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Frequently Asked Questions |
Table of Contents
Solar Panels on Your Roof (or on your lawn)
The Power
Income
Your Location
Financing
The Green
The Rules
Solar Panels on Your Roof (or on your lawn)
Will my roof handle the weight of these solar panels?
Very likely. The weight of the solar panels and mounting system adds about 3 pounds per square foot, which is pretty low when you think about it. It would be like adding another layer of shingles.
Will they damage the roof?
There are mounting systems that work with pretty much every type of roof out there. While we do have to puncture your roof to bolt into the wooden structure underneath, we take great care to ensure we don't introduce any leaks.
What if my shingles aren't in very good shape?
Get them replaced first. Remember that these systems must stay on your roof for 20 years. If we have to pull them off so that you can replace your shingles, it will be at your expense. If you can't afford to re-do your entire roof right now, then see if you can just do the area where the panels will sit.
How much roof space do I need?
About 100 sq feet per kW. Installing systems smaller than 2kW is probably not worth your hassle. If you're trying to do the math yourself, then figure each panel as 66" x 40". We mainly install in portrait mode, but occasionally in landscape if we're bolting into slats rather than trusses.
My roof has a lot of fancy peaks and strange angles. Is that a problem?
Yes. We need a large flat area relatively free of fancy doodads. Oddly, older houses are often better for this as they tend to have simpler roofs.
Can I put panels on two sides of my roof?
Yes, in certain situations where one side of the house is facing SW and the adjacent side is facing SE it is feasible. A roof facing SW or SE can still generate 95% of the power that one facing due South does.
My roof is pointing directly West (90º off South), will it still work?
Yes. A typical roof that faces directly West or directly East will still earn up to 87% as much as the same roof pointed directly South. Your Return on Investment will still be better than 12%.
What about shade?
Too much shading is bad. This can be from trees, but often from chimneys. It can seriously affect your income. Our technicians have specialized tools to perform a shading analysis to determine if shading will be a problem for your site. (*UPDATE!* Cut those trees down! A 10kW tracker system is equivallent to planting 20 acres of trees!)
How does snow affect the panels?
The panels are mounted at an angle so most snow should slide off. We also make sure to have plenty of clearance at the bottom. We can't promise that snow won't build up on the panels, so there may be a few times during the winter when you may manually have to remove it.
Will birds or squirrels be a problem?
Unlikely, they don't like the extra heat. However, you should inspect your panels at least once a month.
Do you account for wind?
Yes, it's a design consideration.
What if my neighbours are jealous?
They probably will be. Sorry, we can't help with that.
Will hail damage the solar panels?
The glass used in solar panels is tempered, so it's very strong, about the same strength as your car windshield. Unless you regularly get hail stones as large as baseballs, you have nothing to worry about.
How long does the equipment last?
Manufacturer warranties for solar panels are typically 25 years. Inverters are warrantied for 10 years with another 5 or 10 years optional. Solar panels should actually last about 40 years.
How much does insurance cost?
This is going to vary widely. Residential solar is new here in Canada and many of the insurance brokers and even the underwriters do not know how to classify it. Many insurance companies such as Pilot, treat solar equipment the same as any other equipment such as a hot tub or upgraded kitchen. These companies have quoted our customers from $75 to $150 extra per year.
Other companies have taken the approach that since this equipment is earning revenue, it should be classified as commercial which automatically puts you in the $1,000 to $2,000 range.
Most insurance companies fall into the first group. They generally have some limit (~20,000) on how much you can earn a year before they consider you a commercial setup. Check with your insurance company. In some cases our customers have had to change insurance companies to get reasonable rates. It won’t take long before all insurance companies are charging reasonable rates for solar equipment.
How long will the installation take?
Depends on the size of installation, the complexity of your roof, and any other factors around your home. However, you can figure approximately 2 days to a week.
I have a second home, can I put solar panels on both of them?
Yes. Under microFIT rules you are allowed 10kW’s of solar panels for each metered connection you have to the grid. Cottages, second homes or any other property with a connection to the electrical grid qualifies. (*UPDATE!* Under the latest rules, you can only have one MicroFIT installation per property. Dangit!)
What is the maximum amount of electricity I can sell to the government?
