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How will the new microFIT program benefit me?
 

Sample Calculation 1

$18,275 installed fixed sloped roof residential 4.3 kW rated Grid Tie Solar PV system based on an annual average of 1200 kWh/kW of solar PV (source: RETScreen; Natural Resources Canada);

1. 1. 4.3 kW x .9 (10% de-rate factor)* = 3.9 kW
2. 2. 3.9 kW x 1200 kWh/kW = 4,680 kWh/yr.
3. 3. 4,680 kWh/yr. x 54.9 cents/kWh** = $2,569 annual income ($214 average per month). 
   

Return On Investment (ROI) and Payback;

1. 1. $18,275 investment / $2,569 annual income = 7.1 years Payback !
2. 2. $2,569 / $18,275 = 0.14 or 14% ROI !
3. 3. Installed system cost: $4.25 per watt + HST (Can be less depending on market prices).
4. 4. Net Present Value (NPV) at the completion of the 20 year microFIT contract: $33,105 equity.
   

Sample Calculation 2

$69,900 installed dual tracker system 11.75 kW*** rated Grid Tie Solar PV system based on an annual average of 1680 kWh/kW of solar PV (Source: RETScreen; Natural Resources Canada);

1. 1. 11.75 kW x .9 (10% de-rate factor)* = 10.6 kW
2. 2. 10.6 kW x 1680 kWh = 17,808 kWh per year
3. 3. 17,808 kWh/yr. x 44.5 cents/kWh** = $7,925 annual income ($660 average per month).

Return On Investment (ROI) and Payback;

1. 1. $69,900 investment / $7,925 annual income = 8.8 years Payback !
2. 2. $7,925 / $69,900 = 0.11 or 11% ROI !
3. 3. Installed system cost: $5.95 per watt + HST (Can be less depending on market prices).
4. 4. Net Present Value (NPV) at the completion of the 20 year microFIT contract: $88,591 equity.

* De-rate factor compensates for system inefficiencies, non peak operation and module degradation.

** Rooftop and ground mount microFIT incentive rates for 2012.

*** Solar array size with inverter nameplate rating of 10 kW for MicroFIT eligibility.

 

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 current 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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