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Solar still makes sense in Alberta even without federal incentives because it locks in electricity costs for 25+ years, protects against rate hikes, and adds home value. Large, well-oriented systems can achieve payback periods under 10 years and IRRs over 12%, while programs like SolarClub™ and carbon credit sales boost returns. Financing options such as CEIP, green mortgages, and local rebates for homeowners and businesses make solar a strong investment now.
If you’ve been watching the solar industry in Canada, you’ll know by now that the Federal Greener Homes Grant (GHG) and Loan (GHL) programs have officially wrapped up. And for many Albertan homeowners, that sparks a big question:
Does it still make sense to go Solar?
The short answer: Yes, absolutely – if you’ve got a good roof for solar.
Assuming you have a good roof (South/East/West faces with little to no vents), let’s dive into solar financials, without the GHG/GHL, to help you make a smart and informed decision about whether going solar makes sense for you.
The GHG made it easy to see a payback period of well under 10 years for almost any roof. Given that a well-designed solar system should have a minimum lifetime of 25 years, that made the return on investment (ROI) outcompete a high-performance stock portfolio. Now, without the GHG, solar can still be an excellent investment, but you need to make sure that it works for your home and your circumstances.
Here are the factors to consider:
Solar is a unique type of investment because if you don’t go solar, you still need to buy electricity. A good analogy is renting vs buying a home. Buying electricity from a utility company is like paying rent – you pay for the power you use but at the end of the day you don’t own anything. Purchasing a solar system is like buying a home. You take what you were going to pay for electricity over the next 10-13 years anyways and use it to buy a money-making asset that:
Are you a fan of fixed-rate electricity plans which protect you from price spikes? So are we! Going solar is like locking in an electricity rate for 25+ years which means protection from inflation and utility rate increases. And those pesky transmission and distribution charges that seem to keep going up? Going solar reduces those too.
Solar technology has dropped in cost so significantly in the past 15 years that solar can offer a competitive ROI under the right circumstances without incentives. Larger systems (that benefit from economies of scale and spreading of fixed installation costs over more panels) on simpler roofs have the upper hand here, with 20+ panel south facing systems offering payback periods of under 10 years without any incentives and an equivalent rate of return (IRR) of over 12%. Smaller systems can still be competitive but typically won’t offer a sub 10-year payback period, given Alberta’s relatively low baseline cost of electricity.
So, if you go solar, instead of renting electricity monthly from the utility company, you now own your own electricity production. So how can you use it to its best effect?
Here’s a personal example from my home. The graph below shows what I produced vs. what I consumed this year. The triangle shows the delta (see what I did there?) of my excess production I sold during summer (and accumulated in credits) that I'm now using to pay for my winter bills.
Just because the GHG and GHL are gone doesn’t mean there aren’t still incentives available in Alberta! Here is a breakdown of those still available at the time of writing:
A low-interest way to finance solar through your property taxes available in a few jurisdictions in Alberta. These open to new applications every few months for only a few weeks at a time so keep an eye out! You can sign up & check which locations are open here: https://ceip.abmunis.ca/residential/locations/
Many banks now offer green financing or allow you to roll solar costs into your mortgage. These rates can often be just as competitive or more competitive than the private financing packages offered by solar installers. Contact your bank and just ask!
Businesses in Alberta can still benefit from the following incentives, which are stackable and can enable you to save as much as 50% on your commercial solar installation!
Want to know what it costs to go solar today in Alberta without having to give away your home address, email, sign up, and other deep information like your birthday, favourite food and blood type? We've designed a free calculator that can give you a great starting point, right here, right now: https://www.potentialengineering.ca/solar/pricing
