Solar Photovoltaic (PV) panels convert 13% to 20% of the sun’s energy into electricity. The electricity produced by the panels is called Direct Current, which can be stored in batteries and converted to Alternating Current using an inverter to power electrical appliances. Alternatively, the electricity from the panels can be passed through an inverter and connected into the utility electrical grid.
To help ensure a reliable, sustainable, long-term supply of electricity, the Ontario Government, through the Feed-In-Tariff (FIT) program, is offering six levels of financial incentives based on the size of the Solar PV system. For example, based on a 10 kW Rooftop system, the microFIT program pays $0.802 kWh over a 20 year contract period.
Why is the Ontario Government paying $0.802 kWh (as much as 6 times today’s price for delivered electricity) for Solar electricity?
The incentives are “rate based” as there is no up-front capital cost for the utility provider. Solar PV is geographically distributed; therefore, no additional distribution lines are required. Peak solar production occurs during times of high load which will reduce the need to develop new central power generation systems or buy power from other utilities. Perhaps most importantly, Ontario’s renewable energy sector will produce new jobs in design, manufacturing, installation and system maintenance.