Ontario's Home Solar Rebate Program: “Don’t do it!” OREC member tells IESO's CEO their incentive is a bad choice for Ontario consumers

“Go solar and save” and “Get up to $5,000 back.”

Sounds great, right? Consumers could be forgiven for thinking that the Home Renovation Savings Program’s Solar Rebate is a good idea. I thought so too, until I discovered hidden in fine print, details and terms showing that this program was not what it appears to be. Some complex financial analysis and content review revealed that very disturbing elements are embedded in this program.

The Home Renovation Savings Program’s solar rebate:

• Prohibits Net-Metering - The Home Renovation Savings Program’s fine print prohibits net-metering. “Net-metering” is a regulated billing mechanism that enables you to receive credit for energy you export and share with your neighbors on the grid. Without net-metering, credits you build up from the summer sun cannot be used to offset your winter heating costs. By waiving your ability to net meter, this program undermines the economics of your solar system and can cause you to lose thousands of dollars. Consumers may rightly feel misled by the program’s touted “savings.”

• Encumbers Your Home - By signing the Program Agreement, you sign away your ability to net-meter not just now, but for decades. What happens when you go to sell your home? The prohibition on net-metering applies to buyers of your home. Potential buyers are likely to view this as an encumbrance. The rebate program therefore can adversely impact your home’s value in the marketplace.

• Encourages Continued Fossil Fuel Use - The Home Renovation rebate program places limits on your solar panels which discourage switching away from fossil fuels later. These limits include both the prohibition on net-metering and a system size restriction. The inability to apply summer production net- metering credits to winter heating needs discourages electrification of heating. The size restriction means that there will not be sufficient solar energy for you to use for future electrification projects such as adding heat pumps or electric vehicles (EVs).

I have raised these concerns about the serious flaws of this rebate program directly with the people who offer the program, which is jointly delivered by Ontario’s Independent Electric System Operator (IESO) and Enbridge Gas. You can see for yourself the reply from IESO and my response below.

I would recommend that the Home Renovation Savings Solar Rebate Program be avoided and encourage concerned individuals to ask those responsible for this program to acknowledge its shortcomings, cease misleading marketing, and address these concerns in a meaningful way.

A well-designed and consumer friendly solar rebate program that is financially attractive, achieves sustainability objectives, and helps to build a more robust energy grid is eminently possible and is a moral imperative for our future.

In most cases, it is best to proceed with a solar system without the restrictions of this grant. Proceeding without the grant allows you to right size your investment and adapt as your home electricity consumption evolves (due to increasing electrification). The cost of this free money is too expensive! The cheapest option may be to add it to the overall home mortgage; the utility cost reductions will extend beyond 25 years.

Aaron Kelly OREC Member

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Exchange with Lesley Gallinger, CEO and President, IESO: