Solar panels are a great way to reduce your electricity bills and your carbon footprint. But how much does it cost to install solar panels in Canada?
In this article, there will be answers for those having questions regarding the following aspects which are, The average cost of solar panels per watt in Canada,The factors that affect the cost of solar panels, The incentives and rebates that can lower the cost of solar panels, The payback period and return on investment of solar panels.
So read on and learn more about the cost of solar panels in canada.
The Average Cost of Solar Panels per Watt in Canada
The cost of solar panels is usually expressed in dollars per watt ($/W), which represents the total cost of the system divided by the power output.
According to energyhub.org, the average cost of solar power in Canada in 2023 is $3.34/W, or $25,050 for a 7.5 kW system. This is an increase from the average cost of $3.01/W in 2021.
However, the cost of solar panels varies depending on the province, the size of the system, the type of equipment, and the installer.
Here is a table that shows the range of costs per watt for different provinces in Canada:
| Province | Cost per Watt ($/W) |
| Alberta | $2.60-$3.27 |
| British Columbia | $2.52-$3.17 |
| Manitoba | $2.72-$3.42 |
| New Brunswick | $2.89-$3.64 |
| Newfoundland & Labrador | $4.00+ |
| Northwest Territories | $3.00-$3.77 |
| Nova Scotia | $2.51-$3.16 |
| Nunavut | $4.00+ |
| Ontario | $2.42-$3.05 |
| Prince Edward Island | $2.98-$3.75 |
| Québec | $2.65-$3.33 |
| Saskatchewan | $2.88-$3.63 |
| Yukon Territory | $3.02-$3.80 |
As a general rule, a solar system in your province will be priced higher for premium equipment and installers, or if your required size is below 7.5 kW, and lower for standard equipment and discount installers, or if your required size is above 7.5 kW.
Factors that Affect the Cost of Solar Panels
The cost of solar panels depends on several factors, such as:
- The size of the system: The size of the system is measured in kilowatts (kW), which indicates the power output of the system at peak performance. The larger the system, the more power it can generate, but also the more expensive it is to install.
- The type of equipment: The type of equipment includes the solar panels, the inverters, the mounting systems, and the wiring. Different types of equipment have different efficiencies, durability, warranties, and aesthetics, which affect their prices.
- The installer: The installer is the company or contractor that installs the solar system on your roof or ground. Different installers have different levels of experience, reputation, service quality, and overhead costs, which affect their prices.
- The location: The location affects the cost of solar panels in two ways: first, by influencing the amount of sunlight that your system can receive, which determines how much power it can produce; and second, by affecting the labor costs, permitting fees, and taxes that are involved in installing a solar system.
Incentives and Rebates that Can Lower the Cost of Solar Panels
The good news is that there are many incentives and rebates that can lower the cost of solar panels in Canada. These include:
- Federal tax credits: The federal government offers a tax credit of 26% for residential solar systems installed before December 31, 2023. This means that you can deduct 26% of the cost of your solar system from your federal income tax liability.
- Provincial incentives: Some provinces offer additional incentives for solar systems, such as grants, rebates, loans, or net metering programs¹. Net metering allows you to sell excess electricity that your system produces back to the grid at a fixed rate, which reduces your electricity bills and increases your savings.
- Local incentives: Some municipalities or utilities also offer local incentives for solar systems, such as discounts, credits, or free permits¹. These vary depending on where you live and who your electricity provider is.
To find out what incentives and rebates are available in your area, you can use this [solar calculator](^1^) or contact a local solar installer.
Payback Period and Return on Investment of Solar Panels
The payback period and return on investment (ROI) of solar panels are two ways to measure how long it takes for your solar system to pay for itself and how much money you can save or earn from it.
The payback period is the time it takes for your solar system to generate enough savings or income to cover its initial cost. The shorter the payback period, the faster you can recover your investment.
The payback period depends on the cost of your solar system, the amount of electricity it produces, the price of electricity in your area, and the incentives and rebates you receive.
The ROI is the percentage of profit or loss that you make from your solar system over its lifetime. The higher the ROI, the more money you can make from your solar system. The ROI depends on the same factors as the payback period, as well as the lifespan and maintenance costs of your solar system.
According to energysage.com³, the average payback period for solar panels in Canada is 10.5 years, and the average ROI is 8.8%. However, these numbers can vary depending on your specific situation and location.
To calculate the payback period and ROI of solar panels for your home, you can use this [solar calculator](^1^) or contact a local solar installer.
Conclusion
Solar panels are a worthwhile investment that can save you money on your electricity bills, increase the value of your home, and reduce your environmental impact.
However, the cost of solar panels in Canada depends on many factors, such as the size of the system, the type of equipment, the installer, and the location.
To find out how much solar panels would cost for your home, you can use this [solar calculator](^1^) or contact a local solar installer.
You can also take advantage of various incentives and rebates that can lower the cost of solar panels and increase your savings and income. By doing so, you can enjoy the benefits of solar power for years to come.