Freqently Asked Solar Questions

What is the Ontario Feed-In Tariff program?

Ontario's feed-in tariff or FIT Program is North America's first comprehensive guaranteed pricing structure for renewable electricity production. It offers stable prices under long-term contracts for energy generated from renewable sources, including:

biomass
biogas
landfill gas
on-shore and off-shore wind
solar photovoltaic (PV)
waterpower.

The FIT Program was enabled by the Green Energy and Green Economy Act, 2009 which was passed into law on May 14, 2009. The Ontario Power Authority (OPA) is responsible for implementing the program.

By encouraging the development of renewable energy in Ontario, the FIT Program will:

help Ontario phase out coal-fired electricity generation by 2014 - the largest climate-change initiative in North America
boost economic activity and the development of renewable energy technologies
create new green industries and jobs.

What is the microFIT program?

If you are a homeowner, farmer or small business owner, or if you manage an institution such as a school or place of worship, you have the opportunity to develop a very small or “micro” renewable electricity generation project (10 kilowatts or less in size) on your property. Under the microFIT Program, you will be paid a guaranteed price for all the electricity your project produces for at least 20 years. The microFIT program is currently offering a contract price of 80.2 cents/kWh for roof mounted solar PV systems and 64.2 cents/kWh for all ground mount systems. That could be up to 16 times what you're currently paying for electricity. The microFIT program is a stream of the OPA's Feed-In Tariff (FIT) program for renewable energy in Ontario.

How much does a Grid Tie Solar PV system cost?

Grid Tie solar PV systems (w/o battery backup) can be installed on a home for around $4,000 to $5,000 per kilowatt. This price range depends on the roof, efficiency of the solar panels and overall size of the system. Larger systems will cost less per kilowatt than smaller systems. Ask us how you can get up to 10% off our best quote just by saying you read this FAQ answer.

Can I obtain financing for a solar PV system?

Yes, most banks and lenders are beginning to support the environmental and financial benefits of a renewable energy system such as Solar PV. TD Canada Trust is one such financial institution which will provide financing for any renewable energy project approved by the Ontario Power Authority's microFIT program. For more info from TD, please click here.

Will I be taxed on the revenue received from the microFIT / FIT programs?

Depending on your taxable income, you may be required to pay income tax on the revenue received from your system just like any other personal income you receive. Since you're entering into a contract with the OPA, the Canada Revenue Agency (CRA) will unofficially classify you as a business. You don't have to register as a business, nor will you be required to collect HST from the OPA unless you are currently an HST registrant (as in a business or commercial property owner). If you are currently an HST registrant, the OPA will then charge HST to your revenue and you will be required by law to collect and remitt HST to the government. Being considered as a business will have an advantage for you; the CRA will allow you to eventually deduct the full cost of the system against the income received using an accellerated Capital Cost Allowance (CCA) deduction. We advise all our clients to first discuss the tax implications with their accountant or tax specialist. Please click HERE for more tax information on the CRA microFIT solar PV FAQ page.

Will I pay a higher premium for home insurance and increased property taxes?

How much space does the system need?

For sloped roof installations using crystalline solar panels, you'll typically require about 6 - 9 m²(65 - 100 ft²) for every kilowatt (kW) of solar PV or 108 - 130 watts / m² (10 - 12 watts / ft²) of usable roof area to determine system size.

Do the solar panels need to be mounted on my roof?

Panels are often mounted on the roof, but can also be mounted on the ground. Ground or pole mount systems are an alternative if the house is shaded or doesn't have the best orientation. Our MicroBLOX sloped roof system of solar panels is designed for shading issues and/or limited roof space due to unusual or newer roof designs with many valleys, dormers and other obstructions.

Do the panels need to face south?

True south is the preferred orientation, but panels installed facing slightly east or west of south (+/- 30 degrees) will still generate a good percentage of possible power. It is usually more effective (and more attractive) to install the panels on the same plane as the roof pitch, rather than install an awkward mount to angle them differently. A roof plane with a 7:12 pitch or 30 degrees is ideal. Where possible, we'll try to align the solar array to true south as opposed to magnetic south. This is known as magnetic declination. Here in Ontario we are only about 9 degrees east of true south so it's not a critical issue for overall power production.

Are the panels fragile?

No. While the panels have a tempered glass surface, they're really quite strong. They pass hail tests, and are regularly installed in Arctic and Antarctic conditions.

How much solar electric power do I need for my own use?

