What is your Solar ROI?
Investing in solar energy is a significant decision that varies across Canadian provinces due to differences in financing options, installation costs, and return on investment (ROI). Below is a detailed overview for homeowners in Alberta, Ontario, Quebec, and British Columbia.
1- Alberta
Financing Options:
- Clean Energy Improvement Program (CEIP): A Property Assessed Clean Energy (PACE) program allowing homeowners to finance solar installations through their property taxes. While fully subscribed in Calgary and Edmonton, it’s available in other communities like Canmore and Rocky Mountain House.
- EQUS Financing: Offers low-cost financing up to $15,000 for eligible upgrades, including solar PV installations, to its customers.
Average Installation Cost: For a typical 1,500 sq. ft. home, a 7kW solar system costs between $18,200 and $22,890, translating to approximately $2.60 to $3.27 per watt.
Return on Investment (ROI) The payback period ranges from 8 to 10 years, influenced by factors like electricity consumption and rising energy rates. Over a 25-year panel lifespan, homeowners could save between $70,000 to $80,000.
2-Ontario
Financing Options:
- Canada Greener Homes Loan: Provides interest-free loans up to $40,000, payable over 10 years, facilitating solar installations without upfront costs.
- Provincial Rebates: Homeowners may be eligible for rebates up to $10,000, depending on specific programs and qualifications.
Average Installation Cost: A 10kW system typically costs between $25,000 and $35,000, depending on energy requirements and property specifics.
Return on Investment (ROI): The payback period is generally between 8 to 12 years, with an estimated ROI of 6% to 20% over a 25-year lifespan, influenced by installation costs, energy savings, and sunlight availability.
3- Quebec
Financing Options:
- Canada Greener Homes Loan: Similar to other provinces, this program offers interest-free loans up to $40,000 for energy-efficient upgrades, including solar installations.
Average Installation Cost:
While specific data for Quebec is limited, costs are comparable to other provinces, averaging around $3 per watt. For a 7.5kW system, this amounts to approximately $22,500.
Return on Investment (ROI): The payback period typically ranges from 10 to 12 years, depending on factors like local electricity costs and system size.
4- British Columbia (B.C.)
Financing Options:
- Various Financing Programs: Options include interest-free loans, personal loans, home equity lines, and PACE programs, aiming to make solar installations more affordable. solarbc.ca
Average Installation Cost:
As of 2024, costs range from $2.50 to $4.00 per watt. For an average residential system, this translates to approximately $10,000 to $30,000 before any rebates or incentives. bcsolarpanels.ca
Return on Investment (ROI):
The payback period typically ranges from 10 to 12 years, depending on factors like local electricity costs and system size. magsolar.ca
Conclusion
Solar energy presents a viable investment for homeowners across these provinces, with various financing options reducing upfront costs. While installation expenses and payback periods vary, the long-term benefits include significant energy savings, increased property value, and environmental sustainability.