The Ultimate Guide to Going Solar in Ontario (2025)
A Complete Guide to Solar Energy in Ontario
See Solar Prices Near You
Enter your postal code to see what solar panel installations cost in your local area.
1. Introduction: Why Solar Makes Sense in Ontario
The province of Ontario has great solar potential. With roughly 2,100 sunny hours dispersed to over 300 days, it has a great solar potential. So if you’re looking for ways to gain energy independence, reduce your energy bill, or offset some of your carbon emissions, solar may be the right solution for you.
Key Takeaways
Average solar array cost for 5kW: $15,000
Solar cost per watt of installed power: $3.00
Ontario solar incentives and rebates: Canada Greener Homes Rebate, Ontario Home Renovation Savings Program, net metering
Average price of solar per sq.foot: $7.02 per sq.foot (average home in Ontario is 2,138 sq. feet, average energy use 9,500 kWh/year)
2. How It All Works - Solar
Solar Energy Fundamentals
As the ample Ontario sunlight hits your solar panels, it produces electricity. This electricity is converted from the DC to the AC current and is then sent into your house power lines. Here, the energy is used by your appliances. Any energy that is not used by your appliances is sent to a solar battery or into the grid if you’re connected to the net metering program.
1. Solar panels capture sunlight and produce electrical energy.
2. An inverter transforms the DC electricity into AC power for household use.
3. Your home draws from this solar power first, lowering dependence on the grid.
4. Any surplus energy is either fed back into the grid or stored in a battery if available.
3. Ontario’s Solar Energy Potential
Ontario is a very good province to install solar panels. It offers ample sunshine and the federal incentives in place also help you reduce the upfront costs of going solar. The province also offers a net metering program.
Under this program, any excess electricity that you do not immediately use is sent to the grid. Once the sun is down, you can pull back from this energy. This way, you can power your home with solar even when the sun isn’t shining. This is important during the cold winter days when there is relatively little sunshine.
With raising energy prices, it is important to understand that keeping your energy bill low is becoming increasingly more important. On top of this, if you go solar, you will be able to gain energy independence and possibly even go off grids depending on your system size.
| Province | Average Annual Sunlight Hours | Solar Potential (kWh/kW per year) |
|---|---|---|
| Alberta | 2,300 - 2,600 | 1,200 - 1,400 |
| Ontario | 1,800 - 2,200 | 1,000 - 1,200 |
| British Columbia | 1,500 - 2,000 | 900 - 1,100 |
| Quebec | 1,700 - 2,100 | 1,000 - 1,150 |
| Saskatchewan | 2,400 - 2,700 | 1,300 - 1,500 |
| Manitoba | 2,100 - 2,500 | 1,150 - 1,300 |
Canada’s Energy Landscape
Currently, Ontario produces roughly 55% of its electricity from nuclear power plants. Although this is a good solution with little to no emissions, nuclear energy isn’t renewable in the sense that solar, wind, and hydro are. It is in these areas that Ontario doesn’t produce as much electricity as Canada does on average.
In fact, Ontario produces roughly 24% of its power from hydro, while the Canadian average is 60%. Ontario scores better in wind energy, which produces roughly 8% of its electricity. Ontario also uses less petroleum and less biomass than Canada, but it offsets these carbon savings by using 8 times as much natural gas. Solar is more popular in Ontario than it is in the rest of the country, with roughly 5 times more solar than the rest of Canada averaged.
Fuel Type | Canada | Ontario |
Hydro | 60% | 24% |
Wind | 6% | 8% |
Petroleum | 0.3% | 0.1% |
Biomass | 1.4% | 0.8% |
Natural Gas | 1% | 8% |
Solar | 1% | 5% |
Other* | ~30.3% | ~55% |
Energy Profile: Canada and Ontario Comparison
* Other: Coal, Coke, and Nuclear (55%) combined
Source: CER
Understanding Solar Irradiation
The amount of sunshine that falls on the specific surface, such as the province of Ontario, is never fixed, and it changes day to day and season to season. For this reason, you should not expect to be producing the same amount of electricity every single month.
In fact, the least sunny month in the province is December, when you can expect to produce roughly 52 kWh of energy for every kW of solar panels installed. The sunniest is July, 125 kWh, June, 124 kWh, and May, with 119 kWh of energy produced.
