Is it financially viable to install a solar system?

One of the main and most debatable subjects in this regard is that solar technology (in specific photovoltaic) is still at such a stage that the cost of producing electricity from solar energy comes out to be more expensive compared to other conventional methods of power production. This means that you have to pay more money for a unit of electricity that is produced from a solar power system.

For this reason many governments around the globe provide incentives and subsidies (known as feed-in-tariff) to promote solar power. The way it works is that the government buys the electricity you produce from your solar system at a higher rate. This is the only way it becomes financially viable to install solar systems on micro scales.

The government of Ontario introduced this program in 2009 and after a review, lowered the tariff rates in 2012. This doesn’t mean that new solar system owners make less profit, but because the cost of manufacturing various components of a solar system is decreasing as the technology advances, it will cheaper and cheaper to produce electricity from solar energy. This means that the solar power will be competitive with other modes of power production in the future and eventually there will be no requirement for government subsidies.

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