Aerial view of Ontario residential solar installation

Ontario Solar Energy Guide

Q: Are there municipal incentives for solar in Ontario?

Several Ontario cities offer PACE financing. Toronto's HELP program offers up to $125,000, Ottawa's Better Homes program up to $125,000, and Guelph up to $50,000. These are repaid through your property tax bill. More cities are launching programs in 2026.

Your complete resource for Ontario solar incentives, costs, and top installers

$12K-$17.5K 5 kW System Cost

$1,400-$2,100 Annual Savings

8-12 Yrs Payback Period

6+ Incentive Programs

Table of Contents

Solar Energy Potential by Ontario Region
Current Ontario Solar Incentives (2026)
HRS Program vs Net Metering
Net Metering in Ontario
Ontario Electricity Rate Plans
Financing Solar in Ontario
Ontario Solar Costs & Savings
The Solar Installation Process
Choosing Solar Equipment
Common Myths About Solar in Ontario
Top-Rated Ontario Solar Installers
Ontario Solar FAQ

Ontario is Canada's largest residential solar market, driven by rising electricity rates and one of the country's most generous incentive programs. With rates increasing nearly 30% in late 2025 and an all-in cost of 16 to 18 cents per kWh, the financial case for solar has never been stronger.

The province offers two distinct paths for solar homeowners: net metering under Ontario Regulation 541/05, which provides 1:1 retail rate credits for excess power exported to the grid, or the Home Renovation Savings (HRS) Program, which offers up to $5,000 for solar panels and $5,000 for battery storage but operates on a load-displacement model without grid export credits.

Ontario averages 1,100 to 1,250 kWh per kW of solar production annually depending on location, with the southern regions (Toronto, Ottawa, London) performing best. Combined with municipal PACE financing programs available in Toronto, Ottawa, Guelph, Hamilton, and expanding to more cities in 2026, solar is now accessible to most Ontario homeowners.

Whether you choose the net metering path or the HRS rebate path, this guide covers everything you need to know about going solar in Ontario - current costs, all available incentives, production estimates for your region, and how to find qualified installers.

Last Updated: April 2026

Key Takeaways

Average 5 kW system cost: $12,100 - $17,500 before incentives
HRS Program: Up to $5,000 solar + $5,000 battery ($10,000 total)
Net metering: 1:1 retail rate credit, 12-month rollover (O. Reg. 541/05)
Annual savings: $1,400 - $2,100 (depending on system size and rate plan)
Payback period: 8 - 12 years (with incentives)
13% HST applies (no PST exemption)
Ontario Electricity Rebate (OER): 23.5% discount on electricity bills
Municipal PACE financing available in 5+ Ontario cities

Solar Energy Potential by Ontario Region

How much electricity a solar system produces across Ontario

Ontario receives between 1,100 and 1,250 kWh of solar production per kW of installed capacity annually, depending on your location. Southern Ontario (Toronto, Ottawa, Windsor, London) enjoys the highest production, while northern regions (Thunder Bay, Sudbury) receive slightly less but still produce strong returns.

City	Peak Sun Hours	Annual kWh/kW	5 kW System	10 kW System	15 kW System
Toronto	3.19	1,163	5,815 kWh	11,630 kWh	17,445 kWh
Ottawa	3.28	1,198	5,990 kWh	11,980 kWh	17,970 kWh
London	3.10	1,132	5,660 kWh	11,320 kWh	16,980 kWh
Thunder Bay	3.05	1,113	5,565 kWh	11,130 kWh	16,695 kWh
Sudbury	3.08	1,124	5,620 kWh	11,240 kWh	16,860 kWh
Windsor	3.22	1,175	5,875 kWh	11,750 kWh	17,625 kWh

Bar chart showing annual solar production by Ontario city for a 5 kW system

Monthly Production Profile (Toronto, 5 kW System)

