How can the microFIT program benefit me ?
Sample Calculation 1
$16,500 installed 5.6 kW MicroFIT Solar PV Rooftop system based on an annual average of 1200 kWh/kW of solar PV (source: RETScreen; Natural Resources Canada);
1. 5.6 kW x .9 (10% de-rate factor)* = 5 kW
2. 5 kW x 1200 kWh/kW = 6,000 kWh/yr.
3. 6,000 kWh/yr. x 31.3 cents/kWh** = $1878 annual income ($156 avg/month).
$37,560 income over 20 years
Return On Investment (ROI) and Payback;
1. $16,500 investment / $1878 annual income = 8.8 years payback
(11.2 years profit/equity)
2. $1878/ $16,500 = 0.11 or 11% ROI !
3. Installed system cost: $2.95 per watt + HST
Can be less depending on market prices. Larger MicroFIT systems up to 10 kW size start from $2.50 per watt installed with system revenue of up to $70,000 over 20 years, 13% ROI and 8 year payback @ .294 cents/kWh.
* De-rate factor compensates for system inefficiencies, non peak operation and module degradation.
** 2016 rooftop solar PV microFIT incentive rate of 31.3 cents/kWh for system sizes less than or equal to 6 kw. System sizes greater than 6 kW and up to 10 kW = 29.4 cents/kWh.
Please note: We are not representing ourselves as accountants or investment analysts. This calculation is a conservative estimate and actual figures will vary depending on size and type of system. Other contributing factors will determine exact ROI and payback results. All figures used in these calculations are based on estimated rates and costs not including tax. However, we strongly suggest that you personally consult with a certified accountant, investment representative or tax specialist of your choosing to get a detailed analysis on your own rate of return.
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