MicroFIT & Rate of Return

About MicroFIT and your Rate of Return

With FIT, or “Feed-in Tariff”, the Ontario Government and OPA are taking a bold and laudable step towards affordable, sustainable clean energy.  MicroFITprojects are those less than or equal to 10kW in size, and offer Ontario residents the ability to participate in the provincial drive for clean energy and to benefit financially.  FIT projects are larger than 10kW. WSE MicroFIT will provide systems up to 100kW in size, and will work with our partners to satisfy any larger requirements you may have.

Why Participate in FIT now?

Expect to see a real Rate of Return between 5-10%.

How it works is simple: the FIT program offers you higher return than conventional low risk investments like bonds and retirement funds, and less risk than other potential high return investments like real estate or speculative commodities. Your ROR is then protected with a 20 year contract to allow for consistent long-term growth.

Here are a few other reasons you should choose FIT today:

  • Limited time to act: the program will be reviewed and adjusted periodically. With the overwhelming response, the payout rates might be revised downward for new applicants.
  • Today’s low interest rates enable most property owners to fully finance their project and earn a positive income without cash outlay.
  • You will support our Government and Ontario Power Authority’s strategy to develop clean renewable energy sources in Ontario. This will not only bolster our economy, but will also ultimately replace the coal fired generation.
Is My Property a Good Candidate for FIT?

Best conditions will be on roofs facing south and offering 45 degree tilt with no shading. There is surprising leeway in direction and tilt. Roofs facing 45 degrees off south or tilted between 15-60 degrees can still provide very good power output and rates of financial return. Shading on the roof is usually the most important consideration, but we have some technology solutions to reduce impact of shading. Recent reductions in the ground mount tariff for microFIT have made this less attractive, but still a viable alternative to a shaded roof.

How Do I Get Started?

The options available to you are dictated by your property and situation. Contact WSE MicroFiT to understand what sizing and choices are right for you. Then, complete the easy online registration and application. It only takes about 30 minutes and will quickly get you on track to a cleaner, more efficient future.

What ROR Can I Expect?

The actual rate of return depends on a number of factors: your cost of financing, shading on the panels, amount of sunlight in your location, orientation of the panels and quality of the components. While the typical implementations offer as much as 15% ROR (pre-tax, pre-cost of financing) the following can also be taken into consideration:

  • Recent clarifications by CRA define means of recovering HST paid on Solar PV systems.
  • Accelerated (50%) CCA for Solar PV systems can amplify your personal financial gain! Talk to your accountant about CCA and HST treatment.
  • Insolation in Southern Ontario averages 3.8 — 4.2 hours per day throughout the year. Winter power production is significant, assisted by reflected light.
  • Future adjustments to FIT tariffs and rising interest rates will likely impact ROI faster than advances in technology.
  • Tracking systems can improve output, but with higher costs and complexity it might actually reduce ROI in systems less than 100kW.
  • Shading can significantly reduce output and should be considered when choosing a location.

More Information

OPA Information
OPA MicroFIT Application Process
OPA FIT Application Process