Month	kWh (5 kW system)	% of Annual
January	280	5%
February	370	6%
March	470	8%
April	540	9%
May	600	10%
June	620	11%
July	625	11%
August	570	10%
September	480	8%
October	380	7%
November	260	4%
December	230	4%
Annual Total	5,425	100%

Monthly solar production chart for a 5 kW system in Toronto

System Sizing Guidance

Average Ontario home: ~9,000 - 9,500 kWh/year (OEB uses 700 kWh/month typical)
5 kW system: Covers ~60% of average consumption
7.5 - 8 kW system: Covers ~100% of average consumption
10 kW system: Maximum for simplified net metering micro-generation

Ontario solar system sizing guide based on annual electricity usage

Important Net metering credits expire after 12 months - size your system to match annual consumption, not exceed it.

Current Ontario Solar Incentives (2026)

Programs that save you money on solar in Ontario

Federal Programs

Program	Amount	Status
Canada Greener Homes Grant	Up to $5,000	CLOSED (Feb 2024)
Canada Greener Homes Loan	Up to $40,000 at 0%	CLOSED (Oct 2025)
Canada Greener Homes Affordability Program	TBD	Check for 2026 updates

Provincial Programs

Program	Amount	Eligibility	Status
Home Renovation Savings (HRS) - Solar	$1,000/kW up to $5,000	Existing homes, licensed contractor	ACTIVE (first-come, first-served)
Home Renovation Savings (HRS) - Battery	$1,000/kW up to $5,000	Paired with solar or standalone	ACTIVE
Net Metering (O. Reg. 541/05)	1:1 retail rate credit	Up to 10 kW micro-generation	ACTIVE
Ontario Electricity Rebate (OER)	23.5% bill discount	All residential customers	ACTIVE

Municipal PACE/LIC Programs

City	Program	Max Amount	Type
Toronto	HELP (Home Energy Loan Program)	$125,000	LIC on property tax
Ottawa	Better Homes Ottawa	$125,000	LIC on property tax
Guelph	Guelph Energy Retrofit	$50,000	LIC on property tax
Durham Region	Deep Retrofit	$10,000	Grant
Hamilton	Home Efficiency Retrofit	$20,000	LIC on property tax
Aurora	Launching 2026	TBD	LIC
London	Launching 2026	TBD	LIC

Ontario solar cost breakdown showing before and after HRS rebate

HRS Program vs Net Metering

The most important decision for Ontario solar buyers

This is the most important decision Ontario solar buyers face. The two paths are generally mutually exclusive - you must choose one.

Path A - Net Metering (No Rebate)

No upfront rebate
Export excess to grid for 1:1 retail rate credit
Credits roll forward 12 months then expire
Simpler installation
No battery required (but can add one)
Best for: Homes with high daytime production and moderate consumption

Path B - HRS Program (Up to $10,000 Rebate)

$5,000 solar + $5,000 battery rebate
Load displacement model (no export credits)
Battery stores excess for evening/peak use
Higher upfront cost offset by rebate
Best for: Homes that want to maximize self-consumption and have battery budget

ULO rate plan advantage: Charge battery overnight at 3.9¢/kWh, use during peak at 39.1¢/kWh = 35.2¢/kWh arbitrage spread.

Key Warning HRS and net metering are generally mutually exclusive. Homeowners must choose one path. This decision should be made with a qualified installer who can model both scenarios for your specific usage pattern.

HRS Program vs Net Metering comparison for Ontario solar homeowners

Net Metering in Ontario

How you get paid for surplus solar electricity

Program: Ontario Regulation 541/05 under the Ontario Energy Board Act
Credit: 1:1 at retail rate (on your current pricing plan - TOU, Tiered, or ULO)
Rollover: Credits roll forward for 12 consecutive months, then zeroed - no cash payout
Size limit: Up to 10 kW AC for micro-generation (simplified process)
Meter: Bidirectional meter installed by your LDC. Connection fees typically $800 - $1,300
Third-party ownership: Permitted since July 2022 (leasing, financing, PPA eligible)
Battery: Can be paired with net metering
Credit limits: Credits only offset electricity charges - not delivery, regulatory, or HST
Fixed charges: Even with full offset, expect ~$40 - $50/month in fixed charges
microFIT: Old feed-in tariff, closed to new applicants December 2017

