Solving the Challenges for Commercial Solar Construction in Ontario

Solar power is a smart move for Ontario businesses. It can reduce long-term operating costs, provide energy security, and demonstrate environmental leadership. But commercial solar construction does come with real-world challenges—from financing and regulations to technical limitations. Fortunately, each of these hurdles has a practical solution. At VCT we have designed and built over 300 solar construction projects in Ontario and have experienced these challenges firsthand. We know how to address them.

Upfront, it is important to know that there are two key approaches for solar construction in Ontario: Net Metering, and Load Displacement. In both, the power generated by the solar array must be consumed on site. The difference is that under net metering any excess generation is fed into the grid and accrues energy credits. In contrast, load displacement cannot export to the grid, and any excess generation is capped to match the amount of power currently being consumed. Solutions to solar construction challenges can vary based on these models.

Let’s explore the key challenges facing commercial solar construction in Ontario—and what we’ve learned about overcoming them.

Upfront Capital Costs for Solar: A Major Barrier for Many

Commercial solar construction requires a significant capital investment. For many businesses this upfront cost is the biggest reason they delay or avoid going solar. In some cases, waiting can be a viable strategy as material costs for solar continue to drop, but in others (especially net metering) it can lead to increased costs if the delay leads to available feed-in grid capacity being assigned to other projects.

Solutions

• Government Incentives: Ontario’s Save on Energy program and federal tax credits like the Clean Technology Investment Tax Credit (ITC) can reduce project costs dramatically. These incentives can be combined for more savings. Save on Energy can reduce project costs by up to 50%, with the ITC reimbursing up to an additional 30% of the remaining cost. (E.g. With a system cost of $860k the Save On Energy grant reduces the cost by 50% to $430k. If the project is also eligible for the ITC, a tax rebate of 30% on the remaining 50% reduces the solar construction cost to $301k)
• Financing Models: Power Purchase Agreements (PPAs) and lease options allow businesses to benefit from solar with little or no capital investment. Under a PPA, you lease your space to a third party to construct a solar array and agree to buy all of the power generated. PPAs often have terms to allow purchase of the system later on, giving you a chance at ownership for a reduced price based on the accrued equity.
• Strong ROI: Many systems reach payback as quickly as 3–5 years, and continue generating free electricity for decades afterward. Currently, solar panels have manufacturers’ warranties of 25-30 years, and research suggests panels may still be generating close to 80% of their initial output for 40 years or more. Once the system is paid off, it is like getting your power for free – for decades.

Conclusion

While initial costs can seem high, the combination of incentives and financing tools makes solar accessible and profitable for most commercial properties. When the initial investment is paid off the cost of electricity is substantially cheaper than grid power over the system’s lifetime. When a commercial solar system is “net-metered” the credits earned for exporting excess power can be used to stabilize energy costs year-round, helping businesses to manage their cash flow.

Site Suitability: Not All Buildings Are Solar-Ready

Sadly, not every commercial site is ideal for solar. If your site isn’t suitable for solar construction we will be the first to tell you after a comprehensive analysis. Common issues include shading, limited roof space, or a building’s structural constraints. Some areas also face restrictions in grid capacity (i.e. the ability of the grid to accept exported excess power generated in a net-metered configuration.) You can trust that our free site assessment will discover the maximum solar construction potential for your location, and ensure our design is optimized for your needs.

Solutions

• Custom System Design: Systems can be tailored for each site, including ground-mounted arrays or solar carports for locations where rooftop space isn’t an option. One way we have addressed this for a client with a small rooftop was to mount additional panels as vertical cladding on the walls of the building’s mechanical penthouse. (View video.)
• FREE Site Assessment: Our site assessments help identify barriers early and offer workarounds. We assess the physical space, draft a preliminary design, and provide detailed financial modeling of your ROI. With transparent pricing, you can make a confident, informed decision.
• Grid Planning: In some cases, storage can be added to reduce dependency on the local grid, or to manage peak loads.