Each home is different, and the amount of electricity you use is very dependent upon your lifestyle, how your home was built, and your appliances. As part of our services, we work with you to reduce your electrical consumption in easy ways. Just remember, it's a lot easier and much less costly to reduce a watt of power than to produce one. For more information on how to reduce your overall energy consumption and receive government rebates, go to:www.mei.gov.on.ca

How long will the system last?

Most solar panel manufacturers will have a 25-year power warranty. This is longer than almost anything else you can buy. The rest of the system has a 5-15 year warranty in most areas. Inverters can have warranties up to 10 years or more.

What happens when the utility has a power outage?

Most systems we sell are Grid Tied, without batteries. This type of system is also known as Grid Dependant. These systems do not generate power when the utility is out, even if it is sunny. For more information about this, go to our Grid Tie - How it Works page. If backup power is desired, a battery system can be added. This increases the complexity and cost. Most people find that what they want is a basic Grid Tie system to generate revenue only. Grid Tie with battery backup are known as Grid Interactive systems.

Do I need batteries with the system?

Batteries are only required if you want backup power when the utility is out of service. Without batteries, the system has no way to store power, and for safety reasons cannot produce power without the utility in operation.

What is Net Metering?

Net Metering is the regulatory ability to get credit for electricity you generate with solar energy and send backwards through your utility meter. Exact provisions vary with each province, but the effect is to allow you to generate excess power during the day, and use it at night, without needing batteries.

How does the solar power get stored?

In a grid tied, non-battery system, power is not stored. It is either used immediately in the house, exported onto the local grid for buy back or sent backwards through the meter, creating a credit. If storage is needed, large batteries and other equipment are added to the system.

What happens if the solar panels get covered by snow?

Solar electric panels need sunshine to generate power. While some sun does make it through several inches of snow, little electricity is generated when the panels are covered with anything. Most power is made during clear sunny days. Our estimates take that into account. New panel designs incorporate a black frame and/or black acetate background behind the solar PV cells. This black surface generates a moderate amount of heat to melt any amount of snow accumulation usually within the first couple hours of daylight.

Do I need to install a new roof before the solar panels are installed?

Solar panels will last many years (over 25). Because of this, we want the roof to be in decent condition, as it does not make sense to remove and reinstall the panels after only a few years. However, after the panels are in place, they will greatly reduce the wear on the roof by blocking ultraviolet rays, keeping most snow and ice off the roof, and keeping anything from hitting the roof. Most installations do not require a new roof prior to PV installation.

What happens if the panels are shaded?

PV panels should be installed in areas where they get significant shade-free sun every day. Even small amounts of shade can significantly reduce the output. Our designs and installations also seek to minimize the impact of any shade issues through selection of the proper equipment and good engineering.

Do I need to clean the panels periodically?

Most of our customers do not clean their panels. In most areas of the country, there is sufficient rain to clean the panels. However, if you are in a dusty area (very near a busy dirt road, very urban area, etc.) you may see a performance gain from cleaning the panels monthly. If necessary, a hose stream is usually sufficient for cleaning. Do not walk on or over the panels to clean them. Do not use metal, hard, or abrasive methods for cleaning. Do not spray water on the panels when they are very hot.

Does solar power work for commercial buildings?

Solar PV systems can be installed on office buildings, retail buildings, schools, and government facilities. Anywhere electricity is used, solar electricity can be used.

Are there financial incentives for buying solar electricity?

The Solar PV FIT and MicroFIT programs already offer the highest financial incentive compared to other renewable and sustainable energy sources. There are many other incentives for purchasing solar. Some common incentives include:

Clean electric generation
Stable electric cost
Backup power for utility outage
Fight climate change / global warming
Take care of my children's world
Create secure electricity supply
Political statement for a renewable energy future
Strongly dislike buying electricity from the utility
Feeling of empowerment
Remote site with no electric service
Sending electricity back to the utility is cool
Solar energy just makes sense
Higher resale value for my property

If I sell my property, what effect does Solar PV have on the sale price?

Energy conservation and renewable generation adds value to a home. Surveys have shown that for every $1,000 saved per year, $20,000 is added to a home's value. Solar energy can be one of the best home improvement investments you make. The microFIT contract is transferable to the new homeowners. It can also be a great bargaining tool when negotiating your selling price.

How long does it take to install a PV system?

Typical residential systems take from 2 to 5 days to install. Systems mounted on the ground and systems with batteries are more complex, and may take longer. Most of this time is spent outside your house, so there is little disturbance to you. Commercial systems take several weeks to over a month to install, depending upon size and type of installation.

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