Understanding our microFIT

[Eamonn O'Connell]

New Member Here. Thank you for your help in advance!

Recently I've started taking care of my parent's home. A few years ago they had a microFIT installed. I don't know much about the program itself and if it actually was worthwhile for homeowners to "rent" their rooftops. The installer currently owns the system (for the next 13 years :huh:) and we're trying to figure out how much revenue the system actually creates.

Is there an equation to approximate the average annual output and revenue?

I'm hopeful this will help us understand whether it's beneficial to own the system outright. I'm also open to hearing people's opinions on if having a microFIT hampers the sale of a home.

Here's the specs I know:

System size is 7.6 kW. With a contract price of 28.8 cents per kWh.

Help?

[Ralph Day]

Hi Eamonn
I have a 10kw microfit and have interpolated some numbers from that.

76% of my harvest (best case scenario 14,000kwhrs/year) would be about 10,oookwhrs per year. At $.288 your revenue would only be $3064 per year. Is the per kwhr rate really only 28.8 cents? Better check that out again. I know of one install 5 years ago that was getting 38 cents.

The realized revenue for the next 13 years would only be under $40K. With possible repairs/replacements of components I wouldn't offer much over half that value personally, just pick up the rent.

Ralph

[Dave Schwartz]

I can give you some actual numbers for a system in southern Ontario (Waterloo area). I have kept a spreadsheet tracking all my statement data since installation so the following lists the annual kWh generated per kW of system capacity (full years only):

2011: 1301
2012: 1375
2013: 1298
2014: 1368
2015: 1394
2016: 1406
2017: 1307
2018: 1293
2019: 1281

So for the 9-year stretch, the average is 1336. This is with keeping the panels free of snow in the winter so that probably results in a bit more than a system which is not kept clear but the output during the worst winter months is about 1/3 of what it is in summer so it probably isn't that very significant.

That said, your parent's 7.6kW system should give a bit over 10,000kWh per year. If they truly get 28.8 cents/kW then that would be $2924 of income (which would probably be reduced due to income taxes payable on that).

I don't know how these 'roof rental' contracts work but I can pretty well guarantee that the company who installed it is taking their cut off the top.

In my case, I own my 3.9kW system. It cost a bit over $21,000 net to install but I receive the full 80.2 cents/kW (yes, I got in early) so it pays just a bit over $4000/year. I pay about $700 extra in tax each year so it took just a bit over 6 years to pay for itself and seeing as its approaching its 10th anniversary and I have 10 more years to go on the microFIT contract, I'd say it was one of the best investments I ever made.

As to whether it helps or hinders resale, its probably a toss-up. For some possible buyers it may look ugly and turn them off, for others the 'green cred' might be a plus. I don't know if the income will transfer with the house, but that might be a plus for some people. Others might be worried about future roof problems if it is a rooftop installation and is over living space (mine is rooftop but on a garage roof that had brand-new 40-year shingles the year before so I have no worries). These things don't have much of an end-of-contract asset value so that won't increase the value any but probably the ownership reverts to the homeowner at the end of the contract and at that point it reverts to net-metering which will be a small ongoing benefit.

[Eamonn O'Connell]

Thank you Dave and Ralph for your replies.

I appreciate the balance on pros and cons to owning the system and how it would reflect on a sale. Out of curiosity how do you come to the 10,000 KWh/yr number? Is there an equation I can use?

[Ralph Day]

There was some prediction/calculation from way back in 2010, but it's long left my mind. I just know from tax preparation that 10.000kwhr/year is about average. This year will probably be more, some years less.

[Rob Beckers]

For solar PV in our general area (southern Ontario) the number used is generally 1,100 - 1,200 kWh per kW of solar PV per year. So, a 10kW system that's south-facing, without significant shading, and at a reasonable tilt-angle would be expected to produce around 12,000 kWh per average year.

-RoB-