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A comprehensive look into what you can expect when installing a commercial solar system.
The key to building a business case for adding solar energy production to a business relies on these four factors:
Predictable energy requirements
The rising cost of grid energy
Available government incentives for solar
The progress it offers toward achieving net-zero energy goals
As of October 1st 2024 there are a number of federal incentives that Canadian corporations can take advantage of, such as
The Clean Technology Investment Tax Credit (CTITC) which offers a 30% refundable tax credit.
The Accelerated Investment Incentive (AII) which offers a capital cost allowance for the solar system cost in the first year.
If you are spending less than $400/month on your hydro bill then your company will probably need a small system of 10kW or less. Otherwise, your company is likely looking at a large system (more than 10 kW).
What to Expect when Considering a Small Commercial Installation (systems under 10kW):
Site Assessment
The process starts with an evaluation of your building’s roof or available land to determine the best placement for a rooftop or ground-mounted solar array.Proposal and Financial Assessment
Your solar proposal should include thorough calculations made by looking at your hydro bills. Evaluating your energy consumption history will help your solar provider size the system and determine investment cost, potential savings, and payback period.Building Permit and Hydro Approval
The building permit process ensures that the building is sound and can support the desired solar array. The hydro approval is called an "offer to connect" (OTC). This is provided by the local distribution company (LDC) to allow safe connection to the grid. A building permit and hydro approval is required for commercial systems, which can take several months. Make sure to factor this into your project timeline.Installation and Electrical
Installing a solar energy system involves a series of installation and electrical steps to ensure that the system is securely mounted, properly wired, and integrated with your business' electrical system. Depending on the system’s size and complexity, installation may take a few weeks.Commissioning and Meter Swap
Commissioning requires testing, verifying, and formally activating the solar energy system to ensure it operates as expected, while a meter swap involves replacing your existing utility meter with a bi-directional or net meter.
Needs Assessment and Initial System Design (Quote)
An initial system design should encompass the complete layout and specifications of the solar array to be proposed. This includes schematic diagrams, component specifications, and integration plans with existing infrastructure. An engineering team should be available to collaborate closely with your company to ensure that the system is optimized for performance, scalability, and reliability. By thoroughly analyzing your business' requirements and site conditions, the solar company you are working with can develop a system that not only meets current demands but is also adaptable for future expansions or upgrades. The solar company can then provide a cost estimate for design, installation and commissioning of the system, along with an expected payback period.
Engineered System Design
At this point an agreement has been made, and a deposit has been received. The solar company can now proceed to begin the engineering and permit submission process. This includes engineered stamped drawings, which are prepared and certified by professional engineers to ensure accuracy and compliance with industry and regulatory standards.
Additionally, detailed engineered structural drawings are required to prove that the existing roof structure can support the weight of the system. There can be alterations at this stage depending on whether capacity is available from the grid and/or whether the roof meets the loading requirements. On flat roofs, for example a ballasted solution may be preferred as it has no penetrations on the roof membrane. However, ballast adds extra weight to the system, so it may be necessary to switch to a mechanically anchored system if the roof cannot support the weight of the ballast. The drawings outline every component and aspect of the system, facilitating precise planning and execution. Together, these documents form the foundation for designing a robust and efficient system tailored your business' specific needs.
Hydro Company Application and Building Application Process
Navigating the hydro company's application process is a critical and intricate part of your solar project timeline. This process begins with a capacity check to determine whether the existing grid infrastructure can support the proposed size of the system. This will happen in parallel with, or sometimes before, the engineered system design stage.
Upon a successful capacity check, the Connection Impact Assessment (CIA) follows. This is a thorough evaluation of how the proposed system will interact with the existing electrical grid. The CIA is essential as it identifies potential challenges and necessary upgrades to ensure seamless integration. Each LDC (hydro company) has its own set of forms and processes to be followed. These forms typically require detailed customer information and comprehensive electrical specifications. This multi-departmental evaluation ensures that all technical and regulatory standards are met. The fee for the Connection Impact Assessment is often included in the solar company's scope of work.
As part of the process, a building permit must also be applied for with the relevant municipality, along with a structural stamped engineering report that certifies the roof structure is suitable for the system as designed. Building permits are often submitted in parallel with the CIA, unless the loading of the roof is of particular concern to the client. In these rare cases, it can be completed prior to the CIA in order to avoid expensive CIA fees if the roof structure cannot support the weight of the solar system.
Connection Cost Agreement and Distribution Connection Agreement
Upon approval, the LDC issues a Connection Cost Agreement (CCA). The CCA outlines the financial obligations associated with connecting the new system to the grid as well as the conditions for the system connection to the grid, and may specify additional monitoring requirements such as Supervisory Control And Data Acquisition (SCADA) - a system that allows the LDC to receive performance data and control the system directly via radio transmission.
The CCA is a pivotal component of the project, detailing the costs required to facilitate the connection. The existing electrical grid may require enhancements to support the new system, and these upgrades represent a significant expense in the overall process. These costs typically run in the range of $5K-$25K, but in extreme cases may be more. This depends on the extent of necessary upgrades to the hydro infrastructure. It is important to note that these costs typically won't be included in the solar company's quote and are a major factor in the project's budgeting and planning. However, if these costs render a project not financially viable, the system can typically be downsized so that there is still financial benefit to the business while not requiring as much of a grid upgrade (e.g. downsizing the system so that an on-site transformer upgrade is needed vs an upgrade of the entire feeder station).
Once the CCA is done, an application is submitted for the Distribution Connection Agreement (DCA) and the project continues onto the next phases. The DCA is required to connect a solar system to the grid and likely won’t be issued until the project is complete. An Electrical Safety Authority (ESA) plan is also required and ensures all electrical installations comply with safety standards and regulations.
Equipment Procurement
Once the connection costs outlined in the CCA are paid, the project proceeds to equipment procurement, whereby the solar company orders the equipment needed for the project from their suppliers and industry partners. Custom equipment may be required for your particular solar system, which may impact the project timeline.
Installation and Testing Phase
Ensure your solar provider employs qualified technicians to bring the equipment to site and start the installation. Those technicians should comply with all safety regulations. The installer should be insured by the WSIB and all of their technicians should have their respective certifications up to date.
The installation will typically begin with DC (direct current) components (solar panels, mounting, wiring and grounding) followed by an onsite engineering review, and then an electrical AC (alternating current) installation (inverters, electrical panelboards, transformers and wiring). The solar company can then work with the client to minimize disruption or meet construction deadlines for new facilities. After installation, rigorous testing should be is conducted to verify the system’s performance and safety.
Commissioning and Final Approvals
The solar company should then coordinate ESA approval as well as an onsite Confirmation of Verification Evidence Report (CoVER) with the relevant hydro authority to ensure all components are working to their specifications. At this time the project is closed out and final documentation such as owner operation and maintenance manuals, monitoring information, and equipment warranty information will typically be provided to your company. Consider looking for a solar company that offers at least 1 year commercial installation warranty which includes operation and maintenance. This warranty is separate from the standard 25 year equipment warranty for solar panels and other equipment warranties.
Solar 101: Everything you Need to Know
Residential Systems
What components are needed for a residential system?
Net Metering
Learn how net metering works and how it can save up to 90% from your energy bill.
What level of service or maintenance is required with solar installations?
What is the impact of solar panels on the environment.
Commercial Systems
What to expect when installing a commercial system.
Agricultural Systems
What do you need to consider before choosing a solar company for the farm?
Battery Backup
Should I get a solar battery for my home? Decide if the battery option is right for you.
