Solar guide

Solar photovoltaic (PV) technology has advanced significantly during the past ten years, characterized by notable cost savings, improved efficiency, and increased use worldwide.

• Documenting a Decade of Cost Declines for PV Systems^[1]

• Over the past decade, costs have significantly decreased, driven by improvements in PV module efficiency (now 19.5%) and lower hardware and inverter prices.

• Since 2010, residential, commercial rooftop, and utility-scale PV system costs have dropped by 64%, 69%, and 82%, respectively.

• NREL's David Feldman noted that an 85% decline in module prices is a key factor, with utility-scale PV systems now costing about $1 per watt, down from $2.50 per watt a decade ago.

• Solar PV panel price reduction from 1975 to 2022^[2]

For detailed information visit: https://ourworldindata.org/grapher/solar-pv-prices

• Champion Photovoltaic Module Efficiency Chart^[3]

NREL maintains a chart of the highest confirmed conversion efficiencies for champion modules for a range of photovoltaic technologies, plotted from 1988 to the present.

For detailed information visit: https://www.nrel.gov/pv/module-efficiency.html

• Total Solar energy capacity installed^[4]

Solar PV has transitioned from a niche energy source to a mainstream solution, playing a critical role in global efforts to combat climate change and achieve sustainability goals.^[5]

For more information visit: https://ourworldindata.org/grapher/installed-solar-pv-capacity

• Solar Cell:

A solar photovoltaic (PV) system uses the photovoltaic effect to directly convert sunlight into electricity. The solar cell is a p-n junction device. N-type refers to the negatively charged electrons donated by donor impurity atoms and p-type refers to the positively charged holes created by acceptor impurity atoms.^[6] The PV effect can be divided into three essential procedures.^[7]

• Photons absorbed in a p-n junction semiconductor generate electron-hole pairs. When a photon with energy (E = hυ) greater than the semiconductor's band gap (Eg) is absorbed, it excites an electron from the valence band to the conduction band, leaving a hole behind. The excess energy beyond the work function (hυ0) is converted into heat.^[8]

• The generated charge carriers are then separated, with holes moving through the p-region and electrons through the n-region, passing through an external circuit before recombining.

• These separated electrons drive an electric circuit, eventually recombining with holes after completing the circuit. The n-type must be designed thinner than the p-type. Thus, the electrons can pass through the circuit in a short time and generate current before they recombine with the holes.

• Solar Panel:^[9]

• Solar panels consist of multiple solar cells connected in series and parallel to achieve a desired power output.

• A single PV cell generates around 0.5 V, making it insufficient for most applications.

• For instance, connecting six cells in series produces about 3 V (6 × 0.5 V) while maintaining the current of a single cell.

• To increase current capacity, series-connected cells are also arranged in parallel.

• If six cells generate 2 A, a series-parallel arrangement of twelve cells can produce 4 A at 3 V.

• Components of Solar Power System:^[10]

• A PV system includes a solar panel, supercapacitor, and inverter.

• The solar panel converts photon energy into electricity.

• The supercapacitor provides additional energy on sunny days.

• The generated DC power is converted into AC for domestic use.

To learn more details about solar PV: https://www.researchgate.net/publication/356192238_TO_CATCH_THE_SUN^[11]

Major Cities	Average PV Potential (kWh/m2)
Regina, Saskatchewan	7.15
Saskatoon, Saskatchewan	7.10
Calgary, Alberta	6.70
Winnipeg, Manitoba	6.61
Edmonton, Alberta	6.50
Yellowknife, Northwest Territories	6.18
Ottawa, Ontario	6.09
Montreal, Quebec	6.04
Toronto, Ontario	5.94
Mississauga, Ontario	5.93
Fredericton, New Brunswick	5.76
Quebec, Quebec	5.75
Saint John, New Brunswick	5.68
Victoria, British Columbia	5.68
Charlottetown, Prince Edward Island	5.51
Iqaluit, Nunavut	5.49
Halifax, Nova Scotia	5.33
Whitehorse, Yukon	5.02
St. John’s Newfoundland and Labrador	4.53

Reference: (Government of Canada^[12])

For detailed information visit: https://www.cer-rec.gc.ca/en/data-analysis/energy-markets/market-snapshots/2018/market-snapshot-which-cities-have-highest-solar-potential-in-canada.html

• Low carbon economy fund:^[13] To support projects related to the reduction of Canada’s greenhouse gases.

