What it Pays
In late 2014 solar came to my attention as both a potential tax write-off (deferral) and a modest source of income. The Ontario government had agreed to purchase power for 20 years at attractive rates, from small "micro"fit installations. A microfit power project was one that was under 10KWs.
Selling solar generated electricity to the grid pays about $0.38 per KWhour for "roof generated" solar power. It is far less if you generate solar on a ground mount. While net metering is available (where solar generated offsets your electrical costs), the economics make it foolish to take that route. At that rate, the system will generate something over $4,000 (we hope!)
If the system costs around $30,000 that is an 8 year payback (your mileage may vary) and a CCA writeoff for tax of 25% of the capital cost in the first year, 50% in the second year, and the balance in the third year. The tax write-off helps! You will of course (hopefully!) have income coming in to offset that.
While we didn't get it structured properly, the best plan would be to have the system up and installed late in the year, to get the deduction.
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