By David Dodge, GreenEnergyFutures.ca
Solar is the fastest-growing energy source in the world, with $500 billion in investment in 2024, more than the investment in all other technologies.
The thing about solar is that it works at all scales, from small rooftop systems to massive systems on the deserts of the Middle East.
Solar is 43 times cheaper to install on your rooftop and twice as efficient as it was in 1995.
This meteoric rise has, unfortunately, also attracted some pretty unsavoury characters.
Scammers in Alberta have pressured consumers into… purchasing solar at up to four times the going rat,e which leaves a bad taste in Greg Sauer’s mouth. He’s a solar veteran who works for Skyfire Energy, one of the oldest solar companies in Alberta.
“When you get beyond 2X when it’s 3x, 4x, [the price], the likelihood is that the system will never pay itself off. That customer could be saddled with financing that system for a long time, paying high interest rates, and just a terrible overall experience,” says Sauer.
Freedom and independence are very appealing
“Some people get caught up in it, right? Because they’re hearing these great stories of customers who have their bills eliminated. They’ll never pay another electricity bill again, right? There’s a freedom. They’re getting free money. There are all sorts of techniques that are used,” says Sauer.
The scammers often sell solar door-to-door.
Sauer says there are many great operators in the solar industry, and he and others say these practices need to end because they give the industry a bad rep.
“Door knocking is unsavory. It doesn’t need to be,” says Sauer. “It’s educating, it’s doing a public service,” and the scammer leans on the good feelings towards solar.
“People are adopting and embracing solar, which is great, but they may not always be making the best decision for the longer term,” says Sauer.
Consumers can wind up with subpar systems, “costly systems that won’t pay back or will take a very long time to pay back,” he says.
Don’t become a solar orphan
He also worries some of these consumers will become “solar orphans,” with no after-sales service and big problems with warranties as the fly-by-night companies vanish.
One case was well documented by the CBC in Alberta. “Jay Hector paid more than triple the average industry rate To have a solar panel system installed at his Calgary home, says the CBC story.
People are excited to go solar. “The happiest time is when you sign that contract for a lot of people,” says Sauer, but it wasn’t long after Hector realized he was burned.
“He soon realized that he paid about three times too much,” says Sauer.
“A typical five-kilowatt system,” says Sauer, should cost $13,000 to $15,000. He paid $48,000.
“$48,000 is such an exorbitant sum of money that … if you’re in Alberta, and you’re paying the average electricity price, payback is probably not going to happen in a 30-year period.”
What is a fair price for solar?
In Alberta, a fair price for solar is between $2.50 and $3.50 per watt. So, if you are looking at a 5-kilowatt system, it should cost between $12,500 and $15,000 all in.
It could cost less and it could cost more depending on the circumstances, but that is the current value of a quality system installed by a reputable solar company.
Going solar is not hard if you do your homework. First, find a reputable company with a good track record, know the value proposition (the pricing explained above), and get 2 or 3 quotes before signing on the dotted line.
And with reputable companies, they do all the work with permitting, design work, and everything you need in the all-in price mentioned.
Getting help going solar
Beth Andrew and Jordan Kruhlak know that shopping for solar can be a confusing, frustrating experience, and that’s why they started Glean Solar Brokers to help sort the wheat from the chaff. (see our story)
At no cost to the consumer, Glean secures 2-3 quotes from reputable solar companies, helps you understand the quotes, and makes the whole process easy.
Of course, there may also be shady brokers out there, so once again, do your due diligence before choosing a broker.
Will solar cover all my utility costs?
If your door-to-door salesperson promised you free energy, freedom, and an end to utility bills, it’s not going to happen if you were charged three to four times the going rate for solar.
Here’s how it should work.
If you buy solar from a reputable company at a fair price, your solar system should pay for itself in 10 years, which leaves 20 years of very cheap (almost free) energy from your solar system that is probably warrantied to last 25-30 years.
This varies from province to province with their solar net-metering policies. But yeah, it generally looks pretty good.
But you probably still have a gas furnace and a second utility.
Can I eliminate my utility costs?
In recent stories, we’ve documented and crunched the numbers for net-zero homes being built in places like Edmonton’s Blatchford planned carbon-neutral community.
A landmark net-zero home in Blatchford has no gas utility, an electric air-source heat pump for heating, and solar on the roof. With these homes, it is possible to cover not only all of your energy costs but all of the other charges on your electricity bill as well.
But remember, these homes are super energy efficient, they have no second utility, and they use very energy-efficient technologies such as heat pumps rated to -30C for heating.
Bottom line
Solar is an increasingly good investment. It helps eliminate emissions from your electricity, it can be a decent investment, and hey, you are more independent, and you can feel good about it.
Greg Sauer’s advice? Do your own due diligence. Expect to pay between $2.50 and $3.00 per watt all in. Buy from a reputable solar company, and your system should pay for itself in 10 years.
Check out our stories on Glean solar brokers and the amazing net-zero homes being built in Blatchford and other places in Canada.
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