Solar PV makes environmental and financial sense
MicroFIT Solar PV makes environmental and financial sense
The microFIT Program is a streamlined program for small renewable energy projects under the umbrella of the Feed-in Tariff (FIT) Program. Projects eligible for microFIT must have a generating capacity of 10 kW or less.
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.
These are the main facts about the Feed-in Tariff:
- Payments are guaranteed for 20 years and will begin when a project is built, is in-service and has a contract.
- You are paid for all energy generated and exported back to the grid.
- You will be paid for all of the electricity produced from your solar panels, but you will continue to pay for all of the electricity that you consume. Power generated under the microFIT Program is to be metered and accounted for separately from any electricity consumed by the owner of the project.
- The price will not change for the generator once the contract has been signed except for applicable inflation adjustments.
- Rates are based on a percentage of the consumer price index (CPI) so will continue to rise in line with inflation.
- Return on Investment is up to 18% per year.
What projects are eligible for a microFIT contract?
The microFIT Program is available to very small renewable energy projects located in Ontario. Projects must have a generating capacity of 10 kW or less.
A project must be connected to the province’s electricity distribution system through the local distribution company and must be separately metered for data gathering and payment purposes.
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
microFIT Price Schedule
|Renewable Fuel||Project Size Tranche||Price (¢/kWh)||Percentage Escalated|
|Solar (PV) (Rooftop)||≤ 6 kW|
> 6 kW ≤ 10 kW
> 10 kW ≤ 100 kW
> 100 kW ≤ 500 kW
|≤ 10 kW|
> 10 kW ≤ 500 kW
|On-Shore Wind||≤ 500 kW||12.5||20%|
HOW DOES SOLAR WORK?
- Solar panels are installed on your roof
- The sun gives off light, even on cloudy days and hits the panels
- PV cells on the panels turn the light into DC electricity
- Inverter converts the DC power to AC power
- This clean energy is sent to Ontario Power Grid
- Receive monthly cheques from your hydro company
- You help power the province and gain fair return on your investment