Ontario drops rates for wind and solar power

Ontario is lowering the prices it pays for future wind and solar energy projects, but electricity bills will keep rising.

The province is lowering the guaranteed rate it pays for small rooftop solar projects from 80.2 cents per kilowatt hour to 54.9 cents.

The amount guaranteed for power from industrial wind turbines will drop from 13.5 cents per kilowatt hour to 11.5 cents.

However, there are thousands of already-approved contracts at the higher rates that last for 20 years.

Energy Minister Chris Bentley says green energy accounts for only about five per cent of the increase in electricity bills.

He says the largest part of the hikes, which are expected to total 46 per cent over five years, are to pay for much needed upgrades to the province's electrical grid.

The Conservatives say Ontario should cancel all the premiums for wind and solar power, while the New Democrats want the province to scrap its nuclear plans and focus more on green energy.

The province promises to give priority to new wind and solar projects that have local support, but Bentley says the Liberals rejected a local veto over green energy installations.