Canadian Solar Solutions Inc.

The Potential Market in Ontario

As a result of the Ontario Power Authority's Feed-in Tariff (microFIT) program, rooftop photovoltaic (PV) generation — commonly called "solar power" — is expected to account for 1 to 2 percent of Ontario's energy supply. One percent is equivalent to 100,000 solar residential rooftop installations at an average of 3 kW per roof, according to sources.

By 2011, most of the residential installations will be completed. There will be about seven residential installations for every 1,000 people over the next three years, according to sources.

North America's First Feed-in Tariff Launched

On September 24, 2009, the Government of Ontario officially launched Canada's first feed-in tariff, a new renewable energy program established under the landmark Green Energy Act.

The microFIT Opportunity

Not only will the new microFIT program benefit the environment, create jobs and boost Ontario's economy, but it will offer Ontario homeowners a great investment opportunity.

The table below shows a financial analysis for a 2.2 kW (kilowatt) AC residential system. With a total investment of $20,700 — made up of 30% equity and 70% financing at 4% for 15 years (utilizing a home equity line of credit) — the projected internal rate of return (IRR) is 16.9%. Compare the Canadian Solar Solutions opportunity to the 20-year TSX Composite Index performance of 5.2%. Take advantage of other government incentive programs and improve your return further.

Solar power systems for residential applications can be various sizes up to 10 kW. Factors such as system size and cost of material will influence the final installed cost per watt and long term savings and efficiency. With a full range of photovoltaic products, Canadian Solar Inc. — Canadian Solar Solutions' parent company — has a system that meets your unique needs. Visit the Canadian Solar Products page to learn more.

 
Assumptions in Canadian Dollars  
   
Location Guelph
Estimated Energy Output 3,421 kWh/year
PV System Size (AC) 2.2 kW
FIT Contract Price (20 yrs) 80.2 Cents/kWh
   

Financing  
   
Total Investment $20,700 Cdn.
Equity $6,210 (30%)
Debt $14,490 (70%)
Debt Interest Rate 4.0%
Debt Term 15.0 years
   
Before Tax IRR 16.9%
   
*Based on average data and certain assumptions; results will vary according to particular conditions, including geographic location, rooftop orientation, mounting system and solar panels selected. Project costs will vary depending on cost of materials, financing terms and interest rate variances, and other variables. This analysis assumes an uninterrupted 20 year energy production based on current Ontario government laws and programs relating to solar power projects. Every project must be reviewed independently to determine the rate of return for that particular project. *Excluding sales tax.

Canadian Solar Solutions offers all residential homeowners a turnkey solution as unique as your home. Contact Canadian Solar Solutions today to get started.

To learn more about the FIT program, please refer to the Frequently Asked Questions section.