Renewable Energy: Incentives and Connection Options
Making Money with Solar Power
Ontario Announces Feed in Tariffs for Solar Projects.
Ontario Power Authority is now taking applications to purchase electricity from renewable energy projects such as residential rooftop solar systems.
If your project meets all the criteria for safety and domestic content you will be offered a contract to buy your power for the next 20 years at a premium rate.
Projects with an output below 10 kilowatts termed MicroFIT, are typical for residential and small commercial will earn 80.2 cents per kilowatt-hour. This will result in a payback time of less than 10 years for most systems, and profits continue to roll in for the rest of the 20-year term.
Typical investment would range from about $15,000, which will earn about $1,100 per year to a $60,000 system that can earn $10,500 per year. Its like a pension plan with an environmental benefit. Don’t forget that solar panels carry a 25-year power output warranty so there will still be value at the end of 20 year contract.
We can help our customers with your application to be sure it’s accepted on the first try and there will not be problems with documentation.
Rules will change for any project after the end of 2010 requiring more domestic content, so act now while you have lots of choice for good equipment at great prices.
Projects, which have an output of over 10 kilowatts, are put in a different category called the FIT program. The rules are stricter and the application much more detailed. An example would be a very large commercial rooftop that could support 8000 square feet of solar panels.
The pay scale also changes as the projects reach larger sizes. These are large investments, which can deliver good ROI if properly constructed. Again the rules change at the end of 2010 that will reduce you choice for equipment so move quickly as larger projects take more time to develop and install.
Consulting services are available on applications to make sure your project is going to make money.
With over 24 years of working with solar power, and the only dealer in the area with Grid Tie experience why would you even consider anyone else?
Other Government Programs and Rebates.
- Net Metering allows you to interconnect your solar or wind system with the utility grid and make your own power. Electricity is blended without switching. If you have more electricity than you need the power will flow back into the utility lines. The utility meter records the number of kilowatt hours sent back. When you need more power than you produce the meter records the power consumed. The bill is calculated on the net amount of kilowatt hours consumed which saves you money on electricity, transmission and debt retirement charges which are tied to the kilowatt hours consumed. Net Metering only allows for a credit on your account which is carried over for up to one year. You will not be paid for any excess electricity. More info at www.powerauthority.ca
- Class 43.1 and 43.2 of the income tax act allows for accelerated write-off at up to 50% the first year the balance over the next 2 years on equipment for generating electricity from solar or wind system as well as solar thermal systems. Expires 2020 Call 613-957-8953 for info. Technical inquires 613-996-0809
- Canadian Renewable & Conservation Expenses (CRCE). If the majority of tangible property in a renewable project is eligible for Class 43.1 or 43.2 then certain start up expenses e.g. Feasibility studies, engineering, design work may qualify to be deducted in full in the year incurred & carried forward indefinitely for use in future years or transferred to investors using flow through shares. End date 2020 Income Tax Ruling Directorate 613-957-8953
- Northern Ontario Heritage Fund has a program to help small business for new internal energy generation. This can cover up to 50%. for more info www.nohfc.com
- Check to see if the new Federal Ecoenergy Retrofit program includes funding for renewable energy. Info at www.ecoaction.gc.ca 1-800-622-6232
- Leasing: Companies are willing to lease complete renewable systems making easy payment plans as well as a write-off for business.
- New incentives are announced frequently so check with us for additional information.
Examples:
Three Kilowatt Solar Project
A 3000 watt system (3 Kilowatts) will produce approximately 3600 kilowatt hours per year in Sault Ste Marie. The cost to install such a project is roughly $27,000. Systems under 3 KW are recommended for net metering connection.
Ten Kilowatt Solar Project
A 10 kilowatt system would produce approximately 12,000 kilowatt hours per year in Sault Ste. Marie. The cost to install a 10 KW solar system would cost approximately $86.000.
First MicroFIT system in operation in the area.
Very small systems less than 3 KW are at a disadvantage as the costs of operation consume some of the earnings. Systems just over 10 KW will be disadvantaged by the extra costs of commissioning larger systems. We suggest that systems between 10 and 15 KW be avoided.
Estimated kilowatt hours produced is based on Natural Resources Canada weather data for the Sault Ste Marie Airport. Solar array would be facing true south with no shadows cast on the modules. System efficiency, slope of the roof, site conditions, and weather variations will affect the performance and revenue produced.
Green House Gas emissions Savings
The more renewable systems that come on line the faster we can shut down the dirty coal generators.
So to Review the Available Opportunity.
- You have the chance to acquire some very valuable equipment at half price.
- You can write off the cost of the system against income taxes.
- You will receive a steady income for the next 20 years.
- The solar modules are warranted on their power output for 25 years and are virtually maintenance free.
Northern Lights Energy Systems Ltd. had been in business for over 24 years. We have the only grid connected renewable energy wind and solar systems in the area. Northern Lights Energy was one of the first renewable energy dealers to receive ESA contractor license. License No. 7001821
All you need to do to get started is to call Northern Lights Energy Systems Ltd. for an on site consultation to become aware of your best possibilities.
Call: 705-246-2073
