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.
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