So you’re thinking about solar power for your home! The very first question you’ll likely find yourself asking is, “how big of a system should I buy?”. Let’s help you find the solar system size that fits just right for your energy needs.
How to Choose the Right Solar System Size
Solar Energy in Your Area
First off, let’s look at how much sunshine your part of Canada gets. It’s different everywhere – some places get lots of sun, and some don’t. This matters because the more sun you get, the less you need to worry about having a big solar system. There’s a handy map at EnergyHub’s Solar Energy Maps that shows you just how sunny it is where you live. We’ve provided a quick chart for your convenience, but there is plenty more great information available over at EnergyHub’s website.
Figuring Out Your Energy Use
Next up is knowing how much electricity you use over a year. For this exercise, you’ll want to gather up your last 12 months of energy bills from your utility provider. This is important – you can not take your latest bill and multiply it by 12 to get a yearly total. By adding up all 12 months of energy usage, you’ll have a much more accurate total that accounts for times you use more or less electricity, like during cold winters or hot summers.
Sample Calculation
Let’s make a quick example calculation. For this example, we’ll assume you’re a resident of sunny Saskatchewan like us, but you can use the above chart to find more accurate solar potential for your location.
Below you’ll see a sample power bill from Saskpower, Saskatchewan’s regional utility provider. In the highlighted circle, you will see the total kW/h usage for the previous period. This number represents your energy usage. You will need to find this number on each of your previous 12 energy bills, and then add them up to create your total yearly energy usage.
In our Saskatchewan solar example, we’ll assume our 12 months of energy usage is equal to 11,000 kWh. Next, we will divide our total yearly energy usage by the solar potential of our area (Saskatchewan in this example).
Recommended Solar System Size: (total yearly energy usage) / (local solar potential) = your ideal solar system size
Example Solar System Size: 11,000kWh / 1,330 kWh/kW = 8.27kW solar system size
The Bottom Line
What it comes down to is this: the more electricity you use, the bigger the solar system you’ll need. But don’t sweat it; we’re here to help you figure out the best fit so you can start saving on those energy bills.
Remember, the right solar system can mean big savings over time. If you’re ready to see those bills go down, give us a shout. We’ll help you calculate the right solar system size that makes sense for your home.
Choosing the Right Solar Panel Mount: Roof or Ground?
Now that you’ve established the size of the solar panel system you need, your next task is to decide how you want to mount your solar panels.. Do you go for the roof or set them up on the ground?
Here’s what you need to know to make the best choice for your home.
Going for Ground Mounts
A ground-mounted solar panel system can be just what you need if you’re after maximum efficiency. You can angle these solar panels at a perfect 45 degrees to soak up as much sun as possible. This isn’t always doable with roof mounts, which are limited to the slope of your roof, usually between 18 to 26 degrees.
Another significant benefit about ground mounted solar panels is the option of using bifacial solar panels – solar panels that collect sunlight on both sides. By using bifacial solar panels, you can get 5-25% additional power production from your solar system. That’s because the rear side of bifacial solar panels can catch reflected light from the ground as well as directly from the sun. As a result, you’ll likely need fewer total solar panels since each panel is producing more energy than a non-bifacial roof-mounted panel.
But! Ground mounts have their challenges. More than anything, you need the requisite space to be able to install solar panels on the ground. And this space needs to be unobstructed by shading, like trees or other buildings. Depending on where this space is relative to where the energy will be used, you may also have to incorporate some ground trenching to ensure your wiring is protected from wear and tear over the years.
Lastly, if you do have enough space for your solar system on the ground, you also need to ensure that your solar panels have a solid foundation. The foundation types that we recommend are screw piles, concrete, or ballast blocks, depending on the soil type in your area.
While ground mounts require a bit more planning than roof mounts, the extra effort can pay off if you have the room for them. They unlock the full potential of solar with dual-sided panels and ideal tilt. Particularly for homes with higher energy demands or rural systems with more access to available land, ground-mounted systems could be the perfect solution.
The Upside of Roof Mounts
Of course, roof mounts have a few perks of their own. For starters, they’re generally cheaper per watt to install for a few reasons. Most importantly, you’re using space you already have – your roof – so you don’t need to build a whole new structure. This saves you money and keeps your land free for other uses. That’s a pretty significant benefit, especially if you have limited land available, like an urban residence or business.
Considering the Cons
However, roof mounts aren’t worry-free. If your roof is nearing the end of its life, you should think about replacing your shingles (ideally with metal shingles) before adding panels. We strongly recommend ensuring your roof has a minimum of 10 years left on its lifespan before installing your solar panels.
Plus, you’re limited by the size and orientation of your roof, which could limit the power you can generate. You might end up needing more panels than you would with a ground mount, or you might be limited to a certain size of solar system because of a roof with limited available space.
What’s Best for You?
So, which to choose – mount your solar panels on the ground or put them on your roof? If you’ve got the space and want to get the most possible energy production out of your panels, ground mounts are a solid bet. But if you’re looking to save on costs and use your existing structures, or if your access to land is limited, roof mounted solar panels could make a lot of sense for you.
