When companies inquire about the costs of commercial solar panels in Edmonton, they’re often surprised by the significant price reductions in recent years.
Thanks to improved installation methods, government incentives, and technological advances, the cost of solar panels continues to decrease.
Several factors can influence the final pricing of a solar system for business. If you’re contemplating this investment but concerned about the upfront expenses, it’s essential to understand the variables.
Not only does solar energy reduce your carbon footprint, but it also lowers your long-term electricity bills, even though the initial investment is high.
This article breaks down the costs of commercial solar panels in Edmonton, helping you estimate a more accurate price for your installation.If you want to know if solar panels work in Canada’s cold winters, read our blog post about 11 solar myths in Canada.
Why Go Solar For Your Business?
The popularity of commercial solar panels in Edmonton has grown significantly, with commercial solar projects generating around 200 kW, while utility-scale projects produce 50 MW for the grid.
This growth is driven by several compelling reasons like:
- reduced overhead costs
- energy independence
- tax benefits
- shorter ROI
Solar panels provide a renewable energy source, serving as a primary and economical backup power source.
According to EnergySage, businesses report up to a 75% reduction in energy bills after switching to solar.
Commercial solar also qualifies for business tax credits and has shorter financial returns than residential solar systems.
While switching to solar requires careful consideration of current and future energy needs, there is no better time to invest if you want to modernize and reduce energy costs.
The Cost Of Commercial Solar Panels In Edmonton
The cost of installing commercial solar panels in Edmonton varies widely, mainly depending on the system’s size and complexity.
Today, a typical system costs about $3 per watt. On average, businesses can expect to spend around $50,000 or more.
For example, a 100 kW system would cost approximately $238,600 before tax incentives. After applying tax incentives, this cost could be reduced to around $114,147.
While the figures are still high, it’s significant to note that big savings can offset these initial costs over time. Don’t worry; most commercial solar systems return investment within a few years.
For a more accurate quote and detailed information about your system’s payback period, potential grants, and solar components, contact your local solar installation company.
Breaking Down The Cost of Commercial Solar Installations
1. Budget
Before requesting a quote, determine your minimum budget. This will be key when evaluating estimates.
Edmonton currently offers a limited-time rebate covering 40% of system costs, $0.40 per watt, or up to $4,000. Depending on your province, you might be eligible for different grants, incentives, and rebates.
But even with rebates, you may need to pay the full amount upfront before receiving the rebate check.
2. Solar Panels
Solar panels are the main component of a solar installation. Since different brands come with various sizes and warranties, it could affect the overall installation cost.
In Edmonton, popular brands have a 10-year material defect warranty and a 25-30-year performance guarantee designed for Canadian winters and hail-rated.
3. Annual Electrical Consumption Regulations
In Alberta, solar PV systems must comply with Microgeneration Regulations, which state that the system can’t produce more power annually than you use.
To ensure this, we review your past electrical bills. The largest system we can get approved will match your total annual electricity consumption.
4. Electrical Service and Roof Capacity
Roof space and electrical service capacity are key factors in system design.
If your roof doesn’t have enough space for all the necessary solar panels, the system might not cover your annual electricity use.
Whereas if your electrical service is old or too small, it may need an upgrade to handle the system or need downsizing to prevent overloading.
Complex layouts with multiple arrays that require more materials can also increase costs.
5. Inverters or Microinverters
Inverters and microinverters are crucial for converting DC power from solar panels into AC power.
Inverters are single devices placed near the electrical panel, while microinverters are typically one per two panels. Both types usually come with a 10-year warranty, extendable to 25 years.
The choice between inverters and microinverters affects the cost, and selecting the best option depends on your needs and contractor recommendations.
Trained professionals can help you decide which system will work best for your installation.
6. Installation Labor
Installation labor significantly impacts the cost of solar panels. Labor costs vary based on the size and complexity of the installation, panel location, and any custom work needed.
A critical part of labor is installing mounting hardware and solar racking to secure the panels safely. Though often overlooked, these components are essential for a safe and effective installation.
Hiring experienced professionals ensures that all aspects, including mounting and racking, are done correctly.
7. Contract, Permitting, and Approvals
Permitting and approvals affect the cost of solar panels. After choosing a contractor, they must apply for permits, get the microgeneration agreement approved, and obtain structural and development permits.
This process can take 4-6 weeks, depending on municipal review times. For a timely spring installation, sign a contract by February or March to complete the paperwork in advance.
Permits and approvals involve design, administrative work, and municipal fees, typically $300-$500. Additional structural or electrical engineering requirements can further increase costs.
Commercial Solar Financing Options
Commercial financing differs from residential financing due to larger system sizes and higher costs. Businesses also face more complex financial considerations. Here are four main financing options:
- Cash: The lowest cost and fastest option. Your business owns the system and gets all financial and tax benefits. However, not all businesses have enough liquid funds for this investment.
- Solar Loans: Borrow money to install the system and make monthly payments. You own the system and receive all benefits, but must pay back the loan with interest and handle maintenance.
- PPAs (Power Purchase Agreements): A third party pays for and owns the system. You pay them for the electricity generated. There is no upfront cost or maintenance, but you don’t own the system or get tax benefits.
- Solar Leases: Another party pays for the system, and you pay a monthly fee to use the panels and electricity. There is no upfront cost, but you don’t get tax benefits, and someone else owns the system on your property.
For personalized advice and to find the best option for your business, talk to a professional solar installer today. Doing so can help you navigate the options and make the best choice for your specific needs.
Final Thoughts on Commercial Solar Energy in Edmonton, AB
Discover the financial benefits of solar energy for your business, including government incentives, grants, and financing options in Edmonton.
Contact local professionals to assess your site and design a system that fits your needs and budget.
The solar industry is always evolving with new technology. We can help you understand the latest monitoring devices and apps to track energy production.
Get a quote from Gridworks Energy to see a detailed proposal with your system’s payback period, potential grants, and components.
We’ll guide you through provincial regulations to maximize your savings!
FAQs
Is solar worth it in Edmonton?
Solar power is a good investment for businesses in Edmonton because it saves money on energy costs, is good for the environment, and comes with government incentives. It also helps stabilize energy costs and enhance a company’s green credentials, appealing to eco-conscious consumers.
What are the drawbacks of commercial solar panels?
Solar power is a good investment for businesses in Edmonton because it saves money on energy costs, is good for the environment, and comes with government incentives. It also helps stabilize energy costs and enhance a company’s green credentials, appealing to eco-conscious consumers.
How long do commercial solar panels pay for themselves?
Commercial solar panels have a payback period of 5 to 7 years, depending on the system costs, energy bill savings, and available incentives, making them a potentially profitable long-term investment.
