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Assumptions
Graphs are based on a 5.7 kW system priced at $18,055.00 taxes included, an escalation rate of 3.6% annually and a panel degradation of 0.5% annually. Based on good South facing roof in NS.

Protect yourself from power rate increases. When the rate goes up, your ROI shortens.

Savings

The average size system that we sell consists of 20 x 285 watt solar panels. They are each expected to produce about 370 kWh's per year on a good roof in Nova Scotia.

Savings

That's a production of 7,400 kWh's per year, worth $1,110 at the current rate ($0.15/kWh).

Rate Increase

Since kWh's produced by your solar system are kWh's that you no longer have to buy from the grid, it is important to consider the increase in the value of power as the years go by.

3.6% Annually

When the cost of power goes up, your cost avoidance goes up. In fact, the value of a kWh is expected to double in Nova Scotia within 2 decades.


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Assumptions:

  • NSP’s rate will increase by 3.6% yearly,
  • Your solar panels will degrade at a linear rate of 0.5% yearly,
  • For graphs and calculations a 20 panel (5.7 kW) micro inverter system with a 185 degree azimuth and 25 degree slope was used (HRM, NS)

Why assume?

  • Historically, provincial power rates have increased by an average of 3.6% annually,
  • 3% annual increase is conservative and matches inflation,
  • Industry analysts anticipate the rate to be $0.25/kWh by 2030.

Estimating the rate escalation isn’t easy. We can only go with our best predictions.

Our calculation

We decided to extrapolate on the historical increase in utility rates from NSP and see what our power rates will look like if they continue to increase by 3.6% per year long into the future.

How it works

We can then take the kWh’s produced each year by any size of system and multiply by the projected rate. For example: a 5.7 kW system made up of 20 high efficiency panels and inverters will produce 7,400 kWh annually which is equal to $1,110 at a rate of $0.15, or $1,850 at a rate of $0.25. We can then take the sum of the projected earnings year over year if the rate increase is constant.

The tax adjustment

Currently NS residents receive a rebate of 66.6% of the HST that they pay for their power. That means that they are paying 5% HST instead of 15%. When you are replacing power that you would normally purchase from the utility company with green power that you have produced yourself you need to factor this in. Not only do you not pay for the kWh’s that your system produces, you also don’t pay tax on it. So you can add 5% to all projected earnings based on: rate multiplied by kWh’s produced (this has not been factored into our graphs and calculations).

Based on a usage of 10,000 kWh’s per year.

If you are like the average home, this solar system can produce 74% or 7,400 kWh’s of the power you use in your home, every year. In most cases you’ll be left relying on the grid in the winter time when your heating costs factor in and outproducing your needs during the summer months. If you have produced more than you’ve used you’ll be left with just the grid connection cost of $10.83 and your surplus energy will go towards you future usage as a credit valued at the consumer rate (currently $0.15/kWh).

Your system will produce
$0/year
in 2017

If power rates continue to escalate by 3.6% annually.

Your system will produce
$0/year
in 2022
Your system will produce
$0/year
in 2027
Your system will produce
$0/year
in 2032

And you still have ten years left on your warranty by this point.

The system is warrantied for 25 years.

With a payback period averaging 12 years, you can expect your solar system to have paid for itself more than 2 times over within its warrantied lifespan.

Savings you can count on

The lengthy warranty guarantees your return on investment. Once the warranty is over, that doesn't mean your system will suddenly stop working. You can expect a good 25-45 years of good production.

Not often does saving money also lead to saving the environment. The average (5.7 kW) system does the following each year.

0
Trees planted

0
Vehicles off the road

0
Barrels of oil not consumed