The Solar City program offers property owners access to innovative solar energy options, which can be financed through a Local Improvement Charge. Property owners choose their preferred solar energy system and service providers as part of the program.
How does the program work?
The Solar City program allows property owners to enter into an agreement with the municipality to access funds that offset the capital costs of installing solar energy systems on their property. The municipality places a voluntary Local Improvement Charge (LIC) on the property after the solar contractor is paid at the end of the project. The LIC is an additional annual charge and is separate from the property owner’s annual property tax bill. This LIC mechanism is described in detail in Solar City By-law S-500 [PDF].
The LIC payments are made over a period of 10 years at a fixed interest rate (4.75%) with the option of paying the balance in full and removeing the lien at any time without penalty.
The charge is applied to the property, rather than to the individual. If a participant moves before the financing is repaid, they have the option of paying the remaining balance in full1, without penalty, or transferring the charge to the next property owner (as long as both parties agree to the transfer).
How do I determine if I am eligible to participate in the program?
You are eligible for the program if the following conditions are met:
- all residential taxes are paid in full as well as any other fees and charges which are invoiced separately through the tax account (e.g., false alarms, unsightly premises or deferred regional development charge)
- any lien placed on your home by the municipality (e.g., for sewer line replacement) is either paid in full or being paid per the annual billing cycle or other authorized payment plan
Not sure if your account is up-to-date? Register for the program and the municipality will confirm for you.
How do I participate in the program?
Step 1: Register
- The property owner is expected to register online for the program, at which point the Solar City program office will confirm if the property is eligibile.
- After registering, you will receive an email confirming that your information has been received and your property is under review. If your property is eligible, you will receive another email with a unique Solar City project identification number (ID) and instructions on how to proceed with the installation.
Step 2: Select a solar contractor
- The property owner is expected to contact solar contractors to obtain an installation proposal that meets their energy needs and consumption habits.
- It is recommended you discuss pest protection with your selected contractor. In some locations, birds have been found to nest under the panels.
- Once satisfied with a solar installation proposal, the property owner emails the Solar City office with their selection.
- Only solar installations that have a minimum total solar resource fraction (TSRF) of 70 per cent will be approved. This means that north-facing or heavily shaded solar panels may not be approved, depending on azimuth, slope and shading factors.
- The project owner chooses a solar contractor to complete a solar energy assessment.
- The municipality is not responsible for selecting a contractor on your behalf. The list of Atlantic Canadian solar companies registered with Solar Nova Scotia is a valuable resource for finding a reputable contractor.
Step 3: Solar contractor review and property owner agreement
- Staff will reach out to your chosen solar contractor and perform a detailed technical review to ensure the contractor:
- has third party liability insurance and is in good standing with the Workers Compensation Board
- has applied for mandatory building and electrical permits
- is supplying certified equipment for use in Nova Scotia
- has supplied the property owner with an accurate solar energy assessment that meets Solar City program criteria
- Once reviewed, Solar City forwards the property owner an Energy Efficiency Equipment Participant Agreement for review and signature.
- The Energy Efficiency Equipment Participant Agreement must be signed by all legal property owners and executed by the municipality before the install begins.
- If all conditions are met, financing will be approved and participants receive a Solar City Participant Agreement for review and signature, which must be signed and returned to the Solar City office within 30 days.
Step 4: System installation
- After the project has been approved, the property owner can move ahead with the selected solar contractor to complete the work at the property.
- The property owner should enter a separate installation and maintenance agreement with the solar contractor that should outline:
- project costs
- installation schedule
- equipment specifications
- equipment warranties
- operation and maintenance plan
- It is the responsibility of the property owner to ensure the work completed is of high quality and meets solar industry standards.
Step 5: Project close out
- Solar contractor completes and sends the signed Certification of Completion to the Solar City office, along with proof of passed final inspections
- Solar City office reviews and approves the Certification of Completion, which includes:
- description of the work completed and a final cost summary
- an indication of any changes between the proposed and installed systems
- data monitoring and access information
- final solar contractor invoice (installation and equipment summary)
- all applicable permits and proof of final inspections (HRM Solar Building Permit, Electrical Permit)
- The solar contractor will not be reimbursed for the completed work until this Certification is completed and approved by the Solar City office.
