It’s called the Microfit program. I’m looking specifically at the residential program…The deal is this. You install the solar panels on your roof. The solar panels produce electricity. The electricity is then sold back to your hydro provider…and here’s the real carrot…the Ontario Provincial govt will guarantee to buy the electricity from you for 80.2 cents Kwh for 20 years!!!...
Why is this good? Currently, the price of electricity costs us between 6 cents and 10 cents Kwh depending on when you use your electricity… (peak and off-peak hours…. another cash grab from our govt but that’s a discussion for another day).
So, if you haven’t figured it out yet, you are making a profit of around 70 cents per Kwh…. They say you can produce around 10,000 Kwh per year… it depends on how much sun your roof gets. That means you could potentially earn around $8,000 to $9,000 per year. And the reason for the huge payout is to encourage homeowners to take part in green renewable energy.
So what’s the catch? The panels are not cheap… look to pay around $40,000 for the panels…. And that’s why the govt is paying out 80.2 cents Kwh… to entice you.. You also have to apply to get approved for the Microfit program. And like so many govt programs, it’s not an easy process. An application must be completed. A sun/shade test is done to see if your roof can produce enough electricity. If that works, then you need to apply to your local Hydro provider (Toronto Hydro, etc) and they will also need to accept your application to supply electricity to their grid.
I’ve only done some preliminary research and prices seem to be dropping as technology and more competitors get into the market. $40,000 is not a small investment but definitely worth looking into with a 20 year guarantee from the govt at 80.2 cents Kwh. Then there’s the environmental reasons…It’s green, renewable energy… we all want that… Eventually you could be right off the grid and supply your own energy.
Some words of advice…. with a Provincial election coming up this fall, this program could get taken off the table…Look for a reputable Solar energy company and get referrals. If it sounds too good to be true, then it probably is. Stay away from companies that say they will give you the panels for free and pay you 15% of the energy produced. The govt recently stopped allowing the leasing of residential space.
By the way, the PC govt says they would scrap the Microfit program if elected…but they would have to honor existing agreements…