August 2018 – Solar Income
August 2018 – Solar Income
The end of the month always brings with it another deposit in our account from Hydro One. We get a cheque for power our solar system generated the month before. July seemed full of sunny days if I recall right. Time has just flown by these days though and I could be wrong. The system didn’t produce like the previous 2 months have, but they did predict the monthly production would peak in June.
What is the microfit program?
Our solar panel system is part of the microfit program.
The microfit program was introduced in Ontario for smaller renewable energy systems under the 10kw size. It’s part of the fit (feed in tariff) program to promote the use of renewable energy, increase investment into this space and create new green jobs.
We bought our solar system outright and installed it on the roof of our house. Its a 9.75 kw system, 10 Panels facing the south and 20 Panels facing south-west. 2017 was the last year of the program and we signed a contract to sell the hydro generated to Hydro One. In return they would pay us 28.8 cents per kwh for the next 20 years. After 20 years we can sign a new contract at most likely a higher rate (since hydro rates will likely be higher) or look into a battery system to power our house.
Show Me The Money.
In July we ended up producing 1,188 kwh of power. Since we get a income of 28.8 cents per kwh we ended up getting paid $342.14 this month. Sadly a little under the projected income of $359.86. That’s weather though, its unpredictable. The north of 400 bucks last month though, dam….. Haha!
As we can see last month started off Blazing! Quickly though those sunny days must of tapered off. The seasons are definitely changing… Its now dark at 8.30…. womp womp.
Question For All of You
Last month someone asked me if I can actually call these solar panels a passive income.
Since, you already invested 30k for the solar cells. Your income goes towards recouping this initial investment. Would you still consider it as a passive income? A parallel would be mortgage. Could rental income be considered passive income if all of it is allocated to mortgage?
To me, it definitely seems to be a passive income source. I also think the same about rental homes. Although I do always wonder what you would consider the passive income of a rental house. Just the free cash flow or also the portion that go’s towards the principal of that mortgage. It creates equity as well… (Personally I would lean to both)
If I were to buy a business for a nice chunk of change and didn’t work much at it, Id consider it a passive income source as well. It’s all about that cash flow and boosting your net worth.
I’m curious what are your thoughts on this?
This month’s income from the solar panels will likely be higher than my total dividends received this month. (These are my worst months for dividends) While the total power generated is lower than they predicted, its still pretty close. 350 still covers a bunch of bills.
Enjoy the upcoming long weekend! The kids go back to school after…. Haha
System Installed January 2018
Total System Cost ——–$32,396.46
Total Income Received ——–$1807.20
Amount to Breakeven —- $30,589.26
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.