D.5. Frequently Asked Questions (FAQ's)

Here are some FAQ's and their answers.



How many years for energy payback by a PV system to offset the energy used to produce the panel?

According to the German Solar Industry Association, it takes approximately 3 to 4 years for a photovoltaic installation to generate enough power to equal the amount of power it takes to manufacture the panels.



Are panels recyclable?

Although there is no formal recycling program in place for panels, parts of panels may be recycled separately where programs exist.

If no toxic materials are present in tempered glass panels, the glass can be recycled.

The aluminum frame is also recyclable.



Why shouldn’t I wait until prices of solar panels come down?

The rates of the microFIT program have been intentionally chosen to yield a reasonable return on investment.

As prices inevitably come down, those rates will be readjusted (for all new projects) to keep that same return when the pricing structure is reviewed every two years.

Therefore, there will never be a better economic situation than what we have today.



Why would the government pay 80.2 cents for solar power?

That price was set as the appropriate level to stimulate the solar energy industry, in order to create jobs and increase the renewable energy supply.

There are also cost advantages to a decentralized grid system (as compared to a centralized system dependent on nuclear or coal) as the power can be generated close to the demand sites.





What if the government changes and they cancel the FIT program?

All completed contracts are legally bound and would be honoured.
 
 
 








How do the domestic content requirements work?

To qualify for the premium rates of the microFIT program, all systems must incorporate a certain percentage of made in Ontario content.


There is a list of different activities and hardware with a corresponding percentage that add up to the threshold required.


Your installer will check off which of the activities where achieved by your project and provide written confirmation.


Be sure to read the entire rules on the OPA website before submitting an application or negotiating with a vendor.



Are all panels made the same?

No.


Like any product, there are different manufacturers and technological variances that will affect quality and price.


Do your research on the available options and seek out early adopters and industry experts for their expertise.



What type of warranty should I ask for?

Manufacturer warranties for solar panels are typically 20-25 years (conveniently the same time period as a microFIT contract), though the panels are known to last up to 40 years.


The inverters may have a shorter warranty of 5-10 years.


A minimum one year installation warranty is recommended.





Will my insurance company insure the panels?

The insurance industry is not unified in their approach to solar installations at this point.


Being seen as a business has implications that may not allow for coverage under existing homeowner policies.


Readers should consult with their insurance company before taking any steps in this guide.




What additional fees can I expect?

Additional fees may include:

• Local Distribution Company (LDC) costs:
    - Connection fee (one-time),
    - administration fee (one-time),
    - account fee (monthly expense)

• Electrical Safety Authority (ESA) permit and inspection

• Building permit

• engineering designs, structural or building modifications

• insurance

• possible new government or regulatory requirements that are not currently in effect



Will the energy/revenue produced by my system be the same every year?

There will be minor variances from year to year.

You can also expect a slow decline in the output of the solar panels, on the order of 0.5% decline per year.








Will the MicroFIT income impact our charitable status?

No.

The microFIT program is no different than a church renting out its space.

A church that retrofits its church building to generate electricity is not running a business but using their facilities to further their purposes of their charitable entity and values.

Consult your accountant or Mennonite Foundation to confirm.