Month | kWh/kW of installed capacity in Ontario | Energy Production of a 5 kW system in kWh | Energy Production of a 10 kW system in kWh |
January | 66 | 330 | 660 |
February | 92 | 460 | 920 |
March | 109 | 545 | 1090 |
April | 115 | 575 | 1150 |
May | 119 | 595 | 1190 |
June | 124 | 620 | 1240 |
July | 125 | 625 | 1250 |
August | 118 | 590 | 1180 |
September | 104 | 520 | 1040 |
October | 86 | 430 | 860 |
November | 56 | 280 | 560 |
December | 52 | 260 | 520 |
Total – Annual | 1166 | 5,830 | 11,660 |
Energy Output per 1kW, 5kW and 10kW of installed solar capacity in Ontario
Source: Energy Hub
Needless to say, as energy production differs from one month to another and from one season to the next, different cities in Ontario will also yield different amounts of solar from the same solar system. The sunniest one is Ottawa, where you get almost 1,200 kWh per year for every kWh of solar capacity installed. The least sunny of all is Hamilton, where you produce 1,152 kWh in a system of the same size. Of course, no solar system is exactly 1 kWh in size, as most households decide to install anywhere between 5 and 10 kW of solar.
City | 1 kW System | 5 kW System | 10 kW System |
Toronto | 1,163 | 5,815 | 11,630 |
Ottawa | 1,199 | 5,995 | 11,990 |
Mississauga | 1,160 | 5,800 | 11,600 |
Brampton | 1,155 | 5,775 | 11,550 |
Hamilton | 1,152 | 5,760 | 11,520 |
Estimated Energy Production in different Ontario cities, with a 1kW, 5kW and 10kW solar system
Is Solar a Smart Investment in Ontario?
Taking all of the above into account, it is easy to conclude that Ontario is a very good province to go solar in. Good solar irradiation guarantees that a single 8 to 9 kW solar system will be enough to offset almost 100% of your energy use.
With net metering in place, you do not really need to plan on oversizing the system so that it can satisfy your winter energy needs as well. On top of this, general incentives and rebates that are available from the federal government are there to help you reduce the upfront costs and to make solar available and affordable for more households.
4. Ontario Solar Incentives & Rebates
There are multiple ways to reduce your solar installation costs, as well as to reduce the return on investment time period in Ontario
1. Canada Greener Homes Rebate
Canada Greener Homes rebate offers up to $5,000 of rebate for residential solar systems.
2. Ontario Home Renovation Savings Program
- Available for solar panels and solar batteries – up to 30% of your costs can be covered.
3. Net Metering
- Net metering saves all the excess energy for you, so you do not have to invest extra money into installing a solar battery. This program can help offset 100% of your energy use, and not spending any money on a solar battery will save you roughly 25% on upfront costs.
4. Other Green Energy and Sustainability Incentives
There is also a local solar incentive:
- Durham Greener Homes Rebate – the Greener Homes Deep Retrofit Rebate – up to $10,000
There are also other green energy and sustainability incentives which are available to you:
- Peak Perks Program (coming soon) – Save ON Energy will soon introduce a program that helps Ontario residents cut energy use by adjusting residential thermostats during summer peak demand periods.
- Enbridge Home Efficiency Rebate – Offers rebates of up to $10,000 for energy-saving upgrades like air sealing, high-efficiency furnaces, windows, doors, water heaters, and more.
- Enbridge Smart Thermostat Rebate – Provides a $75 rebate for installing a smart thermostat.
- Enbridge Home Winterproofing Program – Delivers free efficiency improvements, including insulation, air sealing, and smart thermostats, for households meeting specific income requirements.
- Energy Affordability Program – Run by the Independent Electricity System Operator, this program gives income-eligible households free energy-saving measures such as home assessments, LED bulbs, and faucet aerators.
Pro Tip: Always double-check what solar incentives and programs are available. You can call your local municipality office, your utility company, or experienced solar installers to help you navigate the complex world of solar incentives and rebates.
Get Started Today
See the cost and savings you would have if installing solar on your house:
Going Solar in Ontario - How Much Does it Cost?
How Much Does It Cost to Install Solar Panels in Ontario?
We’ve already spoken about the upfront costs. It is important to understand how they are formed and how much you can expect to pay both before and after incentives. Going solar in Ontario makes a lot of sense, but still you should consider this to be a significant investment that you should not take lightly.
An average 10 kWh system will cost you anywhere between $26,000 and $34,000 before incentives. Once incentives are applied, you can expect to actually spend between $18,000 and $26,000. It is nearly impossible to say what the exact solar installation cost will be in your particular case.
