How to end FIT and not get sued

The FIT program has to end. Not only does it have to end, but the current contracts have to be changed. It's killing the economy. Better those few now who have swallowed the lure from the government than the entire economy.

Problem is, not only would current contract owners sue the government for breach of contract, companies who are ramping up production here in Ontario to sell solar panels are threatening to sue the government if they stop the FIT program in the future.

A new government coming in on Oct 2011 isn't going to want to break contracts as that would be a bad precedent to set. But the costs of the FIT program is prohibitively expensive -- for the next 20 years!

So how do you get out of these contracts? The Czech Republic has a solution. A surtax on FIT contracts. The government can slap a 25%, or more, surtax on the gross revenue that solar and wind owners get for power. This is before they pay anything else, like the loans for the equipment and income taxes to the levels of government. Thus making their contract unprofitable. Not only would this kill future FIT contracts, but also existing contracts.

Best of all there is nothing the FIT contract owners can do about it. Governments can't be sued over imposing taxation measures.

The money, while it lasted, could be used to offset higher electrical prices with rebates to consumers. Once the FIT contracts are all gone, the price of power would fall.