Solar Panel Cost
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Based on information in Toronto Ontario, solar advisors have come up with an estimate on the average residential solar installation cost. The typical Toronto household consumes approximately 9,000 kWhs of electricity per year. Therefore, an average Toronto homeowner would need to install a 7,500-watt solar array to offset 100% of their electrical consumption. Currently, the average cost of solar panels in Toronto is $2.33 per watt making a 7,500-watt solar system cost around $17,475 (this calculation does not include government grants or rebates).
While the solar panel costs above are accurate, no two residential solar systems are the same. Each home will need a different amount of solar energy to sustain their average household consumption. The actual cost of solar panel installation will depend on many factors, such as your desired capacity (how many modules you want), your location, solar panel efficiency, roof pitch and direction.
Solar panel cost Ontario wide: As of 2022, the average cost of solar panels in Ontario is $2.91 per watt making a typical 7,500 watt (7.5 kW) solar system $21,825 before claiming any government rebates, grants or credits. Be sure to claim your $5,000 Greener Homes Grant as well!
If your average monthly electricity bill is high and you live in an area with high energy rates, installing solar panels in your home is a great investment. It is not only beneficial to your wallet but also to the environment. Here are a few reasons why you should consider investing in solar panels:
Years to payback = System cost / Value of energy produced
The payback period for any system is primarily determined by the current electricity price. The faster the payback, the higher the price per kWh. A faster payback, regardless of how much a system costs, is an excellent indicator of the system's value. Currently, the general payback period for an average-sized residential solar system in Ontario is 7-10 years, once all costs (including unexpected potential maintenance) are factored in. This number also excludes government rebates and credits. If you intend to sell your home after the payback period, you can make an even greater ROI.
The chart attached shows a rough breakdown for solar installations in Canada. Material makes up approximately 70% to 80% of the total job costs, with the biggest culprit being the solar panels themselves.
Every job will be a little different, but this should give you a good sense of where your money is going.
The cost of a solar power system depends on its size, which depends primarily on the energy consumed. Households consume an average of 9000 kWh annually, according to the Ontario Energy Board. Depending on the location, a typical household would therefore require a 6.5 kW or 7 kW system. Considering the average cost of $3/W for residential systems, a 7 kW system would cost around $21,000.
Solar panels can be installed on rooftops or on the ground. The type of installation you choose will ultimately affect the solar system cost. Rooftop installations are most common and therefore are the least expensive. Ground mounts and carports installation sometimes need additional anchor posts in the ground, which can create higher labor and component costs.
There are many solar providers across Canada and they all have slightly different prices. When installing solar panels, you have to decide between the quality and price of equipment. For example, you can choose a less-reputable, relatively new solar provider for a lower price. However, this reduces the likelihood of the system performing reliably over three decades. You can also choose a solar company that offers high-quality equipment from reputable manufacturers who have been in business for many years. Because of the added experience, there is a higher price tag, but it will also ensure a long life and excellent performance.
When it comes to solar installation, the complexity of the job will affect the overall solar panel cost. Even for the same system size in kW, same component quality, and same installer, costs will vary depending on the complexity of the project. Solar panels, for example, perform best in the northern hemisphere when installed facing south. If you have a north-facing roof and decide to have your installer modify the mounting structure so that the panels face south despite being installed on the northern side, the costs for designing, manufacturing, and installing the new structures will be higher.
Any unused power that is repurposed for net metering must be transported to the utility meter. The greater the distance between the solar panels (also known as a solar array) and the utility interconnection point, the higher the cost. This is because the further the distance, the more wiring and trenching is required.
According to EcoWatch, this is the average solar panel cost data by system size in Ontario.
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