Ontario residents can benefit from a new government program which allows home and business owners to generate income from solar systems on their roofs or mounted in their yards. Effectively, solar systems can act like a GIC, with predictable income over its life,
and a rate of return from 7 to 10%.
How long will microFIT contracts run?
Similar to the FIT Program, the contract term for microFIT projects is 20 years; 40 years for waterpower.
Once a contract has been signed, the generator will receive the price specified in the contract over the 20-year term of the contract (40 years for waterpower). The price will not change for the generator once the contract has been signed except for applicable inflation adjustments.
The program rules specify that the FIT and microFIT Programs (including prices) will be reviewed every two years. It is expected that prices for new projects will drop over time if project costs decrease. This means that if you sign a contract today, you will receive today’s price for the contract term. If, on the other hand, you wait for two years to apply and sign a contract two years from now, you will receive the price applicable at that time.
Your renewable energy project(s) will be connected to the grid through an electricity meter that will be different from the meter that measures your consumption. This meter will allow your local electricity distribution company to measure the electricity you generate and pay you accordingly.
What are the implications of the FIT Program for smart meters?
Do they work together? While generation contracted under the FIT Program will have its own meter, the program itself complements the province’s installation of smart meters to enhance the efficiency of Ontario’s electricity system.
The FIT Program is designed to encourage and promote greater use of renewable energy sources. Smart meters record total electricity consumption by hour, as compared to the old-style meter that only measures the total electricity used between meter readings. This means that different prices can be applied at different times of the day. Together, the two initiatives will promote a change in how we generate electricity and when we use it – resulting in a positive impact on Ontario’s climate change strategy.
What are the best physical attributes for a home if I am installing solar panels?
Solar PV panels work best when installed at approximately a 30 to 45 degree angle in a south-facing direction with no obstructions such as trees or other buildings. Roof racks and other mounting equipment can be used to ensure the panels meet the proper slope on your roof or can be placed on a mounting system that is positioned on the ground.
What if I sell my house while under a microFIT contract?
The OPA anticipates that sellers would include their renewable energy systems as part of the sale of their homes. In this case, the microFIT contract can be assigned to the purchaser. The new contract holder would receive payments in accordance with the microFIT contract for the remainder of the contract term. If you wish to take your project with you to your new residence, your contract will be terminated when your local distribution company account is closed and your connection agreement with your local distribution company is terminated. You have the option of applying for a new contract once the project is connected at your new residence.
How are microFIT payments calculated?
Generators will be paid for all of the electricity produced by their project, whether it is connected directly to the distribution system or load embedded. The load customer (i.e., the consumer of electricity such as a home) will be billed separately for all of the power consumed. Therefore, payment equals electricity production (kWh) multiplied by the microFIT contract price.
Note that you will be responsible for paying for all ongoing account fees that are associated with your local distribution company and your generator account.
Can I terminate a microFIT contract?
Yes, you can terminate your microFIT contract with OPA consent. Also, you should note that you microFIT contract will terminate automatically if you terminate your connection agreement with your local distribution company. You will need to provide the OPA with 30 days notice.