Ontario's New REFIT Program

Ontarians will soon be able to benefit from a new program which will allow them to sell solar energy to the grid at an inflated price relative to the cost of electricity they buy from it. Under the program rules, solar systems up to 10 kW in size may sell solar energy to the grid at a rate of 80.2 cents per kWh, and effectively buy it back at the going rate (currently 12.5 cents on average). The net effect is that a relatively small solar system can produce enough income to supplement your current hydro bill! This is a dramatic shift in policy from a simple "net metered" agreement which holds the promise of making solar energy systems attainable to almost anyone with a south facing roof. For more information, please see below:

Questions and Answers:

1. Tell me more about the REFIT program. What is it exactly?
2. Why would the OPA want to pay me so much for solar power?
3. Am I eligible for the REFIT program? Surely there are major restrictions!
4. What is Domestic Content as it relates to solar in Ontario?
5. If I am interested, how much will this cost, when can I expect this to pay off, and how long will my system last?
6. O.K., so maybe I am interested, but maybe I should wait for the new next generation of solar panels to come out that are really cheap and then I can save a bundle! What about that?
7. Well, if I wanted to buy a system, how big of a system should I install, and why would I buy yours?
8. I'm a dealer, and I'm interested, but I don't know where to start. Do you have any kits available?
9. What if I still need more answers?

The Green Energy Act, 2009 (GEA) was introduced to the Ontario Legisature on February 23rd, 2009. It includes a proposal for a new renewable energy program known as a Feed-in Tarriff (FIT) Program designed to further encourage the development of renewable energy supply.

Objectives of the FIT Program:

• Increase capacity of renewable energy supply to ensure adequate generation and reduce emissions
• Simpler method to procure and develop generation
• Create new green industries through new investment and job creation
• Provide incentives for investment in renewable energy technologies

Moreover, the REFIT program was established specifically to encourage small scale (<10 kW) systems by providing a streamlined application and acceptance program, as well as separate payment schedules which make small scale solar installations not only realistic, but profitable!

Project Eligibility Requirements (taken from the OPA document "micro fit rules" )

Basic Eligibility Requirements:

1. To be eligible for the microFIT program, a project must:
   1. be a Renewable Generating Facility, which uses a Renewable Fuel that is included in the FIT price schedule;
   2. be located in the Province of Ontario
   3. not be or have been an OPA contracted facility that has reached commercial operation, except in the case of Incremental Projects, where the existing Renewable Generating Facility may be an OPA contracted facility;
   4. not have a Nameplate Capacity greater than 10 kW. If the eligible microFIT Contract is an Incremental Project, then the sum of the Nameplate Capacity of the existing Renewable Generating Facility and the Nameplate Capacity of the Incremental Project must not be greater than 10 kW;
   5. be connected, directly or indirectly, to the IESO-Controlled Grid via a distribution system; and
   6. have separate metering suitable for the microFIT Program data collection and settlement purposes as described in Section 3.4.
2. The Supplier must be the same person or entity as the person or entitiy that maintains the LDC Generator Account in respect of the microFIT Project, and must also be the person or entity who signs the Connection Agreement for the microFIT Project.
3. The supplier must have the legal authority and/or the permission of the owner of the property on which the facility is located to build and operate the microFIT Project at the proposed location.
4. If the project is determined by the LDC to require a Connection Impact Assessment, then the project will not be eligible for a microFIT Contract, and must apply through the FIT Program.
5. Although it is not an eligibility requirement for the purposes of an Application, Applicants should be aware that, pursuant to the FIT Direction, the microFIT Contract will require that microFIT Projects for solar (PV) achieve a Minimum Require Domestic Content Level. The Domestic Content Level is determined in accordance with the Domestic Content Grid.
   1. For solar (PV) projects that reach commercial operation on or prior to December 31, 2010 the Minimum Required Domestic Content Level is 40%. For solar (PV) projects that reach commercial operation on or after January 1, 2011 the Minimum Required Domestic Content Level is 60%.
   2. The Supplier must obtain written confirmation from any equipment supplier or installer providing equipment or services contributing to the Domestic Content Level, confirming which components qualify as Designated Activities.
   3. Applicants must indicate their Domestic Content Level at the time the microFIT contract is offered by indicating which designated activity achieves the Minimum Required Domestic Content Level.
   4. Within 10 Business Days of any request by the OPA, the Supplier shall provide written evidence satisfactory to the OPA, acting reasonably, confirming that the facility has met the Minimum Required Domestic Content Level.
6. Certain microFIT Projects may be required to meet certain requirements of the Ministry of Environment and Ministry of Natural Resources before the project can be constructed, including obtaining a Renewable Energy Approval from teh Ministry of the Environment.
7. Projects cannot be divided into smaller projects for the purpose of obtaining a higher Contract Price or any other benefit under the microFIT Program. If the OPA determines that a project has been divided into smaller projects, it may reject all Applications in respect of such projects. For the purpose of determining whether a project has been divided into smaller projects, the OPA will consider factors such as whether the Applicants in respect of such projects are the same person or legal entity, the relative locations of such projects and and the Renewable Fuel(s) used by such projects.

