So you’re thinking about getting solar power in your home, but you’re probably wondering How much does a Solar Panel Cost? Don’t worry, we’ll not only give you a price estimate, but we’ll give you some pointers that’ll help you out in saving cost and getting your first solar panel installed as quickly as possible
Solar Energy in Your Area
The first determining factor is where you stay and how much energy you use.
Your Province plays a huge role in how much energy you’ll need, some provinces have access to more sunlight than others.
Saskatchewan for example generates 1,330 kWh/kW/yr.
This tells us that for each kilowatt of capacity, a solar panel system in Saskatchewan would generate approximately 1,330 kilowatt-hours of electricity over an entire year.
To put it into perspective for a homeowner, if they were to install a 5 kW panel system on their property in Saskatchewan, they could expect it to produce around 6,650 kWh of electricity annually. Keep in mind that your solar system size would also be determined by how much energy you use every year. This figure would change dramatically between provinces.
If you need more information on how much you’ll need depending on your province, and how to calculate your needed solar system size, check out our Buyers’ Guide.
So that begs the question, How much do Solar Panels really cost?
WHAT DO SOLAR PANELS REALLY COST?
We’ll start by looking for the right incentives, rebates, and tax credits available in your province.
Luckily for you, we’ve broken these down to help you find the best Incentives and Rebates in your province on our Incentives page
Now let’s look at 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 by $15/tonne per year until 2030. In 2024, the carbon tax is $80/tonne and will be $170/tonne in 2030
SAVINGS ON SOLAR PANELS COST
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 3 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
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.
Calculate Your Solar System Size
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Frequently Asked Questions
Are solar panels worth it in Saskatchewan?
Solar panels are a smart investment in Saskatchewan, thanks to the province’s high solar potential and generous financial incentives. With more sunny days than most regions in Canada, solar installations here produce significant energy, which can substantially reduce or even eliminate electricity bills. Programs like the Net Metering Program and the Canada Greener Homes Grant provide financial benefits that reduce upfront costs and offer rebates, making solar panels environmentally friendly and financially appealing.
Can you sell power back to the grid in Saskatchewan?
Yes, in Saskatchewan, you can sell power back to the grid through the SaskPower Net Metering program. This program allows customers to generate their own electricity and feed any excess power back into the grid in exchange for credits. These credits can then be used to offset future power bills. Find out more about the new SaskPower net metering
How much does a 5KW solar system cost?
A 5kW Solar Panel DIY Kit for roof mounting is priced at $9,598.91 at Prairie Sun Solar. This kit includes everything needed for installation, such as high-efficiency solar panels, an advanced inverter, power optimizers, and a secure roof mount system. It’s designed for easy DIY installation, offering a reliable and efficient way to harness solar energy for your home.
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