Utility Comparison (Ontario's Big 3 LDCs)

Utility	Service Area	Net Metering	Connection Fee
Hydro One	Rural/suburban Ontario	Yes, O. Reg. 541/05	~$1,000 - $1,300
Toronto Hydro	City of Toronto	Yes, O. Reg. 541/05	~$800 - $1,000
Alectra Utilities	GTA suburbs (Mississauga, Brampton, Hamilton, St. Catharines)	Yes, O. Reg. 541/05	~$900 - $1,100

How net metering works in Ontario under O. Reg. 541/05

Ontario Electricity Rate Plans

How your electricity pricing affects solar savings

Ontario offers three electricity pricing plans. Your choice affects the value of your solar production and battery strategy.

Time-of-Use (TOU) - Default

Period	Rate
On-peak (weekdays 4-9pm)	20.3¢/kWh
Mid-peak (weekdays 7am-4pm, 9pm-11pm)	15.7¢/kWh
Off-peak (nights, weekends, holidays)	9.8¢/kWh

Solar value: Panels produce during mid-peak hours, net metering credits offset on-peak usage.

Tiered

Tier	Rate
Tier 1 (first 1,000 kWh winter / 600 kWh summer)	12.0¢/kWh
Tier 2 (above threshold)	14.2¢/kWh

Solar value: Reduces your consumption, keeping you in cheaper Tier 1 longer.

Ultra-Low Overnight (ULO)

Period	Rate
Overnight (11pm-7am)	3.9¢/kWh
Mid-peak	12.5¢/kWh
Weekday on-peak (4-9pm)	39.1¢/kWh
Weekend off-peak	9.8¢/kWh

Ontario electricity rate plan comparison for solar homeowners

Solar + battery value: Charge battery overnight at 3.9¢, use during peak at 39.1¢ = 35.2¢/kWh arbitrage. Best combined with HRS battery rebate.

Financing Solar in Ontario

How to pay for your system with little or no upfront cost

Ontario has the most developed PACE financing landscape in Canada, giving homeowners multiple paths to go solar with little or no upfront cost.

PACE/LIC programs: Property-tax-attached loans in Toronto ($125K), Ottawa ($125K), Guelph ($50K), Hamilton ($20K), Durham ($10K grant)
HELOC: Home equity lines of credit (typical 6-8% variable)
Installer financing: Many Ontario installers offer 0% or low-interest financing plans
Enbridge Green Home financing: Check current availability

Monthly Payment Example

A 7.5 kW system at $21,375 with $5,000 HRS rebate = $16,375 financed. At 5% over 15 years via PACE = ~$130/month. Average monthly electricity savings of $150 - $175 means the system is cash-flow positive from month one.

Ontario Solar Costs & Savings

What you'll pay and what you'll save after incentives

	5 kW System	8 kW System	10 kW System
Gross cost (before incentives)	$12,100 - $17,500	$19,360 - $28,000	$24,200 - $35,000
HRS rebate (if eligible)	-$5,000	-$5,000	-$5,000
Net cost (after HRS)	$7,100 - $12,500	$14,360 - $23,000	$19,200 - $30,000
Annual production	~5,815 kWh	~9,304 kWh	~11,630 kWh
Annual savings (at 17¢/kWh)	~$990	~$1,580	~$1,975
Payback (with HRS)	7 - 13 years	9 - 15 years	10 - 15 years
Payback (no HRS, net metering)	12 - 18 years	12 - 18 years	12 - 18 years
25-year savings	~$24,750	~$39,500	~$49,375

Note: Payback calculations use 17¢/kWh blended all-in rate. Actual savings depend on your rate plan (TOU vs Tiered vs ULO), consumption pattern, and whether you choose HRS or net metering path.

