Frequently Asked Questions about PV Solar- How much does a solar installation cost?
- What are the financial benefits?
- Are there other benefits?
- Aren't we too far north to generate solar power?
- Isn't it too cold?
- Will the panels produce power on cloudy or snowy days?
- Then what are important things to consider?
- Will my home have power in a blackout?
- Are there government incentives available?
- What is the Feed-In Tariff or FIT program?
- What is the difference between a net-metered and an FIT grid-tied system?
- If I sign a FIT contract, how much income can I expect?
- How much does a solar installation cost?
Your investment in a typical turnkey residential system can range from 12 to 32 thousand dollars, depending on the size of the system. - What are the financial benefits?
- If you are located in Ontario, you can sell your power back to the grid, and receive a fixed guaranteed rate for that power for 20 years.
- You can depreciate the cost of the system to reduce your taxable solar income to zero, which increases your effective rate of return (consult your financial advisor and CCRA).
- Increase the resale value of your home. Homes with solar installations have been shown to sell more quickly and sell at a premium.
- Are there other benefits?
The environmental benefits are big. A typical 2kw residential rooftop installation will reduce your family’s carbon footprint by 2.6 tons per year for 35 to 40 years. - Aren't we too far north to generate solar power?
Ontario actually has enough annual hours of solar radiation to be considered an excellent site for solar, and is attracting international interest in building large-scale ‘solar farms’ here. The GTA’s latitude is equivalent to the south of France. Germany’s latitude is further north, and it is the world’s leading country with installed solar. - Isn't it too cold?
Solar panels often work better in cold temperatures during winter months because there is an increase in the conductivity of the metals. - Will the panels produce power on cloudy or snowy days?
Even on cloudy days some light is absorbed by the panels, so some power will be produced. With snow, the panels capture heat during the day and the melting snow creates a water slick. The snow slides off and the panels resume producing power. - Then what are important things to consider?
The most important predictors of solar power generation are present and potential future shading on the panels (chimneys, trees, other buildings), their slope and orientation towards the sun, and the average annual hours of radiation in your location. - Will my home have power in a blackout?
This is possible if you also install a battery back-up system. - Are there government incentives available?
The Province of Ontario offers a rebate on part of the Retail Sales Tax. Through the only such program in Canada, Ontario offers to purchase the electricity you generate at a guaranteed rate. - What is the Feed-In Tariff or FIT program?
Ontario’s FIT Program is the first of its kind in North America. The program allows you to sell the solar power you generate to the electricity grid. Administered by the Ontario Power Authority, the program is available to residential, commercial, and industrial, and utility-grade installations throughout Ontario. The current 20-year contract offers to purchase power at a prescribed rate of between 44.3 to 80.2 cents per kilowatt hour. (See table below) System Type
| Size tranches | Contract Price ¢/kWh | Any PV system | ≤10 kW | 80.2 | Rooftop | > 10 ≤ 250 kW | 71.3 | Rooftop | > 250 ≤ 500 kW | 63.5 | Rooftop | > 500 kW | 53.9 | Ground Mounted | ≤ 10 MW | 44.3 |
For further details about the FIT program, click here What is the difference between a net-metered and an FIT grid-tied system?
With net-metering you consume the electricity your panels produce. Any excess power is fed back through the grid and credited to your hydro bill. You import less power from your utility, and so your electricity bill is reduced. With a grid-tied system under the FIT program you export all the power generated by your panels back through the grid. You receive a bill from your utility as usual for the electricity you consume, and your utility credits you for the power you have exported (at the applicable tariff band). Both ways of being grid-tied have the same environmental benefits.
12. If I sign a MicroFIT contract for my home, how much income can I expect? With a 2kW system under the MicroFIT program you can expect gross income of approximately $1,900 annually. For further details about the MicroFIT and FIT program, click here.
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