Show me the money! We CAN show you the money, the amount of money your solar panel system could generate over its lifetime. Investing in a rooftop solar panel system is a big purchasing decision and you want to be sure that it is one that will pay off. You are right to be wondering how much electricity your rooftop solar panels will produce. As we’ve said in other posts, the profitability of your solar investment comes down to a few key factors. Location is one of the most important, but other important factors include the type of solar panel system you install, the surface area of your roof and the number of panels you plan to install.
Once you’ve determined the solar potential of your location, by using Sunmetrix Discover, the next step is entering the specifications of your solar panel system. You will likely need to speak with an installer to determine the type and capacity of your system. However, to give you an idea, a flat rooftop that is one thousand square feet can comfortably hold 25 solar panels, each with a capacity of 200-300 watts. Fortunately, the cost of solar panels has decreased substantially over the past decade due to increased supply. Such a system would cost $6/watt on average, or $36,000 for a 6kW system. How much money you can save on your electricity bill or how much revenue you can expect will depend on the incentive programs in your location. In Toronto, Ontario, for example, such a system would generate approximately $4450 per year, thanks to the generous feed-in-tariff program. In other words, after approximately 8 years, the original cost of your system will have been paid off and will become financially profitable, for the remaining 12 years on an average solar panel system.
Of course, you have to bear in mind that these are long term averages, and like the stock market, your annual expected revenue will vary. Fortunately, the sun is more dependable than the stock market, and in the long run, if you’ve done your homework, you should be able to generate returns similar to your original projection.