In 2007, it was estimated that 544,000 square metres (m2) of solar collectors existed in Canada. Of these, 71 per cent were for pool heating and 26 per cent were for commercial building heating. This installation capacity delivers about 627,000 gigajoules (GJ) of energy. |
As of February 2010, the former Ministry of Energy and Infrastructure reported the following progress for the implementation of the program:
Table 16: Progress of OSTHI from June 2007 – February 2010
| Category | Quantity |
|---|---|
| Funds Committed | $ 6.3 million |
| Projects Installed | 332 (158 solar water and 174 solar air) |
| Total Energy Savings (estimated) | 120,730 GJ/year |
| Total GHG Savings (estimated) | 8,253 tonnes/year |
The ministry has committed over 40 per cent of the program’s funding towards hundreds of solar thermal projects.The ECO believes that the ministry should use an appropriate evaluation framework, as discussed in section 2.0 of this report, to verify data, assess the program’s results in a timely manner, and optimize future program implementation. Of the solar thermal systems installed, there have been at least 5 in hospitals, 6 in seniors’ homes, 7 in non-profit housing, and 15 in recreational buildings.
Issues and ECO Comment
The Ministry of Energy estimated the amount of fossil fuel-based energy saved by a typical OSTHI participant to be as much as 25 to 50 per cent. The ECO notes that these savings are only estimates, as the ministry does not audit systems to verify the claimed savings. However, approximately 10 per cent of the systems are audited by Natural Resources Canada. The Ministry of Energy has indicated that it is performing an internal review of the economic impact, cost effectiveness and energy savings – the results of which are not yet known. The ECO acknowledges that an extended sampling period may be needed to accurately measure results, given the variation in system performance due to weather conditions.
The ECO believes that the ministry should use an appropriate evaluation framework, as discussed in section 2.0 of this report, to verify data, assess the program’s results in a timely manner, and optimize future program implementation.
