"How to Profit from Solar Energy"
"How can electricity from solar energy be profitable?"
"How to sell Solar Power and make Money."
"How to invest in the Solar Industry."
"So How Quickly Can We Shift to Solar?"
"Top 6 Things You Didn't Know About Solar Energy"
"Solar Energy Jobs Outpace U.S. Economy"
If you are seeing these headlines or similar headlines, you will understand that isn't just a trend anymore. It has happened. Solar power is now profitable. What it really comes down to is several things...
#1. Solar panels are a lot cheaper than they used to be. The price of photovoltaics have dropped 40% in the last 2 years alone.
#2. Solar panels are significantly more efficient than they used to be.
#3. Solar technology in general has come a long way during the last 50 years.
If you are a James Bond fan like myself, then you should know that solar power was a big theme in the 1974 film "The Man with the Golden Gun".
Ignoring the fact that it was a villain showing off his solar power and that in 1974 the idea of a super efficient photovoltaic (or Solex as they called it in the film) was basically science fiction back then - and so valuable it was worth killing people for it. Today, efficient photovoltaics are a science fact. They are more efficient, they cost significantly less, and nobody is going to be killing people over a bit of technology that will be obsolete in two years when someone invents a more efficient photovoltaic.
For the Off Gridders however, more affordable solar power means they have more options for how to get solar power in their off grid home.
So lets see what one website now charges for such an installation?
Back in 2013 pricing for installing a solar power system for your home would cost:
"At today’s pricing [June 2013], a solar system would typically cost you anywhere from $20,000 – $40,000 in Ontario depending on the size of the system (40k for a 10 kW system and 20K for a 4.5 kW system)."
So now that it is January 2017, and the price of photovoltaics have dropped 40%, shouldn't we see a significant drop in the price?
Yes, but the price of the manpower to install it has probably stayed the same. Much of what you are paying for during an installation is a bunch of men showing up at your home, climbing all over your roof and installing the solar panels.
In Ontario you need all of the following and each of these things comes with a price.
- Solar Panels (which is the only thing that is now cheaper)
- Rails & Flashing units
- Inverter(s) & monitoring
- Permits (varies per jurisdiction)
- Complete system wiring, disconnects & sub panels
- Engineering (if required)
- Assistance with OPA & Ontario Hydro paperwork (if you intend to sell power back into the grid)
- Squirrel Guard
If you do end up selling power back into the grid, with a 10 kW system you are expected to make $4,000+ per year for a period of 20 years or more. The more basic 4.5 kW system is for people who want to be self-sufficient, don't think they need the extra energy, and are not intending on selling energy back into the grid.
So the 10 kW system really seems pretty obvious when you think about it. The system pays for itself in approx. 8 to 10 years, plus you save money from not having to pay for electricity for all that time.
Lets do the math... My wife and I currently spend over $800 per year on our electricity, so saving $16,000 over a 20 year period, while getting paid $4000 per year over 20 years...
Minus $40,000 for installation (2013 prices).
Plus $16,000 in savings.
Plus $80,000+ in revenue.
Profit of $56,000.
So yeah. More than doubles our money in 20 years, all while providing electricity we use anyway. This is definitely going on our To Do List when we buy our first home.
In Ontario there are now Solar Panel Investment companies which buy up land which isn't being used for anything else, build a solar farm with as many large solar panels they can fit onto the property, and then reap the profits over the long term. With the low interest rates for borrowing money, investing in solar power right now is ridiculously profitable. Companies can basically borrow the money, and then pay the interest for the loan using the profits from the solar farm, pay any land taxes, pay the government their share because of income taxes, and voila, they still walk away with a sizable profit.
In July 2015 the Canadian Solar Industries Association released an estimate that was commented on in the Globe and Mail:
"Within five years Ontario homeowners could save enough money by putting solar panels on their roofs that they won’t need any [government] subsidy to make installation worthwhile.[T]he plunging costs of solar equipment, combined with rising overall electricity costs, will put the two in balance by 2020.Currently, many Ontario homeowners are installing solar panels, but the incentive is a provincial program that pays them high rates for the electricity they generate – considerably above market prices."