Is investing in solar panels in Alberta worth it? The short answer is yes. Alberta’s abundant sunlight makes solar panels a fantastic option for long-term savings and environmental benefits.
But before deciding, it’s important to understand the true costs, benefits, and whether solar is right for your home or business.
You may have heard myths that solar doesn’t work well in Alberta, but this simply isn’t true. For many individuals, especially those facing high electricity bills, solar panels are a smart investment.
This guide will cover everything you need to know about solar panels, including how they work, installation costs, reasons to install, and considerations. By the end, you’ll know the pros and cons, so you can decide if solar is right for your Alberta home.
Key takeaways from the article:
- Alberta’s abundant sunlight makes it an ideal location for solar panel installations.
- Solar panels offer financial benefits through lower electricity bills and government incentives.
- Homeowners can save thousands over 25 years and achieve up to 4x ROI.
- Challenges beyond cost include the condition and suitability of your roof, space for ground-mounted systems, and the long-term nature of the investment.
How Effective Are Solar Panels In Alberta?
Solar panels work best in direct sunlight. The photovoltaic (PV) cells need the light to create an electrical charge, which an inverter converts into usable electricity for your home or business. Along with heavy reliance on the sun, temperature, and weather conditions can also influence the efficiency of solar panels.
Surprisingly, Alberta is one of the best places in Canada for solar energy. With up to 320 sunny days per year, Alberta offers excellent potential for energy generation. For each kilowatt of installed solar power in Alberta, panels can produce between 1000 and 1500 kWh of electricity annually.
Even during Alberta’s cold winters, solar panels perform well. Cooler temperatures actually improve their efficiency, as panels generate more voltage in cold weather than in heat. Although winter brings fewer daylight hours, the bright sun and minimal impact from snow make up for it. Snow slides off easily, and even heavy snow causes only a 4-6% loss in annual energy output.
As for Alberta’s harsh weather, solar panels are built to withstand hailstorms, and rain helps keep them clean, ultimately improving their efficiency.
Why Solar Panel Investment Is Worthwhile In Alberta
Investing in solar panels in Alberta is a smart choice for both homeowners and businesses. With rising energy costs and strong government support, solar energy offers a sustainable and cost-effective solution.
The financial benefits are one of the main reasons to consider solar panels. By generating your own electricity, you can significantly lower your energy bills. For those who produce more electricity than they use, Alberta offers programs that allow you to sell excess power back to the grid at competitive rates.
Government incentives make solar even more attractive. For example, solar panels in Edmonton can benefit from Home Energy Retrofit Accelerator, a rebate that provides $0.40 per watt, covering roughly 15% of the installation cost. Across Alberta, various municipalities offer similar incentives, often up to $0.70 per watt, capping at $5,000.
On the business side, Alberta offers initiatives like the Solar Offset Program and Emissions Reduction Alberta to fund green upgrades and allow businesses to earn carbon offset credits.
From an environmental standpoint, solar energy is a clean, renewable source that significantly reduces carbon emissions. Unlike fossil fuels, which are finite and contribute to air pollution, solar power is sustainable and helps combat climate change.
Homes with solar energy systems are also seen as more attractive to buyers, as they offer lower electricity costs and a sustainable energy source. According to studies, properties with solar panels tend to sell faster and for more money than those without them, with a 4 to 5 percent increase in value.
For those concerned about reliability, solar systems are durable and built to last, with most manufacturers guaranteeing their panels will remain at least 80% efficient for 25 years, with many systems exceeding their warranty.
How Much Should You Invest In Solar Panels?
Investing in solar panels can seem costly upfront, but understanding the long-term savings can make it worthwhile. The benchmark cost for solar installation in Canada is around $3.34 per watt, or about $25,050 for a 7.5 kW system. In Alberta, this ranges between $9,000 and $17,000, including installation and labor.
The value of your investment may also change depending on your system’s size. For instance, if you want to offset 100% of your electricity usage, you’ll need a larger system, which increases the cost.
On the other hand, a larger system also leads to greater savings over time. Once you know the upfront cost and expected energy production, you can estimate your yearly savings by comparing what you’d pay for grid electricity versus what your solar panels generate.
The payback period for solar panels generally ranges from 10 to 15 years. If you invest $15,000 in solar panels and use 600 kWh of electricity per month (costing $108), your system could generate 7,200 kWh annually, saving you $42 per month.
Using 30% of your electricity directly from solar panels could add $20 monthly savings. With electricity rates rising 5% annually, your system could break even in 8-10 years. By the end of its 25-year warranty, you could save $70,000 to $80,000.
How much is your ROI?
Assuming your $15,000 system saves you $85,000 over 25 years. Using the ROI formula:
ROI = (Gain from Investment – Cost of Investment) ÷ Cost of Investment × 100
In this case: ROI = ($85,000 – $15,000) ÷ $15,000 × 100 = 466%
Your investment would be a 466% return and an annualized ROI of around 7%.
What Are the Challenges of Solar Panel Investment?
Installing solar panels in Alberta presents challenges beyond the financial aspect.
One of the first considerations is your roof’s condition. Solar panels add weight and must endure wind loads, so if your roof is old or damaged, it may need repairs or replacement before installation.
The size, slope, and orientation of your roof are also important. While most homes in Alberta have a roof pitch of around 18 degrees, which works well, shaded or small roofs may limit solar panel efficiency.
Ground-mounted systems, on the other hand, are an option if you have enough space, but they come with higher costs due to extra materials like racking and trenching. Ground mounts, however, are easier to maintain since they don’t require climbing on the roof.
Homeowners should think about how long they plan to stay in their homes. If you’re renting or planning to move soon, investing in solar panels might not be the best choice.
Pros & Cons Of Solar Panels In Alberta
| Pros | Cons |
| • Financial Savings: Solar panels can significantly lower electricity bills and help you save up to $70,000 to $80,000 over 25 years. | High Upfront Costs: The initial investment can range from $9,000 to $17,000. |
| Government Incentives: Alberta has many programs to help reduce installation costs. | Long Payback Period: It takes 8-10 years to break even, which may only suit some. |
| Increased Property Value: Homes with solar panels tend to sell faster and for more money, with a potential 4% increase in value. | Long-Term Commitment: If you plan to move soon, the investment may not pay off. |
| Environmental Benefits: Solar power reduces carbon emissions and helps combat climate change. | |
| Durability: Solar panels are long-lasting, with most manufacturers guaranteeing 80% efficiency for 25 years. |
Solar Panel Investment In Alberta With Gridworks Energy
Opting for solar panel installation through Gridworks Energy ensures you’re getting top-notch service from a company with 20 years of industry experience, and a commitment to quality and integrity.
We differentiate ourselves in Edmonton by offering expert commercial and residential solar installations, plus unique benefits like 100% indigenous ownership and comprehensive liability coverage.
With us, you’ll get a reliable, safe, and efficient system designed to last, backed by a team that prioritizes your long-term savings and sustainability.
Wanna see how much you could save with solar energy for your home or business?
Contact us today for an accurate estimation of the payoff period for your solar projects in Alberta.
Wrap Up
To wrap up, installing solar panels can be challenging, but it’s a solid investment for the long term.
Alberta is one of the best places for solar power due to its sunny climate and available incentives.
While the initial cost can seem high, there are plenty of rebates and financing options to make it more affordable.
Whether you’re aiming to cut energy bills or live a greener lifestyle, solar panels in Alberta will not be a wasted investment.
Get a free, no-obligation estimate now.
