Questions specific to the microFIT Program
How is the microFIT Program different from the FIT Program?
The microFIT Program is a “stream” or component of the FIT Program, designed specifically to encourage the development of micro-scale renewable energy projects, such as residential solar photovoltaic (PV) installations and small wind power facilities. These are often referred to as “micro-generators”.
The main differences are in the eligibility criteria, the contracting process and the rules. Projects eligible for microFIT must have a generating capacity of 10 kW or less. The contracting and application process is streamlined and the contract is simplified.
Projects with a generating capacity greater than 10 kW must apply to the FIT Program.
What if I sell my house while under a microFIT contract?
The OPA anticipates that sellers would include their renewable energy systems as part of the sale of their homes. In this case, the microFIT contract can be assigned to the purchaser. The new contract holder would receive payments in accordance with the microFIT contract for the remainder of the contract term. If you wish to take your project with you to your new residence, your contract will be terminated when your local distribution company account is closed and your connection agreement with your local distribution company is terminated. You have the option of applying for a new contract once the project is connected at your new residence.
What does the “streamlined” microFIT process include?
The OPA has worked with local utilities, known as local electricity distribution companies or LDCs, to develop a contracting process that complements the current connection processes of LDCs for micro-generators and is simplified for homeowners and small businesses.
The steps of the process include:
- registering to set up your own “My microFIT home page”
- submitting an application for your project online
- receiving a conditional offer of contract from the OPA
- submitting a connection request to your LDC
- installing your system
- finalizing your connection with your LDC
- accepting your OPA microFIT contract online.
Will applications for the microFIT Program have to be approved by the OPA before receiving a contract?
All applications will be reviewed by the OPA for the microFIT Program. If an application meets the program eligibility requirements, the OPA will send the applicant a conditional offer of microFIT contract. The OPA aims to complete the approval of applications within 30 days of receiving complete applications and any clarification that might have been requested by the OPA.
Applicants are responsible for contacting their local electricity distribution company about getting connected and must install the renewable energy system. It is also the responsibility of the applicants to ensure they have all the necessary building permits, environmental approvals and electricity inspections related to the size and type of their project.
For eligibility rules and application information for microFIT, please click here.
How long will microFIT contracts run?
Similar to the FIT Program, the contract term for microFIT projects is 20 years; 40 years for waterpower.
What projects are eligible for a microFIT contract?
The microFIT Program is available to very small renewable energy projects located in Ontario. Projects must have a generating capacity of 10 kW or less. Additions to existing facilities (incremental projects) may be eligible as long as they use the same renewable fuel and the combined capacity does not exceed 10 kW. Only the additional capacity will be eligible for microFIT prices.
A project must be connected to the province’s electricity distribution system through the local distribution company and must be separately metered for data gathering and payment purposes. The project must not have a RESOP contract. To see all eligibility requirements please click here.
How do I apply to the microFIT Program?
First you must register your intention to participate in the microFIT Program through the OPA microFIT website at microFIT.powerauthority.on.ca. Once you have completed an online registration and established your “My microFIT home page”, you can complete an online application for your microFIT project (or projects). The application(s) will require basic information about your project(s) including:
- location
- type of renewable fuel (e.g., solar PV, wind)
- size of the project (i.e., nameplate capacity in kW).
Full details for applying to the microFIT Program are outlined on the microFIT website. Your application must be submitted online using the form provided on the website.
Are there any fees for applying to the microFIT Program?
No, there are no fees for applying to the microFIT Program.
If I install rooftop solar panels, does that mean I’ll never have to pay another electricity bill?
No. You will continue to pay for all of the electricity that you consume in your house or business. You will be paid for all of the electricity produced from your solar panels. Power generated under the microFIT and FIT Program is to be metered and accounted for separately from any electricity consumed by the owner of the project.
Are rooftop solar panels eligible for the federal Home Renovation Tax Credit?
The home renovation tax credit (HRTC) is available for eligible expenses incurred between January 27, 2007 and February 1, 2010. According to the Canada Revenue Agency’s (CRA) website at www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/menu-eng.html, solar panels and solar panel trackers are eligible expenses under the HRTC. However, CRA’s website also advises that if you earn business income from part of an eligible dwelling, you can only claim the HRTC for expenses incurred for the personal-use areas of the dwelling. Revenue from FIT and microFIT contracts may be considered as business income by the CRA; you are therefore strongly advised to review the rules of the HRTC to determine the eligibility of your project based on your individual circumstances.
