Wednesday, July 17, 2024

How Much Does It Cost To Install A Solar System

Solar Panels Cost In Alberta

How Much Does it Cost to Install a Solar Energy System in 2021?

Cost to install Solar Panels in Alberta

If you are a homeowner or a business in Alberta looking for ways to reduce your energy bill, you may have probably heard of the concept of generating your own electricity with solar panels. Alberta Residential and Commercial Solar program currently offers some of the best solar incentives in Canada. But before applying for solar subsidies you probably want to know the full cost to install solar panels system for your home or business.

It is important to understand that solar energy installation costs vary widely based on many factors including your own energy consumption you are looking to offset, geographical location, available space to install solar modules, type and quality of components, and level of solar incentives. Lets take a closer look at what could influence the total price of your investment in solar panels.

It is important to note that you wont be able to get rid of your electricity bill entirely in Alberta . Depending on the set up with your local Wire Service Provider, you may still have to pay some administration, transmission, or distribution charges.

What Makes Alberta a Good Location for Solar?

Why Are Solar Panels a Smart Investment?

Installing solar panels is a significant investment in your home or business. And, just like when you purchase a property, you can expect to recoup the cost of your investment over time. Thats what makes solar panel installation a savvy long-term decision.

Feed In Tariff Scheme:

As of the 31st of March 2019 the feed in tariff no longer exists. Currently, you can make money from any unused electricity by selling it back to the National Grid.

Now that the Feed in Tariff has ended there are two other options:

The first is a battery which will store the unused electricity and means that you can run off grid depending on the amount you collect and use.

The second is the Smart Export Guarantee introduced by the government which means that energy suppliers will compete to give households the best price for their excess electricity. Homeowners will still see a long-term payment and faster return on their investments.

It is true that solar panels will never be cheap, but never the less, they are a good investment. Annually you can expect to save between £85 to £500+ on your energy bills depending on how much power you use daily and how many people live in your household. Those eligible for the FIT payments will save more money every year for 20 years. Even without FIT payments or when the payments end the power produced by your solar set up will be free.

Old feed in tariff rates:

If you were lucky enough to sign up before the 31st of March 2019 you would have received these payments. If you have a property which has an EPC of D or above, the FIT rate was 3.79p at scheme end. You can find the rates on the Ofgem website.

Once receiving the FIT, you would have continued to receive it for 20 years.

Are Solar Panels Worth The Investment

Thanks to the lower-than-ever cost of solar panels and various solar incentives, solar panels are a cost-effective investment for the majority of homeowners that will provide an excellent return on investment.

Not only do they lower your energy bills, but you also get to power your home with clean renewable energy and reduce your dependence on your local utility company.

Even though spending up to $20,000 is daunting, federal incentives eliminate 26% of solar system costs after 1 year. There are also various ways to finance a solar system – from solar loans and leases to PPAs – so you can pick whichever option that works best for you.

Plus, solar panels provide significant utility bill savings in most areas. An average home solar panel system can save between $1,000 and $1,600 per year on electricity bills depending on the states net metering policy and the homes energy consumption.

Actual solar savings will depend on the system size, the cost of electricity, home energy usage, and what net metering policies are in place, but the average solar homeowner can expect their solar payback period to be between 8 and 11 years. After that, theyll be enjoying completely free solar electricity for at least 15 more years!

If youre still not convinced, you can use our solar panel calculator to find out how much solar costs and can save you for your specific home based on your average electric usage and prices in your area.

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What Do Solar Panels Cost And Are They Worth It

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The rising cost of electricity from traditional sources makes solar installation seem like a no-brainer for many homeowners.

But the true cost of solar panels, and whether they’ll help you save money, depends on a few key factors. On average, installation and the system together can run between $15,000 and $25,000, according to the Center for Sustainable Energy.

Location largely affects electricity rates. The national average is about 13 cents per kilowatt-hour, according to year-to-date 2021 data from the U.S. Energy Information Administration.

Before you make the leap, learn how your electric bill, location and incentives can impact your wallet over time. Here are six steps to take to determine whether youll save more than you spend on solar panels.

» MORE: Find ways to save with NerdWallet

How Much Do Solar Panels Cost

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Nationwide, installing a residential solar panel system costs an average of $24,733, according to HomeAdvisor, with most homeowners paying somewhere between $17,181 and $32,285.

But several factors can impact that price beyond the obvious costs of labor and materials. For example, because solar panels are normally installed on a roof, you may need to factor that cost into the project if your roof needs repairs or to be replaced. You may also need to remove trees that are in the way before the installation.

