Freqently Asked Solar Questions
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How much does a commercial rooftop solar project cost?
Pricing depends on system size (kW AC), roof/structure, electrical upgrades, and interconnection. As a planning guide in Ontario, many 1 MW AC rooftop projects price around ~CAD $2.0M before incentives. Send us 12 months of bills and we’ll return a project-specific estimate in 48h.
How much of the cost can incentives cover?
Stacking Save on Energy rebates with the 30% federal ITC (calculated on capital cost net of grants) can reduce the upfront cost by 50%+ in qualified cases.
Capex $2.0M − Ontario rebates ~$0.86M − ITC 30% × ($2.0M − $0.86M)$0.80M net. ITC is calculated on cost net of grants; actual amounts vary.
What makes my facility a good candidate?
Load profile: strong daytime usage and/or ability to manage peaks (Class A/B) improves economics.
Roof & space: sound structure, minimal shading, and roughly 60–80k ft² contiguous area for ~1 MW.
Electrical & interconnection: service/transformer capacity and LDC/ESA requirements.
Ownership & approvals: roof ownership/landlord consent and permitting timeline.
When do incentives arrive?
Save on Energy: typically after commissioning and verification (M&V)—funds are disbursed by the program following approval.
Federal ITC: claimed when filing corporate taxes for the year the equipment is available for use.
Timelines vary by program and utility
What is the typical cost of a solar energy project?
The cost depends on system size, installation complexity, and location. On average, a 1 MW AC solar system is approximately $2 million, though actual costs may vary based on project-specific conditions.
How much of the project cost is offset by incentives?
Incentives can cover more than 50% of the total project cost. These include government rebates and tax credits that substantially reduce the upfront investment.
What is the expected return on investment (ROI) for a solar system?
The typical ROI period ranges from 3 to 4 years, depending on system performance, energy savings, and available incentives.
What factors determine the feasibility of installing a solar system at my facility?
Feasibility is influenced by:
Energy Demand: Facilities with an average demand above 1,000 kW are better positioned to benefit financially..
Roof Condition: A structurally sound roof is required. A 1 MW system typically requires about 100,000 sq. ft. of roof space.
.Building Ownership: Ownership or landlord approval is necessary for installation.
How are savings from solar energy generated?
Feasibility is influenced by:
Savings are achieved through:
Global Adjustment (GA) reduction: Lowering consumption during peak demand reduces GA charges.
Demand and Delivery Charge reduction: Solar reduces peak usage, cutting both demand and delivery costs.
Consumption Charge reduction: Solar generation decreases reliance on the grid, lowering consumption costs.
What is Global Adjustment (GA), and how does it affect my electricity costs?
In Ontario, GA covers the costs of maintaining and expanding the electricity grid. For large users (Class A), GA charges are tied to energy use during the top five peak hours. Solar helps lower GA costs by reducing load during these periods.
How much energy can a solar system generate?
A 1 MW AC solar system generates about 1.4 million kWh annually, subject to location, weather, and system orientation.
What is the quality of power generated by solar systems?
Solar-generated electricity is identical in quality to grid power, maintaining the same voltage and frequency for seamless integration.
What is the difference between net metering and load displacement?
Net Metering: Excess electricity is exported to the grid in exchange for bill credits.
Load Displacement: Solar power is consumed directly within the facility, lowering grid dependence and utility costs.
Does this project use net metering or load displacement?
This project uses load displacement, as required by the Save on Energy program.
What incentives are available for solar energy projects?
Save on Energy Program: Provides up to $860,000 for a 1 MW AC system, reducing upfront costs.
Investment Tax Credit (ITC): Covers 20–30% of the remaining project cost after applying Save on Energy funding.
When are incentives received?
Save on Energy Incentive: Paid after project completion and verification, typically within several months.
Investment Tax Credit (ITC): Claimed when filing taxes after project completion.