Is the definition of solar PV limited to rooftop panels only?
No, any solar PV project 10 kW or less in size will be eligible for the microFIT Program, regardless of whether it is mounted on a roof or on the ground. Eligible solar PV projects will receive the price set out on the FIT price schedule for electricity produced.
Will my property taxes go up if I install a microFIT project on my property?
As the microFIT Program is a new way of generating renewable energy in the province, there is little experience with respect to its effects on property taxes. We encourage you to contact your local municipality to discuss your project in the context of local taxation.
I have signed a contract with an electricity retailer. Will I be able to participate in the microFIT Program? Will I have to pay an exit penalty?
You will be eligible to participate in the microFIT Program. However, we strongly advise you to contact your electricity retailer to ensure that by entering into a microFIT contract you will not be violating the terms and conditions of your retailer’s contract.
When do I receive a microFIT contract?
You will receive a conditional offer of microFIT contract once your application has been approved by the OPA. This conditional offer will guarantee you a microFIT contract provided that you comply with the microFIT Rules.
You will receive a microFIT contract offer notice after your local distribution company has connected your project and provided the OPA with certain information about your connection request and connection agreement. Your microFIT contract will be finalized once you have accepted the contract offer online on the OPA website.
What price will I receive?
The price that you will receive will be consistent with the FIT price schedule at the time the conditional offer of microFIT contract was made (i.e. at the time your microFIT application was approved).
If your project is not connected within 12 months of receiving a conditional offer of micro FIT contract, the conditional offer will expire and you will have to re-apply to the microFIT Program.
To view the current price schedule, please click here.
Is there a penalty if I decide I no longer want to participate in the microFIT Program?
A microFIT contract holder may terminate a contract with the consent of the OPA. There are no fees or penalties for terminating your contract; however, you will no longer receive payments for power generated from your renewable energy system following termination. Also note that if your connection agreement with your local distribution company is terminated, your microFIT contract is terminated automatically.
What is an incremental microFIT project?
An incremental microFIT project is an expansion of an existing project. The incremental project must make use of the existing project metering and connection and must use the same technology as the existing project. To receive a contract for an incremental microFIT project, you must be the owner of the existing project and the incremental project.
Can my microFIT project be connected to a battery backup system?
Battery backup systems cannot be located behind the generation meter. For more information, please refer to the microFIT Rules.
How is the connection date determined for a microFIT project?
The connection date is the date the project is physically connected to the local distribution company’s distribution system or the load customer with metering configurations appropriate for microFIT settlements.
What is the start date for my microFIT contract payments?
The start date or effective date for microFIT contract payments is either:
- the connection date, if you accept the contract offer within 15 business days of the contract offer notice, or
- the later of the connection date and the first day of the local distribution company settlement period in which the contract was accepted, if you accept the contract after 15 business days of the contract offer notice.
How are microFIT payments calculated?
Generators will be paid for all of the electricity produced by their project, whether it is connected directly to the distribution system or load embedded. The load customer (i.e., the consumer of electricity such as a home) will be billed separately for all of the power consumed. Therefore, payment equals electricity production (kWh) multiplied by the microFIT contract price.
Note that you will be responsible for paying for all ongoing account fees that are associated with your local distribution company and your generator account.
Can I terminate a microFIT contract?
Yes, you can terminate your microFIT contract with OPA consent. Also, you should note that you microFIT contract will terminate automatically if you terminate your connection agreement with your local distribution company. You will need to provide the OPA with 30 days' notice.
How do I find a reputable solar equipment supplier and installer?
The Canadian Solar Industries Association (CanSIA) has an industry directory of solar companies that operate in Ontario and throughout Canada. You can visit their website at www.cansia.ca.
CanSIA also suggests asking the following questions when selecting a supplier/installer:
Does the company have proper credentials/training?