Conclusion

Even if your site isn’t perfect, smart engineering and design can make solar work in a wide range of commercial environments. At VCT we provide FREE site assessments that include satellite image analysis, financial modelling, and preliminary system design to inform your choice to invest in solar construction. We will always recommend the best option – based on available incentives, your budget, and your consumption profile. Rest assured, if your site simply isn’t suited for solar, we will be the first to let you know.

Regulatory Limitations: Policy Can Be a Roadblock

Ontario’s rules restrict how solar power is shared or distributed. For example, net-metering only allows you to offset energy use on the same property where it is generated. You can’t share power across multiple buildings or sell excess power freely, but excess power can be exported to the grid for credits that are used to smooth out your energy costs year-round.
In the case of Load Displacement (a requirement for the Save On Energy program), excess power cannot be exported to the grid. In this model, all power generated MUST be consumed onsite, and excess generation is limited to your consumption.

Solutions

• Maximize Net Metering: Smart system design can ensure that the majority of solar power is used on-site, maximizing your return.
• Load Displacement Models: These help align your system’s output with your building’s energy use, improving efficiency. Compared to net-metering the main difference is that power cannot be exported to the grid to earn credits.
• Monitor Policy Shifts: Community solar is the ability to sell the power you generate to third-parties. While Ontario doesn’t yet allow community solar (also known as virtual net metering), there is growing support for regulatory change to make it possible to sell exported power to other businesses.

Conclusion

Current policies can seem restrictive, but careful planning and good system design still allow for substantial cost savings—especially as regulations and energy markets continue to evolve. Accurate financial modelling can determine the optimal system size and contract type that will work best at your location. The future is looking brighter for solar all the time.

Weather – the sun doesn’t always shine

Solar panels generate power when the sun is shining. This inevitably leads to variability in the amount of power generated, especially for operations that run at night, or in regions with frequent weather changes. Despite this, for many locations solar can still supply 100% of the energy needs year-round. We carefully tailor our financial modeling and system design to accommodate for the variability and maximize the ROI of your solar construction to smooth out your energy costs year round. On days when your generation does not cover all of your site’s consumption, your connection to the grid means you can still draw from it when you need to. Your solar power is cleaner and cheaper than grid power, but you always retain the ability to take advantage of grid power when required.

Solutions

• Energy Storage: Battery systems are becoming more affordable and help store solar power for later use. (See our article on “Addressing Intermittency” to learn more about the fascinating world of energy storage solutions.)
• Hybrid Systems: Combining solar with grid power or backup generation to maintain consistent supply is a proven approach. Even without onsite storage, constructing solar uses less fossil fuel and less material than traditional energy sources, resulting in lifetime greenhouse gas savings even when solar is backed up by nuclear, or gas-powered peaker plants.
• Energy Shifting: Businesses can shift operations to daytime hours to make the best use of their solar generation. Simply by aligning peak generation with peak consumption, you can maximize the economic benefit for your business.
• Virtual “Grid” Battery: Whether your system is net-metered or load displacing, your connection to the utility grid acts like a virtual battery. Your grid connection ensures that you can take full advantage of your cleaner, cheaper solar power with the confidence that your energy supply is backed up when you need it. There will be no gaps.

Conclusion

Solar may not provide 100% of your electricity every day, but with energy management tools and optional storage, it can meet your needs reliably. Even without battery backup, the utility grid (and accrued credits from a net-metered system) act as a virtual battery, ensuring that your energy needs are still met when the sun doesn’t shine.

Final Thoughts: Solar Construction Is a Smart Step for Ontario Businesses

Commercial solar is one of the most effective ways to control long-term energy costs, reduce your carbon footprint, and demonstrate your commitment to sustainability. There are barriers, but none of them are insurmountable if they are identified and addressed early in the planning phase.

At VCT we have been designing and constructing solar infrastructure since 2008. We have learned through experience that with the right mix of financial planning, design expertise, and up-to-date knowledge of Ontario’s solar market, you can turn rooftops and underutilized spaces such as parking lots into reliable, cost-saving energy assets.

Solar construction is not just good for expanding the energy supply in Ontario—it’s good for business. Let us show you.

We want to be your trusted solar construction partner. Talk to us today for your FREE Site Assessment and discover how solar can work for you.