1. Costs: The input costs of the REFIT program are: Your solar equipment, installation, electrical and building permits, and administration fees imposed by your local distribution company. It should also be noted here that any income generated from your solar system will be taxable at your personal income tax rate, however the system costs can be used to offset those taxes, at least until those costs are exhausted by the income.
2. Pay Off Expectations: We expect that our systems should pay for themselves in 7 to 10 years. The major variable to payoff is the size of the system installed. Larger systems pay off faster than smaller ones.
3. System Lifespan: Crystalline solar modules such as the ones we carry have very long lifespans. Even the warranties last 20-25 years! The only other major component in the system is the inverter, and they carry 10 year warranties! In order to understand solar modules, it is best to think of them as big batteries. Like batteries, they give off electrons (energy). Solar panels do this in the presence of light. The more light - the more power! But, like batteries, they will run out of energy to give. That is why solar module warranties are based on output. Basically, the manufacturers state that the modules will produce at least 80% of their nameplate rated capacity in 20- 25 years (this takes into account the natural degradation of the power output, like a battery). So, after 20 years or so, your 1 kW array (for example) will have paid for itself long ago, and will still be pumping out at least 800 watts of power! Try and find that kind of warranty with anything else you buy!

Well, we all want to save money, but here are some facts.

1. The most efficient solar modules on the market today are made of Silcon Crystal technology. While this may not seem important, it is. If it takes twice as much roof space with cheaper modules in order to produce the same amount of power, how much did the extra racking, wiring, etc.. cost? Our studies show that the Silicon Crystal technology is the best, and most cost effective product to use for the REFIT program. Not to mention the benefit of choosing a well established manufacturer that will be around in 10 years, should you ever need warranty support!
2. The OPA will re-evaluate the REFIT contract in 2 years. If they feel that they have achieved their capacity requirements, do you think that they will want to keep offering such a lucrative solar deal?

1. How big should I go? Well, it depends on your motivations. If you simply want to reduce or eliminate your electrical bill, then all you need to do is decide how much you want to save, and work from there. Otherwise, you may want to look at how much solar you can install at your home based on your roof or yard size, and work from that point. It is really up to you. The REFIT program is really changing the way we look at solar installations by forcing us to look at the energy production in terms of cash flow, not power generation.
2. Why would I buy your products? We know that you can buy solar products from a lot of places. We have been in the business of designing and installing solar products for a long time now, and we have scanned the market specifically looking for "best fit" products for the REFIT program. We believe that our products are the best combination of quality, price, accessability, ease of installation, and warranty support on the market today. We are committed to our customers and their successful implementation of their REFIT contracts, and have the support to help you with what you need to get the job done.