Solar energy is a cheaper and greener choice than traditional energy sources, and more homeowners in Ontario, Canada, are turning to it to spend less on electricity bills. But before you set up a solar panel system, you should know how much it will cost.
Solar power is becoming increasingly popular in Ontario, with over 4,200 megawatts of capacity added as of 2021. The state also gives financial incentives to homeowners, like making it easier to acquire permits through the Renewable Energy Approval (REA) program and letting them sell extra energy back to the grid through the net metering program.
In this post, we’ll talk about the prices of installing solar panels in Ontario, Canada, and give you tips on how to save money on the job.
Factors That Affect Solar Panels Cost
When it comes to installing solar panels on your home in Ontario, Canada, several factors can affect how much it will cost. If you know about these factors, you can make better choices and possibly save money on solar panel installation.
System Size
One of the most important things that affect solar panel costs is the size of your solar panel system. Most of the time, the bigger the solar energy system, the more it will cost. The size of the system you need will depend on things like energy usage, how big your roof is, and how much sunlight your home gets.
Equipment Quality
The caliber of the tools used in your solar installation can also have an impact on how much do solar panels worth the investment. Higher-quality equipment may cost more upfront system cost, but it may work better and need less upkeep in the long run.
Installation Complexity
Solar panels’ cost may also depend on how difficult your installation is. For example, the cost to install solar panels may be higher if your roof has a complicated shape or needs extra work to hold the weight of the panels.
Incentives and Rebates
The REA program and the net metering program are two ways that Ontario helps people save on the total cost of a residential solar system setup. These solar tax credits can help pay for the solar panel’s cost and make it more affordable.
By taking these things into account, you can learn more about the prices of installing solar panels or solar systems in Ontario and make a more informed decision about the solar panel installation process.
National Average Price of Solar Panels for Homes in Ontario
The average price of solar panels across the country is $2.66 per watt, but the average price of solar panels in Ontario is about $2.73 per watt. A typical home in Ontario needs a 2.9-kW system to meet its energy needs. After getting the 30% federal solar tax credit, the average cost of going solar is about $5,485.
The prices above are just estimates to give you an idea of how much a solar panel setup might cost. The real cost of installing solar panels depends on several things, such as the size of the system you need, how much energy you use, and the company you choose.
Putting in a solar system is a good investment for a lot of homes. Over 20 years, the average Ontario homeowner can save about $25,000 on their energy bills.
What Other Factors Affect the Cost of Installing Solar Panels for Your Home?
Here are other factors that impact the cost of setting up your solar energy system for your house:
Location
Where your house is can affect how much it costs to install because some places need more permits or pay more for labor. Also, the size and performance of your system can be affected by how much sunlight your land gets.
Roof Type
The cost of fitting can also depend on the type of roof you have. For example, a flat roof may need extra equipment for mounting, and a slate roof may need special installation methods.
Maintenance and Warranties
The cost of maintenance and warranties can also affect how much your solar panel system will cost together. Better equipment and installation may need less upkeep over time, but they may cost more upfront.
Financing Options
How you choose to pay for your solar panel installation can also change how much it costs. Some financing choices may have lower upfront costs but higher interest rates, while others may require a larger down payment but have lower interest rates.
By thinking about these things, you can get a better idea of how much it will cost to have your solar panels installed. It’s essential to do your research, get multiple quotes from solar installers you can trust, and think about all of your financing options.
What’s the Best Way to Finance Residential Solar Panels Installed?
Here are a few financing options for residential solar panel installation:
Cash Purchase
It’s easiest to pay cash upfront for the placement of your solar panels. Even though you may have to pay more upfront, you won’t have to pay any interest and will own the system outright.
Solar Loan
Many banks and credit unions offer solar loans that let you pay for the installation of solar panels over time. Most of the time, these loans have lower interest rates than other ways to get money, and you may be able to pay for your system over several years.
Home Equity Loans or Lines of Credit
A homeowner may also be able to use the value of their home to pay for the placement of solar panels. Most home equity loans or lines of credit have lower interest rates than unprotected loans, but they may take longer to process and require more paperwork.
With a solar lease or power purchase agreement (PPA), a third-party solar panel company will install solar panels on your home and give you the electricity they produce at a fixed rate. Even though these choices may cost you little or nothing upfront, you may not own your system and may be limited in how you can use it. Before making any decision, weigh your options and assess your financial goals.
How to Save Money on Solar Panel Installation Costs
Putting solar panel systems on your home allows you to spend less on your monthly electric bill and become an advocate of clean energy. But the cost of installation can stop some homes from getting them. Here are a few ways to save money on the cost of installing solar panels in Ontario, Canada:
Take Advantage of Government Incentives
The Canadian government offers several incentives to help homeowners cover the cost of installing solar panels. These include the Net Metering Program, which lets homeowners sell excess energy back to the grid, and the Green Ontario Fund, which gives rebates for energy-efficient home upgrades.
Get Offers From More Than One Solar Company
Inquire from various solar installers so you can compare prices and make sure you are getting the best deal. Look for companies with good reviews and licenses, like those from the Canadian Solar Industries Association.
Think About Doing It Yourself
You can skip the labor costs from a solar panel installer if you know how to work with electricity and feel safe doing the installation yourself. But make sure to follow all safety rules and get any permits you need.
Opt for a Smaller System
Smaller solar energy systems can still provide significant power bill savings and may be cheaper upfront. When choosing the size of your system, think about how much energy you need and how much you can spend.
How Is the Cost of Solar Panels Offset by the Federal Solar Tax Credit in Ontario?
The federal solar tax credit is an incentive from the government that can help homes in Ontario, Canada, pay for the cost of installing solar panels. With the ITC, homeowners can claim up to 26% of the cost of installation from their federal taxes. This can save them thousands of dollars. The credit can be used for both home and business solar panel systems, and any extra money can be rolled over to future tax years.
In addition to the ITC, homeowners in Ontario can also use provincial programs like the Net Metering Program and the Green Ontario Fund to lower the cost of installing solar panels. By taking advantage of all of these government benefits, homeowners can switch to renewable energy in a way that is both cheaper and better for the environment.
How Long Can You Get A Return on Investment (ROI) from Your Solar Installation?
Installing solar panels is a significant investment, and people often want to know how long it will take for them to get their investment back. The answer depends on several things, like how much it costs to install, how energy is made, and how much electricity costs in Ontario.
Most homeowners in Ontario can expect to get their money back from adding solar panels within 6 to 10 years. Solar panels have a lifespan of about 25 years, and based on the size of the system and the price of electricity in the area, you can save up to $30,000.
Conclusion – Maximize Solar Panel Cost for Your Residential Solar Power System
Panel size, efficiency, installation method, and financing options determine the cost of installing solar panels on your house. The initial investment may appear hefty, but the long-term savings and advantages may outweigh it. Hire a reputable solar installer to maximize your solar power investment.
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