Solar photovoltaic technology is providing more and more Canadians with power. In 2024, Canada has a total of 21.9 GW of installed solar capacity on a utility scale. However, many Canadians are considering taking their energy generation into their own hands and installing residential-scale solar photovoltaic onto their homes and on their land. While residential-scale solar can be revolutionary for some, for others it might not be a great investment.
Solar is a complex decision with many factors to consider. Combined with high upfront costs, solar is a decision one must consider carefully. This snapshot of the Solar market and changes in the industry should be able to help you along the process of adding solar to your homes.
Solar Photovoltaic Energy: The Basics
The basic idea for residential homeowners to add solar photovoltaic generation to their home is to add a source of electricity you own your self so you can not rely on electric companies as much, or even eliminate your power bill.
However, solar is an intermittent power source, relying on sunlight to generate electricity. For example, weather plays a massive role in the generating capacity of a solar photovoltaic system. During the summer months, there is no doubt that you can generate lots of electricity – some homeowners with photovoltaic generation even exceed their energy usage. But in the winter months, where daylight hours are short and the weather is often grey and snowy, your generation is going to be limited.
This means net metering is the Canadian default. Net metering is an agreement with a local utility operator where excess energy generated is sold back to the utility. Often, this is exchanged for credit, which can be used to buy electricity later.
If you play your cards right, the excess generation of the summer months can account for your needed electricity in the winter months. You aren’t cutting the cord, but you are leveraging your own source of electricity generation to save money in the long run.
Solar Generation Considerations
Where in Canada do you live?
Location makes a large impact on the projected effectiveness of a solar photovoltaic system. For starters, expected exposure to sunlight is a massive factor. According to Canada Energy Regulator, “[e]xposure to the sun’s rays is affected primarily by climate, latitude, and elevation.” This ranges greatly between Canadian cities. More exposure to sunlight means a stronger foundation to generate photovoltaic electricity.
The Canadian cities based on average PV Potential
| Number | Major City | Average PV Potential (kW.h/m2) |
| 1 | Regina, Saskatchewan | 7.15 |
| 2 | Saskatoon, Saskatchewan | 7.10 |
| 3 | Calgary, Alberta | 6.70 |
| 4 | Winnipeg, Manitoba | 6.61 |
| 5 | Edmonton, Alberta | 6.50 |
| 6 | Yellowknife, Northwest Territories | 6.18 |
| 7 | Ottawa, Ontario | 6.09 |
| 8 | Montreal, Quebec | 6.04 |
| 9 | Toronto, Ontario | 5.94 |
| 10 | Mississauga, Ontario | 5.93 |
| 11 | Fredericton, New Brunswick | 5.76 |
| 12 | Quebec, Quebec | 5.75 |
| 13 | Saint John, New Brunswick | 5.68 |
| 14 | Victoria, British Columbia | 5.68 |
| 15 | Charlottetown, PEI | 5.51 |
| 16 | Iqaluit, Nunavut | 5.49 |
| 17 | Halifax, Nova Scotia | 5.33 |
| 18 | Vancouver, British Columbia | 5.21 |
| 19 | Whitehorse, Yukon Territory | 5.02 |
| 20 | St. John’s, Newfoundland | 4.53 |
Electricity Cost
For those considering solar power for the financial benefits, it’s important you compare your power bill to the prospective costs of installing and operating photovoltaic generation. In some cases, it might not be the most economically savvy decision, depending on the average electricity costs of where you live, among other factors. Even if you are more interested in the sustainability factor, this is still an important consideration.
For example, the prairie provinces are great for prospective solar generation, on account of high amounts of yearly sunlight they receive, compared to the higher average cost of electricity in these provinces. It’s harder to make a case for residential photovoltaic generation in Quebec, due to less sunlight, but also accessibility to cheap hydroelectricity across the province.
The Structural Layout of Your Home & Yard
Where would you put solar panels? Are you considering putting panels on your roof, or do you have an area of land you would put them on? Your answer plays a large role in the efficacy of a solar photovoltaic system.
