Solar Panels On Your Home

How Is Solar Energy Used To Power Your Home

Most home solar systems are grid-tied meaning that the solar system, home electrical system, and local utility grid are all interconnected, typically through the main electrical service panel.

Connecting these systems means you can power your home with solar electricity during the day and grid electricity at night. It also means your solar system can push excess electricity onto the local grid to power surrounding systems, like your neighbors house.

Through net metering, you earn credit for excess solar production that can be used to offset the grid electricity you use at night.

What Are The Benefits Of Installing Solar Panels

• Carbon Reduction: Solar panels produce 5x to 10x less carbon emissions per unit of energy relative to coal or natural gas.
• Self Sufficiency: You wont rely on a third-party entity for your energy, and youll be providing for yourself with a clean sustainable source.
• Property Value: If you decide to sell your home, then the value of your solar power system can be calculated and added to your home accordingly. However seeing that the payback will take about 8-10 years, you may want to install panels on your forever home- not one you intend on selling soon.

Make Final Connections To The Consumer Unit

After the panels are wired to the inverter, the final connections to the consumer unit will be made. A generation meter will also be connected, which measures how much electricity your panels actually produce. Smart meters and solar panels work together very well and can make meter reading far easier.

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Costs And Affordability: Dont Be Blinded By The Light

The main obstacle to the widespread use of solar panels in Québec is the substantial initial investment, combined with limited yearly savings. Here are a few examples of false promises made by some solar panel vendors in Québec and a few important points to keep in mind when deciding whether to go ahead with your project. Get informed!

What’s The Return On Investment For Solar Panels

Solar panels will ultimately pay for themselves and then some, though the amount of time it takes to do so varies by province. In Canada, most solar installations reach break-even within 8â16 years. Compare this to their general lifespan of 30+ years, and that’s quite a bit of free energy with little maintenance required. Even better, the cost of solar installations is becoming more affordable every year, and several locales have rebate programs to help homeowners save money on solar panel installations.

Given that solar panels reach break-even about halfway through their lifespan, the average solar panel installation will see around 200% ROI over the course of its lifespan, and that’s before financial incentives are taken into account. If the break-even point is lower in a particular province, the ROI is even higher. This can be achieved in areas with higher solar potential, higher electricity prices, or both.

Even if a homeowner sells before the full lifespan of the solar panels ends, they receive the financial benefits of selling their home faster and with appealing features.

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How Much Will Solar Panels Cost To Install On Your Home In 2022

The cost to install solar panels on your home in 2022 will vary depending on your location, your energy usage, the brands of equipment chosen, and whether it is a DIY installation or a job done by a professional solar company.

Since more than 95% of homeowners choose to go with a reputable local solar company, our solar calculator below shows estimates for professionally-installed systems in your area.

Find out how much a solar system would cost for your specific home

*Based on 370-watt panels

Solar Panels Are A Long

Once they’ve run all the numbers and solicited some estimates, many people choose to install solar panels if they can get their money back in seven to 11 years. People who live in areas with low electricity costs and ample sunshine have faster break-even points. Saskatchewan is a sweet spot for those factors, although the installation costs aren’t as low as in some other provinces.

If you plan to sell your home in the next few years, a solar array could increase the resale value, but you may not get as much out as you put in. However, if you plan to live in the same home for 15 years, the argument for residential solar panels becomes stronger.

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What Is The Cost Of A Solar Panel Installation For An Average 2000 Square Foot Home Today

The average cost of a residential solar panel installation in 2022 ranges between $18,000 and $20,000, before applying tax credits or other incentives that may be available where you live. This works out to between $2.75 and $3.35 per watt of solar installed, depending on your location and the brands of solar equipment used.

Once you take the federal solar tax credit into account, the overall cost drops to an average of between $12,600 and $14,000 – thats almost 80% lower than the cost of solar 10 years ago! Our solar panel cost and savings calculator will show you local incentives you may be eligible for to help lower the upfront costs.

How Much Do Solar Panels Cost In Alberta

The cost of home solar panels will be largely proportionate to the installed capacity . Larger solar arrays can be installed a lower rate, in terms of $/W . An average solar power system will cost around $12,000 to $25,000 and be installed for approximately $2.00/W to $2.75/W.

