Personal Finance

Net Metering for Solar panels

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  • Mar 19th, 2023 2:02 am
[OP]
Newbie
Feb 9, 2013
3 posts

Net Metering for Solar panels

I live in Ontario, considering rooftop solar panels? Recently, California cancelled net-metering but their existing customers who already signed up for net metering will be good for 20 years.

My question is what if Ontario government cancels net metering program in the future? If I signup now, how long will be be guaranteed net metering?
5 replies
Deal Addict
May 23, 2009
3440 posts
2055 upvotes
Mississauga
i6power wrote: I live in Ontario, considering rooftop solar panels? Recently, California cancelled net-metering but their existing customers who already signed up for net metering will be good for 20 years.

My question is what if Ontario government cancels net metering program in the future? If I signup now, how long will be be guaranteed net metering?
California did not cancel net-metering, they just revised to be less favourable. The current net-metering in Ontario is still at least a decade away from what is happening in California. It's like any incentive when the take in rate is really high or unsustianable then the govt will revise the program...just like our Microfit solar program which was revised a few times before it was cancelled.

To put it in context California is twice the population of Ontario and had 1.5 million homes with solar by the end of 2022. The whole country of Canada is just at 43000 roof top solar (residential and commercial combined). Just check google earth for roof top images of California suburbs to get an idea how common it is there

The ROI for a net metering system takes quite a bit more years in Canada so the adoption rate is very slow since people move houses quite often. Comparing California with Ontario
  • The utility ¢/kWh rate is much higher in California
  • The solar cost per installed watt is much cheaper in California
  • Federal and State Tax credit is much much better in California. They pay less in purchace tax and get a very sizeable rebate tax credit.
  • Solar generation potential is much higher in California.
Jr. Member
User avatar
Jun 7, 2008
173 posts
67 upvotes
Oakville
bubuski wrote: California did not cancel net-metering, they just revised to be less favourable. The current net-metering in Ontario is still at least a decade away from what is happening in California. It's like any incentive when the take in rate is really high or unsustianable then the govt will revise the program...just like our Microfit solar program which was revised a few times before it was cancelled.

To put it in context California is twice the population of Ontario and had 1.5 million homes with solar by the end of 2022. The whole country of Canada is just at 43000 roof top solar (residential and commercial combined). Just check google earth for roof top images of California suburbs to get an idea how common it is there

The ROI for a net metering system takes quite a bit more years in Canada so the adoption rate is very slow since people move houses quite often. Comparing California with Ontario
  • The utility ¢/kWh rate is much higher in California
  • The solar cost per installed watt is much cheaper in California
  • Federal and State Tax credit is much much better in California. They pay less in purchace tax and get a very sizeable rebate tax credit.
  • Solar generation potential is much higher in California.
Thanks for this. In your view is the idea of home solar viable in Ontario?
Deal Addict
May 23, 2009
3440 posts
2055 upvotes
Mississauga
adam west wrote: Thanks for this. In your view is the idea of home solar viable in Ontario?
Home solar with the previous Ontario microFIT Program. Yes definitely.
Home solar with the current Ontario net-metering Program. No. A remote off-grid property is also a good case senario. For a home connected to the grid it could possibly work with a forever home but it's quite a gamble.
Deal Addict
Sep 2, 2009
2598 posts
2589 upvotes
Ottawa
adam west wrote: Thanks for this. In your view is the idea of home solar viable in Ontario?
It "depends".

Right now, with 1:1 net metering, Greener Homes grant and 0% loan: have to work the numbers. For us it made sense before the loan was ever announced.

Whether the roof is ready or needs to be replaced first can be a determining factor. As well as your electricity usage.

Roof space towards the south.
Deal Addict
Dec 7, 2011
3159 posts
1569 upvotes
Whitehorse
I think what many investors forget is to include a) the cost of disposal/recycling at the end and b) the cost of removing and re-installing the solar panels when the building's roof has to be replaced. My roof is projected to be replaced in about 12 years.

These things often kill the business plan. My solar panel company had no clue as to a), but the cost for b) at current prices destroyed the business case by itself - even though I would have received close to 50% subsidy for the first installation.

In addition, none of the solar companies in my area could obtain solar panels with full *warranty* that weren't made in Chinese concentration camps. No thank you.

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