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Solar Water Heater Pump Replacement Cost

Replacing the solar water heater costs between $500 and $800. The pump is one of the most important parts of your solar water heater system because it circulates the water through the collectors and into the home. When the pump fails, the entire system essentially becomes ineffective, so broken pumps should be replaced as soon as possible.

Solar Batteries Are Expensive But May Be Worth It For Those Who Use A Substantial Amount Of Electricity

A solar battery can store any excess power generated by your solar panels that you don’t use at the time, rather than exporting it back to the grid. They aren’t cheap costing about £2,100 for a three kilowatt-hour battery.

The savings you make on your bills can be significant, though. The price you’re paid for each unit of energy you export to the grid is usually much lower than the price you pay your supplier for electricity. So, economically, it makes more sense to store the energy and use it yourself with E.on saying a household with a battery could use 30% more of the electricity they generate themselves.

Another potential advantage of a battery is that it can increase the rate you get paid for exporting your electricity back to the grid. Some firms will pay many times more than the standard amount if you buy certain types of batteries. See what firms pay.

The battery isn’t all about what you generate yourself, either. If you’re on a flexible ‘time-of-use’ energy tariff, with cheaper electricity overnight for example, you can charge the battery at cheaper times from the grid and use it to power your house during more expensive hours.

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Average Solar Installation Cost By Location

While most people picture solar panels on the roof, this is not the only place they can be installed. They can also be mounted on the ground using a frame. This can be beneficial if your roof cannot support the panels or is predominately in the shade. Both installation types have several factors to consider, including installation costs.

$18,000 – $25,000

Can I Add A Solar Battery Storage System To An Existing Solar System

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If you already have a solar battery system installed, or if you have solar panels or solar shingles and want to add a battery system, most batteries are compatible with solar systems. Avoid combining different battery types, and keep in mind that new batteries might need an inverter, or youll need to install additional solar panels to generate electricity.

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Polycrystalline Solar Panel Price

Polycrystalline solar panels cost between $0.50 and $1 a watt uninstalled. The biggest benefit of this panel type is its low cost. Many people choose not to use this type because it is large and not very aesthetic when mounted on the roof. String ribbon solar cells are a type of polycrystalline panel. You may see that name on the panel. Polycrystalline panels are made up of cells that are constructed of many fragments of silicon crystal. The fragments make it less expensive, but it is the least efficient panel type when producing electricity.

Certainteed Solar Panels Cost

The cost of CertainTeed solar panels is $2.72 a watt. This translates to $15,360 to $17,280 for a 6kW system fully installed. Like all systems, installation costs vary tremendously. Factors like roof pitch, location, shade, and panel type all impact the final costs. CertainTeed focuses on integrating solar into the roof of the home. This means they also have solar , which can improve the look of your home and provide solar energy.

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How Long Does It Take To Install A 4kw Solar Panel

A 4kW solar system can take one or two weekends to install. Our kits use industry leading solar panels, inverters, and racking systems specifically selected and combined to make do-it-yourself installation possible. A homeowner who has wired an AC outlet and is comfortable working on their roof can install our Solar kit.

Solar Panel Price By Cell Type

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Depending on the company you contract with, you may have a choice of solar cell types. There are three main types – polycrystalline, thin-film, and monocrystalline. Of the three, thin-film solar cells have become the most common. For many homes, you may not notice much of a difference between them, but in terms of cost and total energy output, there are variations.

Type of Cells
$0.60 – $1.20

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Drawbacks Of Solar Panels

Like any decision, choosing solar has some downsides as well. These can include:

  • Not efficient for every location or roof type Not all locations and roofs get the same amount of daily sunlight. For example, if you live far from the equator, your roof is north-facing, or trees or other obstructions block your solar panels, your solar panels wont be able to produce energy efficiently.
  • High initial costs Installing solar panels comes with high upfront costs, which makes them unaffordable for many property owners.
  • Take up a lot of space The more energy you want to produce, the more panels you need. Solar panels take up a lot of space. So if your roof isnt big enough to fit the number of solar panels you want, you may not be able to offset your electricity bill entirely.

Solar Battery Storage System Cost Factors

There are many factors to consider when calculating your total solar battery project cost. Here are the biggest factors that can impact your budget:

  • Energy capacity: A major cost factor is how much energy your battery can store. Units that store more kWh cost more than units that store less.
  • Power: Your batterys potential output is shown in kilowatts and determines how much electricity the battery can generate in a specific moment. Storage systems that are more efficient at storing energy are likely to cost more.
  • Battery chemistry: Lithium-ion phosphate batteries cost more than lead-acid batteries, with LFP batteries costing approximately 30% to 50% more than some of the cheapest batteries on the market.
  • Brand: One brand might charge more than another, but it might also have installation prices tacked onto the total cost that saves you money.
  • Quality: High-quality materials will run higher than low-quality materials.
  • Upgraded features: Inbuilt inverters, smart technology, and other upgrades may add to the cost of your battery unit.
  • Installation company: Some battery brands do not come with installation, as theyre solely for solar equipment. You may have to purchase the battery through the manufacturer and then find a separate installation company.
  • Retrofitting an existing system: Youll pay more to have a battery added to an existing solar panel than if you installed them at the same time.

