Ontario Hydro pays competitive rates for solar power, ensuring fair compensation for solar energy generated by individuals and businesses.
How Much Does Ontario Hydro Pay for Solar Power?
Solar power has become an increasingly popular source of renewable energy across the globe, and Ontario is no exception. Aiming to reduce greenhouse gas emissions and dependence on fossil fuels, the province of Ontario offers various incentives and programs to encourage the adoption of solar power. One of these initiatives is the feed-in-tariff (FIT) program, which allows individuals and businesses to generate and sell solar power to the Ontario grid.
The FIT program was introduced in 2009, and it offers long-term contracts to individuals and businesses who generate electricity using renewable sources, including solar power. These contracts guarantee a fixed price for the power generated over a 20-year period, providing stability and financial security to those investing in solar energy projects.
The price that Ontario Hydro pays for solar power under the FIT program varies depending on the size and type of installation. The program consists of different streams, such as microFIT, Small FIT, and Large FIT, each with its own price structure.
Starting with the microFIT program, which is designed for small-scale solar installations with a capacity of 10 kilowatts (kW) or less, the price paid for solar power is currently set at 30.2 cents per kilowatt-hour (kWh). This rate applies to all solar projects within this category, regardless of the specific technology used or the location of the installation.
Moving on to larger solar installations, the Small FIT program covers projects with a capacity greater than 10 kW and up to 500 kW. The price paid for solar power under this program depends on the technology used and the location of the installation. As of the latest information available, solar installations under the Small FIT program can receive between 20.7 and 26.2 cents per kWh, depending on these factors.
For even larger solar projects, the FIT program offers the Large FIT stream. This stream is designed for projects with a capacity exceeding 500 kW and up to 10 MW. The price paid for solar power under this program also varies based on technology and location, but it tends to be lower than the rates offered for smaller installations. The current range for the Large FIT program is between 14.6 and 18.3 cents per kWh.
It is important to note that these prices are subject to change and may vary from year to year. The Ontario government regularly reviews and adjusts the rates to reflect changes in market conditions, availability of funding, and other relevant factors. It is advisable for individuals and businesses interested in solar power generation to stay updated on the latest rates by consulting official sources, such as Ontario's Independent Electricity System Operator (IESO) website.
While these FIT rates provide an incentive for investing in solar power, it is worth mentioning that the cost of installation and maintenance of solar panels must be taken into account. Typically, the return on investment for solar projects is calculated based on factors such as the cost of the installation, the amount of electricity generated, and the FIT rate. These factors, along with the duration of the contract, will determine the overall profitability of the solar energy project.
In conclusion, Ontario Hydro pays varying rates for solar power under the FIT program, depending on the size and type of installation. The microFIT category receives a fixed rate of 30.2 cents per kWh, while prices for larger installations under the Small FIT and Large FIT programs range between 20.7 and 26.2 cents per kWh, and 14.6 and 18.3 cents per kWh, respectively. Nevertheless, individuals and businesses interested in investing in solar power should consider the associated costs and factors affecting the profitability of such projects.