• Provincial initiatives like British Columbia’s Climate Plan,^[14] and Alberta’s Technology Innovation and Emission Reduction Regulation (TIER):^[15] For reducing greenhouse gas emissions and investing in clean technology.

• Green building standards like the National Energy Code for Buildings: For setting technical requirements for the energy-efficient design and construction.^[16]

• Canadian Green Building Council Program: For practicing green building, and clean energy incentives.^[17]

• Canada’s Climate action plan i.e., the 2030 emissions reduction plan^[18] and net-zero emissions by 2050.^[19]

• Investing in Canada plan: For allocating significant funding for infrastructure projects, including those aimed at reducing emissions.^[20]

• Federal carbon tax: To put a price on carbon emission reduction.^[21]

• A solar PV system can be installed on a rooftop or ground depending on the optimal location and configuration of the system.

• For this a professional assessment is required which includes measuring solar irradiance.

• In general, for the installation of rooftop solar PV, at least 3.7 m (12’) *3.0 m (10’) of the unobstructed area without significant shading is needed.

• The optimal orientation for rooftop solar PV is south-facing in the Northern Hemisphere.

• East-and-West facing orientations can provide around 70% of the output compared to south-facing.

• A north-facing orientation is not viable.

• Roof Conditions:"

• The roof covering (e.g., shingles) should be less than 10 years old. • It does not make sense to remove and re-install solar panels and racking to replace or repair the roof covering (as solar PV warrantied life is 25 years). • According to “solar-ready” roof construction, Canada has a load limit of 5 lbs per square foot from solar panels, racking, and other equipment.

• Solar PV output:

• Weather plays a crucial role in solar electricity production. The production from the solar system can vary over time. Therefore, it is necessary to account for averaging factors for the fluctuation.

• Solar systems can produce power for over 20 years; therefore, it is important to account for any future obstructions.

• It is also important to foresee your current and future electrical consumption while sizing your PV system. For e.g., purchasing an electric vehicle.

• Net Metering:^[23]

Before investing in or deciding on a renewable energy system for net metering purposes, check with your electricity utility to confirm that you are eligible and that the renewable energy system can be connected to their grid.

• It is established by the Ministry of Energy and is governed by Regulation O. Reg. 541/05: NET METERING.

• The electricity generated from renewable energy systems i.e., solar PV systems and utility grids is utilized by homes/businesses when needed. • When your PV system generates more electricity than you can use, the excess electricity flows into the utility grid and vice versa.

• The utility measures the electricity you use and sends to the grid.

• The utility only bills you for the electricity you consume from the grid and gives you credit on your electricity bills for sending electricity to the grid.

Note:

o These credits can only be used to offset charges related to the kWh of electricity you consume and cannot be applied to other types of charges.

o According to section 8 (8) of the Net Metering Regulation credits can only be carried over to future bills for up to 12 months, after which credits are reduced to zero.

o You must be generating renewable electricity primarily for your use.

o To get the on-bill credit, you must enter into a net metering agreement with the utility grid.

o The technical, safety, and inspection requirements must be fulfilled before connecting your PV system to the grid.

o Check eligibility from your utility to be connected to the grid.

The following are options available for Solar PV finance:

1. You can buy your solar PV system outright.

2. You can lease it from a third party, including an electricity retailer.

If you want to finance your own solar PV system, here are some useful information:

• Financing your solar PV:

i) Property-Assessed Clean Energy (PACE): These programs offer homeowners the convenience of making payments through their regular energy bills. Although more prevalent in the US, Canada also has several municipal PACE programs available across various regions.

For more details visit: https://www.pembina.org/pub/pace-financing-canada

ii) Home equity Line of Credit (HLOC): Homeowners can also consider financing their renewable energy project through this option. Be sure to consult with your bank about interest rates and terms to determine if it’s the best financial choice for you.

For more details visit: https://solaralberta.ca/go-solar/solar-financing/

For example: The City of Toronto’s Home Energy Loan Program (HELP) offers loans of up to $125,000 toward a wide range of upgrade measures, including solar PV.

For financing information visit: Home Energy Loan Program – City of Toronto

• Another best option is the government of Canada “Greener Homes Loan Program which provides the best financing option for residential PV. It is an interest-free loan for 10 years with an amount of up to $40,000.

For more details visit: https://renewablesassociation.ca/greener-homes-program-2-0-sets-the-stage-for-long-term-stability-in-canadas-residential-solar-sector/

https://natural-resources.canada.ca/energy-efficiency/homes/canada-greener-homes-initiative/canada-greener-homes-grant/canada-greener-homes-grant/23441

If you choose (2) to enter into a contract with an electricity retailer to buy electricity generated from solar PV system, you must enter into two separate agreements i.e., Power Purchase Agreement (PPA) and an Associated Equipment Agreement (AEA).

