Do you already have a microFIT contract and want to boost your earnings? Good News! The Ontario Superior Court of Justice has ruled that you can legally enhance your microFIT solar installation to maximize earnings.
How to Maximize MicroFIT Contract Earnings.
Even though the MicroFIT program was canceled in 2017, all existing contracts will continue to payout until the 20-year contract with IESO is over. If you upgrade your solar panel installation now, you can increase the revenue your MicroFit contract generates. Here’s how:
Step 1: Understanding Your MicroFIT Contract
Your contract allows you to sell electricity to the grid at 80¢ to 30¢ per kWh. Most residential contracts cap at a 10kW rate with a matching 10kW inverter.
Step 2: Upgrade Your Solar Panels
Initially, most systems installed only 10kW of panels, producing 10kW of power only under ideal conditions. With significant improvements in panel efficiency and reduced costs, upgrading to 16, 18, or even 20kW of panels can almost double your income since older panels may now only output 9kW.
Step 3: Review the ROI of Your Solar Panel Investment
Adding more panels is surprisingly affordable and can yield impressive returns. For instance, Solar Direct Canada clients have achieved up to a 30% return on their additional solar investments, outperforming typical GICs, bonds, or stock market returns. Plus, it’s a diversified, green investment.
Step 4: Transition to Net-Metering when Microfit Contract Expires
When your MicroFIT contract transitions to Net-Metering, a fully optimized system will generate ample free electricity for your home or credits for grid returns. This ensures long-term benefits and continued savings.
Ontario MicroFit Contract FAQs:
Here are the questions and answers to the top questions we receive on the Ontario Microfit ProgramHow do you record income from the microFIT solar program?
Income from the microFIT solar program should be reported as taxable income on your tax return. You can deduct related expenses and use the capital cost allowance (CCA) to reduce the taxable amount. See full guidelines on the CRA website here.How many microFIT installations are currently active?
According to the IESO, there are over 30,000 active microFIT contracts in Ontario. The microFIT program was introduced in 2009 and paid a guaranteed price over a 20-year term for the electricity produced and delivered to the province’s electricity grid. While the microFIT program closed in 2017, all existing contracts will be honored until the 20-year expiry.Who is eligible for the Ontario microFIT solar program?
Eligibility for the microFIT program was open to homeowners, schools, municipalities, co-operatives, and Indigenous communities beginning in 2009. However, the application window closed on December 1, 2017. The replacement program is called ‘net metering,’ allowing homeowners to continue selling excess solar energy back to the grid.Will my property taxes go up if I have microFIT?
Installing a microFIT solar system typically does not increase your property taxes, as it is considered a small-scale renewable energy project.What happens when purchasing or selling property with an existing microFIT installation?
When buying or selling a property with a microFIT installation, the microFIT contract can be transferred to the new owner. This process requires notifying and obtaining approval from the IESO.GET A FREE SOLAR PANEL CONSULTATION
Speak to Ontario’s solar panel experts, who have been installing residential and commercial solar since 1990.
