Solar Panels and Real Estate: Are They Worth the Investment?

Sustainability is increasing in importance to Canadian homeowners, leading to energy efficiency becoming a key consideration for renovation decisions. Between 24% and 33% of mortgage consumers indicate making their homes more energy efficient as a reason to renovate. 

Given this trend, more Canadians may be wondering about upgrading their properties with solar panels, but may be concerned whether installing them is really worth the expense and effort. Sustainable upgrades are increasingly tied to real estate value, long-term cost savings, and other advantages, and solar panels are an impactful way to reduce ongoing energy costs. However, the specific answer to whether installing panels depends on a combination of location, energy usage, available incentives, and the homeowner’s long-term plans.

The Upfront Cost: A Barrier for Some

The main obstacle to going solar remains the cost. Installing a solar system in Canada typically ranges from $15,000 to $30,000, depending on size and complexity. Government incentives can, however, significantly reduce the burden of upfront costs. These change over time, so property owners interested in a solar installation should monitor them carefully. 

Energy Savings

While the upfront cost may be high, the long-term savings can be substantial, especially in provinces with higher hydro rates. Actual savings depends on a range of factors, including system size, usage, and where you live. Energy rates and solar production potential vary significantly across the country.

Ontario

With relatively high electricity costs and time-of-use pricing, solar can yield annual savings of $800 to $1,500, especially for homeowners who shift usage to daylight hours.

British Columbia

While BC Hydro offers relatively low rates, net metering makes solar more attractive for reducing peak usage or achieving net-zero goals. Savings are more modest but still meaningful long term.

Quebec

With some of the lowest electricity rates in North America, solar panels take much longer to pay off. However, environmentally driven homeowners still pursue solar for carbon reduction rather than ROI.

Prairie provinces

Strong solar production potential and decent sunlight hours support solar investment, but incentives vary. In Alberta, where net billing programs let homeowners sell excess energy back to the grid, the economics are even more favourable. Saskatchewan’s former rebate program ended in 2021, and nothing comparable has returned yet. 

Atlantic Canada

Nova Scotia and Prince Edward Island have small-scale solar incentives and decent sun exposure. Net metering is available, and high power rates in Newfoundland and Labrador make the payback period potentially attractive, even without provincial rebates.

Impact on Property Value and Resale

Another consideration is the impact on property value when selling. While Canadian-specific information on this is currently limited, the U.S. Department of Energy’s Lawrence Berkeley National Laboratory found that homes with solar panels sold for about 4% more than comparable homes without. Beyond the price increase, there is a growing interest in sustainable and efficient homes, and features like solar panels can attract more demand for potentially faster sales. However, if the solar system is leased or financed through a program that binds future owners, it may complicate resale, but fully owned systems are typically seen as an asset.

Maintenance and Lifespan

One of the biggest myths about solar panels is that they are high-maintenance. In fact, most solar panels are warrantied for 25 to 30 years and require little upkeep beyond occasional cleaning. Inverters, which convert solar DC to usable AC power, may need replacing after ten to 15 years.

Panels are designed to withstand snow, wind, and Canadian winter conditions. In many cases, snow naturally slides off the angled panels, and newer systems can include optimizers or heated mounts to minimize buildup.

Not Every Roof Is a Good Fit

A key consideration is whether solar panels are feasible on a specific property. South-facing roofs are optimal, providing good sun exposure. However, a north-facing one, or one that is heavily shaded by trees, chimneys, or nearby buildings, will be less successful. Additionally, panels are best installed on roofs with at least 15 years of life left. These factors will affect how effective and ‘profitable’ solar panels will be.

Energy Independence and Resilience

Beyond the dollars and cents, solar panels offer peace of mind. With utility prices rising and grid reliability under pressure in some regions, producing your own power adds energy security. In combination with battery storage, homeowners can also maintain power during outages, which is a growing concern as climate-related events increase.

Who Should Invest?

Solar does makes financial and environmental sense for many Canadians, especially those who live in provinces with higher energy prices, plan to stay in their homes for at least ten years, and have a suitable roof. Leveraging grants and incentives, where possible, adds to the cost-effectiveness of this upgrade.