Note:

o There is no limit for PPA and AEA.

o Before getting into these agreements, make sure to understand - what you will pay. - Your responsibilities - How long these agreements will last

o The prices for PPA and AEA are not set by utilities.

• Power Purchase Agreement (PPA):

• It is a contract with an electricity retailer for the purchase of solar PV generated electricity.

• The purchased electricity can be used in your homes/business and excess can be sent back to grid for credit.

• If you sign a PPA, you will still receive a bill from your utility for the electricity that you use from the utility’s grid, as well as for other charges like delivery and taxes.

• A PPA may not save you money. Review the terms of the PPA carefully. Read the Price Comparison that comes with the PPA to help you understand how entering the PPA can affect some of your electricity costs.

• No one can sign you up for a PPA while they’re at your home.

Note:

o The electricity retailer is required to provide you with a Disclosure Statement and a Price Comparison in the form approved by utility for e.g., from Ontario Energy Board.

o Read the documents carefully before signing them.

o After you sign PPA, the electricity retailer will contact you after 10 to 45 days to verify that if you wish to continue with the agreement. If you do not want to, you can say so and there will be no cancellation charge. After that, there will be cancellation charges.

• Associated Equipment Agreements (AEA):

• It is a contract with an electricity retailer for the purchase of solar PV-generated electricity associated with PPA.

• It can be in different forms for e.g., it can be a leasing agreement.

• It is associated with, but different from PPA.

• If you enter an AEA, you may have to pay fees or penalties under that agreement if you do not enter the associated PPA or cancel the associated PPA.

• Before entering an AEA, make sure you receive and review the associated PPA.

• The associated PPA must also include certain information about the AEA, including payment terms, options or obligations to purchase the solar PV system, and any obligations you may have to maintain and operate that system.

Before entering an AEA, consider asking the following questions: - If I choose to cancel the AEA, will there be any fees or penalties?

- What happens to the PV energy system if I decide to move?

- Who will be held accountable if an issue arises with the renewable energy system?

- Who is responsible for the maintenance, repairs, and any potential damage the renewable energy system might cause to my property?

- How much electricity is expected to be produced by the renewable energy system, and how was this estimate calculated? Keep in mind that the electricity generated can vary, and environmental changes—such as the growth of a new tree or the construction of a new building—can impact production over time.

For more information on your rights before, during, and after signing the contract visit: https://www.ontario.ca/page/consumer-protection-ontario

- If you are considering entering a PPA or an AEA, take the time to fully understand your rights and obligations.

- There is no need to rush into any agreement—your utility will continue to supply you with electricity, whether you choose to enter into a PPA.

- Your energy bill is private and contains sensitive information like your account number and energy usage. You are not obligated to share your energy bill with a salesperson for an electricity retailer if you prefer not to.

- Salespeople representing electricity retailers must provide you with a business card and show your company ID badge.

- Remember, electricity retailers are not your utility provider, the government, or the OEB.

The following are some useful sites:

- https://ontario-solar-installers.ca/ontario-solar-incentives/home-efficiency-rebate-plus/

- https://www.enbridgegas.com/ontario/rebates-energy-conservation/home-efficiency-rebate-plus

- https://www.enbridge.com/energy-matters/energy-tips/going-solar-at-home

i) Obtain Multiple Quotes: It's wise to gather several quotes, especially if the installer wasn’t recommended by someone you trust or if you're not familiar with them. Ensure that written quotes detail all components and installation costs and clarify any additional expenses you may need to cover beyond the installer’s quote. Key elements to discuss with your contractor and include in the quote are:

	- Costs for stamped engineering drawings.
	- Costs of obtaining necessary permits.
	- Maintenance expenses and warranty support.
	- Any available incentives and help with applying for them.
	- Any extra components or materials not included in the package price.
	

ii) Consult Your Insurance Provider: Check with your insurance provider to see if installing a rooftop solar system could affect your home insurance.

iii) Verify Local Experience: Ensure that the installer has experience working with local utilities and is knowledgeable about relevant incentive program rules.

iv) Check Product Training: Confirm that the installer has received training from the manufacturers of the products specified in your quote.

v) Research References and Reviews: If possible, speak with former customers and look up online reviews. While online reviews can help you find the right contractor, remember that negative reviews may have varying perspectives.

vi) Confirm Subcontractor Qualifications: Make sure any subcontractors the installer plans to use are properly qualified and insured to complete the work. Since the work may require inspections of electrical or building safety, it’s important that it is done correctly. Ask if their employees or subcontractors hold specialized solar certifications, such as those from the North American Board of Certified Energy Practitioners (NABCEP). Although NABCEP certification isn’t required in Canada, it’s a rigorous program that indicates the installer has been trained and tested in solar PV installations.

