What are Feed in Tariffs (FITs)?

Basically, they are incentives (or subsidies). All sorts of industries (e.g. nuclear, oil & gas, hydro, etc) receive subsidies of various sorts. Some receive direct cash, (for R&D, for example). Some receive rebates direct to end-users (like the Peaksaver program). Some receive low interest loans or tax breaks. The PV industry has decided to support Feed In Tariffs as a policy mechanism designed to accelerate the adoption of its technology. We like them because they reward good behavior and punish bad behavior and are the closest thing we've seen to an incentive mechanism that best reflects natural market forces.

Feed in Tariffs pay for energy produced from renewable sources at a premium rate. The rate is set to offer investors in the technology a fair return on their money. This is what drives the market forward. The idea is that, over time, the increased demand will reduce the cost of supply. When this happens the rate is reduced to maintain the fair return for the investor. In Ontario, the rate is controlled by the Ontario Power Authority (OPA). In order for Feed in Tariffs to be successful they require:

• Fair and equal access to the grid for all (can't favour only one type of investor)
• Long term contracts (investors need stability and security)
• Attractive pricing (needs to produce a fair return on investment)

In Ontario, anyone can invest from homeowners and community groups to large corporate developers. Also in Ontario, it is the electricity rate base (everyone with an electric bill) that pay for the premium rate; it doesn't come from tax revenues. This means that if you conserve energy, you will pay less of the premium for the FIT program than someone who consumes lots of energy. A larger burden is placed on those who consume larger quantities of energy, rewarding conservation.

Feed in Tariffs have proven successful in other parts of the world, most notably in Europe. Worldwide, the solar industry is growing and prices are coming down. Ontario's Feed in Tariff program is an example of this province pulling it's weight and getting behind a global movement to accelerate the market readiness of renewable technology.


How do I get a FIT contract?

The easiest way is to contact us, we'll guide you through the process. If you want to do it on your own, start at the Ontario Power Authority website.

Can I make money from this?

Yes. FIT and MicroFIT pricing is set to permit a "reasonable rate of return" for system owners that, when the program was launched, was around 11 percent. Actual return will vary depending on system cost, which has generally be dropping. Call us to arrange a Quote for your particular application.

What are the tax implications?

For more information on tax implications of FIT and MicroFIT revenue, see Canada Revenue Agency's FIT and MicroFIT FAQ web page.

Is the FIT and MicroFIT price paid for power going to change?

There is to be a review of pricing and general program terms every couple of years. The next is expected to come in the last quarter of 2011. Pricing is expected to drop, but to what levels is unknown. Anyone with an existing contract or contract offer will keep their contract price for the life of the contract. Only new contracts, issued after the review, will be subject to the new price.

Should I clear the snow off my panels?

Generally, no. Cleaning snow off roof mounted solar modules poses risks to you and your equipment and we recommend against taking these risks.

My roof faces East/West. Is that a problem?

Solar arrays that face East or West will not perform as well as those facing between South-East and South-West. Expect to lose on the order of 20 to 25% of performance for an array facing due East or West compared to one facing South.

What angle is best for my roof?

Solar arrays that face South and have an angle of between 30 and 35 degrees (measured to the horizontal, roughly corresponds to a 7/12 pitch) are best. However the degradation in system performance is small for shallower or steeper roofs. Roof pitch is not a barrier to installing a system.

Will a solar energy system affect my property taxes?

No. Electricity Generation Equipment is exempt from assessment per Section 3.18 of the Assessment Act

Can I claim the HST on my MicroFIT system?

Yes! Canada Revenue Agency allows HST claims on eligible MicroFIT projects. The purchase and installation of MicroFIT solar systems will be interpreted as a 'Capital Personal Property', which is eligible for an HST ITC. See here for a relevant information sheet.


How do I know if solar is right for me?


There are many reasons to choose solar but a good place to start is by evaluating your objectives. What are you ultimately after? A return on your investment? A greener planet? Energy security? All are valid objectives, Try to prioritize them. Be honest. Your prioritized objectives will help us point you in a direction that will best satisfy you. This might even be away from solar - that's OK - we're not pushy. For example, if you are after energy security and a return on your investment, these two objectives rarely align (unless you are building a new home miles from the power lines). But if you are after a greener planet and a return on your investment a FIT or microFIT driven batteyless grid-tied solar electric system might just do the trick. Heck, even if your only objective is return on investment, a FIT or microFIT solar electric system may be appealing. Call us for a chat about your objectives and whether solar can meet them. We can discuss the pros and cons of all types of systems.


Why would I choose Generation Solar?

Experience

Renewable energy contracting has been our exclusive focus since our founding in 1998. We've installed hundreds of systems in a wide variety of settings. We do all our own installations and we excel at problem solving and tackling complicated jobs. We teach renewable energy, have consulted to federal and provincial policy development committees, and we have been active in our industry association, occupying board positions for many years.

Qualifications

Generation Solar is a Licensed Electrical Contractor. Our principals are Professional Engineers and Licensed Tradesmen. Our crew is covered by WSIB and carry appropriate training certifications. We carry $5M in contractors liability insurance.

Capability

Generation Solar is a small and flexible organization with broad skills. We adapt to meet our clients' needs.

Professionalism

We are professionals, first. We pride ourselves in building high quality client relationships and in being reliable and trustworthy. Most of our new business comes from referrals and our client feedback is consistently positive. We love what we do, and it shows.

References available.