There is no real limit under the FIT program but if you go above 10kW you can no longer participate in microFIT. This means that there are additional requirements and your pay will drop from 80.2 cents per kWh to 71.3 cents. That being said, larger system can be cheaper to install due to the economies of scale. In reality it would not make sense to install 15kW but it may make sense to install 25kW or 50kW if you have a decent size barn facing the right way.
So I can only install a maximum of 10kW in solar panels under MicroFIT?
The official number that everyone tells you is 10kW. The rules actually say that the nameplate capacity cannot exceed 10kW. We can actually, and usually do, install more than 10kW on the DC side, where possible. This is to maximize the periods of time when your 10kW system is putting out less than 10kW, which is most of the time. We want you to maximize your revenue under the 10kW rule.
Nameplate Capacity means the manufacturer’s total installed rated capacity of the microFIT Project to generate electricity and, in the case of a solar photovoltaic facility, means the lesser of (i) the manufacturer’s total installed rated capacity of the solar panels, and (ii) the manufacturer’s specified maximum power output of the inverter.
This means that you can install as many panels as you want as long as the inverter cannot output more than 10kW. This is important because a system with 10kW worth of solar panels will almost never produce 10kW of power. Panels are rated at 20 degrees C and they are almost always hotter than that at least during the peak power producing months.
Even if the panels were producing 10kW of power, there are losses in the system. About 5% of the power is lost in the inverter and an additional 2% to 5% is lost in the wiring and elsewhere. All of these losses are taken into consideration when we calculate the expected power production and revenue but it still means that we can do better.
If we look at actual production numbers, the output that we see is rarely more than 80% (on a rooftop system) of the nameplate capacity of the panels and almost never more than 90%. This means we could install up to 12kW of solar panels and still get almost all the benefit. With 12kW, it is possible that on a couple of very cold, clear days in January when the sun is at it’s peak the inverters will not process all of the power that is available but this won’t amount to much and it will not hurt the inverters.
So in reality the maximum you should install is about 12kW. Installing more than that will produce more power in the morning, evening and on marginal days but you will start wasting power at peak hours.
Why do you use 4 dual-axis solar trackers rather than one big one?
There certainly is equipment on the market that could allow us to mount 10kW on one big tracking array. The main problem with this is height. These larger units are designed for utility scale installations, not homes and farms. We have to conform to a height restriction of under 5 meters in most locations. The engineering and installation of one large array can often be a lot more complicated (and expensive) then four smaller ones and it is less likely to annoy neighbors and zoning officials. (*UPDATE!* You can now have your dual-axis tracker system installed on 3 or 4 poles.
The Power
Will my house be powered by this new electricity I'm generating?
Yes, but indirectly. 100% of the power you generate goes straight to the street, then likely right back in to your house and your neighbours. 100% of the power goes to the grid to maximize your revenue.
Will I have electricity when the grid power goes down?
With the basic system, no. Unfortunately it gets more complex (and expensive) to install a battery backup option. Contact us if you would like details. (*UPDATE!*We now have an "OFF THE GRID PLAN!" Contact us for details.
Does the system connect to my current meter?
No, a new meter will be installed. The new meter monitors electricty going out to the grid. Your current meter monitors electricty in use on the property, as always.
I would like to use this electricity in my house and then send extra electricity to the grid?
You're crazy. No seriously, you're crazy. You pay, with delivery charge and debt reduction charge, not to mention smart metering charge, about 10 or 11 cents per kWh. Generating electricity with solar power and selling it to the grid will pay you 80.2 cents per kWh. You will sell electricity at 80.2c/kWh and buy it back at 10c/kWh. Is there more to say on this? Put aside your dislike of dealing with the government. Realize the cash difference in your bank account each and every month.
How do you find dealing with the Local Electrical Distrbution Company (LDC)?
Every power distribution company is different. The folks at Halton Hills Hydro as well as Milton Hydro have been wonderfully supportive and we love working with them. Hydro One has also been very helpful to our efforts. At this time, most LDC companies in Ontario are already setup to accept applications in the MicroFIT program.