Connection Application Process:

https://teams.hydroone.com/sites/custops/dg/CCADCAContractTeam/GIS-DOMMaps+PCIRRequests/MAPs/Consultations/21916/21916PCRForm.pdf

If you wish to proceed with the Connection Impact Assessment (CIA) process, you will be required to complete the Form B application along with all supporting documents. Please ensure that you are using our latest Form B when applying – older versions of this form will be rejected.

Visit the website for the most up-to-date Form B application, Study Agreement and Form B instructions https://www.hydroone.com/business-services/generators/fit.

Gross Load Billing (GLB):

As per Hydro One’s Conditions of Service and Ontario Energy Board-approved Rate Order (www.hydroone.com/CoS & www.hydroone.com/DxRateSchedules) your project may be subject to Gross Load Billing (GLB) charges if a load displacement facility will have a single generation unit that exceeds the threshold listed below:

• equal to or greater than 1 MW with non-renewable generation

• equal to or greater than 2 MW for renewable generation (wind, solar, biomass, bio-oil, biogas, landfill gas, or water).

If your project is subject to GLB, additional metering will be required.

For more information regarding GLB, please review the Frequently Asked Questions: https://www.hydroone.com/business-services/generators/gross-load-billing

The first step is to apply for PCIR (Preliminary Consultation Information Request). It will help us to identify the details of connecting a project to the grid such as station capacity, station names, feeder designation, voltage, and potential point of connection and help in completing the next step. https://www.hydroone.com/businessservices/generators/preliminary-consultation

The next step will need these documents according to this website for the CIA:

https://www.hydroone.com/business-services/generators/connection-impact-assessment

i) Form B

ii) GIS (Geographic Information System)

iii) Study Agreement

iv) Single-line diagram

v) Technical requirements https://www.hydroone.com/business-services/generators/technical-requirements

For projects greater than 10 kW must be signed and sealed by a licensed Ontario Professional Engineer (P.Eng)

“ An Analysis of the Climate and Financial Benefits of Rooftop Solar Arrays on Ontario’s Single-Family Homes and Barriers to Adoption” from Ontario Clean Air Alliance.^[24]

Summary of the report is as follows:

• Single-family can accommodate rooftop PV of 10 kW or more.

-	This will be enough to generate most of the electricity uses over a year.
-	This will also help avoid 1.5 tonnes of carbon emissions per year.
-	By 2030 it can reduce 3.9 tonnes of carbon emissions per year.
-	By 2030 it can offset emissions equivalent to 1.2 passenger vehicles per year.

• Rooftop PV can help phase out the gas grid and reduce the need for new high-cost nuclear reactors and electricity infrastructure.

• It will help create green jobs.

• One in every three Canadian single-family homes need to install rooftop PV to meet Canada’s 2050 net zero emission goal.

• Advantages of having rooftop PV:

-	Require no new land
-	No new transmission line
-	Reduce system line losses
-	Most of the electricity consumed at the place of generation
-	Reduce carbon emission
-	Reduce dependence of the natural gas grid
-	Prosumers
-	Create skilled jobs
-	Support solar manufacturing
-	Save on electricity bills
-	Increase resale value of homes

Assumption: • 25-year lifespan of solar PV

• 15-year lifespan of inverter

Impacts of installing 5 kW, 7.5 kW, 10 kW, 15 kW, 20 kW, and 25 kW rooftop solar on single-family homes in Ontario Analysis: It accounts for roof slope, orientation, system losses (from dirt, snow, degradation, and inefficiency)

Note: Full methodology is available in the report

• Average 1 kW of solar arrays can generate over 1,000 kWh in a year.

Annual Solar PV Electricity Generation Potential in Ontario

Ontario Average Generation (kW)	kWh/year
5	5450
7.5	8175
10	10,900
15	16,351
20	21,801
25	27,257

Note: For this average solar irradiation for the municipalities from Toronto, Ottawa, London, Sudbury, and Penetanguishene are studied.

