it is time to act before microfit program ends
Ontario’s Ministry of Energy has set 28th December 2017 as the date to switch incentive program from current Feed in Tariff program to Net Metering Program. Hence it is important to understand the difference between these two programs and make a decision if you want to participate in Feed in Tariff program before it ends.
With Feed in Tariff program, you sell all the electricity generated by your solar power system to the utility at higher price than you pay for the electricity when you consume. And you continue to buy all the electricity you need from the utility at the lower retail price than the price paid under Feed in Tariff program. Because you are continuing to buy your electricity from the utility you do not need to have storage to store and use the electricity at night.
With net metering program when your solar power system produces electricity, it goes first power your home needs at that time. If your solar power system produces less electricity than your home need or if you need energy when the sun isn’t shining at all, that power is automatically supplied from the utility grid. If your solar power system produces more electricity than you need, the extra electricity is send back to the utility grid and you get credited for the electricity you send back to the grid at the same retail price that you pay for the electricity you consume from the grid.
With net metering, the homeowner is only billed for the “net” electricity used each month, that is, the difference between the energy produced by the solar power system and the energy consumed by the house over the monthly billing period. If your solar power system produces more than what you consume in a billing cycle, you get credit and this credit is carried forward to the next billing cycles. Under the Net metering program, credit is carried forward to twelve months and at the end of twelfth month it is reset to zero.
An existing microFIT contract would not be revoked as a result of the introduction of the new net metering program. Upon expiration or termination of a microFIT contract, the current microFIT contract holders could apply to the net metering program.
You are eligible to participate in the Net Metering program as long as you are:
– Planning to generate electricity primarily for your own use
– Using a renewable energy source (solar, wind, hydro, bio)
– Maximum size of your system is less than 500 kW
How will your hydro bill be calculated?
The value of the amount of eligible electricity generated and returned into the Local Utility Company’s grid will be deducted from the value of the amount of electricity you consumed from the system. If the result is positive, you will receive an adjustment on your monthly hydro bill. If the result is negative (meaning you’ve exported more energy than you’ve consumed), you will receive a credit which will be carried over into your next billing period. Important!!! Excess energy credits from previous billing cycles can be carried-over up to a maximum of twelve months.
We have made an effort to explain the difference between these two programs, if it is still not clear to you or if you have other questions or would like to get a free solar assessment of your property do not hesitate to contact us. If you want to take advantage of the microFIT program before it is too late you need to act now. We can help you get into the microFIT program before it ends. Click here and complete the form one of our representatives will be in touch with you to assist you.