As Ontario pushes toward greener energy solutions, more homeowners are turning to solar panels, encouraged by government rebates and the promise of lower electricity bills. But one Scarborough man’s experience is a cautionary tale about the real costs, long payback periods, and hidden complications of going solar.
Four years ago, Osvaldo Guzman decided to install solar panels on his home for both environmental and financial reasons. “I wanted to go green and save some money,” he told CTV News Toronto. But the reality turned out very different.
After spending $40,000 on installation, Guzman’s system broke within a year — and the company responsible stopped responding. He was forced to pay another $10,000 in repairs just to get the panels working again. Despite the hefty investment, his monthly energy savings amount to only about $100, meaning it would take more than 40 years to recover the cost. “Unfortunately, I didn’t get any money back or even save money,” Guzman said.
Unexpected Costs and Insurance Complications
Experts warn that homeowners should do extensive research before committing to solar. According to Steven Harris, a licensed insurance broker with LowerRates.ca, solar panels can affect insurance coverage and premiums if not disclosed properly.
“If they find out you had solar panels that didn’t fit with your eligibility rules, they could deny your claim — and that could be a costly mistake,” Harris explained.
Even when covered, premiums can rise because solar panels increase a home’s overall value. “It might be included in your policy, but you’ll see an increase in your premiums as well,” Harris added.
Impact on Resale Value and Maintenance
Installing panels can also complicate a home’s resale process, as potential buyers may hesitate to assume existing energy contracts or maintenance responsibilities. Additionally, if a homeowner needs a new roof, the panels must be removed and reinstalled, creating extra expenses that can run into thousands of dollars.
What Homeowners Should Consider
Experts recommend reviewing all contracts thoroughly before installation. Some agreements include maintenance and performance guarantees, while others leave homeowners responsible for repairs and system monitoring. It’s also important to verify net metering rules and payout rates for the electricity generated, which vary by region and provider.
Asked whether he would invest in solar again, Guzman didn’t hesitate: “No, never.”
While solar energy remains an appealing path toward sustainability, Guzman’s experience serves as a reminder that green technology doesn’t always translate into green savings — especially without proper research, clear contracts, and realistic expectations about long-term costs and returns.