• Average homes in Ontario use 9,000 kWh of electricity each year.

Annual Residential Electricity Consumption

Ontario Average Residential Consumption	kWh/year	Solar capacity required to reach net zero electricity (kW)
Ontario's Average Residential Use (1)	9,000	9
(1) with EV charging	12,852	12
(1) with ccASHP & HPWH	17,467	17
(1) with EV charging, ccASHP & HPWH	21,319	20

ccASHP: cold climate air-source heat pump; HPWP: heat pump water heater

• Requirement of rooftop space

-	1,000 sq. ft bungalow (with square base) has a 1,200 sq. ft roof area; it can accommodate 20 kW arrays.
-	The orientation of panels, however, also plays an important role.

• 1 kW of solar panels emits an average carbon emission of approximately 300 kg.

• 39% of electricity generated by rooftop PV is during peak hours’ time-of-use (TOU)

• 34% of electricity generated by rooftop PV is during mid-peak hours TOU.

• The installation cost of rooftop solar usually includes the cost of:

-	Panels
-	Inverter
-	Optimizers, other equipment
-	Labour cost
-	Fees for safety inspection
-	Utility connection
-	Building permits

Note: The prices can vary based on system, roof conditions, and location.

Utility application plus connection fees for solar arrays (<10 kW)

Utility	Application + Connection Fees (Including GST/HST) ($)
Toronto Hydro	565+ variable connection fee
Hydro Ottawa	1,449
London Hydro	1,130
Hydro One	904
Greater Sudbury Hydro	538
Alectra Utilities	437

Utility application fee for solar arrays (>10 kW) (Including GST/HST)

Utility	Connection Impact Assessment Study Fee ($)	Application and Connection Fees ($)
Toronto Hydro	1,695 (10-20 kW) 2,260 (20-50 kW)	Varies by project
Hydro Ottawa	1,130	Varies by project
London Hydro	565 (10-20 kW) 6,215 (20-500 kW)	1,130 (10-20 kW) 28,250 (20-500 kW)
Hydro One	2,321	Varies by project
Greater Sudbury Hydro	Varies by project	857
Alectra Utilities	1,695	437

• Tiered rates give less savings than the Time of Use price with solar in Ontario.

• Saving from time of use (TOU) and ultra-low overnight (ULO) rates are similar.

Annual electricity bill savings with different utility rate structures (with 10 kW solar arrays) for an average Ontario homeowners

	TOU Rates	ULO Rates	Tiered Rates
2024 saving	$1,584	$1,580	$1,288

• Solar rooftop payback years vary based on

-	Location
-	Solar potential
-	Local utility rates
-	Utility connection fees

For the different payback, refer to the main report.

• Fixed and low-cost application + connection fees from utilities (for projects <25 kW)

For Example: Ontario utilities can take inspiration from Alectra utilities, which serves areas like Barrie, Guelph, and Mississauga, where the application and connection fees are standardized at $437 for projects under 25 kW. This is significantly more affordable compared to other regions. For instance, in London Hydro service areas, fees start at $1,130 for projects under 20 kW but soar to an astonishing $28,250 for those over 20 kW.

• Utilities should increase the limit for simplified and low-cost connection screening to 25 kW or more.

For Example: Currently, in Ontario Solar project with capacity >10 kW requires an extra connection impact assessment (to determine impact of solar system on local utility grid), which can add up to thousands of dollars on the overall project cost. Whereas in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, and Saskatchewan has the limit for simplified and low-cost connection screening is 100 kW.

• Rooftop solar system owners should be remunerated (paid) for the net surplus energy they supply to the local utility grid.

-	The credit earned for exporting solar energy to grid get null after one year.
-	If the annual export is more than import, no benefits is utilized by homeowners.
-	Local utilities, however, earns up to 28.6 cents per kWh for this exported clean energy.
-	Large power companies like Ontario Power Generation (generated from gas or nuclear reactors) are paid for every kWh.
-	This unfair and hold back the homeowners to put larger solar system.

• Grid connection should be made by utilities within 10 days

-	Delay in approval and application for grid connection, frustrate the customers and lead to bad reputation.

• Reducing the initial capital cost barriers for rooftop solar installations.

-	Current paybacks for rooftop PV are 16-25 years (if residential electricity rates rise by 2% per year)
-	It can be reduced to 6-19 years, by financial incentives of $1,000 to $2,000 per kW.
-	Financing loans such as The Greener Homes Loans programs are not much of help as they have shorter loan terms than the paybacks for the solar PV.