For the last 50 years the price of hydro has risen with the price of gasoline at a compounded annual growth rate (CAGR) of 5% per year. Today, a perfect storm of high gasoline prices and artificially manipulated hydro rates through the "Ontario Fair Hydro Act" is set to unleash a dramatic increase in hydro rates. With the price of gasoline skyrocketing 100% since October 2020, the demand for hydro will increase as more and more people switch over to Electric Vehicles. Compounded by the province's crushing debt load, partial privitization of Hydro One and growing need for additional hydro infrastructure, some industry experts predict hydro rates will increase by a rate of 7% per year just to keep up with demand.

In a recent Bloomberg Article the impact of oil on hydro futures contracts in the U.K. and Europe has increased by almost 300% compared to last year. In a recent Financial Post article, the CEO of the IESO (Independent Electricity System Operator) stated that the phasing out of natural gas generation in Ontario by 2030 would result in "60 per cent or $100 increase on the average monthly residential bill".

Historically over the last 50 years hydro rates have risen an average of 5%/year. The base case scenario is that rates continue to rise at their historic 5%/year. A typical home in Ontario that uses 8,000KwH/year pays an average monthly bill of around $100/month ($70 usage, $30 delivery + regulatory fees) after rebates. With Net Metering that $100/month bill can be reduced to $30/month (delivery and regulatory fees). Even under the base case scenario of a 5%/year increase in hydro rates, your energy savings over the 25 year lifetime span of solar panels would be $57,750.

Now is the best time to invest in solar panels for your home. The Government of Canada "Greener Homes Initiative" offers the following financial support for solar power retrofits. Get up to $5,000 towards the installation of solar panels for your home. On a typical residential 10kWh system, this can result in a 15-20% reduction in the cost of installing solar panels. Receive $600 towards your pre and post retrofit EnerGuide home evaluation. The EnerGuide home evaluation is a requirement of the $5,000 grant. We will match you with a preferred EnerGuide expert so that you can get your application in the shortest amount of time possible. Get 100% the cost of your solar panels financed with 0% interest free payments over 10 years by the federal government. By using the government's money, you avoid the upfront capital cost and finance your panels for 10 years at zero percent until they are fully paid off.