What exactly is the new feed in rates program?
A feed-in tariff program is one way for governments to kickstart the third industrial revolution that is migrating from fossil fuels to renewable energy sources.
It usually consists of providing long-term contracts to industry and the population by buying energy generated by solar, wind, biogas or water from them. The prices of the contracts will be calculated based on the investment made and a good return on investment, sufficient to encourage the movement.
In our centralized grid-based power system, we will move from large power plants to a distributed power system. For small systems under 10kw this is not a problem, but for larger systems some local economic testing should be done to make sure it is worth the investment in a particular area by the power companies to change the cables and transformers to accept the new power.
How long has this program been running?
The new FIT program began last October. It has two parts, the FIT and the microFIT for systems less than 10Kw. The FIT program has been very successful to date with 2900Mw of contracts awarded so far.
Under the microFIT program, the initial goal is about 100,000 people. Some 16,000 applications have been received so far; most of these for agricultural ground mounting systems. Only about 3,500 rooftop contracts have been awarded so far.
How does this benefit Ontario homeowners?
There are two main benefits: directly to the owner and then in full to Ontario.
1. First, to encourage homeowners to participate in the program, the return on investment has been set at around 8%. This means that you can sign a 20-year contract with the Ontario Power Authority and create a small electricity generation business. The 8% ROI is calculated based on the purchase and installation costs of a renewable energy system such as solar panels. This is new to the Province and you can expect prices to change as the costs of renewable energy systems come down, however the 8% ROI should stay the same.
2. The big picture is that it drives a renewable energy industry, creating jobs and reducing our carbon footprint. We moved to a distributed energy production from a centralized system, so we eliminate the need to build new and expensive power plants, we can turn off coal plants and reduce the import of expensive and dirty energy during our peak loads in the summer , therefore, reducing air pollution. and saving money.
How does it really work?
You should see it as a small business that generates energy. It connects to the grid and feeds its neighborhood. Solar panels are installed on the roof, connected to a disconnect switch and then through a production meter to the grid. You will still have your consumption meter for your usual use of the time of day. You will receive an invoice for consumption and a check from your LDC for production.
We know how bureaucratic the province can be – how complicated is the registration process?
The microFIT process for systems less than 10kWh is very simple. For a homeowner, the application is done online. After about 6 weeks, a response arrives with a conditional offer. The homeowner sees to it that the solar panels are installed, inspections and permits have to be done of course, then the local power company hooks up a production meter and you’re producing! You receive a contract offer from the takeover bid that you must accept within 45 days. Then you wait for the first check. Some systems allow you to monitor your solar panels online so you can see your output by the hour, day, week, etc.
What are the best systems?
There are really 6 things the owner needs to keep in mind:
1. National content. First, it is absolutely imperative that homeowners understand that there is a 60% local content requirement, which ensures Ontarians that their tax money stays in Ontario. Currently offshore panels are allowed this year, but this will end on December 31, 2010.
2. Quality system. I urge all homeowners to make sure they buy quality Canadian-made systems that are built to last.
3. Professional analysis. I also recommend that you have a professional solar analyst conduct an evaluation of your potential solar installation to provide a realistic estimate of performance and detail any difficulties with the installation that may result in additional expense. All this must be taken into account when calculating the return on investment.
4. Avoid unrealistic returns on investment. Avoid any provider that gives you crazy ROIs; I have seen quote 25%; this is totally unreal.
5. Research the products. Solar panels come in monocrystalline and polycrystalline formats. The mono is pure silicon and is more expensive, but also a bit more efficient. Polyethylene panel is less expensive, has a shorter carbon offset life, and is generally larger in size. Carbon offset or carbon neutral life means the amount of renewable electricity you produce that offsets the amount of carbon that was produced to make the panel, usually 4 years. Solar panels can be mounted on sloped or flat roofs, ground and pole mount tracking systems.
6. System design. There are also a couple of different system designs: microinverters where the panel produces 240 grid-like AC, and string inverters that are high voltage (and very dangerous) DC. The string inverter design is much like Christmas lights, when you pull one out, they all go out. The microinverter design is superior because shading affects only one panel, rather than all. They also emit a data signal for web monitoring.
How expensive is it and what is the return on investment?
ROI is typically 8% and systems are typically 100% financed. The system pays for itself in 7-9 years. The average homeowners 3Kw system will generate around $3000 per year depending on site and shade. A 3Kw system will cost around $25,000 installed for an Ontario manufactured system.
How much space does it take up?
Typically, you’ll install it on a south-facing sloped roof; however, SE and SW also work very well. You’ll want to install as many panels as possible, since adding later to the contract will require a renegotiation of your contract.
If you are a farmer with a lot of space, I would consider a tracking system. They are more expensive but also more efficient as they follow the sun.
Do you need a particular roof or structure?
Your roof must be solid. A good analyst will check your roof from the attic. If you have multiple shingles, I may recommend replacing them to avoid having to uninstall and reinstall the panels later. Keep in mind that panels will make your shingles last longer.
If your roof doesn’t look solid I would recommend getting it checked out by an engineer, you may need to install better support such as blocks between the joists.
Can it be installed on the ground?
Absolutely, ground mount systems similar to flat roof systems can point directly south. These are typically ballast-type systems, meaning concrete blocks support a mounting system and the panels are installed at the ideal angle. Tracker pole mount systems are also available in various sizes up to 10 Kw or around 50 panels.
What kind of maintenance does this system need?
Typical maintenance would be an annual checkup: clean panels, make sure wiring is ok, tighten bolts, etc. Other than that, with no moving parts, the system is virtually maintenance free.
Are parts freely available?
This depends on where you bought them. If you’ve decided on Ontario-made, which is mandatory next year anyway, then parts won’t be an issue.
With the amount of technology and innovation being introduced each year, how long will it be before this system becomes obsolete?
I ran a Solar Laboratory, one of only 5 in the world. Trust me, you have to rely on technology that has been tried and tested and in use around the world for the last 30 years. The space program is still installing silicon solar cells on spacecraft because they are reliable and robust.
New technologies such as thin-film solar cells are still at a very early stage. Accelerated life tests show that thin-film technology doesn’t like the sun, it quickly deteriorates when exposed to the sun.
And what happens when the sun doesn’t shine?
Well, even on a cloudy day you will produce some electricity. When the system is designed, the degradation is calculated in. This accounts for cloudy days, air pollution, inverter efficiency, bird droppings, dirt and dust, snow, etc. Be sure to take degradation into account when analyzing your final potential production numbers.
How many homes has The Energy Store equipped with solar panels? Do you have any anecdotes or success stories?
This is very new since last October. With our partners, we have installed over 100 systems to date, but this is just the beginning. We now have over 30 analysts across Ontario and expect to sell between 500 and 1,000 systems in the next year. Considering that there are 100,000 households expected to install a system, we expect to expand fairly quickly. An anecdote would be that wherever we install a system we get 5 or 6 homeowners from the same street asking about the system and when can they get one!
Are Ontarians and Torontonians more open to environmental solutions that may cost a little more in the short term?
We are all part of the planet; little by little we are realizing the need to abandon fossil fuels and change our society to one that is associated with our biosphere. I think everyone is now more aware than ever and open to investing in solutions that will improve our planet.
Where can homeowners go for more information?
You can go to our website where there is a lot of information. You can also Google microFIT and check the OPA website. Wikipedia offers a very interesting history of the FIT program.
http://www.theenergystore.ca
