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The 7 Factors That Influence the Cost of Installing Solar Panels in Canada

What are the costs of installing solar panels in Canada?

What are the different stages of costs and what should you be expecting to pay for a quality solar PV installation?

We’ve detailed the 7 main factors that influence the price of going solar for your home or business.

Cost of Going Solar In Canada

An investment in solar energy might seem substantial at first glance at the numbers, but there’s often more to it than just the initial installment fee.

Let’s look at understanding the cost breakdown, long-term benefits, and potential savings this sustainable alternative offers, which shifts the perspective of this renewable energy solution.

This article is to give a quick overview of the different aspects of what it costs to install solar power for your home or business. Most of the time, the numbers will add up in your favour, but this isn’t always the case.

So, let’s have an honest look at what you need to know when deciding if solar energy is right for your specific situation.

1. Initial Investment Costs

The initial cost of installing a solar power system includes the cost of solar panels, inverters, batteries (if off-grid or hybrid), installation charges, and other related expenses.

These costs are directly influenced by the size of the system, technology used, geographical location, incentives available and the quality of installation company you decide to go with.

While this number might be larger than you expected, you need to weigh the long-term benefits against this figure.

2. Maintenance and Operational Costs

The good news is that solar power systems demand very little maintenance, as long as you choose the right installation company. After all, the best equipment doesn’t mean much in the wrong inexperienced hands.

Occasional cleaning and regular professional check-ups to ensure the equipment is working efficiently are the main operational costs you will encounter.

The good news is that modern solar panels often come with a 25-year performance warranty, safeguarding your investment. After this 25 year period, quality solar modules will continue to generate power for years to come.

3. Feed-In Tariffs

In many areas, once your solar panels are producing more energy than you consume, this excess energy can be sold back to the grid.

Known as feed-in tariffs or net metering, these can significantly help offset operational costs.

Alternatively, if you opt for an off-grid system, you can store this energy to use later when the sun isn’t shining or the cost of electricity is higher, saving you even more money.

4. Government Solar Incentives and Rebates

Government solar incentives and rebates come in different variations. For Canadians, the most well known incentive is the $5,000 Greener Homes Grant, though this is planned to be phased out early in 2024.

Depending on your location, Federal, Provincial and Municipal solar rebates might be on offer for you to reduce the initial fee for the solar system, which helps greatly reduce the time to a positive return on investment by several years.

As these incentives change, we recommend to contact a reliable source of Canadian solar information that keeps up to date with these changes – such as Canadian Solar Quotes.

5. Long-Term Savings

Despite the initial outlay, solar power systems offer significant long-term savings. After all, sunlight is free, all you need to do is capture it!

You can save substantially on energy bills by reducing your reliance on grid-based power. With rising and unpredictable energy costs, in many cases, these solar systems can pay for themselves in just a few years of being active.

6. Increase in Property Value

Investing in solar energy can also enhance the value of your property. As awareness and demand for sustainable living increase, properties equipped with solar panels appeal to a growing market, potentially offering higher resale values.

It just makes sense. Would you rather be at the mercy of your energy provider, or generate your own electricity and be immune against price increases of power?

Solar power can see a 4-5% increase in property value due to the feasibility of solar power in Canada.

7. Mitigating Price Volatility

With solar, you protect yourself from rising energy costs and the uncertainty of price volatility.

As the technology advances and becomes more efficient, solar energy costs continue to decrease, making it a cost-effective solution.

The price increase of energy in Canada over the last few years has doubled, with Edmonton paying 12.8 cents per kWh in 2021 and 25.6 cents in 2023. This increase shows the value of solar and removing yourself from the price fluctuations.

7 Factors of Calculating Cost of Solar in Canada

Solar power systems represent an excellent, sustainable long-term investment, offering financial benefits that can more than compensate for the initial cost.

At Canadian Solar Quotes, we are dedicated to providing a transparent understanding of costs and helping you harness the sun’s power while optimizing financial savings.

Contact us today to get started and get 3 obligation free solar quotes!