Cost of Solar System

Average Cost of a Residential Solar System in Alberta = $2.5 -3/watt

Total Solar System Capacity for a Typical Household = 5000 watt

Total System Cost = 5000W x $ 2.5 – 3 = $12,500 – 15,000

Alberta Rebate Program = $0.90/watt for Residential System Installation up to 35% or $10,000 whichever is less. Application processing currently on hold.


A Typical Electrical Bill

Energy Charge $50
Admin Charge $5
Distribution Charge $15
Transmission Charge $10
Miscellaneous Charges $15




Electrical Bill After Installing Solar System

Energy Charge $15
Admin Charge $5
Distribution Charge $5
Transmission Charge $7
Miscellaneous Charges $15

After installation of a solar system, you will experience a change in the Energy Transmission, and Distribution Charges on your electrical bill. The rest of the charges remain the same.

It is a misconception that a solar system would get rid of most, if not all, charges on your electrical bill. In accordance with Alberta regulation all households equipping themselves with a solar system must at all times be connected to the main grid and cannot operate in case of a power outage. Solar systems mainly offset the charge of “Energy Consumption” on your electricity bill, with some portion of transmission and distribution charges. On top of that, a typical household solar system does not deploy Battery Storage Systems due to the high cost.

Financial Analysis of a Typical 5KW Residential Solar System

Annual Savings:

The estimated yearly savings of using solar, based on average predicted increases in energy prices over time.

Payback Period:

The initial payback period to recover setup costs is expected to be around 12-16 years, depending on future energy prices. After that, cash flow is positive.

Future Outlook of Alberta’s Energy Market

Historic Trends

The charts above show a directly proportional correlation between AESO’s pool price for Power Generators the energy charges incurred by the end consumer.


Forecast Pool Price

2020 => $43/MWhr
2025 => $86/MWhr
2030 => $100/MWhr

With a phase-out of coal generation plants and addition of renewable energy generation, the forecast shows a steep increase in AESO pool prices which have been sitting at an all time low in the recent past. This increase will be reflected in a sharp increase in energy prices for the end consumer.