Step 6: Payment
- Solar City reimburses solar contractors for work completed.
- Upon approval of the Certification of Completion, the municipality will reimburse the solar contractor directly.
- The property owner receives a Local Improvement Charge (LIC) invoice and a Schedule of Payments from the municipality.
- The first payment is due six weeks after the invoice has been mailed. Interest is calculated on the total Principal due at a 4.75% annual interest rate which is applied to the account on a daily basis. This lienable charge is amortized over a ten (10) year period and is separate from your property tax account.
- There is no online payment option but you may contact the revenue department to discuss other options available, including bi-weekly or monthly Pre-Authorized Payments (PAP).
- An email address and phone number contact will be listed on the letter which accompanies the LIC invoice and staff will assist you with your payment decision.
- The municipality collects payments in the same manner as property taxes and the charge is subject to the same penalties, remedies and lien priorities.
What are the expected costs and savings?
Since property owners choose their preferred solar energy system, the installation costs and savings will vary. Energy cost savings from solar are expected to increase over time because of the increasing cost of traditional heating and electricity sources.
The solar energy assessment tells you what kinds of savings you can expect over time and will predict financial benefits over the life of the solar installation.
Property owners are expected to determine their ability to repay the cost of installation using the solar energy assessment provided by their solar contractor.
Payment and interest chart
The sample payment and interest chart below provides an indication of what LIC payments could look like over the 10-year repayment period with a 4.75% fixed interest rate, with the principal project cost of $15,000.
For this example, the property owner was billed on December 18, 2017 and the first installment is due January 29, 2018 (six weeks after the invoicing date), the last installment would be due January 29, 2028.
Note: interest begins accruing daily on the account from this date. Any payments made before or after the annual payment due date will decrease/increase the interest portion and the total of the payment date.
| Installment | Due Date | Month | Year | Min. principal payment | Interest | Payment | Balance |
|---|---|---|---|---|---|---|---|
| Installment | Due Date | Month | Year | Min. principal payment | Interest | Payment | Balance |
| 1 | 29 | January | 2018 | $1,500.00 | $1,500.00 | $13,500.00 | |
| 2 | 29 | January | 2019 | $1,500.00 | $641.25 | $2,141.25 | $12,000.00 |
| 3 | 29 | January | 2020 | $1,500.00 | $570.00 | $2,070.00 | $10,500.00 |
| 4 | 29 | January | 2021 | $1,500.00 | $498.75 | $1,998.75 | $9,000.00 |
| 5 | 29 | January | 2022 | $1,500.00 | $427.50 | $1,927.50 | $7,500.00 |
| 6 | 29 | January | 2023 | $1,500.00 | $356.25 | $1,856.25 | $6,000.00 |
| 7 | 29 | January | 2024 | $1,500.00 | $285.00 | $1,785.00 | $4,500.00 |
| 8 | 29 | January | 2025 | $1,500.00 | $213.75 | $1,713.75 | $3,000.00 |
| 9 | 29 | January | 2026 | $1,500.00 | $142.50 | $1,642.50 | $1,500.00 |
| 10 | 29 | January | 2027 | $1,500.00 | $71.25 | $1,571.25 | $0.00 |
| Principal | $15,000.00 | Interest | $3,206.25 |
What are the benefits of Solar City?
With the Solar City program, the municipality provides long-term, low-interest financing for solar energy systems. We acting as an intermediary, providing expert review and diligence to ensure that the installed system meets industry standards and provides energy and cost savings.
As part of the program, the municipality collects data from each financed solar energy system to create an open data source for further analysis of the solar energy potential in Nova Scotia and ways to expand the solar industry.
Other benefits:
- Regardless of the ownership of the property, the financing stays with the property and does not follow the individual.
- Step-by-step guidance and professional, impartial evaluation of solar energy design.
- Cost and energy savings over traditional heating and electricity sources.
- Reductions in community greenhouse gas emissions.
- Option to repay outstanding Local Improvement Charge (LIC) balance at any time with no penalty.
- Third party review of solar energy design to ensure quality control.