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Small Net-metered Installations Offer Compelling Returns


Even though the MicroFiT has restarted in Ontario it’s not all good news for solar enthusiasts. The lower incentive rate for roof-top solar makes it harder to justify smaller solar installations since many fixed costs remain. A net-metered installation of 1 kilowatt (kW), however, is not subject to the same costs and delays associated with a MicroFiT connection and can offer great savings on your electricity bill, especially over the long term.

According to a March 2012 report by Aegent Energy Advisors Inc. entitled ONTARIO ELECTRICITY PRICE INCREASE FORECAST December 2011 to December 2016 the latest predicted estimated rise in electricity prices for residential consumers over the next five years will range between 46% and 58%. This means that if we are to calculate this rise in cost over the next five years using the current average rate of $0.09 per kilowatt hour (kWh) and an average increase of 52% over five years we should expect to pay closer to $0.14 per kWh by 2017 (in fact we currently pay more like $0.20 per kWh if we factor in distribution and administration costs, debt retirement payments, taxes including the additional 8% that we’ve been paying for the Harmonized Sales Tax so we could expect to pay more like $0.30 per kWh by 2017; additionally, some of these costs will go up as electricity prices rise). If this trend continues – and there’s no reason to assume it won’t with a rising population around the province and electric vehicles coming on line en masse over the coming years at great cost to our already aging infrastructure – we can expect to pay over $0.47 per kWh by 2032 not including distribution and administration costs, debt retirement payments, taxes, etc.. If you think $0.47 per kWh seems excessively high, just ask any European and they’ll consider you extremely lucky even by 2012 prices.

A 1kW residential roof-top system connected under net-metered conditions offers considerably fewer issues with respect to building permits and connection costs making this type of installation a quick and easy way to lower you electricity bill providing you with an ROI that will continue to increase in direct proportion to electricity prices.

Talk to us about a net-metered installation for your location.

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