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Solar Batteries Add New Complexity To Estimating Average Solar System Cost In 2021

Prior to 2020, more than 90% of residential solar power installations were simple, grid-tied solar systems. Grid-connect systems are so popular because they are the cheapest to install and they offer the shortest payback period.

However, because theyre connected to the grid, they have no source of backup power in the event of a power outage. Now, many people are considering adding a solar battery to their solar systems in 2021.

There are four reasons for this:

  • The frequency of storms and wildfires has made utility power less reliable in recent years, which is increasing demand for a backup power supply when the power goes out.
  • Utilities across the country are changing their net metering programs to offer below-retail rates for excess solar energy production that is sent to the grid.
  • Time-of-Use electric billing makes home energy storage solutions more attractive because the battery can be charged when utility rates are cheap and discharge when rates are most expensive, allowing homeowners to avoid paying peak pricing.
  • The 26% solar investment tax credit can be used to cover a battery as long as it is connected to a solar power system. There are also a number of state and utility incentives, like Californias SGIP incentive, that help reduce the cost of battery installations.

Additional Components To The System

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If youre looking to install additional components while installing the solar panels, this will increase your cost of equipment but can decrease the installation costs. Whether youre planning to install a solar battery storage system or additional features like pigeon proofing your panels, it is best to club them with installing the panels, so that you can decrease the installation cost.

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Evaluate Your Sunlight Exposure

More sun means more energy produced and a greater potential to save with solar. Certain states, like Arizona and California, average more sunlight hours per day.

Your home’s orientation toward the sun, the amount of shade and its roof type also affect a solar system’s output. You can estimate the efficiency of panels in your area by using the SolarReviews calculator. Enter your address and the average cost of your monthly energy bill.

Understanding The Solar Investment Tax Credit

As we alluded to earlier, the ITC has been an overall boon to the expansion and health of the solar industry. As of 2021, the ITC reduces the cost of installing solar panels by 26%, and its a large reason the solar industry has consistently experienced a 42% annual growth rate for the past decade.

Unfortunately, the residential ITC is set to completely expire by 2024, with the ramp down already happening now. Thankfully, solar panel installations costs overall have decreased during the life of the ITC, but the solar panel industry is still preparing for a slowdown in installations in the short-term future. Therefore, if there was any time to consider solar panels for your home, the time is now. The discount is only going to decrease.

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Solar Pool Heater Advantages

  • Solar pool heaters are low maintenance
  • Since there aren’t a lot of parts, solar pool heating systems are easier to maintain. You either replace the panels or the pump
  • With constant sunlight, solar pool heaters can heat your pool by up to 7 degrees
  • For those with plenty of sunlight and warm weather, solar heaters offer an affordable and eco-friendly pool heating alternative.
  • Can be controlled with automatic diverter valves
  • While every solar pool heating system includes a manual diverter valve for managing water flow, automatic valves are an upgrade. Automatic diverter valves use sensors to detect temperature and automatically direct water to, or away from your solar panels
  • Can slightly cool water at night
  • If the pool gets too hot during the day, running the solar heater at night can help cool the water. At night, as water travels through the panels, it slightly cools down before flowing back into the pool
  • How Does Sunlight Amount Affect Solar Panels

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    Different areas of the United States receive more or less sunlight compared to other areas. The amount of sunlight you receive directly correlates with how many solar panels you will need.

    Typically, southern states get more sun than northern states. But southern states with higher altitudes and less cloud coverthink of Arizona and New Mexicoget more energy from the sun than states such as Florida or Georgia. So, for the same size house, you would generally need more solar panels in Georgia than you would in Arizona.

    Remember, the sun may be shining, but if it is behind a cloud, youre not getting the same amount of solar energy absorbed by your solar PV system. This means that a solar panel in San Diego will produce more energy in a year than the same exact solar panel located in Seattle.

    The image below will help you determine the solar energy, known as solar insolation, in your area. Exploring your sun number score should also be helpful. If your roof does not get a good amount of sunlight and you live on a good size amount of land, you may have other options for mounting solar panels elsewhere with better sunlight.

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