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How Toronto could become a solar electricity powerhouse

#16 of 19 articles from the Special Report: Powering Up

The report underscores the critical role of solar energy in replacing polluting power sources, particularly as electricity demand grows with the electrification of transportation, heating and industrial processes .File Photo- AP Photo/Robert F. Bukaty.

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More than half of Toronto’s electricity needs could be met with solar power generated from rooftops and parking lots, according to a new report by the Ontario Clean Air Alliance. 

The report by the clean energy advocacy group estimates the city could produce up to 12 terawatt-hours (TWh) of clean energy annually if its solar capacity is fully realized.

Jack Gibbons, chair of the Ontario Clean Air Alliance, told Canada’s National Observer that this potential is six to nine times greater than the output of the Portlands Energy Centre, Toronto’s largest gas-fired power plant. 

Carbon emissions in the Greater Toronto and Hamilton Area (GTHA) jumped two per cent in 2023, driven largely by a 30 per cent increase in emissions from electricity generation due to its reliance on natural gas plants.

The report underscores the critical role of solar energy in replacing polluting power sources, particularly as electricity demand grows with the electrification of transportation, heating and industrial processes.

Gibbons highlighted the wide-ranging benefits of solar investment, such as lowering electricity costs, reducing air pollution and tackling climate change. 

“It’s a no-brainer,” he said. “Solar energy makes sense from every perspective — except for gas companies, which stand to lose if we develop solar power.”

Despite its potential, Gibbons said provincial and municipal regulations create unnecessary red tape, making it difficult to develop solar energy in Toronto. Ontario mandates a 15-metre setback for ground-mounted solar installations on commercial properties, which is intended to minimize visual impact for neighbouring properties. However, Gibbons argued that this rule should be eliminated or reduced, as it doesn’t account for the fact that solar canopies can enhance the appearance of parking lots and boost a business' eco-friendly image, rather than obstructing sightlines in urban settings. 

Gibbons said unlocking Toronto’s solar potential isn’t just important for the climate, it’s also essential for public health, the economy and job creation.

A new report by a clean energy advocacy group estimates the city could produce up to 12 terawatt-hours (TWh) of clean energy annually if its solar capacity is fully realized.

The report identifies large open-air parking lots as a prime opportunity for solar installations, suggesting that Toronto could adopt France’s approach of requiring solar systems to cover at least half of larger parking lots. 

Residential rooftops also hold significant potential. According to a 2023 report from Dunsky Energy and Climate, "aggressive" policies promoting residential solar could lead to one-third of Canadian homes adopting solar panels, making a substantial contribution to Canada’s net-zero goals by 2050.

Currently, only one in 200 Canadian homes has residential solar, the Dunsky report notes. When combined with battery storage, solar systems could also enhance energy resilience during outages caused by extreme weather events, the alliance report reads.

But solar is not always encouraged by the economic structures at play. Currently, solar system owners in Toronto — whether on buildings or parking lots — are compensated through net metreing, which only offsets their electricity costs but doesn’t pay for surplus clean energy sent to the grid. This discourages larger projects, as owners are not reimbursed for their excess production, often leading to downsized or abandoned projects. The report suggests that offering a fair price for solar exports would provide financial incentives for owners and ensure lower costs for utilities compared to traditional large-scale power generation.

The City of Toronto has already made progress, with over 100 solar arrays installed on city-owned buildings, generating nine MW of power. As part of its TransformTO Net Zero Strategy, Toronto aims to increase this capacity to 37 MW by 2030.

The city recognizes solar energy as a key component of its transition to clean energy, stressing its role in addressing greenhouse gas (GHG) emissions, which are largely generated by homes and buildings. To mitigate the worst impacts of climate change, 75 per cent of the city’s energy must come from renewable or low-carbon sources by 2050, with solar playing a “significant role” the city says. Beyond providing clean energy, solar systems can be paired with battery storage to ensure electricity availability during critical times, such as power outages, the city notes

Earlier this year, city council passed a motion urging the Independent Electricity System Operator (IESO) and Toronto Hydro to develop a plan to phase out gas-fired generation at the plant by 2035 (except in emergencies) and ramp up renewables and efficiency.

But the provincial government is moving in the opposite direction. The province announced the expansion of the Portlands Energy Centre to increase its capacity generation by 50 MW, about a 10-per-cent increase in capacity. The expansion plan by Atura Power, a subsidiary of Ontario Power Generation, aims to address the predicted energy shortage in Ontario due to increasing demand and nuclear refurbishments.

Residents and advocates for renewable energy have long demanded a shift away from Portlands' gas-fired plant in favour of cost-effective energy efficiency and renewable energy solutions in the city.

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