Solar Panel Installation Cost in Canada
Solar power is significant for Canadians who want to use clean energy. On average, a solar setup in Canada costs about $22,500 for a 7.5kW system. However, the total price can change a lot depending on where you live, how big your system is, and if there are any discounts available.
Factors Influencing Solar Panel Costs
Every solar system is custom-made to fit a homeowner's roof and energy needs. There's no single-size solution, so it's challenging to provide general cost estimates without considering factors like your home's electricity use, roof, location, etc. Knowing what affects installation costs can help homeowners compare quotes and ask the right questions when they begin their solar journey.
System Size and Capacity
A good solar installer will check how much electricity your home has used in the past year. If your home uses a lot of electricity, you'll need more solar panels, costing the system more.
But here's the interesting part: even though the total cost increases with each new panel, the cost per watt goes down. This happens because certain fixed costs for things like permits, designs, and system balance stay the same no matter how many panels you add. As a result, even if your total cost is higher, you're receiving a better bargain, and a larger system allows you to recover your costs faster.
The time it takes to recover your costs, also known as the payback period, usually ranges from 8 to 16 years, depending on where you live and how big your system is. Plus, most solar panels have warranties that last up to 25 years, making solar a smart long-term investment.
Location (Provincial Variations)
A solar system's installation cost can vary depending on where you reside due to local laws, weather conditions, and government incentives. In different parts of Canada, the usual price is not the same. Right now, Ontario has the lowest cost, between $2.42-$3.05 for each watt. But the cost won't differ even if you live in another province. Most places are just a few cents apart.
Type of Solar Panels and Components
Different brands and types of panels come with different price tags. For instance, monocrystalline panels are fancier and cost more than polycrystalline ones. It's a good idea to check out various panel types to see which works best for your home.
Monocrystalline panels could be pricier, but they work well in colder places because they're super efficient and produce electricity even with little sunlight.
Furthermore, if your roof faces south and has a 30-degree angle, that's great for solar panels. You'll get more direct sunlight, and your panels will make plenty of energy for your home.
But if your roof is complicated, with many levels, it can make the installation harder. You would need extra equipment, which can raise the cost of getting solar panels.
Labour and Permit Costs
Solar power can be closer to reach for many homeowners than they realize. The costs are coming down, and better rewards and affordable payment plans are available.
Over the years, we've seen the cost of solar systems decrease as solar technology improves. Since 2010, the cost of solar systems for homes has dropped by 64%, mainly because things like solar panels have become cheaper.
Even yet, some homeowners may still be deterred by the price of a solar system when they learn how much it costs. Even though the savings you'll make in the future are great, it can be tough to invest in something for your home that takes a while to pay for itself.
Financing Options and ROI
Investing in solar energy panels is not just about the upfront cost but also the long-term benefits, including potential savings and returns on investment (ROI). The following are some financing options and considerations to help you make an informed decision:
1. Government Incentives and Rebates
Many provinces and territories in Canada offer incentives and rebates to encourage solar panel installations. These incentives can significantly reduce your upfront costs.
For example, the federal government's Renewable Energy Deployment Initiative (REDI) provides financial support for renewable energy projects, including solar installations. Research available incentives and use these opportunities to lower your installation expenses.
2. Net Metering
Net metering is a billing system that grants you credit for the surplus electricity your solar panels produce and send back into the power grid. This can substantially reduce your electricity bills and increase the ROI of your solar panel system. Check if net metering is available in your area and understand its regulations.
3. Solar Loans and Financing
Many financial institutions offer solar loans or financing programs that allow you to spread the cost of your solar panel installation over time. These loans have interest rates and terms, making it easier for homeowners to buy solar energy without a significant upfront expense.
4. Lease or Power Purchase Agreements (PPAs)
Entering into a PPA with a solar provider can be a good option for those who prefer not to own the solar panels immediately. In these arrangements, you pay a monthly fee for using the solar panel system, and the provider takes care of maintenance and monitoring. While this option would not yield the same long-term financial benefits as ownership, it requires minimal upfront investment.
5. Return on Investment (ROI)
The ROI of your solar panel installation is a significant factor to consider. Calculate how long it will take for your energy savings to offset the initial installation cost. With declining solar panel prices and increasing energy costs, solar systems can often achieve a favourable ROI within a reasonable timeframe, making them a sound financial investment.
Find a Reliable "Solar Panel Companies Near Me" Today
Understanding the factors influencing solar panel installation costs in Canada is essential for making an informed decision about transitioning to solar energy. By considering different factors, you can tailor your solar installation to meet your energy needs and financial goals. Solar power reduces your carbon footprint and offers the potential for long-term savings and a sustainable energy in the future.
If you want a sustainable future, contact efficient solar panel installation providers. Our team at Coquitlam Solar Energy will assist you in attaining this goal. Call us today.