There are many factors that decide the final price, including the system size and your energy needs, whether or not you go for a solar battery, as well as the solar panel type and quality that you choose to go for. On top of this, not all rebates and incentives may be available at the time when you decide to go for the installation. Besides these, there are also other factors such as your roof orientation, slope, how many roof slopes you have, and how difficult the site is to access.
Solar Installation Costs in Ontario
Here is a simple breakdown with estimated monthly savings for different system sizes. Here you can compare the cost of going for a 5, 10, or 15 kW system together with the return on investment periods:
System Size | Average Cost (Before Incentives) | Average Cost (After Incentives) | Estimated Monthly Savings | Payback Period |
5 kW | $13,000 – $17,000 | $5,000 – $9,000 | $50 – $100 | 8 – 12 years |
10 kW | $26,000 – $34,000 | $18,000 – $26,000 | $100 – $200 | 7 – 10 years |
15 kW | $39,000 – $51,000 | $31,000 – $43,000 | $150 – $300 | 6-9 years |
* Larger systems cost more to install, but also generate more power. Contact experts to find out the perfect system size for your household.
What Factors Affect Solar Panel Costs in Ontario?
Several factors influence the total price of installing solar in Ontario:
1. System Size and Energy Requirements
The higher your energy needs are, the more solar panels you will need to install. This is the biggest determiner in any solar system. For this reason, what many households do is invest money into their home’s energy efficiency first and into reducing their energy needs as much as possible. This will mean that you will need a smaller solar system so that you will be saving both month after month on energy bills, as well as on the one-time solar payment.
2. Solar Panel Type and Quality
The next important factor to consider is the type of panels that you want to install. In general, households install either monocrystalline or polycrystalline panels. They come at different prices and energy efficiencies, but last roughly the same time, which is 25 years.
3. Battery Storage (Optional, but Recommended for Some Homes)
Most households decide not to install a solar battery. Solar batteries can be expensive, costing thousands for a single 5-10 kWh solution. As this is a significant amount of money for almost any household, it is important to understand that the same job that your solar battery does can be done virtually – under the net metering program. So, instead of spending almost $10,000 on a solar battery, you can spend anywhere between $0 and $1,700 for a bidirectional meter and an interconnection study.
4. Installation and Labour Costs
Installation and labor costs represent anywhere between 16 and 27.5% of your total solar costs. We suggest that you do not try to save money here, but rather to focus on online reviews and certification. Going for more economical installers now may result in damage to your solar panels or other vital components of your solar power system, so saving $1,000 today but paying five thousand long term doesn’t make much sense.
5. Incentives and Rebates in the Province
Ontario used to have very good provincial incentives and rebates for growing solar. However, besides the Ontario Home Renovation Savings Program, most of these programs are currently not available. Instead, you can focus on programs that are supposed to increase your household energy efficiency. This way, you can kill two birds with one stone, reduce your energy use, and reduce the size of the solar system that you need.
What Drives Up Solar Prices in Ontario?
Of course there are more factors that you should consider when buying solar. If you have an old roof, you may need to replace the whole roof or a portion of it, so it will be able to support the weight of solar panels. On top of this, if you’d like to install your solar system elsewhere on your property, you will need to pay for the mounting system itself.
Savings and Return on Investment (ROI)
When it comes to how much money you can save every month and how long your return on investment period will be, it is important to understand that incentives and rebates can significantly reduce your upfront costs. On top of this you will be able to save anywhere between $50 and $300 on your average energy bill, as a good solar system can reduce your energy consumption by 100%.
This will bring your return on investment period down to anywhere between 6 and 10 years, which means that you will be profiting between 8-15% every year. This is currently more than interest that any bank can give you currently, and it is even higher than capital gains in the stock market.
6. Ways to Finance Solar in Ontario
If the upfront cost is too high, there are financing options available:
1. Solar Loans & Financing Plans
- Home Energy Loan Program (HELP) – Paid via Local Improvement Charge (LIC) and available for sums of up to $125,000, no net metering allowed
- Canada Greener Homes Loan – Up to $40K Interest-Free Over 10 Years – minimum loan amount: $5,000, 10-year repayment term, interest-free
- Many banks and credit unions in Ontario offer low-interest green loans tailored for solar installations. Examples: TD Renewable Financing, Scotia Eco Energy Financing, RBC Energy Saver Loan
2. Leasing Options and Power Purchase Agreements (PPA)
- Solar lease: Rent the system via fixed monthly payments; ownership remains with the provider
- PPA: Pay only for electricity produced at a set rate, typically lower than utility rates
3. Using a Home Equity Line of Credit (HELOC) for Solar
- Lower Interest Rates: HELOCs typically have much lower rates compared to personal loans or credit cards because they’re secured by your home.
