If you’ve been considering solar for your home or business, we’re pretty sure you’ve also been thinking about how much it’s going to cost you. We’ll try and narrow the basics down as much as possible here so you have a fair idea of the costs involved.
First of all, the question is a little tricky because it depends on a number of factors, namely –
- How many panels you can fit on your best roof faces
- The type of panels you choose
- The type of inverters used
Before we go too far talking about installation costs, it is important to note that the price of solar panels fluctuates in the Ontario market so we suggest you contact a reputable solar installation company and have them quote you based on your particular installation. Even so, let’s look at some numbers so you have more information than just the fact that it “depends on a couple of factors”.
At today’s pricing, a solar system would typically cost you anywhere from $20,000 – $40,000 in Ontario depending on the size of the system (40k for a 10 kW system and 20K for a 4.5 kW system). We understand that the cost may seem a little bit high but here’s the good news – depending on the size of your solar system, a homeowner can expect to earn a 10% or greater return on their investment under Ontario’s Solar incentive program. Your actual return will depend on the pitch of your roof(s), how your roof(s) face in relation to due south and if there are any shade factors to consider (shadows are a solar panels worst enemy). Where else in today’s economy can you expect to earn 10% or better return on your money!
So let’s say you have enough space on your roof(s) to install a 10 kW solar system (Ontario’s MicroFIT program allows for a system the size of 10kW or less). In this case you would be looking at an investment of $ 40,000 plus tax (don’t worry about the tax as you can apply to receive all of this back). In this case you can expect to earn over $4,000 each year for 20+ years meaning that it will take you about 8-10 years to pay back your initial investment (with the money you earn each month by selling the electricity your system generates back to your hydro company) and after your system is paid for, the remaining 10+ years of income you’ll receive will be money coming to you. Ontario’s micro-FIT program guarantees the rate that your Hydro company pays you for 20 years so long as you are willing to sell them your electricity. Solar panels come with a 25 year warranty, yet you can expect them to last for 25-35 years.
When you are in talks with your solar installer be sure to ask them what costs are included in the price and what costs are not. There should be no expensive,nor unpleasant surprises. At Eco Alternative Energy, we believe that our customers have the right to complete transparency which is why we include the following components in all of our installations (this is also a good checklist to go over with your solar installer):
- Solar Panels (we’ll go over options & pricing with you)
- Rails & Flashing units
- Inverter(s) & monitoring
- Permits (varies per jurisdiction)
- Complete system wiring, disconnects & sub panels
- Engineering (if required)
- Assistance with OPA & Hydro paperwork
- Squirrel Guard
We hope this post provided you with some added knowledge on solar pricing and the approximate rates of return. If you have any more questions, feel free to drop us a message here and we’d be happy to answer your questions! You can also call us toll-free at 1-888-907-5848. To read more about solar and related topics follow our blog !
Tip: Be sure to checkout our post on How do I know if my house is right for Solar? to know what the basic requirements are for getting solar panels installed on your roof.
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