How Much Electricity Does a 5 kW Solar System Produce? Real Savings Estimates for Canadian Homes

Written by Solenery

2 min read

Introduction

If you’re exploring solar for your Canadian home, you’ve likely come across the term “5 kW system.”

But what does that actually mean in real-world terms?

How much electricity will it produce?

And—most importantly—how much money can it save you?

In this post, we’ll break down how much power a typical 5 kilowatt solar system generates in different provinces, what factors influence output, and how to estimate your real annual savings based on local hydro rates.

We’ll also show you how to avoid overspending by right-sizing your system based on your energy needs and regional sunshine levels.

What Is a 5 kW Solar System?

A 5 kW system consists of 12–15 solar panels (depending on panel wattage).

5 kW = 5,000 watts of total peak capacity under ideal conditions.

Commonly sized for average Canadian homes with moderate electricity usage (8,000–10,000 kWh/year).

Example:

If each panel is 400 watts, you need 13 panels to reach 5.2 kW (often rounded to 5 kW for simplicity).

How Much Electricity Will It Produce Annually?

The exact output depends on where you live and how your panels are installed.

Here’s an estimate by province:

Province Avg. Annual Output (kWh) Solar Yield (kWh/kW/year)
Alberta 6,500–7,000 1,300–1,400
Saskatchewan 6,000–6,800 1,200–1,360
Ontario (South) 5,500–6,500 1,100–1,300
Quebec (South) 5,000–6,000 1,000–1,200
Nova Scotia 5,200–6,000 1,050–1,200
BC (Interior) 5,800–6,800 1,160–1,360
BC (Coastal) 4,800–5,400 950–1,100

Tip: Use your postal code on Solenery Insights to get hyper-local solar estimates using NRCan solar maps.

Province	Avg. Annual Output (kWh)	Solar Yield (kWh/kW/year)
Alberta	6,500–7,000	1,300–1,400
Saskatchewan	6,000–6,800	1,200–1,360
Ontario (South)	5,500–6,500	1,100–1,300
Quebec (South)	5,000–6,000	1,000–1,200
Nova Scotia	5,200–6,000	1,050–1,200
BC (Interior)	5,800–6,800	1,160–1,360
BC (Coastal)	4,800–5,400	950–1,100

How Much Can You Save on Your Hydro Bill?

To calculate savings:

Annual Solar Output (kWh) × Your Hydro Rate (¢/kWh) = Savings

Example in Ontario:

Output: 6,000 kWh/year

Rate: $0.15/kWh

Savings: 6,000 × $0.15 = $900/year

Example in Alberta (with time-of-use savings):

Output: 6,800 kWh/year

Avg. rate: $0.18/kWh

Savings: 6,800 × $0.18 = $1,224/year

Bonus: With net metering, unused summer energy rolls over to winter—further maximizing your annual ROI.

Factors That Affect Solar Performance

Roof direction and pitch: South-facing and 30°–45° angles are ideal
Shading: Trees, chimneys, or nearby buildings can reduce output
Snow cover: Shorter days and snow accumulation reduce winter production
Panel quality: Higher-efficiency panels generate more electricity in less space
Inverter type: Microinverters help in shady or complex roofs

Tip:

Ask your installer to calculate your performance ratio and adjust estimates for shade, pitch, and weather patterns.

What’s the Payback Period for a 5 kW System?

Typical installed cost (after rebates): $9,000–$11,000

Average annual savings: $800–$1,200

Estimated payback: 8–12 years

Panels last 25+ years.

After payback, your electricity is essentially free.

Cost Tip: If you finance with the Canada Greener Homes Loan (0% over 10 years), your monthly payment can match or be less than your savings—making you cash-neutral from day one.

Conclusion

A 5 kW solar system is a solid fit for many Canadian homes, especially when paired with smart incentives and net metering.

It can offset 50–80% of your hydro use depending on location, and pay itself off within a decade—while delivering clean energy for decades to come.