- Flexible Borrowing: You can borrow as needed and pay interest only on the amount you use.
- Ownership Advantage: Unlike leasing or PPAs, you own the solar system outright, which means:
- You keep all savings from reduced electricity bills.
- You benefit from any available rebates or incentives.
- You increase home value by installing a permanent asset.
Comparison
Financing Option | Benefit | Considerations |
Home Renovation Savings Rebate | Up to 30% off (≤ $5K solar, $5K battery) | No net metering allowed—must offset own usage |
Canada Greener Homes Loan | 0% interest, up to $40K | Requires EnerGuide evaluations |
HELP (Toronto) PACE Loan | Large amounts, low rate, property-tax repayment | Only available in participating cities |
Other PACE Programs | Flexible property-linked financing | Subject to municipal availability and terms |
Bank Loans / HELOC | Full ownership, flexible options | Interest applies; approval depends on credit |
Lease / PPA | No upfront cost, maintenance often included | No ownership, limited eligibility for rebates/credits |
Business Tax Credits (ITC, CCA, CRCE) | High incentives for commercial scale projects | Complex to apply—requires tax and accounting advice |
7. How Many Solar Panels Will You Need?
Most homeowners are worried that solar panels may look ugly on their roof or that they simply do not have a roof large enough to accommodate an entire solar system array. This is simply not true, as the average household needs fewer solar panels than you may think.
Solar panels average between 330 watts and 580 watts of power output. So, you will need anywhere between 20 and 34 solar panels for an average 10 kWh system. You should also consider that this system is a little bit oversized which is generally our recommendation.
Oversizing your solar energy system by roughly 10% can grant you roughly five more years of service life for your solar system. In some cases you may need to install more solar panels, but this is only if you do not have a south-facing roof slope that receives enough sunshine during the day to offset 100% of your energy use.
1. Tips for Selecting the Right Solar Panels
When it comes to choosing the right solar panels, you should understand that there are two basic types which are commonly used on Canadian homes, the monocrystalline and polycrystalline solar panels.
Monocrystalline Panels (Top Choice for Efficiency in Cold Climates)
Monocrystalline solar panels are more efficient, but they also come at a higher price tag. Their efficiency generally goes anywhere between 18 – 22%. The higher price tag is justified because they have a higher power output than their polycrystalline counterparts.
Polycrystalline Panels (Affordable and Practical Option)
Polycrystalline solar panels have slightly lower efficiencies when compared to monocrystalline panels. They can reach anywhere between 16 – 18% efficiency and although they produce less power, solar homeowners usually choose to go with more of these panels as they are simply more affordable.
Comparing Different Solar Panels
Monocrystalline panels are perfect when you have tight roof space and would like to get as much energy out of it as possible. On the other hand, polycrystalline panels are a much better solution when you have ample roof space or for larger solar installations.
Panel Type | Efficiency | Cold Weather Performance | Lifespan | Watts per Square foot | Cost |
Monocrystalline | 18-22% | Excellent | 25+ years | 20 – 28 | Higher |
Polycrystalline | 16-18% | Decent to Good | 25+ years | 14 – 19 | Lower |
Pro Tip: If your focus is on saving roof space, go for monocrystalline solar panels. But if you want to find a good balance between energy produced and the overall cost, polycrystalline panels may be the right solution for you.
2. How to Choose the Best Solar Inverter
Another important component of any solar system is the solar inverter. Solar inverters are special devices that convert the DC produced by solar panels into AC that your household appliances can actually use. There are three basic types of solar inverters: the string inverters, the microinverters, and the hybrid inverters.
1. String Inverters (Most Common and Cost-Effective)
String inverters are separate units that can handle the power output of your entire solar system at once. This comes with a slightly reduced efficiency as DC has to travel through more wiring to get to the actual inverter. However, due to their low price, they are very cost effective and are the most common type of solar inverter used in Canadian households.