The Solar Installation Process in Ontario

From first quote to flipping the switch

Installing solar in Ontario typically takes 4 to 8 weeks from signing a contract to system activation. Here is what to expect:

Get quotes and choose installer: Compare at least 3 quotes from Licensed Electrical Contractors (LEC). Verify ECRA/ESA licensing.
System design and permits: Your installer designs the system, applies for building permits, and submits your LDC (Local Distribution Company) application for net metering or connection.
Installation (1-3 days typical): Panels, inverter, and wiring installed on your roof. Most residential installs complete in 1 to 3 days.
LDC inspection and bidirectional meter: Your utility (Hydro One, Toronto Hydro, Alectra, etc.) inspects the installation and swaps your meter for a bidirectional one.
ESA approval and system activation: The Electrical Safety Authority (ESA) inspects and issues the Certificate of Inspection. Your system goes live.

Timeline Tip LDC meter installation and connection can take 2-4 weeks after your physical install is complete. Plan accordingly, especially during spring and summer peak seasons.

Ontario solar installation timeline showing 5 steps

Choosing Solar Equipment for Ontario

Panels, inverters, and batteries for Ontario's climate

Solar Panels

Modern residential panels are typically 400-450W monocrystalline modules. For Ontario's climate, look for:

Snow load rating: Minimum 5,400 Pa for Ontario snow loads
Temperature coefficient: Lower is better - panels lose efficiency in summer heat. Look for -0.30%/°C or better
Warranty: 25-year product and performance warranty is standard for tier-1 manufacturers
Popular brands in Ontario: Canadian Solar (Ontario-made), Silfab (Ontario-made), Q Cells, REC, Longi

Inverters

String inverters: Most affordable option. Good for roofs with consistent sun exposure. Brands: Fronius, SMA, SolarEdge
Microinverters: Best for roofs with shade or multiple orientations. Higher cost but per-panel optimization. Brands: Enphase, AP Systems
Hybrid inverters: Required if adding battery storage. Brands: Sol-Ark, Enphase IQ Battery, Tesla Powerwall

Battery Storage

Batteries are increasingly popular in Ontario, especially with the HRS $5,000 battery rebate and ULO rate plan. Common options:

Tesla Powerwall 3: 13.5 kWh, integrated inverter, ~$12,000-$14,000 installed
Enphase IQ Battery 5P: Modular 5 kWh units, ~$8,000-$10,000 per unit installed
Sonnen ecoLinx: Premium option, 10-20 kWh, smart energy management

Common Myths About Solar in Ontario

Separating fact from fiction about solar in Ontario

"Ontario doesn't get enough sun for solar"

Ontario averages 1,100 - 1,250 kWh/kW annually. Toronto gets more peak sun hours than many German cities, and Germany is one of the world's largest solar markets.

"Solar panels don't work in winter"

Panels actually operate more efficiently in cold weather. Snow slides off most installations naturally, and production drops are offset by Ontario's highest TOU rates being in winter evenings - exactly when you're drawing from battery or credits.

"Ontario electricity is too cheap for solar to make sense"

With the 2025 rate increase, all-in costs are now 16 - 18¢/kWh blended. On ULO, peak rates hit 39.1¢/kWh. Solar payback periods have shortened significantly.

"You need the HRS rebate to make solar worthwhile"

Net metering without HRS still delivers 12 - 18 year payback, with 25-year savings of $25,000 - $50,000. The HRS rebate accelerates payback but isn't required.

"Net metering credits are worth less than what you pay"

Ontario net metering provides full 1:1 retail rate credits. Your credits offset at the same rate you pay, including TOU pricing.

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Top-Rated Ontario Solar Installers

Verified Ontario solar companies

Ontario has one of Canada's most competitive solar installer markets. Look for Licensed Electrical Contractors (LEC) with ECRA/ESA certification. Here are some of the province's top-rated companies:

Polaron Solar

One of Canada's largest residential solar installers, headquartered in Ontario. Known for end-to-end service including financing options, system design, installation, and monitoring. Extensive experience across the GTA and southern Ontario.

