Layoffs at Guelph Solar Panel Plant

It's a tough time for the solar panel industry. In the United States, the Obama administration is getting static for giving government loans to solar panel manufacturer Solyndra, which went bankrupt earlier this year. And now, all the eager appreciation for Canadian Solar in Guelph seems to amount to none as the company announced layoffs yesterday. On the other hand, it's not for the reasons you think.

Lloyd Longfield, President of the Guelph Chamber of Commerce told the Guelph Mercury that there's “an enormous backlog” in the Ontario government’s microFIT and FIT (feed-in tariff) programs. For the uninitiated, the government’s microFIT program was started in 2009 to allow small-scale producers of solar energy to receive a set amount for each kilowatt hour of power produced and fed back into the provincial power grid.

The backlog exists because demand for panels is so high right now. “You have a huge supply to meet that demand and then you’ve got papers sitting on desks waiting for approvals, so the whole thing grinds to a halt,” said Longfield, who added that the Provincial election and the potential ambiguous fate of the Green Energy Act can account, in part, for the backlog. 

But at the same time, 300 people were hired at a job fair this past spring, and all the people getting pick slips were hired this year. The controversy of the situation in this case, as in the case south of the border with Solyndra, is that the notion of burgeoning economic resolve of green energy is severely tested when jobs are cut and companies go bankrupt. Hopefully, for the workers, this is a short term situation.

Here's a Bright Idea...

...Oh, never mind. Here's a recent City press release about a new endeavour on the part of City Hall and Guelph Hydro to develop the solar energy gathering capacity of city sites.

GUELPH, ON, March 1, 2011 – The City is working with Guelph Hydro and its subsidiary Ecotricity to put solar photovoltaic panels on a number of City-owned buildings. During last night’s City Council meeting, the City approved an agreement that defines the terms of Guelph Hydro’s mandate to develop energy projects on City properties.

"Ecotricity already operates the two Megawatt generator at the former Eastview landfill site," says Rob Kerr, the City’s General Manager of Community Energy "Now they’ll have access to our rooftops to generate more clean, renewable energy right here in Guelph."

Together with Guelph Hydro, the City has identified about 50,000 square feet of rooftop space where Ecotricity could install enough solar photovoltaic panels to generate up to 500 kilowatts of electricity. Once the panels are up and operating, Ecotricity would sell the power to the Ontario power grid over the next 20 years under the Ontario Power Authority’s MicroFIT program.

"This licence agreement is just the beginning," adds Kerr. "Together with Guelph Hydro the City of Guelph will continue to seek out more opportunities for energy projects on City-owned properties in order to support the goals of Guelph’s Community Energy Initiative."

About the Community Energy Initiative

Guelph’s Community Energy Initiative is a collective commitment among community members including the City of Guelph, Guelph Hydro, Union Gas, Guelph Chamber of Commerce and the University of Guelph to use less energy in 25 years than we do today; use less energy per capita than comparable Canadian cities; and produce fewer greenhouse gas emissions per capita than the current global average.

New Jobs Coming to Guelph

Big news today in Guelph as a well-known and accomplished Chinese manufacturer of solar modules is moving to town to set up a shop. This is good news for the 300-500 jobs that will be put on the block for Guelphites, as well as fulfilling the promise of bring more green jobs to the city, which has been a heavily campaigned topic in recent elections. To the press release:

GUELPH, ON, August 11, 2010 – Canadian Solar Inc., the world’s eighth largest solar module company, announced today it will establish a solar module manufacturing facility in Guelph, bringing 300 to 500 jobs to the city. The facility will be one of the largest on the continent.

"Today’s announcement by Canadian Solar Inc. means hundreds of good jobs for Guelph,” said Mayor Karen Farbridge at this morning’s announcement at 545 Speedvale Ave in Guelph, future home of Canadian Solar’s facility. “It shows early success of the City’s economic development plan, Prosperity 2020, and represents the number one objective of the Community Energy Initiative, which is to position Guelph as a place to invest.”

City officials and Canadian Solar executives are attributing today’s announcement in large part to Guelph’s Community Energy Initiative—Guelph’s ambitious and internationally recognized plan to use less energy in 25 years than it does today, consume less energy per capita than comparable Canadian cities, and produce less greenhouse gas per capita than the current global average.

With cities around the world watching Guelph’s innovative model of reducing energy use and greenhouse gas emissions, today’s announcement is a strong example of the Community Energy Initiative in action; government, business, investors, and citizens working together to build sustainable communities as a way to address the most serious ecological challenge of our time: climate change.

“We chose Ontario and Guelph because of the province’s and city’s strong research and development, and the local and provincial governments’ commitment to investing in a low carbon economy,” said Dr. Shawn Qu, Chairman, President and CEO of Canadian Solar Inc. “The site selection for the new facility spread across Ontario, but in the end Guelph was chosen over several major cities as a result of its commitment to making sustainability the hallmark of the community through the Community Energy Initiative.”

Since the adoption of the Plan on which Guelph’s Community Energy Initiative was based, the Province of Ontario has implemented the Green Energy Act, helping to spawn a very active solar energy market.

“Guelph is another example of Ontario’s success in attracting clean energy investment and jobs,” said Brad Duguid, Minister of Energy and Infrastructure. “Canadian Solar’s decision to locate its first North American manufacturing plant in Guelph is a great vote of confidence in the city, the province, and the Green Energy Act.”

Guelph MPP Liz Sandals added, “Canadian Solar’s announcement of a new solar panel manufacturing facility in Guelph demonstrates the success of Ontario’s Green Energy Act in generating new investments in solar energy. And, the creation of hundreds of new jobs begins Guelph’s transformation to a new green economy."

Canadian Solar Inc.’s Guelph facility is valued at about $24 million, with the first phase of operations expected to begin later this year. At full capacity the facility’s total output will generate solar-based power that exceeds the entire current electrical demand of the Guelph community. The Guelph facility will be Canadian Solar Inc.’s first outside of China.

Additionally, Organic Meadow and Steen’s Dairy opened a new facility in Guelph today. Carol Mitchell, Ontario Minister of Agrculture, Food and Rural Affairs was in attendance along with many of the farmers who supply the dairy.