SMTC’s Ontario Facility to Produce Enecsys Micro Inverters for All of Canada as Part of Ontario FIT Program
TORONTO, December 6, 2011 — SMTC Corporation (Nasdaq: SMTX, TSX: SMX) operates as a global electronics manufacturing services provider. Enecsys Limited serves as a premier supplier of microinverter products for the global solar market. Today, the companies announced a partnership. They will also produce Enecsys microinverters for the Canadian market. Production occurs at SMTC’s Markham facility in York Region, Ontario. This partnership enables Enecsys to meet the Ontario Power Authority (OPA) Feed-in Tariff (FIT). It’s basically a domestic content requirement for renewable energy projects.
“Enecsys’ smart solar micro inverter solutions have been installed on roofs of homes and businesses in Europe, the U.S. and now in Ontario, Canada,” said Enecsys Executive Chairman, Mossadiq Umedaly.
“We are very pleased to partner with SMTC to produce our micro inverters in Ontario for the Canadian market and to become part of the Ontario renewable energy community.”
Enecsys
Enecsys offers a variety of micro inverter products. They effectively convert and control the DC power from each solar module in a photovoltaic array. These arrays sit on the roofs of homes and businesses. Importantly, the products change DC power into clean AC power for the electricity grid. Currently, solar systems use string inverters. These inverters connect solar modules in series. Unfortunately, this setup does not maximize energy harvest from the PV array. As a result, the system’s performance depends on the lowest performing solar module. Common conditions, such as partial shading from chimneys, vents, or debris, limit this performance significantly. In contrast, Enecsys micro inverter systems connect in parallel. Thus, they maximize energy harvest from each module. Consequently, these systems can boost total energy harvest by 5 to 20 percent, depending on site-specific situations.
Innovative Partnership
“This innovative partnership not only creates new, quality jobs but also significantly boosts our local economy. Furthermore, it clearly supports environmental sustainability,” said York Region Chairman and CEO Bill Fisch. “In addition, this initiative undeniably solidifies The Regional Municipality of York’s reputation as a hub for business innovation. Specifically, we focus on advanced manufacturing and clean tech. By fostering collaboration among local businesses, educational institutions, and government entities, we not only enhance workforce development but also actively encourage the adoption of cutting-edge technologies that promote eco-friendly practices. As we prioritize sustainability, we ensure that, consequently, future generations will have access to a thriving economy that values growth while preserving our natural resources.”
The partnership with SMTC allows Enecsys to qualify for Ontario’s FIT program. It meets the “local content” requirement. This requirement boosts business development, production, and job creation in Ontario. Additionally, SMTC collaborates with regional government bodies. They promote the OPA’s FIT program for renewable electricity production. The program guarantees stable prices. It offers long-term contracts for energy generated from renewable sources.
Clean Energy Markets
“The clean energy market is a major focus for SMTC’s Markham, Ontario facility, and we’re pleased that Enecsys has chosen us as their Canadian manufacturing partner,” said Claude Germain, President and Co-Chief Executive Officer for SMTC. “As such, we’re not only committed to supporting the growth of the clean technology industry here in Markham; we are also partnering with industry leaders like Enecsys. Furthermore, we have made significant investments in capital equipment, which will therefore undoubtedly complement our engineering expertise and dedication to FIT compliance.”
Why the Enecsys–SMTC Partnership Matters for Canada’s Solar Future
The partnership between Enecsys and SMTC was more than a simple manufacturing agreement; it represented a significant strategic step toward strengthening Canada’s clean energy supply chain and supporting local renewable-energy deployment. By collaborating on this initiative, both companies aimed to leverage their unique strengths and expertise to foster innovation in renewable technologies. This will ultimately be leading to the creation of more sustainable energy solutions. This alliance enhances the production capabilities of clean energy technologies and also contributes to job creation within the local community. Through dedicated efforts in research and development, the partnership is poised to drive forward advancements in clean energy, thereby reinforcing Canada’s commitment to reducing carbon emissions and achieving energy independence in the coming years.
Under the agreement, SMTC manufactured Enecsys’ solar micro-inverters at its facility in Markham, Ontario. This allowed the products to meet the Ontario Power Authority’s Feed-in Tariff (FIT) domestic content requirements, a key policy designed to encourage renewable-energy manufacturing and job creation within the province.
