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7.06.2010

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Solar PV - Residential - Incentives

The Ontario government offers some of the most generous incentives in the world to promote the installation of renewable energy systems, in particular solar photovoltaic systems.

RST Rebate for Solar Energy Systems

The RST Rebate for Solar Energy Systems is part of the Ontario government’s Common Retail Sales Tax Rebates and Exemptions for Energy Efficient Goods program. This program returns the retail sales tax paid on solar energy systems to homeowners and builders who install these systems into residential buildings, including houses and multi-residential buildings. The rebate is also available for homeowners or builders who upgrade existing solar systems.

For more information, please contact the Ontario Ministry of Revenue, Refund Unit, Retail Sales Tax at 1-800-615-2757 or go to http://www.rev.gov.on.ca/english/taxtips/rst/04.html

Feed-in Tariff (FIT) Program

Ontario’s Feed-in Tariff program is a guaranteed funding structure that combines stable, competitive prices and long-term contracts for electricity generated using renewable resources.

The program is open to homeowners, business owners and private developers who may apply to the Feed-in Tariff program if they use one or more forms of renewable energy, including from solar PV.

The Ontario Power Authority (OPA) is responsible for the FIT program, which came into effect with the Green Energy and Green Economy Act (GEA). The prices for the solar PV feed-in tariff can be found below.

Feed-in Tariff rates for PV systems
Size tranches Contract Price ¢/kWh
Any type < 10kW 80.2 Rooftop >10 <250 kW 71.3 Rooftop >250 <500 kW 63.5 Rooftop >500 kW 53.9
Ground Mounted^ <10 kW 44.3

^ Eligible for Aboriginal Price Adder and Community Price Adder

Please note that systems larger than 10 MW do not qualify for the Feed-in-Tariff program. Residential solar PV systems online in Ontario so far have averaged about 3.5 kW.

For more information on the Feed-in Tariff program, please visit the OPA website at http://www.powerauthority.on.ca/FIT/
Net Metering Program

The Net Metering program is available to any electricity customer (homeowners, com-mercial operators, etc.) who generates electricity, primarily for their own use, from re-newable energy technologies with a maximum cumulative output of up to 500 kilowatts. Net metering allows customers to send electricity generated from renewable sources back to the electrical grid for credit toward their electricity costs.

For more information about this program, please visit http://www.mei.gov.on.ca/en/pdf/renewable/netmeteringbrochure.pdf
Additional Incentives

There may be a number of additional incentives offered through municipalities and local distribution companies. Please contact them for information about any additional incentives.

In addition, please consult Ontario’s Energy Efficiency Resource and Funding Guide for more information on the programs, resources and financial incentives available in Ontarian.

BC to Harmonize Sales Tax

BC proposes to harmonize its 7% PST with the 5% GST to result in 12% HST, effective July 1, 2010. Many items that are currently PST exempt will not be subject to the provincial 7% portion of the HST.

The proposed HST will include:

· Unlike any other province, B.C. will provide an automatic point-of-sale rebate so consumers do not have to pay the provincial portion of the HST at the pump for purchases of gasoline and diesel fuel for motor vehicles, including any biofuel components.

· A partial rebate of the provincial portion of the single sales tax for new housing to ensure that new homes up to $400,000 will bear no more tax than under the current PST system, while homes above $400,000 will receive a flat rebate of about $20,000.

· A refundable B.C. HST Credit paid quarterly with the GST and carbon tax credit to offset the impact of the tax on those with low incomes.

· A temporary delay in the provision of input tax credits for certain purchases by businesses with taxable sales in excess of $10 million.

Full details at http://www2.news.gov.bc.ca/news_releases_2009-2013/2009PREM0017-000141.htm#