Economic Advantages of Solar: Property Value, ROI, and Upfront Incentives

Investing in solar energy isn’t just a smart choice for the planet—it’s also a savvy financial decision. Homeowners across Atlantic Canada are discovering the impressive economic perks that come with installing solar panels  – and it’s not just in a lighter monthly utility bill. 

Recent data shows that the cost of installing solar panels in Canada has fallen substantially over the past decade – a trend that is expected to continue, making solar increasingly more affordable and easier for businesses and homeowners to offset the upfront costs of installation and reap future economic advantages. We’ll guide you through saving on upfront costs, reaping the long-term financial rewards, and tapping into the vast future potential of solar technology that can power more than just your home. 

Solar: The Financial Gift That Keeps Giving

A survey by TD Canada Trust revealed that one in three homeowners considered installing solar panels; however, 76% of them say the expense is the number one deterrent. Only about 47% of Canadian homeowners surveyed were aware that solar power significantly reduces home energy costs. In addition to providing real-time financial breaks, rooftop solar can also boost your home equity, which we’ll touch on below. 

Long-Term Financial Benefits of Solar Investment

Increased Property Value

According to Forbes, homes equipped with solar energy systems have higher resale values than those without. Real estate juggernaut Zillow estimates that the value of homes after solar is installed increases by about 4%, with the amount depending on location and potential energy savings. 

Capitalize on Trends in Eco-Friendly Homes

The demand for eco-friendly homes is rising. Homebuyers are increasingly looking for properties with sustainable features, including solar panels. By investing in solar now, you position your home as a desirable, future-proof property that meets the evolving preferences of modern buyers. Zillow suggests that homes with solar PV systems sell faster than those without by 20%.

Positive Impact on Utility Bills

Installing solar panels means reducing the amount of energy required from the electrical grid, which translates to buying less electricity and saving money on utility bills. In some provinces, solar-produced power can be sold to local utility providers through net metering programs, allowing homeowners to earn money for the excess energy produced. 

This dual benefit of cost savings and potential income generation makes solar energy an attractive and financially prudent choice for those looking to maximize their investment.

Net Metering Programs

All nine provinces and three territories in Canada offer net metering. Solar net metering programs in Atlantic Canada have gained traction more recently. 

These programs typically involve installing a bidirectional meter that tracks both energy consumed from the grid and generated by the solar system. When the solar panels produce more energy than the home uses, the excess is fed back into the grid, resulting in credits that offset future electricity use. Through these net metering programs, Atlantic Canadians can reduce their utility bills and contribute to a sustainable, renewable energy future.

Various regional energy companies offer these programs, each supporting local and provincial renewable energy goals. 

• In Nova Scotia, Nova Scotia Power’s Enhanced Net Metering program enables customers to connect renewable energy systems up to the grid, with the ability to receive credits for surplus energy generated. 
• New Brunswick benefits from NB Power’s Net Metering program, allowing customers with systems up to credit their excess electricity against future bills. 
• Newfoundland and Labrador’s Newfoundland Power offers a similar net metering program, accommodating renewable energy systems up to 100 kW. 
• Finally, Prince Edward Island’s Maritime Electric facilitates net metering for residential and small commercial customers, providing bill credits for surplus energy. 

The Intangible Cost Savings of Solar Backup Power

One significant yet often overlooked benefit of integrating a solar storage system into your home is the intangible cost savings from having reliable backup energy during power outages. 

When the grid goes down, families with solar storage don’t have to worry about the potential economic repercussions of spoiled food, halted work-from-home operations, or the inability to run essential medical equipment. 

By maintaining an uninterrupted power supply, a solar storage system provides peace of mind and ensures continuity in daily life, which can be invaluable in both short-term emergencies and long-term energy security.

Solar Monitoring Systems

Solar monitoring systems can help you better understand your energy usage patterns. This insight enables you to adjust your consumption habits, potentially reducing your overall energy expenditure. 

The monitor can suggest ways to improve energy efficiency by observing how much electricity you currently use and comparing it to how much your solar PV array produces. With these observations, you can save by learning where your energy spend is heavy and conserving effectively to reduce your reliance on the utility grid.

What is the Average Payback Period on a Solar PV System

The average solar PV system has a lifespan of around 25 years—plenty of time for a solid return on investment. By reducing monthly energy expenses, potentially allowing you to sell energy back to the grid, and increasing your property value, the system will pay for itself over time. But how long until you break even?

Canada’s residential solar breakevens vary according to the cost of the electricity a solar project generates and replaces, installation scope and cost, and how much power it can produce over a typical twenty-five-year lifespan. Based on our typical customer profile, the average cost for a 5 kW solar system would begin at approximately $12,250. The payback period varies, ranging from 5 to 12 years, depending on factors such as system configuration, utility rates, and connection fees.

In Atlantic Canada, where utility rates can be higher than the rest of the country, it makes sense to replace the more expensive energy purchased from the grid with abundant and free solar energy. It should be noted that electricity prices have been increasing faster than the inflation rate in most provinces in Canada. If this trend continues, residential solar will be even more competitive if installed in the future.

Saving on the Upfront Costs of Solar in Atlantic Canada

One of the most significant barriers to adopting solar energy is the initial cost. However, several initiatives can help mitigate this expense and make solar accessible to more homeowners.

Interest-Free Loans

The Canada Greener Homes Loan provides up to $40,000 interest-free to homeowners looking to make their homes more energy-efficient. This loan can be used to install solar panels, heat pumps, insulation, and other energy-saving improvements. By taking advantage of this initiative, you can significantly reduce the upfront costs of your solar investment.

Government Incentives and Rebates

One of the most effective ways to reduce the initial costs of solar installation is by taking advantage of government incentives and rebates. In Atlantic Canada, there are several programs designed to make solar more affordable:

• Provincial Rebates: Each province in Atlantic Canada offers its own incentives. For example, Nova Scotia’s SolarHomes Program offers rebates based on the size of your solar system.

Powering More Than Your Home

Solar energy has the potential to power more than just your home – helping you to save more in other areas of living. Future technologies, such as electric vehicles (EVs) and battery storage systems, can further enhance the value and utility of your solar investment.

Electric Vehicles

With the growing popularity of electric vehicles, having a solar energy system can provide the added benefit of powering your EV. This can lead to even greater savings on fuel costs and contribute to reducing your carbon footprint.

Battery Storage

Battery storage systems allow you to store excess solar energy generated during the day for use at night or during power outages. This increases your energy independence and maximizes the benefits of your solar installation.

Let SolarU Guide Your Savings

Investing in solar energy in Atlantic Canada offers numerous financial benefits, from saving on upfront costs to increasing property value and supporting future technologies like EVs and battery storage. By taking advantage of initiatives like the Canada Greener Homes Loan and staying informed about the declining costs of solar installations, you can make a smart financial decision that also benefits the environment.

Ready to take the next step? Sign up for a free consultation with our team of solar experts to explore how solar energy can work for you.