At the time, Ontario’s FIT program was one of the most ambitious renewable-energy incentive programs in North America. By requiring a percentage of solar system components to be produced locally, the program helped attract international technology companies while also building a domestic cleantech manufacturing ecosystem.
Micro-Inverter Technology: A Smarter Solar Approach
Enecsys focused on micro-inverter technology, which converts the direct current (DC) generated by each solar panel into grid-compatible alternating current (AC) individually at the panel level. This innovative approach ensures that each solar panel operates at its maximum efficiency. This is definitely allowing for optimal energy production; all the while minimizing the impact of shading or other environmental factors that could affect performance. By utilizing micro-inverters, Enecsys enhances the flexibility of solar installations, making it possible to monitor and manage energy output on a panel-by-panel basis, thereby improving overall system reliability. Additionally, this technology supports greater scalability and can be easily integrated into existing solar power systems, facilitating a smoother transition to renewable energy sources while promoting increased energy independence for consumers.
Traditional solar installations often use a single “string inverter,” connecting panels in series. While this approach works efficiently in many scenarios, it also means that the entire system’s output can be significantly limited by the weakest panel—whether it is shaded by a chimney, covered with debris, or partially obstructed by clouds. As a result, if one panel experiences a drop in performance, the overall energy production of the entire string diminishes, which ultimately impacts the effectiveness of the whole solar array. This situation can be particularly troublesome in environments where shading is common; thus, even minor obstructions can lead to considerable losses in energy harvest. Consequently, homeowners and businesses may find themselves with less renewable energy than anticipated, which could potentially affect their energy savings and sustainability goals. Therefore, it is essential to consider alternative inverter technologies, such as microinverters or power optimizers, which can effectively help mitigate these issues by allowing each panel to operate independently, thereby optimizing energy production across the entire solar installation.
Micro-inverters solve this problem by allowing each module to operate independently. As a result, the technology can increase overall energy production by 5% to 20% depending on conditions, maximizing the energy harvested from rooftop systems on homes and commercial buildings.
Local Manufacturing Meets Clean Energy Growth
By producing these advanced components in Ontario, the Enecsys–SMTC collaboration helped support both environmental and economic goals.
The partnership contributed to:
- Job creation in advanced manufacturing
- Growth of Canada’s solar technology sector
- Expansion of distributed rooftop solar systems
- Integration of smarter energy conversion technologies
Local government officials in York Region not only highlighted the broader benefits of the project, but they also noted that it reinforced the region’s reputation as a hub for both advanced manufacturing and cleantech innovation. In addition, they emphasized that this initiative could potentially attract more investments and create a multitude of job opportunities in the area.
A Step Toward Distributed Solar Power
Ultimately, partnerships like this significantly helped accelerate the transition toward distributed solar power; consequently, electricity is generated much closer to where it is ultimately used—specifically, on homes, businesses, and community buildings. This shift not only reduces the losses associated with long-distance transmission but also, at the same time, empowers local communities to take control of their energy sources. By harnessing solar energy, these partnerships, therefore, foster sustainability and resilience, enabling neighborhoods to become more self-sufficient. Furthermore, as more installations occur, there is, in addition, the potential for job creation in the renewable energy sector. That’s definitely allowing individuals to contribute to a greener economy. All the while reaping the benefits of lower energy costs is the best!
For consumers, that means more efficient rooftop systems and greater resilience in the electricity grid. For the clean-energy industry, it demonstrates how collaboration between technology innovators and manufacturing partners can bring advanced solar solutions to market faster.
As solar adoption continues to expand across North America, initiatives like the Enecsys–SMTC collaboration show how regional manufacturing partnerships can play a key role in scaling renewable energy. All the while we are all supporting local economies. This collaboration enhances technological advancements but also fosters job creation and skill development within communities. It also ultimately is contributing to a sustainable economic future. By leveraging local resources and expertise, these partnerships reduce costs. In addition, they improve efficiency. That’s definitely making renewable energy more accessible to a wider audience. Furthermore, the success of such initiatives can inspire similar projects across various regions. Finally leading to a more diversified and resilient energy landscape nationwide.
Sources: Enecsys www.enecsys.com and SMTC (http://www.smtc.com/)