The $/W is how much bang you are getting for your buck, like$/sq.ft. in the flooring or painting industry. The lower, the better.

The cost of solar panels in Edmonton is comparable to the cost of solar panels in Calgary, Red Deer or other major hubs in Alberta.

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How Much Does It Cost To Install Solar Panels In Ontario

Once youve calculated the size and space required to install your new solar system, its time to estimate the cost.

Take the size of your system in watts and multiply it by the average cost of installing a solar system in Ontario .

In this case, 4,750 watts x $2.46 per watt = $11,685.

Note that this is a rough estimate and the price could fluctuate depending on the equipment and installers used prices can easily go as high as $3 per watt in Canada.

How Much I Can Save On My Bills

Residential rooftop solar panels have a variety of benefits for all Ontario homeowners, one of the major benefits to choosing solar, is the amount of money one can save on electricity costs. How much one can save depends on several factors. Such as the size and the angle of your rooftop. Though, the largest contributing factor in determining how much solar power can save you and your family is the local electricity rates. Generally, the average Ontario homeowner can save up to 50% or more on electricity spending over the lifetime of the solar panel system upon installation. This can add up to $1000s of dollars saved!

To determine how much you can save, first you must calculate how much you are spending on electricity every year. After which, you must consider the ever-changing nature of the electricity prices to estimate what utility rates will be in the years to come. Then you can compare the cost of utility electricity with residential solar, though, keep in mind the utilitys electricity rates increase annually. Because of the nature of solar power as an up-front investment, the only costs that are associated with a residential rooftop solar panel system would be the cost of the initial installation.

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Factoring Inflation Into Your Solar Payback Period

Electricity prices are subject to inflation and have been rising at an average annual rate of 3.5% over the last 5 years, according to the Bureau of Labor Statistics. To account for this, we need to increase the annual energy savings by 3.5% every year, which shortens the payback period of solar panels.

Heres how that looks over 25 years:

Now, heres where things get tricky. Since $2,601 is the average for 25 years of utility payments, and we know the break even period is within 10.5 years, it wouldnt be accurate to use that figure as our annual energy savings. After all, your annual energy savings wouldnt hit $2,601 until year 13-14.

Thats where graphs come in handy. Below, youll see the rising cost of electricity costs charted against the flat cost of going solar. The lines cross between year 8-9, signifying a payback period around 8.5 years right in the meat of the 7-10 year average.

Again, the easiest and most accurate way to find the payback period of solar panels is to get multiple binding solar quotes. Get started here.

Solar Tax Credits Incentives And Rebates

If you own your photovoltaic system, you can take advantage of the federal and state tax credits available for residential systems. The federal solar tax credit for 2022 is 30% of your total solar system costs. It will remain at 30% until the end of 2032. The credit lowers to 26% in 2033 and will reduce to 22% in 2034.

State tax credits can vary depending on each states laws. Additional rebates and credits may also be available from your utility company or city government. You can check the Database of State Incentives for Renewables & Efficiency for the latest information about solar incentives for your area.

Its important to note that only new solar customers can claim these incentives. The original owners can only claim these credits one time. If you buy a home with a preexisting system, you cannot apply for these credits.

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Is Solar Power Worth It

Once you’ve worked through all of these calculations, you’ll likely end up with a single numberthe number of years it will take for a solar system to pay for itself in savings from your energy bills. If you live in a sunny part of the country and have high utility bills at the moment, you could be looking at a system that will reach this point in five years. Other homeowners may have to wait 10 or 20 years to reach this point.

In other words, most homeowners will eventually see a benefit from a solar power system it might just take decades for this to be realized. Whether it is worth installing such a system therefore often comes down to a number of much less technical factors than those we’ve listed above: how long you are going to stay in your home, the subsidies available in your area, and simply whether you want to do your bit for the environment.

