How much does installing solar really cost?

In recent years, advancements in solar technology have led to significant cost reductions. As a result, upgrading to solar is increasingly becoming a no-brainer for Canadian homeowners. In this article, we aim to uncover why that is.

But before assessing any financial incentives, we must first understand the process of installing solar panels at home. To gain insights into the full approach, we have collaborated with mySolar, a leading residential solar provider in Canada to gain some insight into the qualification process for a homeowner. Below is a breakdown of how that whole process works in addition to an opportunity to receive a free solar assessment for your home!

Step 1 - Designing a Tailored Proposal for Your Home

The in-house engineering team at mySolar utilizes Aurora AI, the industry standard sun-mapping software to analyze the sunlight potential of your roof. This includes direction, pitch, dimensions, shading from trees, 30 years of climate data for your home’s GPS location, and of course your consumption data to determine how many panels are necessary, and where they can fit. Check out this example below, lifted from a real client’s proposal:

Step 2: Comparing Consumption to Production

By comparing the data from the homeowner’s utility bills and Aurora AI’s projections, the engineers at mySolar can project precisely how much of a home’s annual electric demand can be covered by their proposed solar system. In the majority of cases, an ‘offset’ of 100%+ is achieved, meaning that no matter how large, the electric bills will be permanently reduced to just the connection fee of $30. Below is an example of how the solar system’s production stacks up against a home’s electric need over the course of a year:

Step 3: Site Survey

Once the homeowner has decided to move forward with a proposal, the team at mySolar sends a technician to visit the home in-person to inspect the shingles, attic, and fuse panel in the basement. The information gathered is put together into a thoroughly-detailed engineering package, approved by their Head Engineer and architect, and sent off to the homeowner’s local electric utility for approval.

Step 4: Grid Capacity Approval

Although there is tremendous investments going into expanding our electric grid and it’s capacity, it still continues to be extremely limited when it comes to net-metering. Thus, getting approved involves putting in an application through a professional provider like mySolar, being put into a queue, and praying that your next-door neighbour didn’t submit an application before you! There has quite literally never been a better time to make this switch, and depending on where you live, it may not be an option for much longer.

Step 5: Installation

Once the team at mySolar has secured the construction permit from the local municipality, they contact their client to book the installation, which typically is completed within a day (often 6-8 hours). In the days following, safety checks are performed by the Electrical Safety Authority, a bi-directional meter is installed by the local utility, and finally a Registered Energy Auditor visits the home to verify that the project has been completed according to the information uploaded to the Enbridge website when applying for the subsidies.

Step 6: Rebates & Incentives

Homeowners have access to unprecedented government subsidies when they install their own solar system. Currently, there is up to $5000 available in rebates, and a personal, unsecured loan up to $40,000 at 0% for 10 years to cover the cost of installation. Additionally, 15% will be paid out before installation to cover any upfront fees or deposits requested by a contractor.

Side note: There is yet another $5000 in rebates available for other home efficiency upgrades like insulation improvements, new furnace and A/Cs, etc. The interest-free loan can be used for these retrofits as well!

The Cost Of Not Installing Solar Today

Now that we understand the fundamentals, let's explore the cost of not installing solar at home. Traditional electricity bills continue to rise at an average rate of 5-7% annually. For example, the average cost of an electricity bill in Ontario, Canada is currently $150 per month, which could potentially increase to approximately $600 per month within 25 years. Extrapolating this over a 25-year period, the total cost of electricity without solar panels would amount to a staggering $150,000+. It's important to consider this substantial expense when evaluating the long-term financial impact of not installing solar panels.

The Cost Of Installing Solar Today

Now, let's delve into the cost of installing solar at home. The average cost of powering a Canadian home with solar panels is approximately $25,000. However, it's essential to consider the broader financial benefits. Studies have shown that installing solar panels increases a home's value by around 4.5%. With the average house price in Ontario, Canada being $880,000, this translates to an immediate increase in household value of over $35,000 upon installation. Additionally, many solar panel owners are able eliminate their monthly electricity bills entirely. Moreover, the Ontario government offers a $5,000 grant for solar panel installation, further reducing the overall cost.

The Take Home Message

In conclusion, it is evident that not installing solar panels can result in significant financial losses over time. Rising electricity costs can burden homeowners, whereas installing solar panels presents a more cost-effective and sustainable solution that oftentimes pays for itself immediately. By taking advantage of available rebates, incentives, and the long-term savings on electricity bills, homeowners can benefit financially and contribute to a greener future at the same time.

Receive A Free Solar Assessment Today

It's time to evaluate the true cost of not going solar versus the cost of embracing this renewable energy source. If this article has inspired you to assess your household's solar capacity, you can start today by receiving a free solar assessment by MySolar!

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