Is Net Metering with Solar PV right for your business? We can tell you!
The Ontario government has mandated that electrical providers, Local Distribution Companies (“LDC”) allow their customers to offset their electricity use by generating renewable energy. This is called Net-Metering.
Solar prices have come down and electricity costs have risen. The point where net metering makes sense for your facility may already be here. Let us tell you if that is the case.
Net metering (or net energy metering, NEM) allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly important with solar which is not dispatchable. Net Metering is a program for electricity users with electrical generation capabilities to reduce their energy costs by sending surplus electricity back to the grid for credit against their bill. Cost reduction or avoidance is the main purpose of this program.
How does it work?
After you are connected to the grid through the distribution system, your local distribution company (“LDC”) will report what you have generated versus what you have taken from the grid. The result is the Net difference between these two amounts. You will get a credit if you generate more power than you received from the grid. The credit can be carried forward for up to 12 months.
Eligibility criteria include, but are not limited to:
- You must generate electricity primarily for your own use;
- The electricity must be generated solely from a renewable resource (wind, water, solar energy or biomass); and
- The maximum capacity of the generation facility can’t be more than 500 kilowatts.
To be eligible for Net Metering in Ontario the following conditions must be met:
- The electricity must be consumed at the user facility;
- The electricity generated is used at the customer's facility without reliance on any LDCs distribution system;
- The nameplate capacity of the system cannot exceed 500 kW; and
- The renewable energy generation system must utilize wind, solar, or bio-mass.
ORTECH offers a multi-tiered approach including:
An Initial Assessment and Feasibility Study will assist you in determining if Net Metering solution using Solar PV will benefit your bottom line. This approach will simplify and de-mystify these up and coming technologies. ORTECH will break the process down into manageable steps.
Step 1: Initial Assessment: This assessment will determine if either a net metering or an energy storage solution will benefit your company. Net gain equates reducing the cost of energy.
Step 2: Feasibility Study: This study will identify the high-level solution (type), benefits, costs and process to setup a net metering solution using Solar PV or an energy storage solution.
Step 3: Solution Development: Identify options for the selected solution and develop an implementation plan for your facility.
There are some very compelling reasons why developers and investors should engage our team for renewable energy projects including working on over 855 solar projects in the last 4 years. ORTECH's focus on renewable energy translates into superior quality, with industry leading experts who manage projects on time and on budget.
We have a different approach, we strive to help our clients, regardless if it means a project for us. We regularly help developers, equity investors and debt providers connect. It's one thing most engineering firms do not do. We feel its helps the industry, and we do not charge a fee to make introductions.