Cost & Energy Payback

Cost and Energy Payback Info & Calculations

By investing in Renewable Energy, you ensure a secure stable, non-polluting source of energy for the life of your system, which can be 20 years or more. In addition to knowing you are doing the right thing for the planet, there are other rewards including energy security, insulation against rising energy prices and in some cases cost savings. Please see the technology you are interested in below for more details. If cost savings is your main goal, check out the link for solar hot water first.

• Photovoltaic (Solar Electricity)
• Solar Hot Water
• Calculating Software for Renewable Energy Projects - The easiest way to determine costs and energy payback for your specific needs and location is to purchase a renewable energy assessment from VREC. If you'd like to do the calculations yourself, the Retscreen Software provided by Natural Resources Canada is a comprehensive and exhaustive estimating tool. If you want a lot of detailed information and are prepared to gather the data required,  this is the tool for you. The software is free.

Photovoltaic - Solar Electricity

Energy Payback

• A photovoltaic system will produce more energy than it took to manufacture it in 2-4 years. This is astronomically  better than any non-renewable source. Fossil fuels never achieve this goal as they always take more energy to source, refine and transport than they will provide being burned.

Financial payback

• Typical cost - there is no 'typical' cost, as all systems are custom designed to fit the location and site conditions. Residential (full time use) photovoltaic systems start at $20,000, installed. Pricing in this industry is typically done by the rated output in Watts, rather by number of panels or other measures. A photovoltaic system will typically require an inverter, panels, metal racking, wiring and other electrical and roofing equipment, and is installed by an electrician.  For systems in cities or which will be connected to the grid, installation will also require an electrical permit and inspection.
• Systems in regions that have feed-in tariffs (i.e.: they pay more for green electricity entering the grid) can save enough money on electricity bills to recover the cost of the system. BC allows your system to be directly connected to the BC Hydro electrical grid, and will pay for your surplus electricity.  However in BC the amount paid for renewable energy produced in this way is not enough to pay for the system from energy savings.

• PV installations can save money in BC in the following situations:

  • Building-integrated photovoltaic panels which replace existing materials can reduce costs or be revenue neutral. Photovoltaic panels, for example, are less expensive than some materials currently used to cover the exterior of buildings, such as marble.
  • Instead of Connecting to the Grid or Using a Generator: If you need electricity at a location that does not have an existing connection to the grid, a photovoltaic system is a good alternative. It will be good for the environment and serve as a quiet, no-fuel alternative to the cost of installing a grid connection or using a fossil fuel generator.
  • If your local electricity grid fails frequently and this impacts your business or life financially, then installing a photovoltaic or other renewable electricity system will give you a reliable source of power which is independent of the grid.

Solar Hot Water Payback Information

How to calculate your payback

Simplest calculation method

Go to BC Hydro's applicance cost calculator: https://www3a.bchydro.com/appcalc/pg1.asp?id=0   and calculate cost to run your hot water heater (will calculate for gas or electric tanks). Note: BC Hydro seems to redesign their site regularly and the link to the calculator goes stale (sigh!) but if the link above doesn't work you can find it again by putting the words "bc hydro cost calculator" in a search engine.

You should expect a savings of 40-60% on your hot water heating costs from a solar hot water heater. Comparing this against the costs of a solar hot water heater will give you an idea of the payback period. Keep in mind that fossil fuel and electricity costs will increase over time so future savings will be greater. In general, the more hot water you need, the faster the system will pay for itself. Typical payback is 6-8 years. Return on investment for a 20 unit apartment building with shared hot water service has been calculated at 18%.

Costs for systems

Cost for an installed single-house system is currently $6000-8000, installed. It is best to have this system installed by a registered plumber or a CanSIA certified installer. An assessment report will provide more detailed cost and design information specific to your site.

Typical lifetime & Expected Maintenance

25+ years. Expected maintenance is new pump/pump servicing after 10-12 years.  You can see a working solar hot water system on the roof of the SPEC building in Vancouver, corner of 7th and Maple which is over 25 years old. Access to the roof is available to the public from 10-4 Monday to Friday or tours can be booked by contacting SPEC directly.

Contact Us: 778.869.8333 in Vancouver, Canada or main@vanrenewable.org
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