Solar Power Pays: How to Cut Your Wait for Cash Back from 20 Years to Under 8 Years

Larry Peters, Nov 17, 2025

The way Albertans make money from rooftop solar panels is changing in a big way. In the past, buying solar was mainly about saving money over many years by avoiding rising electricity bills.

But now, thanks to new options like Big Rock Power's Solar Club, your solar panels can become an active way to earn high income instead of just saving money.

This guide looks only at the money you make without any government or utility rebates. With a standard, flat rate, for example, getting paid about 9 cents for every kilowatt-hour (¢/kWh) you send back to the grid, it can take 20 to 25 years to pay off your solar system. But if you switch to a dynamic rate, like the 33.00 ¢/kWh offered in the summer by Big Rock Power's Solar Club, the entire payback period drops to under 8 years. This fast return used to require huge subsidies; now, the market itself is offering the best deal!

This means your roof turns into a valuable power plant during the sunniest months.

The secret is the huge price difference. In the old system, you only gained the value of the bill you avoided. Now, when a retailer pays you 33.00 ¢/kWh, about four times the old rate, you get a great price for your extra power. You're not just avoiding a bill; you're selling a cash-generating asset. But this high return requires you to be active: you must keep track of when your system is making the most power and change your rate plan with the season.

The Rules That Make Solar Pay Big

The provincial rules for residential solar (called the Micro-generation Regulation) are what make this high-income strategy possible. Since the government does not set a fixed price for the power you export, your electricity retailer (like Big Rock Power) is free to negotiate a better deal with you. This freedom is the reason companies can offer premium products like the 33.00 ¢/kWh rate.

The rules require that any extra electricity you sell to the grid gives you a credit on your bill. If you have credits left over at the end of the year, the retailer must pay you cash for them. This means the high value you earn in the summer is secured. By offering you the high export rate, the retailer essentially shares the high prices they can get for that power on the wholesale market, making your production valuable during the most critical times.

Feature	Old Fixed Rate (e.g., 9¢/kWh)	New Dynamic Rate (e.g., 33¢/kWh)
How You Get Paid	Always the same low rate.	Changes based on the season (High or Low).
Effort Required	None—set it and forget it.	Must actively change your rate plan twice a year.
Your Financial Goal	Reduce your monthly bill.	Earn the highest possible revenue from exports.
Risk	Low management risk, low payoff.	High management requirement, high payoff.

 The Numbers: How We Calculated the 8 Year Payback

To figure out the real return, we looked at a standard 8-kilowatt (kW) solar system, which costs about $22,000 before any incentives. This size is perfect for an average Alberta home.

Because Southern Alberta has great sun, this 8kW system is expected to make about 10,500 kWh of power in the first year. We assume about 35% of that power is used instantly by the home; the rest is sold back to the grid.

The Power of the Dynamic Rate is Huge:

• Fixed Rate Scenario: Your annual profit (from savings and selling power) is only about $945.00 in the first year.

• Dynamic Rate Scenario: Your annual profit jumps to about $1,906.00 in the first year, that’s more than double the fixed rate!

This difference in profit has a huge impact on your total payoff time:

Financial Comparison: 8 kW Solar System (No Subsidies)

Metric	Fixed Rate (9.00¢/kWh)	Solar Club Dynamic Rate (33.00¢/kWh)
Initial Cost	$22,000	$22,000
Payback Period	20.5 Years	7.8 Years
Payback Time Saved	N/A	12.7 Years Faster!

The Critical Warning: You Must Switch!

The short payback period depends entirely on your managing the rate switch.

The Seasonal Plan:

• April to September (High Sun): You are a net exporter. You MUST be on the 33.00 ¢/kWh HI Rate to sell your power for the highest price.

• October to March (Low Sun): You are a net importer. You MUST switch back to the cheaper 8.49 ¢/kWh LO Rate to buy your winter power at the lowest cost.

If you forget to switch back in October, you will be buying all your winter power from the grid at the expensive 33.00 ¢/kWh rate. This mistake will cost you enough to wipe out all the profit you made during the summer.

Conclusion: Your Solar Investment is Now a Business

Thanks to flexible rules in Alberta, your solar system is no longer just a defensive asset, it’s an aggressive investment. The dynamic rate available from Big Rock Power allows you to recoup your $22,000 investment in under 8 years.

After that point, the next 17 years of production are pure, inflation-proof profit.

To succeed with this high-return strategy, you must do two things:

1. Be a Switcher: Mark your calendar and actively switch your rate plan between the high and low seasons.

2. Size for Selling: Make sure your system is large enough to produce a lot of extra power to sell back to the grid at the premium rate.

This approach is why solar installation is booming in Alberta; the market now offers an unbeatable financial case for going solar.