Are Solar Panels A Good Investment

Solar panels are a good investment in fact, solar energy systems typically provide an even higher return on investment than many common types of investments like the S& P 500. Once youve paid off your solar system, youll be generating free, renewable energy right at home, protecting yourself from rising electricity rates by significantly lowering your utility bills. Ultimately, your solar payback period will depend on the amount of energy you use, the solar production from your system, and how much your local utility charges for electricity.

To keep your solar investment as low-risk as possible, make sure to choose high quality modules with robust warranties. Remember: your solar panels will likely last 25-30 years and, according to a 2019 study by Zillow, could even increase the value of your home by about four percent.

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What Are The Different Types Of Solar Systems You Can Get For Your Home

Until recently, most solar systems that were installed on homes were simple grid-tied systems because this is the cheapest type of solar system. Their low cost means they offer the quickest payback. However, these systems switch off when the utility grid is down and so they do not offer backup power when the grid is out.

More and more people are now considering adding solar batteries to their solar system so that they have backup power if the electric grid is down. Residential solar systems with battery backup, that are also connected to the utility grid, are called hybrid solar systems.

There is a third type: off-grid solar systems. However, few people elect to go off-grid unless they live in a remote area because off-grid systems are expensive.

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 it gets, and its roof type also affect a solar system’s output. You can estimate the efficiency of panels on your home using the SolarReviews calculator.

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Energy Independence: Another Exception

Although it is possible to do so, it is not realistic at this time to try to be completely independent and disconnected from Hydro-Québecâs power grid unless you have a very energy-efficient home and keep your energy consumption to the bare minimum. The main challenges you face are the power ratings of certain energy-hungry appliances and the space required to install solar panels.

For example, you would have to have up to 70 solar panels to generate enough energy for an average-sized house. And 70 solar panels would be the equivalent of two-thirds of a tennis court, often larger than the surface area of a roof.

Be Wary Of Promises Of A Quick Payback

Some solar panel vendors promise a quick payback based on unrealistic power generation data and inflated potential savings. Here is a little information from neutral, credible sources that you can check for yourself.

Important notice:

Hydro-Québec recommends that you consult an engineer specializing in the field to assess your projectâs cost-effectiveness before purchasing a photovoltaic solar system. Hydro-Québec does not provide any financial assistance to customers enrolled in the net metering option or the self-generation without compensation plan.

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Net Cost Of Going Solar

What it is: The total cost of going solar after factoring in tax credits, rebates, and other incentives

How to find it: Get multiple quotes from vetted local installers.

Example scenario: Lets say the gross cost of your solar system is $24,000. The 30% federal tax credit alone brings the net cost down to $16,800.

State, local, and utility incentives could bring the net cost down even further. But for the purposes of our example, well stick with $16,800.

Solar Power For Your Home

If you want to use solar power for your home, you have options. You may be able to buy or lease a system or sign a power purchase agreement. Your choice can affect how much you spend up front and over the life of the system, whether you get certain tax breaks or not, and your responsibilities when you sell your home. Evaluate the company, product, costs and your obligations before you make a commitment.

• Leases and power purchase agreements

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Youre Our First Priorityevery Time

We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.

How Much Will You Save

Once you know how much a solar power system will cost upfront, and how much energy it will produce, you can predict how much you can save in energy costs per year.

This is another tricky calculation, however, because a lot depends on how you pay for electricity at the moment. Utilities often charge residential consumers a flat rate for electricity, regardless of the time of consumption. This means that instead of offsetting the expensive cost of peak electricity production, homeowners’ solar power systems merely offset the price they are charged for electricity, which is much closer to the average cost of power production.

However, many utility companies in the U.S. have introduced pricing schemes that allow homeowners to be charged at different rates throughout the day in an attempt to mirror the actual cost of electricity production at different times: This means higher rates in the afternoon and lower rates at night. A PV solar array may be very beneficial in areas where this sort of time-varying rate is used since the solar power produced would offset the most costly electricity.

Exactly how beneficial this is for a given homeowner depends on the exact timing and magnitude of the rate changes under such a plan. Similarly, utilities in some locations have pricing schemes that vary over different times of the year due to regular seasonal demand fluctuations. Those with higher rates during the summer make solar power more valuable.

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