Solar Power Systems

The cost of a solar energy project depends on various factors, including the system size, installation complexity, and location. On average, a 1 MW AC solar system costs approximately $2 million. However, this can vary based on specific project requirements and conditions.

Solar incentives can cover more than 50% of the total project cost. This includes rebates and tax credits that significantly reduce the upfront investment required for installing solar energy systems.

The typical return on investment (ROI) for a solar energy project is generally between 3 to 4 years. The ROI period may vary based on factors such as energy savings, system performance, and available incentives.

The feasibility of installing a solar energy system depends on three key factors:

• Energy Demand: Does your facility have an average energy demand of over 1,000 kW? Higher energy consumption increases the financial viability of a solar system.
• Roof Condition: What is the condition of your roof? Solar panel installation requires a solid, structurally sound roof that can support the weight of the panels. Around 100,000 sq ft of space is required for a 1 MW AC solar system.
• Building Ownership: Do you own the building, or do you need approval from a landlord to install solar panels?

The annual savings from a solar system are derived from three primary components:

• Global Adjustment (GA) Savings: By curtailing your electricity consumption during peak demand hours, solar systems help reduce GA charges, which are a significant portion of your electricity costs.
• Demand and Delivery Charge Reduction: Solar energy helps lower demand charges by reducing your peak electricity consumption. This reduction not only lowers demand charges but also decreases delivery charges.
• Consumption Charge Savings: Solar-generated electricity directly reduces your reliance on the grid, leading to lower consumption charges on your utility bill.

Global Adjustment (GA) is a charge applied to electricity bills in Ontario, which helps cover the costs of maintaining and expanding the electricity grid. For large industrial users (Class A customers), GA charges are directly linked to their energy consumption during Ontario’s top five peak demand hours. The more electricity consumed during these peak times, the higher the GA charge. Solar energy helps reduce GA payments by offsetting a portion of your load during peak demand periods.

A standard 1 MW AC solar system generates approximately 1,400,000 kWh of electricity annually, depending on factors such as location, weather, and system orientation. This amount can significantly offset your facility's energy consumption.

The quality of the power produced by solar systems is identical to the electricity you receive from your utility provider. It is delivered at the same voltage levels and frequency, ensuring compatibility with your existing electrical infrastructure.

• Net Metering: With net metering, any excess electricity generated by your solar system is sent back to the grid. You earn a credit that can be applied to future utility bills.
• Load Displacement: In this case, the solar energy generated is used directly within your facility. Solar power is fed into your building, reducing your reliance on grid electricity and lowering your overall utility costs.

Load displacement is used, as required by the Save on Energy program.

Currently, there are two major incentives available for solar energy projects:

• Save on Energy Program: Provides up to $860,000 in incentives for the installation of a 1 MW AC solar system. This program helps offset the upfront cost of solar installation.
• Investment Tax Credit (ITC): A federal tax incentive that covers 20-30% of the remaining project cost after applying Save on Energy funding. This credit significantly reduces the final cost of the system.
  

The timeline for receiving incentives varies depending on the program:

• Save on Energy Incentive: Typically, you will receive the rebate after the project is completed and verified. The application process can take several months, and Circuit Energy will assist you throughout the process.
• Investment Tax Credit (ITC): The ITC is generally received after your taxes are filed, following the completion of the project. Our team will guide you through the application process to ensure you receive the maximum eligible credit.