Ground installation is more expensive and takes up precious yard space but can prove more efficient due to how they are positioned. Solar installation can be cheaper, but is constrained by the shape, size, and direction of your roof.
You should consider which direction you would be able to install solar, as optimal photovoltaic generation requires careful positioning to maximize exposure to sunlight. In the northern hemisphere, true south-facing roofs are the best direction for generating the most electricity, whereas East/West facing panels are predicted to produce 15% less than Southern facing solar, and north-facing generating the least amount, about 30% less.
However, turning the angle of a south-facing panel slightly to the west means you can get generation later in the day, as the sun moves towards the west before the sun sets.
If you have a true south facing roof face, this means you have the perfect location for solar panels.
Potential Obstructions
Obstructions that block the sun’s path to your solar panels
can be a huge detriment to getting the level of solar generation you are
looking for. You should consider a location for your solar panels that gets
uninterrupted sunlight.
Human structures like other buildings can be hugely disruptive if they
block part of the day’s worth of sunlight. Consider tree cover as well, including
the potential for growth of surrounding trees. These obstructions will greatly
reduce the efficiency of your panels and limit the amount of electricity
generated during the day.
The Upfront Costs
One of the biggest downsides of solar is the upfront costs of installation, although the price is getting better as more solar panels are hitting the market.
Solar installation companies do the planning and installation, making them a popular option – Leaving it to the experts means you don’t have to do as much research, and you don’t have to worry about breaking a sweat or drawing out blueprints. However, the cost can be steep – between 15k for 40k for a professionally installed solar photovoltaic system.
This can be a lot of money for a long-term investment – even if your solar panels and the system around it is perfect, you are going to be years away from breaking even.
One metric that can be used to understand the cost of a solar photovoltaic system is average installation cost per watt. This ranges between location, but on average, the general range can be valued at $2.50 to $3.50 per watt, with larger systems driving the price point down.
Some of the things that you can expect to be paying for when you get solar installed include:
- upfront labour
- mounting hardware
- DC-to-AC inverter
- fees, installation costs, additional equipment, etc.
- evaluations or assessment of your home
Your Energy Bill & The Breakeven
Like we mentioned earlier, your energy bill before installing solar should play a big role in your decision to add solar photovoltaic, and how much solar capacity you should add. The best way to
identify the viability of the solar for your home is to determine the estimated solar breakeven. The breakeven (or solar payback period) is the point where the costs of installing and maintaining a solar PV system are covered by the generation of your PV system. The breakeven will vary incredibly, from region to region of course, but also from user to user. For example, users with lower monthly or annual energy costs can opt for smaller PV systems, but also might struggle to
justify the overall costs in terms of monthly energy savings.
A breakeven, or the information to get one, will be reported on any quote you receive. How they calculate these breakeven costs ultimately comes down to:
Total project cost / Annual energy savings = breakeven time (in years)
Total project cost
Using your quoted installation price or adding up the total costs after installation. This includes interest on any loan used to pay for the system, and any fees that you might accrue. You must also subtract the cost of any rebates, grants or tax credits you may receive.
Annual Energy savings
This is the difference between your yearly energy costs before installing solar and your yearly energy costs after installing solar. From the perspective of someone considering solar, this is not of much help. Companies should include projected savings in with your quote, but if you want to try calculating this number yourself, you will need to find the cost you spend on energy annually before you made the switch to solar, and what you will pay in annual energy bills afterwards, taking into account any credits you may receive from net-metering or other agreements.
Further Advice
Check for Grants and other Funding Incentives
As there are many places where the addition of solar is incentivized, we recommend checking all possible governmental grants, loans, tax credits, or other financial incentives that might be applicable to you.These types of incentives can make adding solar photovoltaic to your home or property even more affordable.
Get multiple quotes from reputable installers, if possible.
We highly recommend shopping around to different installation companies before deciding on one to install solar into your home. This lets you get different perspectives on how much generation you need, how panels can be installed, and the cost.
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