Income
How much money will I make each month?
your payments will vary depending on how sunny it is through the month and on seasonal differences. Obviously we get more sun during long clear summer days than we do during short overcast winter days. On average if you received $11,000/year your payments would be approximately:
| January | $561 | July | $1358 |
February | $693 | August | $1214 |
March | $989 | September | $956 |
April | $1122 | October | $755 |
May | $1279 | November | $421 |
June | $1288 | December | $357 |
Where does my cheque come from?
The money goes from the Ontario Power Authority to the Local Distribution Company (Hydro One, Powerstream, Halton Hills Hydro, etc.) The cheque goes directly from your Local Distribution company to you.
Who is my contract with?
Your contract is with the Ontario Power Authority which is the pseudo-government organization that regulates electricity in Ontario. The OPA has a mandate to ensure a reliable, sustainable supply of electricity for Ontario. While the OPA is not strictly a government agency their directors are appointed by the Minister of Energy.
Can I trust the OPA to honour my 20 year agreement?
The credit worthiness of the OPA (Ontario Power Authority) derives from the fact that it has the authority to recover all its costs from Ontario electrical customers through uplift charges. So basically they can’t go broke since they have a monopoly on the sale of electricity in Ontario and they have the right to charge whatever they need to.
Their credit rating is Aa1 which is the second highest available. Currently, only five US corporations hold a higher credit rating then the Ontario Power Authority, GE and IBM only have an Aa2 rating. The stocks and funds that your RRSP are invested in probably represent a higher risk of defaulting then a contract with the OPA.
Your PPA (Power Purchase Agreement) is a legally binding contract that is enforceable in court. It is a fairly straight forward document that does not contain any loopholes for the OPA to rescind your contract other than out right fraud on your part.
(See Credit Rating of the OPA for more information)
Do I have to register a business and charge GST?
You can if you like, but you don't have to, and there are no particular advantages to doing so (and lots of disadvantages. Do you really want to do another set of tax forms every year?). You can simply declare it as "income" on your personal tax submission. GST only needs to be charged if you are earning more than $30,000 in a business venture. (See this link for more information).
Are there any tax breaks for the income that I receive from my Solar system?
This is really a question for your accountant but we will give you some ideas for you to discuss with him or her.
- Until your system is completely paid off you will not need to pay taxes on the income. Solar PV systems, including equipment and labour falls under Class 43.2 of the tax code and are subject to a 50% depreciation rate on a declining balance.
“Class 43.2 includes certain high-efficiency cogeneration systems and renewable energy generation equipment acquired on or after February 23, 2005, and before 2012. This accelerated CCA rate will also apply to biogas production equipment and distribution equipment used in district energy systems that rely on efficient cogeneration, acquired on or after February 23, 2005, and before 2012.” (See Tax Incentives for Industry, Natural Resources Canada for more information.)
- You may apply any costs that you incur in owning your system against the income. This would include additional insurance and interest payments if you finance the cost of the system. In the case of ground mounted system, you may be able to claim a portion of your property tax bill since they are taking up space on your property.
- You may be able to claim the income in the name of the lowest income earner, your 3 year old probably isn’t going to qualify but a stay-at-home parent may be able to claim the income almost tax free.
Once again, you should discuss this with your accountant but at the very least you do not need to worry about paying taxes for at least the first seven years.
Your Location
Does it matter where I live?
Not much. But there are a few factors that could make it difficult. For example, if you live in an area where the local power distribution company insists they just can't take any more electricty on the grid. Unlikely, but could happen.
I live on a farm. Is that okay?
Farms are perfect for ground mounted installations. We can run panels straight down a fence line that will take up very little land at all. Or if you have a nice big barn with one side facing south, it's just as good.
I was told that because I live on a farm that I am not allowed to install ground mounted solar. Is this true?
There are restrictions on Class 1 and 2 farm lands, but this only applies to installations over 100kW. 10kW microFit installations are NOT affected by this. The regulation states:
"The Minister of Energy and Infrastructure directed the Ontario Power Authority not to enter into contracts for ground-mounted solar PV projects greater than 100 kilowatts (kW) whose facilities are located on:
• lands comprised of CLI Class 1 or 2 soils"
Everyone is free to install solar on any farm property as long as they stay under 100kW. (See this OPA page for more information).
