Frequently Asked Questions
Program Qualifications | Incentives | Financing | Systems | System costs | Permits
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PROGRAM QUALIFICATIONS
Q: Am I eligible to participate in the Solar Neighbourhoods Pilot Program?
A: The Solar Neighbourhoods program is fully booked and we are no longer offering loans or incentives. However, we will still offer support to homeownersinterested in installing solar hot water systems, including assistance with selecting a system, obtaining a building permit and arranging an ecoENERGY assessment.
Q: I own a business. Can I participate in the Solar Neighbourhoods program?
A: No, the Solar Neighbourhoods program is only for low-rise, single-family residential buildings. Business owners are encouraged to participate in the Federal ecoENERGY program, which provides even larger financial incentives to install solar water heating systems on commercial and institutional buildings. See www.oee.nrcan.gc.ca/commercial/index.cfm?attr=0 for more information.
Q: How can I participate if I don’t own my home?
A: If you are a renter living in a single-family residential home, talk to the owner about the benefits of solar hot water. Only the homeowner can install solar hot water systems and receive incentives.
Q: Does my home have to be totally unshaded to use a solar hot water system?
A: To get optimum efficiency, there should be no shade on the panel between 10 a.m. and 3 p.m. on a summer day. Panels are roughly 4 x 8 feet (1.3 x 2.7 metres), so if you can find a south-facing spot on your roof that is unshaded between these hours (either a sloped roof face that has southern exposure or a flat roof where panels could be installed facing south) then your home may be suitable. See the system installation page for more details.
INCENTIVES
Q: Do the federal and provincial governments offer any financial incentives?
A: There is funding available for residential solar thermal installations from the Federal and Provincial governments. The federal government’s ecoEnergy Retrofit – Homes program will provide a $1250 rebate for participants who undergo an EcoEnergy Assessment and install a solar thermal system, and the Ontario Ministry of Energy will provide a matching incentive of $1250. The Federal Home Renovation Tax Credit (15% for expenses over $1000 up to $10,000) also applies to solar hot water systems. In total, qualifying households could receive more than $3000 in incentives for a solar thermal installation. The Province of Ontario also offers a provincial sales tax refund on all solar hot water systems installed before Jan. 1, 2010. See the incentives page for more details.
Q. Are there any other incentives I can get?
A: Yes, there are a number of programs that offer incentives for energy and water conservation and renewable energy. Click here for details
Q: Are there incentives for systems that are used for space heating as well as water heating?
A: The federal EcoENERGY program offers incentives that may be applicable to such systems, including a 50% rebate (with provincial matching incentive) for commercial systems.
FINANCING
Q: How do I finance a solar water heating system?
A: Homeowners may finance their SDHW system as part of a home mortgage or secured line of credit. In long-term loans of 20 years or more, the monthly solar savings will normally be greater than the monthly loan payments for the solar system. Some suppliers, including the Bullfrog-Enbridge solar program, also offer special financing.
SYSTEMS
Q: Are solar water heating systems reliable?
A: Properly designed and installed systems with glass-covered collectors should perform well for more than 20 years. Controllers, like other electronic devices, may require servicing during the life of the system, and the pump and hot water tank may have to be replaced after 10-15 years. Since conventional water heaters have the same expected lifetime, water tank replacement costs are not regarded as unique to solar energy systems.
Normal maintenance consists of checking pipe insulation, roof penetrations and collector mounting, pump operation and tank flushing. The latter is also recommended for conventional water heating systems.
Many installation firms provide yearly maintenance checkups of their solar systems similar to annual air-conditioning system maintenance programs. These can be beneficial in extending the life of the system and ensuring optimum performance.
It is important to request that the installer put an indicator on your solar system showing that the system is working. It can be as simple as a small light that comes on when the system is operating.
Q: If I order a solar system, what do I get?
A: Most packaged solar systems include everything you need: collectors, storage tank (if you do not have room for a storage tank, you might want to consider replacing your current water heater with a tankless water heater), controls and pump, roof flashings, valves and air vent. You or your installer will need to supply the copper pipe and insulation to connect the collectors to the heat exchanger on the storage tank.
Q. What should I look for when selecting a system or supplier?
A. See our Selecting an installer page.
SYSTEM COSTS
Q: What costs can I expect?
A: The solar system price quoted by the solar Contractor should include all system hardware and installation costs. Year-round system costs are expected to be anywhere from $7,000 to $10,000 depending on the size of the system (number of panels) and the complexity of the installation (roof height and accessibility, plumbing, etc.)
In order to receive ecoENERGY incentives, homeowners must undergo a EcoEnergy home assessment, which will provide information on the house’s current energy use and feedback on how the homeowner can improve household energy efficiency. The cost of a two-part EcoEnergy audit is approximately $375, but there is a Provincial rebate of $150.
The cost of a building permit for SDHW systems is $96.38, and should be included in the price of the system quoted by the Contractor.
While solar thermal is a very reliable technology, regular maintenance is recommended to ensure that your system is performing correctly. Ask your installer about scheduling yearly maintenance checks and their costs.
Q: Are solar hot water systems likely to come down in price in the next few years?
A: The technology behind solar hot water systems is fairly simple (pipes and glass) and there are unlikely to be any major technological changes that will affect price in the foreseeable future. Increased sales of solar hot water systems may help to reduce system costs, but this, again, is unlikely to have a major impact in the next few years.
PERMITS
Q: Do I need a building permit to install a solar hot water system?
A: Yes. The City of Toronto is working to streamline the process for issuing solar system building permits and has already instituted a policy of charging the lowest available fee ($94) for such permits. Solar Neighbourhoods has worked with the City to create standardized plans and drawings that make the building permit process faster and simpler. A building permit is your guarantee that your system is being installed properly, is safe and that it will not cause any structural damage to your home.
Q: Could I have problems with height restrictions?
A: Toronto Buildings has recently announced that solar domestic hot water (SDHW) systems are officially exempt from the measurement of building height. There are some conditions on this though. If your SDHW system will extend higher than the zoned height limit, then:
• it cannot be more than 5.0m higher than the height limit for the zone;
• it cannot cover more than 30% of the roof area; and,
• it cannot be located on the side of the roof that is facing a street.
Q: Will a solar hot water system make my home more valuable? What will that mean for my property taxes?
A: For buyers interested in an energy-efficient home, one equipped with a solar hot water system may be more attractive, but we simply don’t have enough experience with solar-equipped homes to really measure the impact on resale prices. The Municipal Property Assessment Corporation (MPAC) has informed Solar Neighbourhoods that they currently do not factor in the presence of a solar energy system when calculating a home’s market value for taxation purposes. So adding a solar system will not affect your current property taxes. |
