How Much Does a Solar Inverter Cost?
By Hannah Stephens
May 16, 2025
If your solar energy system no longer seems to be pulling its weight, you might be dreading the inconvenience (and expense) of a new system. Fortunately, replacing the inverter is often enough to bring an ailing system back to life.
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What Is a Solar Inverter?
A solar inverter is an essential part of your solar energy system that turns energy from the sun into usable electricity. A solar panel generates direct current (DC) energy, which only flows one way around an electrical circuit and is unsuitable for powering appliances and fixtures. A solar inverter changes the direction of the DC current extremely quickly, converting it into alternating current (AC) energy that can flow in both directions around a circuit.
In other words, your solar energy system can't create energy capable of powering your home without a solar inverter. Therefore, problems with your inverter can cause various performance issues, including:
Reduced or inconsistent energy output
Error messages or warning lights
Circuit breaker tripping
Unusual noises coming from the inverter
Diagnosing solar inverter faults requires specialist knowledge. Call a professional whenever you suspect inverter problems to determine the cause and get your system up and running again.
How Much Does a Solar Inverter Cost?
If you're installing a solar energy system for the first time, your installers will likely include the cost of the inverter in their quote for the entire system. According to HomeGuide, solar energy systems typically cost between $10,600 and $26,500 (CAD 14,813 and CAD 37,033) with renewable energy incentives applied. These figures cover all the parts required to create the system (including the inverter), materials and labor. The cost of the inverter is roughly 6% to 9% of the total price.
However, you may need to replace the inverter without installing a whole new system if the unit fails. On average, a new solar inverter costs $2,300 (CAD 3,214) with professional installation. You could pay as little as $1,500 (CAD 2,096) for a basic model suitable for a small system. Meanwhile, premium units designed for systems with higher output ratings can cost up to $3,000 (CAD 4,192).
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What Factors Affect Solar Inverter Costs?
The size of your system has the greatest influence on the cost to replace a solar converter. Generally, the higher your system's energy output, the higher the cost. Models with high efficiency ratings typically cost more than more basic, less efficient options.
The length of your inverter's warranty can also impact the price. Systems with longer warranties tend to cost more. Some companies also offer extended warranties for an additional fee, which increases the cost of your project if you choose to purchase longer coverage.
Bear in mind that government incentives can significantly reduce the cost of purchasing and installing a new solar energy system. This means you pay less to install your inverter when you install a new system because the incentive applies to the total cost. While this is good news if you're new to solar energy, you can't generally use federal tax credits and other incentives to purchase a replacement inverter for an existing system.
Some homeowners choose to install their own solar inverters to save money on labor. While DIY installation could be worthwhile for experienced DIYers, the process is complex and beyond the skills of most laypeople. Incorrectly installing your inverter could damage your system and even void the inverter's warranty, as most warranties require you to hire a professional to install the unit. Furthermore, professional installers often qualify for trade discounts, so you may actually end up paying more for an inverter as a DIYer than you would buying through a contractor.
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