Solar energy vs electricity for Nova Scotia businesses (costs & reliability)

Author: Mariela Guanchez

 

 

When we compare Solar energy vs electricity from the grid for a business, two questions matter most: How much will you pay per kWh over time? and How reliable will supply be for operations? In Nova Scotia, grid tariffs include base energy charges plus riders and regulatory adjustments. That’s why many CFOs “fix” a portion of their future energy cost with onsite solar, while keeping the grid for 24/7 continuity.

 

 

1) Costs: your 10–30 year view

Grid electricity (purchased power)

• Commercial tariffs vary by class (Small/General/Large), time-of-use, and riders (e.g., fuel/DSM/storm adjustments). The result is a variable kWh cost that can move year to year.
• For finance teams, that variability makes long-range modeling trickier—especially when electricity rates face upward pressure over time.

Commercial solar (onsite generation)

• Solar is CAPEX-heavy up front; the “fuel” is free afterward. Your levelized cost (LCOE) depends on installed price and 25–30 years of production.
• In NS, a typical site produces ~1,050–1,100 kWh per kW-year (see Image 1). That stable stream of kWh acts as a hedge against grid price volatility.
• Federal tax treatment for clean-energy equipment (full expensing/CCA classes) can further improve after-tax ROI—worth confirming with your advisor.

Table 1 — Seasonality: monthly production per kW (illustrative)

Context: solar is seasonal in NS. Use this profile (~1,070–1,100 kWh/kW-year) to visualize cash flow, coverage, and how net metering balances seasons (assumes south-facing, minimal shade, ~30–35° tilt).

Month	kWh/kW	Month	kWh/kW
Jan	66	Jul	112
Feb	78	Aug	105
Mar	96	Sep	92
Apr	104	Oct	78
May	112	Nov	64
Jun	105	Dec	58
Total	1,070–1,100

Takeaway: summer lifts the curve; winter dips. Pairing solar with the grid (and optionally batteries) smooths operations and budget.

2) Reliability: how each option behaves

Grid (24/7 continuity)

• The grid supplies power on demand; it’s essential for continuous operations. Atlantic weather can stress infrastructure at times, so your business continuity plan (UPS, battery backup, genset policy) still matters.
• Billing layers (tariff class + riders) are part of the reliability story too—your cost per delivered kWh can shift with regulatory decisions.

Solar (predictable output, intermittent by hour)

• Solar has a predictable daily/seasonal shape and a long, stable life, but it’s intermittent in the short term (clouds/night). Net metering lets you export daytime surplus and draw from the grid when needed—effectively using the grid as a “virtual battery.”

For critical loads, adding batteries can dampen demand peaks, provide backup, or enable time-shifting; it raises CAPEX but can enhance resilience and reduce certain charges.

 

This simple chart helps non-engineers visualize why grid costs move: base energy, riders, and fixed/demand components (shown as CAD/kWh equivalents for illustration).

Note: numbers are illustrative; your exact mix comes from your tariff class and current riders. Always confirm using the latest NS Power documents.

 

Mini business case (executive summary)

Scenario: Medium business using 50,000 kWh/year.

• Proposed solar: 40 kW rooftop/ground.
• Expected production: ~44,000 kWh/year (≈1,100 kWh/kW-year).
• Operating mode: net metering—daytime self-consumption + credits; nighttime/winter from grid.
• Implication: a significant share of energy shifts to a fixed LCOE for 25–30 years, reducing exposure to tariff riders and rate changes. The grid remains your 24/7 backbone.

Finance notes:

• Tax: confirm eligibility for clean-energy full expensing/CCA with your accountant.
• Structure: many firms finance via green loans or equipment leases so the monthly payment approximates the avoided grid spend.
• Sensitivity: if tariffs rise, solar savings typically increase, improving realized ROI over time.

Solar energy vs electricity: a quick decision checklist

1. Load profile: daytime and steady loads align best with solar.
2. Site: roof/land area, shading, orientation, structural limits.
3. Tariff & riders: confirm class, TOU/demand charges, and current riders.
4. Net metering: check program details and interconnection steps.
5. LCOE vs delivered tariff: compare 25–30-year LCOE to your “all-in” grid kWh.
6. Resilience: consider batteries if you need backup, peak shaving, or arbitrage.

Conclusion (business-first)

Solar energy vs electricity isn’t either-or—it’s a portfolio. Solar gives you a fixed-price runway for decades; the grid guarantees continuous availability. In Nova Scotia, with ~1,050–1,100 kWh/kW-year potential, commercial solar can cover a substantial share of annual use and soften tariff volatility. Model your LCOE against your tariff (including riders), leverage net metering, and choose the mix that stabilizes OPEX while keeping reliability intact.

Suggested reads (internal)

If you’d like to dive deeper, check our suggested reads:

• Solar ROI Nova Scotia: Proven & Powerful Payback Guide
• Solar Batteries Canada: Guide 2025
• Steps to Pick a Solar Installer Nova Scotia (and Dodge Costly Mistakes)

External links (official)

• NRCan — PV Potential & Solar Resource Maps (interactive viewer)
  https://natural-resources.canada.ca/energy-sources/renewable-energy/photovoltaic-potential-solar-resource-maps-canada
• NS Power — Business Rates / Tariff & riders (official)
  https://www.nspower.ca/your-business/save-money-energy/business-rates

FAQ (quick)

Does solar cover 100% of the time?
Not on its own. Pair with the grid (and optionally batteries) for 24/7 availability. The value of solar is the fixed long-term cost.

How do I estimate yearly savings?
Multiply your annual solar kWh (from the NRCan map/design) by your all-in grid rate, including riders. That’s your avoided spend baseline.

Is net metering available for businesses?
Yes—commercial interconnection is common. Confirm program terms, metering, and crediting rules before you start.

What if my tariff rises?
Your solar LCOE stays fixed, so savings typically grow—a natural hedge against rate increases.

 

Want a quick bifacial pre-design with a 30-year output curve and a side-by-side LCOE vs tariff view for your site? Book a no-obligation assessment and we’ll map the cleanest path to stable energy costs.