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In Canada, homeowner prices solar parts at $12,500 CAD, then spots $9,000 markup before labor

The line items also show why solar quotes can be difficult for everyday buyers to parse.

A person installs a solar panel on a roof covered with solar panels under a blue sky.

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A homeowner in Canada sparked a lively reality check on solar pricing after breaking down a contractor's quote and finding roughly $9,000 CAD (about $6,325 at current exchange rates) in markup on the equipment bundle alone — before another $13,000 CAD ($9,127) was added for labor and permits.

Here's what to know

The discussion on r/solarenergy centered on a quote for a system using eight 500-watt LONGi panels, a Solis hybrid string inverter, a Renon storage battery, trenching, critter guard, and eight APsmart rapid shutdown devices. Based on retail searches, the poster said buying that hardware directly would be about $12,500 CAD ($8,788).

What bothered the homeowner most was the way the estimate appeared to allocate those costs. 

The poster wrote that "first thing is the price of the hardware. I did some quick Google search and if I just buy these exact parts myself at regular consumer retail price, it comes out to around $12,500 CAD, but the quote has almost $9,000 CAD extra wrapped into the equipment bundle! So they are putting a 70% markup just on the parts alone, and then they still want to charge another $13,000 CAD for the labor and the permits on top of that."


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Beyond the equipment pricing, the quote assigned about $13,000 CAD to Design Engineering & Permits and installation. Using that full total, commenters said the 4-kilowatt setup worked out to roughly $8.62 CAD ($6.06) per watt.

For households doing that kind of homework, going solar is still one of the best ways to save money on home energy — but only if the quote is competitive. One easy way to check is to try EnergySage to get free solar installation estimates and compare quotes.

More background

With eight 500-watt panels, the array came to 4 kW, which commenters noted is not a particularly large system. Their attention stayed on the gap between the quoted figure and the retail pricing the poster said they found in quick searches.

The line items also show why solar quotes can be difficult for everyday buyers to parse. Categories such as "Standard System Price," "Design Engineering & Permits," and "Installation" can fold together very different costs, making it harder to tell whether a higher bid reflects legitimate project complexity or simple overpricing.

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That kind of uncertainty can delay a purchase that might otherwise reduce monthly utility bills.

What can be done?

A useful starting point is to get the full equipment list, check those component prices on your own, and then work out the cost per watt. Here, that approach let the original poster move from a general sense that the bid was too high to a specific allegation of a 70% hardware markup.

Comparison shopping can help even more. With EnergySage's help, the average person can save up to $10,000 on solar purchases and installations. EnergySage's solar map shows the average cost of a home solar panel system by state, along with details on solar panel incentives for each state. Together, those resources can help homeowners get the best price for rooftop solar panels and access available incentives.

Adding battery storage to a solar setup is one of the best ways to protect your home during outages. It can also save money on energy and help a household go off-grid. Homeowners can explore EnergySage for information about home battery storage options, including competitive installation estimates.

Where can I learn more?

If a solar quote seems high, these stories show how other homeowners have broken down the numbers. They cover everything from line-by-line comparisons and incentives to expert help that lowered installation costs.

• One homeowner's roof bid added $6,400 for plywood before a solar install even began.

• A Chicago-area family saw Illinois incentives cut a $37,000 solar quote below $18,000.

• EnergySage advisers have slashed solar prices by thousands for more than 60,000 homeowners.

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