In this blog post we examine the Ontario solar energy program, better known as MicroFIT, and use an example of solar panel financing to illustrate solar energy production returns versus expenses.

 

What exactly is the Ontario Solar Program?

The Ontario Solar Program, better known as MicroFIT is a renewable energy initiative created by the Provincial Government of Ontario. By getting solar panels on your home’s roof, you are able to get paid a lucrative incentive for feeding solar electricity back into the grid! Applicants accepted into this year’s program are eligible to receive 28.8 cents / kilowatt hour, on a guaranteed contract for 20 years. We have found that this works out to a revenue of about $250 – $300 a month (on average) for most homeowners. Over 20 years, this can add up to almost $70,000!

Unfortunately, this is the last year of the MicroFIT program will be accepting applications, as announced by the IESO. This means you will need to hurry and apply if you want to secure your spot, and your guaranteed solar funding.

How Much Do Solar Panels in Ontario Cost?

If you contact a solar company to determine what how much your residential solar panels in Ontario would cost, it will likely take a couple days for them to come up with an answer. This is because the installer will first need to measure your roof online and determine your home’s feasibility for solar. Several factors are involved when determining cost, such as roof structure, hydro meter location, and permitting requirements in area you are located in. With that being said, in 2017 a full solar panel system with all costs included will most likely be in the range of $26,000 to $31,000.

If you are interested in getting an exact quote, we recommend submitting an inquiry with a qualified Ontario solar installer, or broker. We will find your roof with Google Maps; have an engineer use dedicated software to determine how many panels can be placed there, and what the estimated solar production figures are. Most, if not all installers will complete this service for you for free.

Ontario Solar Energy Program Financing Options

Full Purchase – Buy your solar system outright and receive 100% of the MicroFIT revenue. This is the best option if you already have significant home equity and access to your own lines of credit.

In House Financing – We will finance your solar system on your behalf and you will be able to pay off your system with monthly payments (beginning after the system is connected to the grid). Our guarantee to you is that we will have your solar system pay for itself with this program. Your annual MicroFIT revenue will always be higher than your solar financing payments. Note: not every Ontario solar installer offers a program like this, so if they do, it’s a good idea to investigate if this may be a feasible option for you!

Are Solar Panels In Ontario Worth It?

With so many flexible options on going solar, you may be asking yourself if the returns will be worth it for you. Here is a sample from a real customer’s MicroFit solar evaluation package that can give you some perspective on how lucrative this investment can be. We call this “Letting Your Solar System Pay For Itself”.

Vital Stats:

Down Payment: $8000.00 + HST

HST : claimed back on tax return

Annual MicroFIT Income: $3300.00

Annual Financing Of Solar Panels: $2460

Years 1 -15: Cash Flow positive $840 / year

Years 15 – 20: Cash Flow Positive $3300 / year

Net Revenue (positive cash flow – down payment) = $21,100

In this example, our customer was able to create a monthly revenue stream from their original $8000 down payment. With our in house financing, he is able to pay off the rest of the solar system as his MicroFIT revenue comes in. This allows him to be cash flow positive every year, until the system is paid off (in 15 years). When the solar panel system is paid off, our customer will still be able to enjoy an additional 5 years of MicroFIT revenue, which will be all profit. In this case, they will have a net revenue of $21,100, plus a system that is expected to last another 20 – 30 years, all from that down payment of $8,000!

Every roof is different, so if you are considering if investing in solar panels for your home in Ontario is right for you, contact us. Many proposals are actually able to generate more solar revenue than the example above.

Time Is Running Out – Get Involved In the Ontario Solar Program Today!

 

 

Want to know the next step?

If you are interested in hearing more about solar and how it could benefit you as a home owner in Ontario, connect with us by filling out our contact form, and we will create a customized solar proposal for you.

We have received numerous questions over the last few years regarding the value of putting solar panels on your roof through the MicroFIT program. In regards to the current Ontario solar incentives, consider the following. This blog post examines the difference between having a standard home, and having an eco-friendly house which generates income through the Provincial government’s MicroFIT program.

We need your input. Please read carefully and comment below.

 

Which House Would You Buy?

Marked here is house 1 WITHOUT solar and house 2, which is benefiting from the Ontario solar incentives. They are built with the exact same design by the same builder. They are the exact same size, have equal bedrooms, washrooms, etc.

House 1 WITHOUT solar is listed at $500,000.
Mortgage payment @ 3% = $2371.02

Combined monthly income required to afford the home is $7409.44

House 2 WITH MicroFIT solar is listed at $525,000/
Mortgage payment @3% = $2,489.57
Monthly income from the solar panels = $400
Mortgage payment – monthly solar income = $2,089.57

Combined monthly income required to afford this home is $6529.91

Which one would you buy? The solar home which generates a consistent monthly income with the Ontario MicroFIT program, or the home without solar panels?

Our Opinion: As you can see, when you have the guaranteed government income being produced every month, your home becomes much more affordable. For potential home buyers, this can make your home more attractive compared to the rest of the market.

*** PS. For a limited time, we are providing a special discount to anyone who purchases a residential solar system from Reboot Solar! Watch the video on our qualify page for your discount code. See if you can benefit from the solar incentives we have here in Ontario.

Note: the program is ending soon, so if you want to get involved, you will need to act fast.