Personal Finance

ONT ONLY - microFIT solar panel program: 10-14% return for 20 yrs * FAT LADY HAS SUNG

  • Last Updated:
  • May 21st, 2018 9:29 am
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Falkirk wrote:
Jan 16th, 2018 2:02 pm
Hi guys, first post here Smiling Face With Open Mouth! I have solar installed but I'm still curious what the state of new solar is in Ontario now that the microFIT program is finished. What does the numbers look like for a ROI now? Is all production sold to the grid at time of use cost or some set number now?

Thanks!
Grand Poobah, here. Yes net metering is the best alternative, but ROI numbers aren't good IMHO especially with the illiquidity risk (if you sell your house you'll likely lose lots of $). But the ROI is highly dependent on the cost of your system. Some in the thread say they can get a 10K system for $20K which would obviously make it more attractive than if you paid a more "normal" $30K.

I started a thread on net metering HERE. That's the best place for net metering questions.
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Jan 15, 2018
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Yeah it's going to be a tough sell after the amazing investment the program gave us to this point. I'm happy I got it back in 2016 and tell everyone we will listen about solar and electric cars! ha
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Aug 31, 2015
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Scarborough, ON
Me too - I also have a passive solar heating system for my pool - evacuated tubes that heat the water on the roof of my house beside my solar panels.
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Apr 21, 2004
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Hi everyone, if we have received the HST refund in early 2017 and that included HST until December 2016,

when remitting the 2017 HST, do we have to fill up a new physical GST return or is this something we can do electronically once we sign into our Business GST account over at CRA?

Thank you so much. I thought I procrastinated good thing 2016 was fully remitted. I opted for annual because I did procrastinate with the HST refund process. :)

Edit:

Looks like it's two steps. I will be using netfile beginning this year for personal tax returns so please be patient with me, haha.

File
https://www.canada.ca/en/revenue-agency ... tfile.html

Payment
https://www.canada.ca/en/revenue-agency ... nline.html


Edit 2:
Seems if I log into My Business, I can do step 1 from within and then just fill these up? Line 101 should just be Sales - delivery charge?

101 - Sales and other revenue
105 - Total GST/HST and adjustments for period Enter dollars and cents, separated by a decimal point.
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^
From JWL's post on getting the HST rebate, it seems I only have to file these on an ongoing basis if I have no HST to recover from tools/expenses to maintain the solar panel:

Line 101 - Total revenue from your LDC EXCLUDING HST during the period --> less delivery charge
Line 103 & 105 - Total of all HST that you were paid (from your LDC) during the period

Can anyone confirm as I have tallied the HST and revenue?
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alanbrenton wrote:
Jan 21st, 2018 10:28 am
^
From JWL's post on getting the HST rebate, it seems I only have to file these on an ongoing basis if I have no HST to recover from tools/expenses to maintain the solar panel:

Line 101 - Total revenue from your LDC EXCLUDING HST during the period --> less delivery charge
Line 103 & 105 - Total of all HST that you were paid (from your LDC) during the period

Can anyone confirm as I have tallied the HST and revenue?
And then the total in 105 will carry down to 109 and 115.
It is not a large amount, but Hydro One bills me $5.40+HST monthly for connection fee (or something like that). That HST is claimable as an ITC in line 103.
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JWL wrote:
Jan 21st, 2018 10:56 am
And then the total in 105 will carry down to 109 and 115.
It is not a large amount, but Hydro One bills me $5.40+HST monthly for connection fee (or something like that). That HST is claimable as an ITC in line 103.
I don't think Oakville Hydro charges HST on that delivery but I will double check.

Thanks for confirming JWL!

====

delivery charge is deducted from revenue before HST is applied for my LDC.

Delivery $5.40
MICROFIT CONTRACT WITH HST $549.87 CR
Total Electricity Charges $544.47 CR
H.S.T. # $70.78 CR
Current Charges $615.25 CR
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Jan 15, 2007
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Hello all,

We just got our solar system installed on Friday / Saturday and are looking forward to having the connection completed.

Quick question, when reporting income, does it need to be 50/50 for my wife and I? Or does the split matter? She is at a lower tax rate than I am so I am hoping she can just claim the income...

Thanks!
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^ I'm actually thinking about the split too but more one the line on who's job is more secure or less insecure, haha.
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Skirby01 wrote:
Jan 23rd, 2018 12:39 pm
Hello all,

We just got our solar system installed on Friday / Saturday and are looking forward to having the connection completed.

Quick question, when reporting income, does it need to be 50/50 for my wife and I? Or does the split matter? She is at a lower tax rate than I am so I am hoping she can just claim the income...

Thanks!
Congratulations.

Technically income should be split based on who put up the investment $ so there is a fair amount of "wiggle room" in how you split the business investment/income. But if you wife hasn't earned any income then she couldn't have made the investment. Keep in mind that you are making a 20 year commitment because you can't change it part way throug. And for about the first half of that time the net income will be $0 (after CCA is claimed).
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Jan 15, 2007
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One more question (for now)... when completing income tax, I understand that the capital depreciation cannot be more than the income from the production. We will also want to deduct the interest, but I don't think that is a factor with how much capital depreciation can be used, is it?

For example, if we make $3400 in income in a year, and pay $500 in interest in the year, would the depreciation be limited to $3400? or $2900 if we are also deducting interest?

Going back to my previous question about splitting the income, I suppose that the downside of my wife taking on more of the income, is that the interest deducted should follow the same split.
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revenue - interest cost = income so only use enough CCA to drop your income to zero. You don't want to use more CCA then necessary because you will have less CCA to apply in later years.

Anyone remember what the CCA for solar panels are again? I think I asked and got a response but didn't email the response to myself.
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alanbrenton wrote:
Jan 25th, 2018 1:16 pm
revenue - interest cost = income so only use enough CCA to drop your income to zero. You don't want to use more CCA then necessary because you will have less CCA to apply in later years.

Anyone remember what the CCA for solar panels are again? I think I asked and got a response but didn't email the response to myself.
Minor point, but you aren't allowed to create a loss using CCA (it is stronger than you "don't want to use more CCA than necessary").

CCA Class is 43.2 and the rate is 50% (there is a link in the first post to income tax filing instructions as well as HST instructions)
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alanbrenton wrote:
Jan 25th, 2018 1:16 pm
revenue - interest cost = income so only use enough CCA to drop your income to zero. You don't want to use more CCA then necessary because you will have less CCA to apply in later years.
You would want to use more if you could as it would offset other income that may be taxed today at 53.53%, but CRA doesn't allow you to do this.
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My panels are showing some signs of life after that dump. Good thing snow was powdery and there was blowing wind.

42 W (1% on 5.0)
98 W (3% on 3.8)

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