Investment Focus

Given favorable government policies, a window of opportunity exists to achieve excellent risk-adjusted investment returns in certain areas of the renewable energy sector in North America.  

Ontario represents one of the best markets for investors, with the recent inception of North America’s first Feed-in-Tariff (FIT) program. The availability of standardized power purchase agreements with the Ontario Power Authority (OPA), at fixed, above market electricity rates for 20 years for renewable energy producers, has mitigated much of the risk associated with renewable energy project development. 

Click here to view our Pilot Solar PV Facility in Ontario, which was commissioned in June of 2013. It has been generating stable, predictable cash flows since going live.

Rooftop Solar - Key Investment Points

Rooftop Solar PV in the context of a FIT program becomes especially compelling due to a number of favorable factors: 

  • Attractive Rates  - Under a Feed-in-Tarrif (FIT) program, Solar PV projects benefit from above-market, fixed power purchase rates that produce predictable cash flows over the contract period - typically 10 to 20 years in length.  
  • Rapid Deployment - Commercial-scale, distributed generation (DG) projects are typically exempt from lengthy environmental and transmission capacity approval processes.  Commercial scale rooftop systems can be installed and operational in a matter of a few weeks, once the necessary permits and approvals are received. The entire process typically takes less than twelve months to complete from the initial application date.
  • Low Technical Risk - The first solar module was invented in 1883 and with decades of study and development, solar PV technology has proven to be an extremely reliable source of electricity generation. Today’s solar panels have long life spans and typically come with 25 year performance warranties.  There is very little technical risk associated with a good quality PV panel.
  • Low Operating & Maintenance Costs - PV panels have no moving parts and therefore have very low operation and maintenance (O&M) costs.  They typically need to be cleaned once or twice per year in order for them to produce at expected output.  The inverter equipment typically lasts 15 to 20 years and is a relatively small part of the overall project cost (10%)  As well, extended warranties for inverters are generally available from suppliers to further “de-risk” the project over the duration of the FIT contract period.
  • Cost Certainty - Fixed bid construction contracts or fixed bid Engineering, Procurement and Construction (EPC) contracts are typically available.  By knowing and locking in your project costs in advance, a well designed project becomes virtually de-risked prior to construction/installation.
  • Insurance - To protect against rare and unexpected events, such as wind storms, fire and vandalism, insurance can be obtained at reasonable rates.  Loss of income insurance is also available.
  • Predictable Cash Flows - The availability of long term weather and solar insolation data, for any region in North America, makes it easy to estimate the annual cash flows a project will produce over 20 years.  These projects generate long term, stable cash flows that will not vary substantially from year to year, unless extremely unusual weather patterns occur.
Sky Energy Capital Inc.

Suite 706 - 522 Moberly Road
Vancouver, BC | V5Z 4G4
Phone: 604.229.1945
Fax: 604.229.1945