Solar Power

What is it Worth?

Up to a 13% return! 

That’s the short answer. Here’s the long one:

Since the FIT contract is for 20 years, you can expect to earn back the cost of your PV Solar System well before the contract is finished. That means you will continue to generate revenue throughout and beyond the duration of your contract. Since PV modules have a lifetime expectancy of about 40 years, the financial benefits can continue well beyond the initial contract!

MicroFIT vs GIC

Notes

  • GIC principle returned in year 20 
  • Nameplate Capacity: 6.16 kW
  • Average Annual Output: 1125 kilowatt-hours/year
  • Average Annual Revenue: $5,558/year
  • MicroFIT 20-year Contract @ $0.802/kWh
  • GIC rate: 3% 
  • Model also includes: 
    - module degredation 0.5%/year
    - insurance $45/year

What does it Cost?

While it’s important to remember that Solsmart specializes in customizing each system to best suit our clients’ needs, we understand that cost is a key factor in deciding whether a solar system is right for you at this time.

The table below shows the ROI for a typical turnkey pitched roof microFIT system. 

System SizeSpace Required
(Pitched Roof)		Est. Annual RevenueAverage ROI
2.2 kW 176 sq/ft $1,985 8.00%
3.3 kW 264 sq/ft $2,977 8.50%
4.4 kW 352 sq/ft $3,969 9.00%
5.5 kW 440 sq/ft $4,962 9.50%
6.6 kW 528 sq/ft $5,954 10.00%
7.7 kW 616 sq/ft $6,947 10.50%
8.8 kW 704 sq/ft $7,939 11.00%
9.9kW 792 sq/ft $8,932 12.00%
11.96 kW 880 sq/ft $10,790 13.00%

*Factors that affect price include module selection, inverter selection, type of roof, hydro meter location, and utility connection costs.

Assumptions:

  • Asphalt shingle roof with no customizations or shading
  • 1100-1150 kWh/kW/year in Ontario
  • $5.25/month LDC account fees
  • $50-$100/year insurance
  • All prices and revenue are before taxes

What are my Financing Options?

Solsmart has partnered with TD Financial Services who has lending products available for green initiatives. TD offers variable or fixed rate (O.A.C) financing for solar projects up to $50,000 at competitive rates. The loan term can be up to 10 years and is fully open, so you can pay it off at any time! You can have a solar system for as little as $1000 down payment!

What About Taxes?

It’s important to understand that since you are generating and selling power, the money you make from your FIT contract is taxable. The good news is that you can write off the cost of your installation as the monies are paid to you over the duration of your FIT contract. We recommend you speak to your accountant or financial advisor for a plan that best suits your needs.

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