January 2018 – Solar Income
January 2018 – Solar Income
As some of you know, last year we installed a 9.75 kw microfit solar panel system on our roof. The process was a long one starting in May and finally all the T’s were crossed and the I’s dotted in the middle of January. The Panels were generating energy starting at the end of December though.
January started off with our panels being completely covered in snow and was a really cold month. It took awhile for the snow to finally melt or slide off the panels. When it got cleared, I was happy and saw the system really producing. Then it snowed again…….. Obviously winter isn’t ideal for solar panels in Ontario.
What is 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 system outright and installed it on the roof of our house. 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.
We Got Paid
January was the first month we have gotten paid for. The income stream is official! In January we generated 168.08 kwh of power. Since we get a fixed rate of 28.8 cents per kwh, we brought in $48.96 this month. Not bad, but could be better. The solar company has a chart that estimates what you should bring in per month. The estimate was $129.17, clearly we didn’t get that. Hopefully that is just based on the weather and not a drastic over estimate.
This chart is a summary of what our panels were generating in January. When the panels are clear and the weather is decent I can see this really doing well though. The other day it was kinda sunny and we generated $10 in just one day (February). The potential is there and the green aspect is definitely cool!
As of today’s date – Feb 23rd the emission free energy we have generated (327.68) kwh is equal to.
Man I Love Passive Incomes!
We have a long way to go to break even on this investment, but its one of those feel good things to do. $48.96 won’t retire us any day soon but is another source of income we did nothing to generate.
Got to love when Hydro One needs to pay you!
Cheers.
System Installed January 2018
Total System Cost ——–$32,396.46
Total Income Received ——–$48.96
_____________________________________________
Amount to Breakeven —- $32,347.50
Hey I’m Rob, creator of Passive Canadian Income.
In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.
Nice going Rob, but wait, no snow of the roof? In Canada in mid winter? Is that even possible 😉
Pretty impressive payment for your electricity too, we don’t get that much around here!
Hey cheese. Haha last year there would of been barely any snow on them. Sounds like Europe doesnt pay as much but they were the pioneers!
Cheers
Rob, will I be able to do it this year ? Or is the program closed? Who do I contact? Many thanks!!!
hey Julia
From what i understand the microfit program is done. I do see alot of people installing panels now though so maybe there is something new.
id start at the ieso website or google solar panels in your area and call a company to find out what kind of incentives there are.
sorry that i dont really know the answer.
Cheers
Nice initiative. I am shocked about the payout per kWh. In the Netherlands we get only €0.10 per kWh.
If i would of done it like 8 years ago they paid over 80 cents per kwh! The system costed more too though.
The program is now over but got alot of investment into green energy and started the conversation.
Cheers and welcome btw!
It is very interesting Rob. Do the panels also power your house or do you just sell the output? Are the panels maintenance free or are there periodic costs to keep them functioning properly? Tom
Hey Tom
Right now all the power go’s to hydro one as they pay more than what we pay to get hydro from them by alot! They are basically maintenance free. I might have to go up there to squeegee the bird shit if it doesnt rain.
Cheers!
28,8$cent is verry high return ! Here in germany u got only 12,2EuroCent. But the solarpanels are cheaper. Last year we installed a 5KW system for 6000 Euro.
From March to December we had income of almost 600 euros. Unfortunately, our roof is not optimal for solar.
Wow that is alot cheaper! The euro is worth more than canadian dollars though. Congrats on your system.
Team green roof!
Cheers
Rob
Nice one Rob. Would love to have such thing as well. Woulf be nice to have a instaled roof already when building the house. Lie the one that Tesla ofers 🙂 Build one side roof to the soulth side.
South side would be ideal. Those tesla tiles look great but man are they expensive! Was 3 times as much as my system.
Cheers
Rob
Yes but you should take into account that this also includes roof cost. You already had one 🙂 Wonder what would be the cost diference from normal roof + panels to this tesla roof when building new house.
Oh wow i thought they just got laid over the existing roof. I used a sq ft calaculator when they came out. Didnt know that!
Cheers
Congrats!
Are you able to use any of the energy in your house as well to reduce the bills, and sell the excess or do you just sell everything you produce?
Hey Jordan thanks!
Maybe in the future right now it doeant make sense. It get 28.8 cents per kwh and at prime time hydro charges me 18 cents offpeak they charge 12 cents.
Cheers man!
It a great start. I will be very interested to see how much the panels will generate for the sunnier summer months.
So many he question is, is this income fully taxable and can you write off any of your expenses to offset these incomes?
Hey leo the million dollar question. Actually going to do our taxes at the accountant hopefully next week. That should answer some questions. Im curious as well!
Cheers
Congrats mate! Its a nice passive income. Its hard to get this kind of a diversification.
Hey geek
Thanks, true its a great way to diversify.
Cheers!
Looks good and great rate – but now I think I realize why my investment in H (HRNNF) is under water!
Hey Charlie thanks.
Im curious why tht stock is down? Whrn i search it its some healthy food company. Did u mean h as in hydro one?
Cheers
Yeah. H.TO = HRNNF in the states.
That’s awesome! I’ve been interested in solar panels more for the “free” electricity and self-reliance aspects, butting getting paid is a cool benefit, too!
Hey Joe
Thanks. Its another bonus to the sunny days! Go for it, always nice getting off the grid
Cheers thanks for swinging by
This is pretty cool, Rob! It’s great that you are able to create an income stream and also do good for the environment. It makes sunny days that much better too! Hopefully we get many more sunny days ahead! Thanks for sharing.
Hey crush
For sure! While ill be cooking in the sun working, i can think of the panels ringing in the money!
Cheers
Rob,
Awesome post! I’m starting to look into this as well for a house in the near future. I’m living in Minnesota so will definitely run into the snow issue as you have. Do you have a battery as well? One of those Tesla ones looks pretty good. I’ve been told that you can have that installed and still sell energy back to the electrical company. If the power goes off and your solar panels aren’t generating enough (at night?) then you won’t be without power since the battery backup will kick in.
Scott
Hey scott
Thats awesome. Go for it!
Because the microfit program was around we signed up for that. All the power we generate gets sold to hydro one at a higher rate than we pay! Its fantastic and clearly is a better option than the battery at the moment. In 20 years once the contract is up we can look into it again.
Cheers!
This is one informative post about solar panels. Didn’t know we could get an income from it! Very wise!
Hey Kyla
Welcome. Thanks. You most definately can!