Environmental Benefits: A Greener Energy Choice
While the financial benefits are an important consideration, many homeowners are motivated to install solar panels for environmental reasons. Solar energy reduces reliance on electricity generated from fossil fuels, lowering carbon emissions.
In provinces like Alberta and Saskatchewan, where electricity is primarily from coal and natural gas, solar panels significantly reduce carbon emissions. In provinces like Nova Scotia and New Brunswick, which rely on a mix of hydro, wind, nuclear, and fossil fuels, solar energy’s environmental impact is still positive, though less pronounced.
Studies show that residential solar systems generate 18% to 59% fewer carbon emissions during production and installation than large-scale solar farms. This is because rooftop solar systems use existing infrastructure (your roof), whereas large solar farms require emissions-heavy materials like concrete and steel.
Over the lifetime of a residential solar system, the environmental impact is overwhelmingly positive. The energy used to produce and install solar panels is typically recouped within two years, making the system effectively carbon-neutral afterward. This makes solar panels a compelling choice for environmentally conscious homeowners.
Solar Panel Costs: The Upfront Investment
One of the most significant barriers to adopting solar energy is the upfront cost. While solar panel prices have decreased considerably over the past decade, they still require a substantial initial investment.
According to the most current data shared by provincial power companies, the cost of installing an average 5kW to 7.5 kW solar system varies between $17,000 (NBPower) and $22,500 (BCHydro). However, our experience suggests that these costs and sizes are not accurate. In NB and NS our most recent installations have been no smaller than 9kW and sometimes in excess of 12Kw. A 12kW in 2025 will likely have an average cost of about $40,000 with a number of variables that might increase or decrease that amount.
For homeowners in Canada, incentives such as the Canada Greener Homes Loan or the NBPower Total Home Energy Savings Program can help alleviate some of the upfront cost, but these grants and loans don’t eliminate the need for a significant financial outlay. A well-sized solar system will eventually pay for itself through energy savings, but understanding the timeline for financial return is crucial before making a decision.
The Payback Period: When Will You Start Saving?
The main financial benefit of solar panels comes from reducing or eliminating your electricity bill. Once your system is paid off, any energy you generate is essentially free, which can lead to significant savings over the lifetime of the panels. However, the actual savings depend on your home’s energy needs, the size of your solar array, and how much sunshine you receive annually.
One of the most common questions is: How long will it take for my investment to pay off? This depends on several factors, including:
- Monthly power usage (including future demand increases)
- Local electricity costs (and predicted future increases)
- Size of the solar system
- Percentage of your power needs covered by the solar system, which depends on the number of panels and their production capacity based on your location’s sun exposure and roof angle
When we provide a quote for solar panel installation, we include a detailed report tailored to your circumstances (see Figure A for an example).
It’s important to note that these estimates assume a gradual increase in electricity prices over time. If electricity rates rise faster than expected, your payback period could be shorter, and your long-term savings more substantial.
