
Ontario is almost certainly paying too much for solar power, thanks to an unstable regulatory regime that forces the province to pay a substantial risk premium to investors.
In a recent study, Guy Holburn of the Richard Ivey School of Business and Charles Morand of Inflection Point Capital Management examined the solar power market in Ontario. They surveyed 12 “developers, utilities and independent power producers” of solar power in Canada, and asked the group about the importance of 17 different factors in determining if they would invest in a particular jurisdiction, and asked how Ontario measures up on each factor.
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