Solar PV and Your House: FAQ

Installing a photovoltaic system on your house is a great investment for a number of reasons: not only does it increase resale value of your home without increasing property taxes, but it may protect your roof, help to reduce your energy bill, and be a great selling point for your house. Not to mention that a solar installation actively demonstrates your green attitude.

Does PV add to the Resale Value of my home?
Based on US data one can conclude: yes, PV does add to the house value. Research published in the Appraisal Journal concluded that “the increase in appraisal value for a home is about twenty (20) times the annual reduction in operating costs due to energy efficiency measures” (Nevin and Watson, "Evidence of Rational Market Valuations for Home Energy Efficiency," Appraisal Journal, 1998).

According to a study by the National Appraisal Institute, a PV system will add $10-$20 to the value of your home for every dollar saved over the course of the year. For instance, if your system generates $2,000/year, it would typically add $20,000-$40,000 to your home's value.

Does PV increase my property taxes?
It may in some jurisdictions, but not in Ontario. The Ontario Ministry of Finance has confirmed recently that there will be NO property tax implications resulting from installing small renewable energy systems, including solar electric and solar thermal systems.

Thus, installing photovoltaic system for Ontario homeowners is a unique home improvement that generates stable income without property tax implications.

Does it protect my roof?
Yes, it may protect your roof. A PV system shadows the covered part of the roof and protects it from UV, which in combination with water is the primary source of asphalt shingle degradation. Thus, installing a PV system will protect roof materials on southern parts of the roof (which experience direct hit from the sun) and may extend your roof's service life.

Will it reduce my energy bill?
A properly installed PV system may reduce your energy bill by keeping your home cooler in the summer and warmer in winter. A PV system shadows the covered (southern) part of the roof and and reduces the heat gain on the roof surface, in doing so it decreases the heat transfer in the attic during summertime, lowering your A/C bill. In wintertime, the narrow distance between the solar panel and roof may work as additional thermal insulation, in turn reducing your heating bill.

Green Attitude
You will be reducing the carbon footprint, meanwhile also contributing to a cleaner Earth. With increasing global warming awareness, you will demonstrate to yourself, your kids, your friends and your neighbours that you truly care about the environment.

The solar photovoltaic system is a great investment and may be a great selling point for your house. While helping the environment does not add up to much financial gain in a real estate contract, giving the buyer this peace of mind coupled with steady income without increasing property taxes, extended roof's service life and reduced energy bill certainly would assure them of increased equity for years to come.

Solar PV: Top 5 Reasons to Invest in Ontario

Since October 2009, significant financial incentives have become available for Ontario homeowners to encourage adoption of renewable energy in the province. Under the Ontario Solar Feed In Tariff Program, homeowners will be paid a guaranteed price of 80.2 c/kWh (for solar PV projects of 10 kilowatts or less) for all the electricity their project generates for at least 20 years. With this legislation in place, green investments in general have never made such financial sense. Consider the following advantages:

- Return is fantastic, while it is a virtually risk-free investment
With significant incentives that are available to Ontario homeowners, going solar is far more than just an environmental and socially responsible opportunity. You will earn up to 14% (!) on your investments annually for at least 20 years. In addition, these investments are virtually risk-free (guaranteed by the provincial government) and can be considered as buying a 20-year provincial bond with 10-12% yield.

- Provide steady and predictable income
The set price in the contract remains fixed for 20 years, guaranteeing you a steady and predictable income for at least 20 years. However, current solar panels have a much longer lifespan, allowing you to sell electricity (and generate income) long after the initial 20 years.

- Cash incentives from the government - Home Renovation Tax Credit
On top of these huge financial incentives, current $1,350 federal Home Renovation Tax Credit (HRTC) is still available.

- Green investment
Green Impact of a 3kW Residential Solar System:
Amount of work conducted is equal to:    0.8 acres of trees
Pounds of carbon dioxide prevented:     5,831 lbs a year
Pounds of sulfur dioxide prevented:      0.1 lbs per year
Pounds of nitrous dioxide prevented:     1.7 lbs per year

- Support local jobs and community
With local content rule built-in into the Feed In Tariff program, the major part of your investment will stay in Ontario, creating green jobs and supporting local communities.

In the next article we will analyze implications of photovoltaic installation from homeowner's perspective.

Feed In Tariff in Ontario: On a Verge of Solar Boom

Having suspended Standard Offer Program (the first North America Feed In Tariff in recent twenty years) in 2008, on September 24, 2009 Ontario made its second attempt to create a green economy. Solar Feed In Tariff with a guaranteed price of 80.2 c/kWh for solar PV projects 10 kilowatts or less in size and 71.3 c/kWh for solar PV projects 250 kilowatts or less in size may trigger a solar boom in the province.

Can Ontario repeat the success of Germany? If so, we can expect installing 200-250 MW nameplate capacity even in the first year.

In the next couple of articles I will try to analyze opportunities created by the new initiative. We start with investment aspects of solar photovoltaics in Ontario.

New Blog about Solar Technologies

In recent months I developed significant interest in all aspects of solar technologies (primarily photovoltaic). After attending Solar International in Anaheim and Canadian Solar in Toronto I decided to depart from just theoretical concepts about sustainability to something more practical...

So, I started this blog. I will focus on solar technologies and their practical implications. Sometimes implications will be general; sometimes with Canadian (or even Ontarian) flavor.

I understand that this is just one of numerous blogs about green energy and sustainability. However, I believe that together we will make our world a better place to live.

So, welcome aboard! Enjoy the flight!