Solar systems in Canada usually require the services of a professional tradesman: an electrician for solar PV systems. However, as many electricians may not be familiar with solar technologies, it is important to ensure that they also have training in solar installations. While there is still limited formal training of solar installers in Canada, this is becoming more popular as the market increases. CanSIA is working closely with post-secondary educational institutions to provide solar training. Check to see if your supplier has installers that have undergone solar training through a trades training college, or a course provided by the solar product’s manufacturer. CanSIA members who offer installation services have their qualifications listed in the industry directory.
How much experience do they have installing the solar product?
More experience usually means a better system. Experienced installers should be familiar with new technologies and the latest Building Code issues. Since each solar installation is different, experience with the system being proposed will result in a more professional installation and will likely result in fewer problems. Request a list of past customers who can provide references.
What types of products do they carry?
Choose a company that has experience installing the type of system you want. Do they provide after sales services and maintenance? Many types of solar systems exist, some of which may be better suited to your needs than others.
Do they carry quality products?
Along with the importance of choosing the right type of system, you also need to be sure of the quality of the equipment supplied by the company. Ensure that the products they are selling carry an approval seal from the Canadian Standards Association. In some cases, standards are not yet available for solar products in Canada. If the product is imported check to see if it carries an international safety label such as UL (certification from Underwriters Laboratories Standards for Safety) or the CE marking (certifying a product has met European Union consumer safety, health or environmental requirements).
Do they offer guarantees on their services/products?
Check the product warranties and the installer’s warranty policies, as well as its service agreements. Product warranties often do not include labour costs. Does the installer offer a labour warranty? Be certain that you understand the full terms of agreement, including which services are covered, their duration and what fraction of the repair costs the company is accountable for.
Has anyone submitted a complaint against the company?
The company should be a member of an organization such as the Better Business Bureau or CanSIA in order to determine any complaints made against them, as well as to ensure that any objections were properly investigated. Members of CanSIA are required to sign a code of ethics. CanSIA ensures that all submitted complaints about its corporate members are properly explored and recorded. It is also a good idea to check with Industry Canada’s Consumer Affairs Office at www.strategis.ic.gc.ca/oca.
Do I need special insurance to cover solar panels?
You should check with your home insurance company to determine whether insurance is required to cover your solar panels. As a homeowner, you likely will be required to get additional insurance. If this is the case, you should have your solar installation company discuss your project with your insurance company to ensure that they are properly educated about the technology.
Do I need a building permit to install solar panels?
Municipal building permit requirements vary. Check with your municipal building permitting office to find out if a permit is required for installing solar panels.
Are there any bylaws that may prevent the installation of solar panels?
Municipal bylaw requirements vary. Check with your municipal bylaw office to find out if any bylaws affect the installation of solar panels.
What are the best physical attributes for a home if I am installing solar panels?
Solar PV panels work best when installed at approximately a 30 to 45 degree angle in a south-facing direction with no obstructions such as trees or other buildings. Roof racks and other mounting equipment can be used to ensure the panels meet the proper slope on your roof or can be placed on a mounting system that is positioned on the ground.
We recommend that you contact the Canadian Solar Industries Association (CanSIA) at www.cansia.ca as they will be able to assist you with whom to contact in order to assess your home and roof for solar readiness.
What is the average cost for a solar rooftop installation for a home?
An Ontario homeowner might install a residential-scale solar PV rooftop project of about three kilowatts (which would typically equal about one-third of the home’s electricity consumption). The cost would be around $30,000 (the general “rule of thumb” cost for PV panels is $10 per watt). This investment could result in microFIT Program payments of about $7 per day, or about $2,500 per year for the homeowner.
What is the average payback period for an average-sized solar PV rooftop home installation of three kW?
A three kW solar PV rooftop installation could pay for itself in about 12 years, leaving about eight years of “above-cost” payments, for a very reasonable rate of return over the 20-year term of the contract. For a more accurate estimate of the payback period, we recommend using the RETScreen tool: www.retscreen.net.
How many kilowatts can I generate in a typical year with an average-sized solar PV home rooftop installation of three kW?
The average yearly output for your microFIT project will vary based on your location and exposure to the sun. A typical 3 kW solar PV rooftop system could produce approximately 3,400 kWh per year. For a more accurate estimate of your project’s expected output, we recommend using the RETScreen tool: www.retscreen.net.
