In light of the new rate proposed by the OPA on ground mounted solar projects of 58.8¢/kW PV Power Corp has cancelled their solar system orders with us.
The OPA has dropped the rate by 26.7% which means that our business model is no longer viable. We had been able to secure bank financing beyond the standard term of 7 years, to 10 years in light of the government contract, supporting the income. The new rate would require that we finance the systems for 17 years to pay them off from income. The banks will not finance the equipment this long, so we have cancelled all our orders.
This will have a major impact on OntarioPVPower's business plan, as this represents over $1million dollars in lost business.
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