How Much Does Solar Cost?
In today’s eco-conscious landscape, knowing the ins and outs of solar energy costs is crucial. Whether you’re a homeowner aiming to reduce your environmental footprint, a business owner focused on slashing overheads, or simply curious about the financial aspects of solar power, “How much does solar cost?” is a pivotal question. Let’s dive in to explore the world of solar pricing and discover how it can illuminate a sustainable future while saving you money.
Conservatively estimating a reduction of 60% to 90% in your electricity expenses could translate to annual savings exceeding $1,000.
First, let’s look at the average system production in Ontario.
The average solar power system in Ontario will produce approximately 11660 kWh of energy per 10kW per year.
This yearly average decreases as you move north in the province and increases as you move south. For example, a 10kW solar system in:
- Toronto would produce about 11,630 kWh/yr
- Ottawa would produce about 11,990 kWh/yr
- Mississauga would produce about 11,600 kWh/yr
- Brampton would produce about 11,550 kWh/yr
- Hamilton would produce 11,520 kWh/yr
Now we know what the average kWh production is, based off of a 10kW system, let’s consider the initial cost of solar implementation based off a standard system size of 8kW, 10kW and 12kW.
Let’s analyze three different system sizes priced at $2.6 per watt plus HST:
An 8kW system might amount to $23,920 (8,000W x $2.60/W)
A 10kW system could require an investment of $29,900
A 12kW system might carry a cost of $35,880
These costs equate to a significant investment, not unlike the price of a new car. Fortunately, government incentives often come into play, and will considerably reduce the financial burden.
Government Rebates and 0% Loans
The Canadian government is committed to promoting sustainable practices, and this commitment extends to solar energy adoption. Through initiatives like the Greener Homes Initiative, eligible homeowners can access government rebates and loans to offset the upfront cost of going solar. The Greener Homes Loan provides up to $40,000 at 0% interest over 10 years to finance your solar system. Additionally, homeowners can receive a rebate of up to $5,000 towards the system’s cost, along with up to $600 to cover home energy evaluations. These incentives make adopting solar technology more affordable and accessible than ever before.
With CMI Solar we make it easy because all these factors are already included in your solar pricing. We handle the warranty, permits, inspection, grid connection and installation. We only provide the best in equipment ensuring you a better long-term performing system.
Factors in the cost of going solar
System Size: The size of the solar panel system you install is a primary cost factor. Larger systems with more panels will typically cost more.
Location: Where you live plays a significant role. Solar panel costs can vary by region due to factors like local regulations, climate, and the availability of incentives or rebates.
Sunlight Exposure: The amount of sunlight your location receives affects system efficiency. Areas with more sun often require fewer panels, reducing costs.
Quality of Components: The quality and efficiency of solar panels, inverters, and other components can impact costs. High-quality components may have a higher upfront cost but provide better long-term performance.
Installation Costs: The cost of labor and installation can vary based on your location and the complexity of the installation.
Incentives and Rebates: Government incentives, tax credits, and utility rebates can significantly reduce the cost of going solar. These incentives vary by location and may change over time.
Financing Options: Purchasing a solar system can also be financed, allowing homeowners to spread out the cost of the system instead of purchasing the equipment all at once.
Energy Consumption: Your current energy usage affects the size of the solar system you need. Lower energy consumption may require a smaller, less expensive system.
Grid Connection: Whether you stay connected to the grid or choose to go off-grid can impact costs. Off-grid systems require additional components like batteries for energy storage.
Warranty and Support: The warranty and support provided by your solar panel manufacturer and installer can affect costs and long-term reliability.
Permitting and Inspection Fees: Obtaining the necessary permits and inspections can add to the overall cost of installation.
“Significantly reduce your reliance on the grid, and keep your money where it belongs, in your pocket.”
– CMI Solar