Won’t the wind blow over the pole mounted solar arrays?
The wind on a ground mounted solar array can add up to several tons so this is certainly something we had to engineer our installations for. We have had professional engineers design supports and foundations that will withstand anything short of a tornado or hurricane. The support bases for a 12 unit array are buried 5’ under the ground and weigh over 15,000 pounds. It takes the concrete from two full concrete trucks to pour 4 foundations (10.8kW).
Financing
Where's the best place to finance my system?
You will absolutely get the best interest rate if you pursue a secured Line Of Credit with your own bank.
I'm not interested in financing with my bank. What options do you offer?
We have partnered with TD Green Loans to facilitate our projects. We can help you fill out the forms and get it to the right people. Approvals are usually returned in a couple of days.
What are the rates?
Typically, prime plus a couple points, depending on your lending strength.
How much of a solar system can be financed?
100%. Installation included.
What are the chances I will be approved with TD?
If you've owned your home for at least a couple years, then pretty darn good. The bank understands that you're getting a guaranteed income from the Ontario Government for the next 20 years.
If I can finance this whole thing at prime plus a couple points, but my income is about 14%... how on earth is this possible?
When you're sitting at home collecting money, be sure to send a thank you letter to your local Member of Parliament. Because it's the Ontario government that is making this possible. And you won't be the only one. In the next couple of years you are going to see solar panels on every other house on your street and every other street in Ontario.
I would really like to get a solar system but I can only afford 1 or 2 panels. Is it worth it?
See the point about financing above. If you calculate your return on investment (approximately 14%), then factor that against a favourable financing rate (prime plus a couple points)... you start to see why you should put up the biggest solar system your property can handle.
The Green
What is the difference between mono-crystalline and poly-crystalline panels?
Mono-crystalline cells are made from a single crystal of ultra pure silicon. They are the original silicon solar cell and they are still the most efficient. Poly-crystalline cells are made up of multiple crystals and are generally cheaper to manufacture then mono cells. The gap in performance has narrowed significantly over the years to the point where they are very close. Both are good technologies but mono cells tend to be more efficient but more expensive per watt.
http://en.wikipedia.org/wiki/Crystalline_silicon
How important is the efficiency of the panels that I buy?
The efficiency of a solar panel is its ability to convert solar energy into power. A panel that has an efficiency of 15% converts 15% of the solar energy that falls on it into power.
There is a great deal of hype about how efficient one panel is over another. What efficiency translates into in real terms is how many square feet does it take to generate a certain amount of power, the more efficient the panel the less space they take up. If you have limited roof area then a more efficient panel will allow you to put more kW’s on your roof.
The downside though, is that the more efficient a panel is, the more it will cost per watt. It may be possible to buy 30% efficient panels but they will cost twice as much as 15% panels and therefore will not make sense for most people. On the other hand if we use panels that are too inefficient like thin film, our mounting costs are going to be more expensive since we will be mounting twice as many square feet of panels.
Panel efficiency is just one of many factors that go into delivering a system that is optimized for the maximum ROI (return on investment), which is always our goal.
I heard there is a new breakthrough in solar technology coming, should I wait?
It may come as a surprise to many people but solar photovoltaic cells are not new. They were first discovered in 1839. There have been many breakthroughs since then but the advancements are getting smaller. In Europe, large solar plants cover 1000’s of acres and have for years. There may be a company or university that claim to be on the verge of a breakthrough but there always will be. If you put money down on a solar system today, your ROI will be the same today as tomorrow, a year from now, or ten years from now. Advancement in technology or price in the future will never mean you've made a bad investment today in solar technology today.
I have heard that solar panels are going to drop in price in the future, should I wait?
This may be a difficult concept to grasp, but if the price of solar panels were less right now then small generators like homeowners would actually make less money. Let me explain: The government has set the Feed-In Tariff price at a level that they believe will cover costs and provide a reasonable rate of return. One of the biggest factors when setting this price is the price of solar panels. If panels were to cost half as much as they do now then the Feed-In Tariff would probably be closer to 40 cents not 80 cents. Sure, we could install twice as many panels for the same price and same return but most of us do not have unlimited roof space and even if we did, there would still be the 10kW limit.
