5 Hidden Costs of Solar Panel Installation

By Leigh Morgan

July 25, 2025

It's easy to get excited about the opportunity to lower your energy bills and reduce your impact on the environment. But before you start dreaming about free electricity, there's something you need to know. While installing solar panels can help you reduce your energy bills, some expenses aren't included in quotes. Discover hidden solar panel costs that may cause a budget breakdown if you aren't aware of them.

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Financial Benefits of Solar Installation

Solar panels contain photovoltaic cells, which convert sunlight into energy you can use to turn on the lights, operate your appliances and maintain a comfortable temperature in your home. The more solar energy you use, the less you have to rely on your local power company, so installing solar panels can help you reduce your monthly energy bills.

Some communities also have net metering programs, making it possible to send your excess solar energy to the power grid. In exchange, you receive energy credits that defray the cost of using the power grid when your solar panels aren't producing enough energy to meet your needs.

Lesser-Known Solar Panel Costs

Before you start your project, you need to understand the hidden costs of solar panel installation. They typically aren't included in an installation quote, so the total cost of your project is likely to be much higher than expected.

1. Roof Repairs

If you have an older roof, you need to inspect it and address any issues before installing solar panels. This step is crucial because it can prevent you from having to spend additional money to remove your solar panels, fix your roof and then reinstall the panels later.

Roofs and solar panels have approximately the same lifespan, so installing a new roof right before you install solar panels is often the most cost-effective option. The average cost for a brand-new roof is around $9,500 (CAD 13,042), but it can be as high as $47,000 (CAD 64,523) if you have a large home or use expensive roofing materials.

2. Permitting

Many municipalities require a permit to install solar panels on your roof. Once your installer completes the work, you may also need to have a government official inspect the site. Inspectors examine the work thoroughly to ensure it conforms to all applicable safety, electrical and building codes.

The cost of obtaining a permit depends on where you live. Some municipalities charge under $100 (CAD 138), while others charge over $1,000 (CAD 1,373).

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3. Electrical Upgrades

Don't forget to account for the cost of electrical upgrades. Installing a solar system increases stress on your home's power system, so you may need to update your electrical system before you switch to solar power. For example, installing a new breaker costs anywhere from $300 to $2,000 (CAD 412 to CAD 2,746). If you need electrical upgrades, be sure to hire a licensed electrician to complete the work.

4. Battery Storage

If you want to store the energy generated by your solar panels for later use, you'll need a battery storage system. This solar panel long-term cost isn't usually included in an installation quote, so the extra fee comes as a surprise to some homeowners. The cost of installing a solar battery ranges from $6,000 to $18,000 (CAD 8,237 to CAD 24,711).

5. Maintenance and Cleaning

You also need to consider solar panel maintenance costs. You don't have to perform weekly maintenance, but you'll need to keep your solar panels clean. It's also important to trim tree branches regularly or your solar panels might end up covered with leaves and twigs, reducing the amount of sunlight they absorb. When solar panels don't absorb as much sunlight, they can't produce as much energy.

You can clean your solar panels with a nonabrasive cleaning product, but not everyone feels comfortable climbing up on a roof. If you have to hire a professional, your total cost of ownership will increase accordingly. Cleaning typically costs $15 to $25 (CAD 21 to CAD 34) per panel, while tree trimming costs $200 to $760 (CAD 275 to CAD 1,044), depending on the size of each tree and the number of trees you have.

All CAD conversions are based on the exchange rate on the date of publication.

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