So you are thinking about installing solar panels on your home but find yourself wondering if you can make money doing so. Yes you can make money with solar panels on your house, once you install solar panels and they are generating solar power they immediately offset your electricity costs. This puts money back in your pocket and helps with the payback period for your new solar power system.
Can I really make money from solar panels?
Yes, if your solar system generates excess energy for the year BC Hydro or Fortis BC will pay residential homeowners actual money for the kilowatt hours their solar panels generate. The current rate in 2022 the utility company pays homeowners is 2.85 cents per kWh.
Although, the real benefit that comes from your solar power system is in the offset electricity kilowatt hours that your solar panels generate throughout the month vs what you use from the utility company.
Typically most houses accumulate considerable credit throughout the summer. This is the time of year where surplus electrical energy is produced. In colder months it turns around. When the amount consumed exceeds the production rate, the credit is exhausted in Winter.
The utility company will keep track of how much energy your solar panels generate on your monthly electric bill -this is called net metering- and when you use electricity from the grid those credits are used on your bill. With a properly sizes solar system your electricity bills will be essentially $0 for the year.
What are the benefits?
If the utility company only pays a small amount of money for the solar electricity then is solar power worth it? Of course! Right now you pay an electric bill every month, and that electric bill is going up every year. So if you are used to paying $180 a month (or more/less) for your energy needs you will save money instantly.
With little or no utility bills you will have all that extra money available to pay off your initial investment in your solar system installation costs. Once your solar installation is paid for you will have little to no expenses on your bills from the electric company.
The greatest benefit of installing a pv system is generating your own electricity that will protect you from rising energy costs while generating your own renewable energy.
Net Metering
The Net Metering program is available throughout BC. This program is set up for utility companies to credit its customers (you the homeowner) for renewable energy produced by your solar panels.
Net Metering applies credits to your bill for the kilowatt hours that your solar arrays generate. In British Columbia (with BC Hydro and Fortis BC) these kilowatt hours are saved on your bill month over month to be used up when your solar panels are not generating power.
In addition to government grants for installing solar panels Net Metering makes the long term investment worth it. Don’t forget you are also reducing your carbon footprint by generating renewable energy with your solar system too.
See BC Hydro Net Metering program here.
See Fortis BC Net Metering program here.
How utility companies compensate you for solar-generated electricity?
Most of the electric meters on households in BC are now “smart meters” which are two way meters that can keep track of the kilowatt hours you produce vs how much power the electric company provides you when you need more electricity.
Although the billing method may change from company to company, the utility companies in BC apply all your solar energy in kilowatt hours to your bill. These kilowatt hours remain on your bill until March 1st, when the excess electricity is paid back to you which can help with covering your initial investment.
Once your solar system is connected to the grid and producing power you start saving money on your bills with the Net Metering program.
Other incentives
There is currently a really awesome grant available from the BC Government called Greener Homes this grant is offering homeowners up to $5,000 towards their solar system installation. Check out more at the link here.
Will I still get an electric bill?
In most cases, yes you will still get electricity bills. The goal is to install a solar system that will offset 100% of your electricity costs. Sometimes your home may not have enough space to fit this size of system so you will still need to cover a small electricity but your solar panels will still cover a considerable amount of your total cost.
The bottom line
Determining whether to install solar energy is an intimidating task. Solar energy has many advantages. Even if solar energy is marginally more affordable than electricity bought by the utilities, homeowners may want to install solar power to prevent future potentially fluctuating energy costs or might simply wish to consider the possibility of alternative energy sources to reduce energy usage for the environment.
The best place to start with considering a solar system for your home is to set up a totally free virtual quote with a solar consultant like we offer here.
