The wide-ranging impacts of global climate change continue to manifest themselves in extreme weather events, such as wildfires, unseasonable rain and flooding, etc. causing widespread devastation, here in Canada, and elsewhere. This has considerably driven up home insurance costs in the last few years, and to some extent, fueled the current crisis in Canada’s housing market.

With the local, provincial, and federal government announcing a series of incentives to encourage homeowners to install energy retrofits—be it installing heat pumps or solar panels—it is worth considering making these changes if you are a homeowner and willing to undertake the expense.

The case for using solar panels in your home

Solar energy is a clean and renewable source of energy, which essentially means it has a zero-carbon footprint. Installing solar panels in your home or place of business can help you meet your entire energy needs, and generate a surplus, which you can either sell back to your local grid or get future credits for on your utility bills.

Using solar power-generated electricity allows you to halve your energy bills, and with no future operating costs involved, can result in thousands of dollars in savings over the longer term.

Solar power is a clean energy source that can help you reduce or entirely eliminate your reliance on the conventional electricity grid. It can also insulate you from the impacts of power outages—a phenomenon becoming increasingly common due to climate change-induced extreme weather events.

The case against using solar panels in your home

The only prohibitive reason for choosing not to go solar is the cost involved in making the switch. Based on the current estimates around the average consumption of a home in Ontario, this can range from anywhere between $15,000 and $30,000, or more. At the same time, there are a plethora of incentives offered to homeowners at the municipal, provincial, and federal levels that can easily help offset any immediate and steep expenditures. Check out the Additional Resources section for more information on the various programs encouraging solar panel installation among homeowners and businesses in Toronto, Ontario, and Canada-wide.  

Switching to solar power generation 101

  • Assess your current energy needs and your roof – Before you decide to switch to solar power generation, conduct a thorough assessment of your overall energy needs, including physical infrastructure issues, such as how much light you currently receive and the condition of your roof if you are planning to install solar panels there, which is typically the case.

    An older roof that needs replacement at a later date could result in repeat installation costs for the solar panels. That said, many solar panel installation companies offer free on-site assessments that can help you determine the immediacy, costs, and timelines for undertaking such a project.
  • Choose the right solar panels – You can make this choice based on the results of the energy assessment provided by a qualified professional. Homeowners can choose to install systems that are either grid-tied or off-grid. The former allows you to sell any surplus you might generate to your local energy provider, while the latter option requires a further investment in a battery storage system. Solar panel costs can also vary considerably so do your research before you make your final choice.
  • Find an installer – A good place to start is the Canadian Renewable Energy Association and Canadian Solar Industry Association’s (CanSIA) websites.
  • Get the necessary permits/approvals – Solar panel installations in homes or businesses are subject to municipal bylaws to ensure safety and procedural standards are met before a building permit is granted. The same is applicable to obtaining electrical permits as well as connecting your solar power generation system to the local grid.
  • If you live in Ontario, opt for net-metering – This goes back to choosing the grid-tied option for your solar power generation system. Many electric utilities in Ontario, such as Toronto Hydro, Hydro Ottawa, and Hydro One offer customers credit for sharing the surplus generated through a popular net-metering program, which you can get approval for, based on specific eligibility criteria.
  • Homeowners’ insurance – This may cover solar panels attached to your home, such as rooftop-mounted panels or under-dwelling coverage. For solar panels not attached to the home, such as ground-mounted systems, coverage is usually listed in the "other structures" section of the insurance policy. It is also important to verify whether your policy covers inclement weather-induced damage, such as from wind or hail, as not all policies do. If you lease your solar panels, some leasing companies may carry insurance, but others might require you to add coverage through your policy or theirs.

    Whether buying or leasing, it's essential to notify your insurer about the installation. Insuring your solar panel installation can increase the replacement value of your home resulting in a slightly higher insurance premium. However, this may not significantly alter your home’s replacement value. Depending on the installation, additional coverage or endorsements may be required, particularly for freestanding structures like solar carports or yard-mounted systems.

Additional Resources

Ontario Solar Panels Calculator

Canada Greener Homes Initiative

Solar Power Ontario

City of Toronto Home Energy Loan Program

SolarTO Map

 

Do get in touch with the RE/MAX Royal Team Sachdeva Realty for more information about any of your real estate needs.

Have a good weekend!