City Invests in Solar Power

ORILLIA - The Orillia Power Corporation (OPC) is closer to generating solar power.

The city has agreed to enter into 25-year leases with OPC for the installation of solar panels on three municipally-owned buildings.

“This is a continued source of revenue for us that allows us to grow our profits and then give back more to our shareholders, the City of Orillia,” said Keith McAllister, president and CEO of OPC.

At Monday’s council meeting, city politicians approved signing rooftop lease agreements with 2345997 Ontario Inc. (a subsidiary of OPC) for the installation of solar panels at Rotary Place, the Barnfield Point Recreation Centre and the TeleTech building.

To rent the municipally-owned rooftops, OPC will be paying the city 6% of revenues generated.

Initially, the city was discussing a charge of about $35,000, but setting a percentage rate takes the risk off OPC, said Bob Ripley, the city’s CFO.

“If there are some really bad weather days and they’re not able to generate that type of revenue as well as cover the fixed costs, which (are) capital costs, they could be in trouble,” he said. “It takes risk off.”

OPC also plans to add solar panels to its rooftop at 360 West St. S.

OPC must now receive contract approval from the Ontario Power Authority.

“If they issue us a contract, we’ll tender out for engineering and construction services,” McAllister said. “Approvals are expected out ... in the next two to three months.”

If OPC is awarded a contract, the solar panels could be installed before the end of the year.

The four proposed solar panel locations are anticipated to generate one megawatt or one million megawatt hours of power.

That could provide electricity to about 100 homes.

Currently, OPC generates 15 megawatts of power from its three waterpower generating stations.

“It’s a 7% increase in our generating portfolio,” McAllister said of the solar projects.

OPC is paid on average 7.5 cents a kilowatt hour for its hydro electric power.

They will be paid 53.9 cents per kilowatt hour for solar power.

“(This is) because the cost to invest and build a solar plant is significantly more,” McAllister said. “You just need that kind of money to make it economically feasible to build a plant and run it.”

It will cost OPC about $5 million to install panels on the four roofs. It will be paid for through reserves and financing.

Mayor Angelo Orsi is pleased the city could be moving into solar power.

“It’s available, why not have the city take advantage of it and (have OPC) make a return,” he said.