Remember, every home or business is different. Consider your space, budget, and how much power you want to generate. And if you’re still not sure, we’re here to help.
What do Solar Panels REALLY Cost?
Finally, and perhaps most importantly, it’s crucial to understand the true financial breakdown of a solar panel system over the lifetime of the system fully. This includes the actual cost of solar panels, energy usage savings over the years, and potential repair costs that pop up over the years.
Let’s crunch the numbers for a clearer Return-on-Investment picture for a solar panel system..
Upfront Investment
Let’s start with the upfront cost. For our example, you’re looking at a $10,000 solar system. We’ll keep the number easy for the sake of the example, but you can easily swap in a larger system as well. This upfront cost includes the panels, inverters, and all other equipment needed to install your solar system on your own.
Net Metering
Net metering is a key factor in calculating your solar ROI. This policy, available across Canada, allows solar system owners to send surplus energy (ie: energy produced by your panels that you didn’t use) back to the grid in exchange for credits. Here’s what that means for you:
- Direct Savings: By using solar power directly, you’re reducing your need to buy electricity at the local rate, which can be substantial.
- Earning Credits: When your system produces more energy than you need, the excess isn’t wasted. You’ll receive credits that can offset your future bills, sometimes even resulting in a payout.
- Usage Balance: Typically, Canadian homeowners use about 50-70% of the solar power they produce, with the remaining 30-50% going back to the grid. This split for solar energy use vs. grid feedback is pulled from 1st party data from Current Transformers (CT’s) that monitor real-time electricity usage on our customers’ systems. Optimizing appliance operation for sunlight hours can significantly impact the amount of solar energy directly utilized versus fed back to the grid.
Carbon Tax Savings
Solar energy systems are exempt from carbon tax. With the federal carbon charge at about 0.639¢/kWh, for 11,000 kWh, you’re looking at saving approximately $70 annually.
The Cost and Return Breakdown
Let’s break down these numbers. In our example, we’ll assume a few things.
- The resident is in Saskatchewan (like us!)
- the system retailed at $10,000
- the yearly energy usage is 11,000 kWh
- a Full Retail Savings Rate of $0.191/kWh. The comprehensive rate represents saved expenses on grid electricity, taxes, and carbon tax, underscoring the benefit of using solar-generated power.
- Sending 30% of solar energy produced back to the grid.
- The carbon tax is scheduled to increase $15/tonne per year until 2030. In 2024, the carbon tax is $80/tonne and will be $170/tonne in 2030
What’s the true cost of a solar panel system? How does it change at time of purchase, to ten years in the future? What about potential repair costs during the lifetime of the solar panel system?
Let’s dig in.
At Time of Purchase:
- Upfront Cost: $10,000
Net Metering Savings:
- Annual Production for a 10 kW System: 13,350 kWh
- Direct Consumption Savings: 13,350 kWh x 70% x $0.191* = $1,783.245 per year
- Credit for Excess Energy Sent to the Grid: 13,350 kWh x 30% x $0.075 = $300.375 per year
- Total Annual Savings from Net Metering: $1,783.245 + $300.375 = $2,083.62
Year 3 Savings:
- Net Metering Savings: $2,083.62 x 3 years = $6,250.86
- Net Cost After 3 Years: $10,000 (Year 1 upfront cost) – $6,791.94 (amount saved by producing solar energy) = $3,208.06 Net Cost after 10 Years
Year 10 Savings and Repair Costs :
- Initial Upfront Cost in Year 1: $10,000
- Expected Repair/Replacement: Inverter replacement is common around the 10-year mark.
- Repair Cost: Estimated at $1,500 for inverter replacement.
- Cumulative Net Metering Savings after 10 Years (with 4% yearly increase): $29,532.80.
- Net Savings After 10 Years: $29,532.80 (savings) – $11,500 (total costs) = $18,032.80 in Net Savings
Year 25 Repair Costs and Savings:
- Initial Upfront Cost in Year 1: $10,000
- Long-Term Maintenance: Potential panel replacement or significant maintenance.
- Estimated Repair Cost: Assuming a conservative $2,500 for panel maintenance/replacement.
- Plus prior inverter replacements at year 10 and year 20: $3,000
- Cumulative Net Metering Savings over 25 Years (with 4% increase per year: approximately total savings of $75,000
Total Net Savings at Year 25 (After All Costs):
- Net Savings: $75,000 (savings) – $15,500 (total costs) = $59,500 Net Savings after 25 Years of Solar Energy
Wrapping It Up
When you factor in the upfront cost, net metering credits, carbon tax savings, and available incentives, solar panels present a compelling financial case. Prairie Sun Solar is here to guide you through the maze of incentives and help you understand the true cost and savings of going solar, ensuring your investment is as profitable as it is planet-friendly.
Ready to capture the sun’s power and save money? Talk to us at Prairie Sun Solar. We’re not just selling solar panels; we’re building energy-smart homes across Canada, one rooftop at a time.
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