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office: 905-874-1218
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Solar Energy

Green Energy Act

When sunlight shines upon Solar PV (photovoltaic) panel, they create electricity. There are no moving parts to wear out and the process is absolutely quite. Green Energy Act in Ontario through Ontario Power Authority has been given the go ahead to introduce a "Feed In Tariff" program - called FIT. The FIT program allows you to connect your solar electricity produced to the power grid and sell all the power generated.

Solar Energy Normal electric meter on the side of your house or business keeps track of how much energy consumed from local electrical company. Each month you get a bill.
Under the FIT program, on your behalf we would call up your local electrical company and get another type of account called sell account. With this account, a second meter would be installed and to this your Solar PV panels would be connected.
Every month the electricity company comes and reads the "sell" meter, and the “buy” meter and instead of sending you a bill they send you a cheque for power they bought from you. The amount you are paid for the energy you sell is higher than the amount you have to pay for the energy you buy. You are probably paying about 13 cents per kilowatt-hour. However if you generate electricity using a Solar PV system of any size up to 10 kilowatts (about 90 sq. yard of panels) you can sell that power at 80.2 cents per kilowatt hour. Under the Green Energy Act, we need to meet more and more of our energy needs using renewable sustainable forms of energy. As a result, instead of pouring huge amounts of money into traditional power plants, the Green Energy Act and subsequent FIT program allows some of that money to be diverted into your pockets. This is a win win situation. You are saving the environment and at same time collecting money.

Typically, for a 10-kilowatt system in Ontario you will generate about 12000 kilowatt-hours of energy a year. This accounts for all the cloudy and the overcast days, the short winter and the long summer days. At 80.2 cents, this works out to about $9600 per year, or about $800 a month on an average. The monthly cheque will be of higher in summer and little lower amount in winter. There are ways you could optimize the efficiency of your system, typical example is by tracking the sun and earn a bit more. The FIT program in Ontario allows $800 per month (for example as above) every month for 20 years under a low risk government backed contract. This total of $192,000 worth of payments you would receive over the 20 years. Please take note, Solar PV panels can last 40 to 50 years, therefore at the end of the 20 years you can continue to generate power for your own use, or sell it under whatever program may be available at that time.

The current cost of a system is about $6 to $8 per watt; therefore, a 10 KW system would be about $60K to $80K. Hence you would get somewhere in the range of (9.6/80=12%, 9.6/60=16%) 12 to 16% of the amount of your initial investment coming back every year for the next 20 years. There is no rocket science needed to understand that the system pays for itself and the rest is profit for you.

The 10 KW system size is used as an example here, if you scale down to a 1 kilowatt system for about $7K to $8K the return is still about 12 to 14% of the amount you invest into a system. There are fixed costs such as installation of the second meter that does not scale down with system size. Contact us today at 905 874 1218 or send an e-mail ( info@rabtek.com ) and we will evaluate the size of system right for you, your location, and your investment budget.
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