Photovoltaic (PV) Systems

System Costs, Attributes and Incentives

System Costs, Attributes and Incentives

Solar photovoltaic panels produce electricity directly from sunlight. The sunlight is converted into DC current and an inverter converts the DC current into AC current (grid electricity).

System Cost

$7 to $11 per Watt total installed system cost
$11,000-$14,000 for 1 kilowatt system (five 3’x4’ panels) on sloped roof
$6,000-$8,000 for each additional kilowatt
Additional costs for a flat roof or ground-mounted system

System Attributes

To install panels on a sloped roof, you need approximately 100 sq. ft. per KW (200 sq. ft. per KW on flat roofs)
Each KW installed will produce approximately 1,160 KWh of electricity per year

Incentives and Rebates

microFIT Program

Under this program you will be paid a guaranteed price over a 20-year term for all the electricity you produce and deliver to the province’s electricity grid.
For PV systems under 10 KW, the feed-in-tariff price is 80.2 cents per KWh.
Because you are feeding into the grid, your system will go down if there is a power outage in order to maintain the safety of those working on the lines.
The income from a 1 kW system would be a little under $1,000/yr; double for a 2 kW system, etc. This is taxable income, but expenses incurred to produce that income may be deducted. An accelerated depreciation rate of 50% applies.
Your hydro bills continue as usual, i.e. you pay for all the energy you use.
Your project must meet domestic content requirements. These requirements ensure that a portion of your solar PV project is manufactured or produced in Ontario. The minimum required amount of Ontario-based content will increase over time and is determined by the year that a project reaches commercial operation. The minimum requirements are 40% Ontario content for systems installed and connected in 2010 and 60% Ontario content for systems installed in 2011.
A lower per-kilowatt-hour rate applies for systems larger than 10 KW and for ground-mounted systems. For more information, visit http://fit.powerauthority.on.ca/

Simplified Economic Example — typical residential system:

Consider a 3 KW south facing roof-mounted system:

System Cost: $30,000
Produces 3,500 KWh per year @ 80.2¢s; = $2,800 per year
Payback in 11 years, net return of 8.5% after 20 year contract
Offsets 1173 kg of carbon dioxide per year

Another option is to buy batteries so that you can store some of the energy you produce. This offers some protection against power outages but is far more expensive than the grid-connected options.

[back to top]

FAQ

What happens if I move?

You could take your panels with you. Minor roof repairs may be required.
You could sell the panels to the new homeowner, and transfer the FIT contract to them.
You could retain ownership of the panels and your FIT contract and rent roof space from the new homeowners.

How well do solar panels work in the winter?

Solar PV panels work on light, not heat. In fact, PV panels like being kept cool, and will have their highest peak power output during the coldest temperatures. However, with shorter daylight hours in winter, solar panels will produce less energy each day compared to the other seasons. Even if the modules become covered with a light layer of snow, some limited electricity production can still occur. If the snow cover is thicker, they do temporarily stop producing power, but generally the snow melts quickly and slides off because of the smooth dark surface.

Will my property taxes go up because of the added value of the new solar PV system installed on my roof?

According to The Municipal Property Assessment Corporation (MPAC), there is no direct impact on property taxes from adding a PV system. If, over the course of future years, a property is deemed to be more valuable through actual sales then it may increase property tax. Property owners have the right to argue the value of their property.

[back to top]

Next Steps

Visit the Clear Air Foundation’s Go Solar Program to learn about how PV systems work: www.gosolarontario.ca
Visit the Ontario Power Authority’s microFIT Website and register: www.microfit.powerauthority.on.ca

Learn about what’s possible for you:

Contact one of the vendors from the HERE! Directory
Contact HERE! Here.Office@gmail.com (905) 299-2327
Contact our sister organization Our Power www.OurPower.ca — Free Solar Evaluation with $25 Membership

[back to top]