MicroFIT Explained

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What is MicroFIT?

The Ontario FIT program was launched in October 1, 2009 to encourage Ontarians invest in renewable energy generation and earn Return on Investments as high has 10% over a 20 year term.

“This is your LAST CHANCE to let the government incentives cover the cost of your Solar System and Earn a Return of Investment as High as 10% !!! The program will end on December 28, 2017 after which it will be replaced by Net-Metering.”

We offer full turnkey solutions. We take care of the required applications, permits, design, construction and commissioning. We offer free consultation to help you understand how you can benefit from the MicroFIT program.

How It Works:

Eligible customers sign a contract with Ontario Power Authority for 20 years to sell electricity and receive a guaranteed price per kWh of the electricity generated. The guaranteed prices are meant to help customers Cover the Cost of Their Solar Project and Earn a Reasonable Return on Investment over the term of their contract.

Sample Calculations for a 4 kWh System:

  • Initial Cost $12,000 Installed
  • Rate Paid by IESO = $ 0.31
  • Electricity Generation = 4676 kWh/year
  • System will generate a revenue of 4676kWh*$0.31 = $1445/year
  • System Pays for itself in about 8.3 years
  • 11.7 Years left from contract: 11.7*$1445 = $13397 Net Profit
  • Annual Rate of return = [(28900 – 12000) / 12000 /20 years] x 100 = 7.0%
System Size (kW)
Initial Investment ($)
System Generates (kWh/20 yrs)
Revenue Generated (20 Yrs)
System Pays for Itself In (Years)
Net Profit (CAD)
ROI (%)
2.5
7500
58450
18120
8.3
10620
7.0
4
12000
93520
28900
8.3
13397
7.0
10
25000
233800
67802
7.3
42802
8.6

 

  1. On average each kilowatt of solar installed (on an unshaded low slope roof facing SE to SW) will produce about 1169 kWh per year in Ontario.
  2. Solar systems in the 5-10kW size can be installed by qualified solar contractors for approximately $2.5-$3/watt.
  3. The initial investment required may vary for different projects
  4. Solar equipment can produce electricity reliably for 30 years or more. Assume a 30-year life.
  5. Assume your project is paid for in cash (earning almost nothing in an interest-bearing bank account). The cost of capital has been excluded in this simplified model

Contact us today and we will schedule a free assessment meeting with you and provide you with our honest opinion as to whether you should invest in a net-metering system.

 Our solar panels are typically designed to last 30+ years and come with a 25-year warranty so once your term of the contract is over (20 years) you still have another 5-10 years to generate a portion or your entire electricity need right from your roof (depending on the size of your system and your electricity consumption).

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