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Average Solar Energy Installation Costs by Province in Canada (2023)

Updated: Jul 20


The cost of solar energy in Canada varies significantly by province due to differences in installation costs, sunlight availability, and local incentives. Here's a detailed breakdown for 2023:

Sample Cost Breakdown by Province
Sample Cost Breakdown by Province

The total cost of a solar system is determined by the cost per watt and the size of the system required, which depends on annual energy usage and sunlight hours. For instance, a typical 7.5 kW system in Ontario could cost between $18,150 and $22,875 before incentives.


 

Understanding Solar Energy Installation Costs in Canada: A Provincial Breakdown


How Solar Energy Installation Costs are Formed


Solar energy installation costs are determined by a combination of factors, including equipment, labor, permitting, and additional expenses. Here’s a detailed look at each component:



Equipment Costs

  • Solar Panels: The primary cost component. Higher efficiency panels are more expensive but yield more energy.

  • Inverters: Convert the DC electricity from the panels to AC electricity used in homes. Their cost varies based on type (string inverters, microinverters).

  • Mounting Systems: Hardware for mounting panels on rooftops or ground structures.

  • Battery Storage (Optional): Batteries for storing excess energy increase overall costs but provide backup power.

Installation and Labor Costs

Permitting and Inspection Fees

 Incentives and Rebates

Operational and Maintenance Costs

Market Conditions


Sample Cost Breakdown by Province (2023)

Province

Average Installation Cost (10 kW)

Average Cost per Installed Watt (CAD)

Ontario

$25,000 - $35,000

$2.50 - $3.50

Alberta

$20,000 - $30,000

$2.00 - $3.00

British Columbia

$30,000 - $40,000

$3.00 - $4.00

Quebec

$25,000 - $35,000

$2.50 - $3.50

Saskatchewan

$20,000 - $30,000

$2.00 - $3.00

Manitoba

$25,000 - $35,000

$2.50 - $3.50

Nova Scotia

$28,000 - $38,000

$2.80 - $3.80

New Brunswick

$26,000 - $36,000

$2.60 - $3.60

Prince Edward Island

$27,000 - $37,000

$2.70 - $3.70

Newfoundland and Labrador

$29,000 - $39,000

$2.90 - $3.90

Yukon

$30,000 - $40,000

$3.00 - $4.00

Northwest Territories

$32,000 - $42,000

$3.20 - $4.20

Nunavut

$35,000 - $45,000

$3.50 - $4.50

It’s crucial to understand that these figures illustrate the probable range for average costs. Depending on the system's size and the specific equipment chosen, actual costs can be higher or lower than the average.


 

System Size Requirements


The size of a solar power system is crucial for meeting the energy needs of a household. It depends on several factors, including the household's energy consumption, the available roof space for solar panels, and the local solar irradiance (the amount of sunlight that reaches the panels). Here’s a detailed explanation of each factor:


Energy Consumption

  • Annual Energy Usage: The first step in determining the system size is to calculate the household's annual energy consumption, typically measured in kilowatt-hours (kWh). This information can be found on your electricity bills. For example, if a household uses 10,000 kWh per year, this figure will guide the required system capacity.


Available Roof Space

  • Usable Area: Calculate the amount of available roof space that can be used for solar panel installation. It’s important to ensure that this area is free from shading by trees or other structures and that it faces south to maximize sunlight exposure.

  • Panel Placement: The efficiency of the solar panels also depends on their placement. Panels should ideally be tilted at an angle equal to the latitude of the location to capture the maximum amount of sunlight throughout the year.


System Capacity Calculation

  • Solar Production per kW: The amount of electricity that a solar power system can produce depends on the local solar irradiance, which varies by region. In Canada, this typically ranges from 1,100 to 1,300 kWh per kW of installed capacity per year.

  • Required Capacity: To determine the required system capacity, divide the household's annual energy consumption by the average annual solar production per kW. For example, if a household consumes 10,000 kWh annually and the local solar production is 1,200 kWh per kW, the required system capacity would be approximately 8.3 kW (10,000 kWh ÷ 1,200 kWh per kW).


 

Energy Output of Solar Panels in Canadian Provinces (2023)


The energy output of solar panels varies across Canada due to differences in solar irradiance. Here is a summary of the average annual energy production per kilowatt (kW) of installed solar capacity for each province:


Province

Average Annual Energy Output (kWh/kW)

Saskatchewan

1,330

Alberta

1,276

Manitoba

1,272

Ontario

1,166

Quebec

1,183

New Brunswick

1,142

Prince Edward Island

1,104

Nova Scotia

1,090

Nunavut

1,092

Northwest Territories

1,064

The energy output of solar panels in Canada is influenced by the amount of solar irradiance, which varies by province. Saskatchewan leads with the highest average annual energy production per installed kilowatt at 1,330 kWh, while the Northwest Territories have the lowest at 1,064 kWh. These values indicate the potential electricity generation capabilities of solar power systems across different regions, helping homeowners and businesses estimate the efficiency and return on investment for their solar installations.


 

Example Calculation of Solar Energy Savings


Input Data:


  1. Installed Capacity: 5 kW

  2. Average Electricity Cost: $0.13 per kWh (in Ontario)

  3. Average Daily Sun Hours: 4 hours

  4. Number of Days in a Year: 365 days


Calculations:


  1. Annual Electricity Production:

Annual Production=Installed Capacity×Average Daily Sun Hours×Number of Days in a Year



Annual Production=5kW×4hours/day×365days=7300kWh\



2. Annual Savings on Electricity:


Annual Savings=Annual Production×Average Electricity Cost


Annual Savings=7300kWh×0.13$/kWh=949$


Result:


Installing a 5 kW solar energy system in Ontario allows saving approximately $949 per year on electricity bills.


Explanation of the Calculation Process:


  1. Annual Electricity Production: First, the amount of electricity that the system will produce over a year is calculated, taking into account the average number of sun hours per day.

  2. Annual Savings on Electricity: Then, the value of the saved electricity is calculated based on the average electricity cost in the respective province.


This example can be used for any other province or different installed capacity by substituting the relevant input data.


 

Sources for Information on Solar Energy Installation Costs and Outputs in Canada

The information provided in the analysis and calculations was sourced from the following official and reliable websites:

  1. Natural Resources Canada:

  1. Canada Energy Regulator:

  1. House Grail:

  1. Government of Canada:

These sources provide detailed information on solar energy production, costs, incentives, and overall energy outputs across different provinces in Canada.

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