SkyFire Energy

A leading Canadian solar installer with operations across Ontario. Offers residential, commercial, and utility-scale installations. Strong track record with net metering and battery storage systems.

Solar Ontario

Ontario-focused installer offering customized residential and commercial solar solutions. Experienced with both the HRS program and net metering applications across multiple LDC service territories.

When choosing an installer, verify:

ECRA/ESA Licensed Electrical Contractor status
WSIB coverage
Experience with your specific LDC (Hydro One, Toronto Hydro, Alectra, etc.)
Familiarity with HRS program application process
Minimum 3 references from Ontario installations

Ontario Solar FAQ

Answers to the most common questions from Ontario homeowners

How much do solar panels cost in Ontario in 2026?

A typical 5 kW residential system costs $12,100 to $17,500 before incentives. With the HRS rebate of $5,000, net cost drops to $7,100 to $12,500. Ontario's competitive installer market keeps prices near the national average of $2.42 to $3.50 per watt.

What is the Home Renovation Savings (HRS) Program?

The HRS Program offers up to $5,000 for solar panel installation and up to $5,000 for battery storage. It is administered through Save on Energy and is available to existing homeowners who use a licensed contractor. The program is first-come, first-served and funded through late 2026.

Should I choose net metering or the HRS rebate?

This depends on your situation. Net metering gives you 1:1 retail rate credits for excess power but no upfront rebate. HRS gives you up to $10,000 in rebates but operates on load displacement without grid export credits. A qualified installer can model both scenarios for your specific consumption pattern.

How does net metering work in Ontario?

Under Ontario Regulation 541/05, your solar system feeds excess power to the grid and you receive credits at your retail electricity rate. Credits roll forward for 12 months and then reset to zero. The program covers systems up to 10 kW for simplified micro-generation.

Which Ontario electricity rate plan is best for solar?

For solar without battery, Tiered or TOU plans work well since solar production during midday offsets your consumption. For solar with battery, the Ultra-Low Overnight (ULO) plan offers the best arbitrage - charge your battery at 3.9 cents overnight and use it during peak hours at 39.1 cents.

How much electricity will solar panels produce in Ontario?

A 5 kW system in Toronto produces approximately 5,815 kWh per year. Ottawa produces slightly more at 5,990 kWh. Most Ontario homes use 9,000 to 9,500 kWh annually, so a 7.5 to 8 kW system typically covers 100% of consumption.

Are there municipal incentives for solar in Ontario?

Several Ontario cities offer PACE (Property Assessed Clean Energy) financing. Toronto's HELP program offers up to $125,000, Ottawa's Better Homes program up to $125,000, and Guelph up to $50,000. These are repaid through your property tax bill. More cities are launching programs in 2026.

How long is the payback period for solar in Ontario?

With the HRS rebate, typical payback is 7 to 13 years for a 5 kW system. Without the rebate using net metering, payback extends to 12 to 18 years. Rising electricity rates and the 25+ year lifespan of panels mean lifetime savings of $25,000 to $50,000.

Do I need a battery with solar panels in Ontario?

A battery is not required but can increase your self-consumption and qualify you for the $5,000 HRS battery rebate. Batteries are particularly valuable on the ULO rate plan where the spread between overnight and peak rates is 35.2 cents per kWh. Without a battery, net metering handles your excess production.

What happens to my solar credits if I switch rate plans?

Net metering credits transfer if you switch between TOU, Tiered, or ULO plans. The credits are applied at whatever rate you are currently on. However, if you enrolled in the HRS program, you cannot also participate in net metering - this is a one-time decision made at installation.

Incentive amounts, program eligibility, and electricity rates referenced in this guide are current as of April 2026 and subject to change. Verify details with your LDC, the Ontario Energy Board, or Save on Energy before making financial decisions.