The second part of this answer is a little easier to understand. The price of panels (internationally) has dropped drastically over the past couple years but this has little to do with technology. Due to the global credit crisis, there have been many large cancellations which have led to a temporary oversupply in the market. We would actually expect the price of panels to slowly rise in the near future if the financial world works out its problems.
Today, due to domestic content rules, all grid-tie solar power systems in Ontario must purchase solar panels made in Ontario. Unfortunately, the global glut of panels has little effect on the price of panels made here in Ontario. At the moment there are few manufacturers actually shipping Ontario content panels.
How much energy is used to manufacture a solar panel?
With current production methods a solar panel will take 3 years to generate the power that it takes to produce it. With the average lifespan of a solar panel being between 30 and 40 years we would estimate that a solar panel will generate at least 10 times the energy that it takes to produce it. source
Does the manufacturer of solar panels release greenhouse gases?
Not directly but if we were to factor in the energy it took to make the panel in all the different phases of the manufacturing process, it has been estimated that solar energy releases 25 to 32 g/kWh. This compares favorably to coal which releases 960g/kWh or even clean burning natural gas which releases 590g/kWh. The only technology that releases less g/kWh would be wind turbines. source
Will generating solar power reduce the use of nuclear power in Ontario?
No, but it will reduce the use of coal. The output of nuclear power stations is not adjustable. They are always running at the same rate. If there is excess power, they throttle back the coal generation first.
From a global warming perspective, does it make sense to cut down trees that might shade my solar array? Don’t trees help reduce global warming?
This is a great question. Trees reduce carbon in the atmosphere by building plant tissue out of it and locking the carbon away. Unfortunately this is only temporary, when the tree dies and is burned or rots, the carbon is released back into the atmosphere. Solar panels reduce carbon in the atmosphere permanently by generating power that would have been generated by coal.
Let’s put it into perspective. An average tree in the Canadian climate will temporarily reduce carbon in the atmosphere at the rate of about 20kgs of carbon per year. An average 10Kw solar array will permanently reduce the amount of carbon in the atmosphere by about 15,000kgs per year. source
The Rules
I read that some people installed solar systems and then were denied a contract. Is this true and could this happen to me?
No and No. This is what you are likely referring to: The OPA announced in March 2009 that there would be a FIT program coming and released some preliminary rules. A small number of people took a risk and installed systems before the rules were finalized. The final rules released in October 2009 included a domestic content rule that these “early adopters” were not in compliance with and therefore they were initially denied a contract. The media backlash from these early adopters was severe enough that the OPA eventually gave in and included an exemption from the domestic content rule for anyone that had installed a system prior to October 2009. The rules are established and finalized at this time and all of our systems are compliant with the domestic content rules.
Ok, but I read more recently that some people installed solar systems and then were denied connection agreements by their local hydro company. Is this true?
It's hard to tell exactly what happened in these cases due to lack of facts. While it is true that the OPA recently changed rules allowing local hydro companies to deny applications if they felt embedded generation in certain areas exceeded capacity on local transformers, it is unlikely that these folks were offered a connection agreement and then reneged upon. To be safe, we wait for approval from both the OPA and your local hydro company (as well as building permit) before proceeding with any work. Should we fail to receive approval and have to cancel your project, then we will return your deposit in full.
What about zoning, what is the likelihood that a dual-axis or other ground mounted system will be allowed in my area?
It almost certainly will be. Things have changed, with the passing of the “Green Energy and Green Economy Act”, your municipality no longer has the power to regulate renewable energy projects. The Act exempts renewable energy projects from municipal zoning bylaws, site plan control by-laws, demolition control by-laws and other provisions of the Planning Act. The exemption of renewable energy generation projects from these sections means that municipalities have lost all of their powers to block, alter, or control renewable energy generation projects.
There are a couple exceptions, notably the Niagara Escarpment Commission and a couple of other provincial bodies still retain their authority. This doesn’t apply to rooftop mounted systems either. If a system is attached to a building it can still be subject to a building permit.
http://www.willmsshier.com/articles/Municipalities_and_the_Green_Energy_Act.pdf
http://www.lawyersweekly.ca/index.php?section=article&articleid=941
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