2. Microinverters (Ideal for Shaded or Complex Roofs)
Microinverters, on the other hand, are installed on each solar panel individually. Most solar panels today actually come with microinverters, and because there is less wiring that the DC has to travel before it’s converted to AC, they feature lower power losses. Microinverters are perfect for roofs that are partially shaded throughout the day or if there is a high building nearby or any other source of shadow.
3. Hybrid Inverters (Perfect for Battery Integration)
When it comes to hybrid inverters, they act as string inverters in the sense that they are a completely separate unit that is usually mounted either in your attic or in your garage. However, hybrid inverters act as inverters and solar chargers at the same time, so they’re perfect for systems that have a solar battery included. This can slightly reduce the cost of purchasing a separate inverter and a separate solar charger in systems like these.
Side-by-Side Comparison of Solar Inverters
If you have a roof in full sunlight throughout the day, you can go for a string inverter and get good energy yields. However, in systems like these, even partial shading can significantly reduce the power output of your entire system. In these cases, microinverters are the best. However, if you’re looking to go off-grid or already have, hybrid inverters are the way to go. They will be able to convert all the electricity that you need to use in your household, as well as send excess to solar batteries.
Inverter breakdown by type:
Inverter Type | Best For | Efficiency | Expandability | Battery Storage | Cost |
String Inverter | Roofs with no shade | Good | Limited expandability, additional inverters are suggested with array expansion | No | Lower |
Microinverter | Roofs with partial shading, or multi-slope roofs | High | Yes | No | Higher |
Hybrid Inverter | Full sun with systems designed for future expansion | High | Yes | Yes | Higher |
Pro Tip: Go for microinverters if you have trees close to your home. Go for a string inverter if you have no trees and no battery. Opt for a hybrid inverter if you have a solar battery or plan on expanding your solar system with one.
Solar Battery Options and Considerations
Going for a solar battery is a must only if you plan to install your solar array in off-grid systems. A solar battery stores all the excess energy that you do not use right away and is able to balance higher energy use during certain parts of the day. However, solar batteries can cost thousands of dollars and can significantly increase both the upfront cost of your solar array and per kWh generation price.
Wrapping It All Up
When it comes to choosing the right solar panels and solar inverter, you should pay attention to your roof, its orientation, and the slopes, as well as your energy needs and future solar plans. If you live in a well-lit area with very little shade on your rooftop, you will not make a mistake by going with polycrystalline solar panels and a string inverter.
8. Finding a Trusted Solar Installation Company in Ontario
Once you have a rough idea of what you want your solar system to be like, it’s time to start looking for a reliable solar installer in Ontario. This is easier said than done, so here are some factors that you should consider.
Why Hiring the Right Installer Is Crucial
Understanding Permits and Local Regulations
Solar installers in Ontario must follow all the provincial electrical codes. This is both for your own safety and for reducing fire hazard. They should also know all about municipal permits and net metering rules. The last thing you need is to finish installing your solar panel system only to realize that the utility company doesn’t want to connect it because some electrical code wasn’t followed through.
Getting the Most Out of Incentives and Rebates
Another thing that the solar installers should be able to do is to familiarize you with the available incentives and rebates. They should also be able to apply for those in your name.
Ensuring Long-Term Reliability and Warranty Coverage
Good solar installers will provide you with all the warranties that you need. In general, solar inverters come with warranties that are no longer than 10 years while your solar panels come with warranties that are at least 25 years long.
How to Avoid Scams and Poor-Quality Installations
Low price very often means low quality when it comes to solar installations. As solar panels are a very sensitive type of equipment, we always recommend not trying to save too much money on a solar installer. Paying the highest quote that you find also doesn’t make much sense because there is only so much quality that can be provided during the installation and mounting.
Essential Qualities of a Reliable Solar Installer
Now that you know what a good solar installation service looks like, let’s see how to find a solar installer in Ontario that can deliver this.
1. Verifying Installer Certification and Experience
First of all, you should look for installers that are certified. The responsible certification body in Canada is CSA or even the Canadian Solar Industries Association (CanSIA).
2. Do They Have Strong Customer Reviews?
They should have at least three years of prior experience. They should also feature strong customer reviews on Google local services and SolarGuide.ca.
3. Do They Offer Transparent Pricing and Warranties?
They should always offer transparent pricing and itemized quotes as well as the details on warranties and how long they last.
4. Do They Specialize in Ontario’s Solar Programs?
They should specialize in Ontario and federal solar programs and should be able to save you the most amount of money.
Searching for a Trusted Solar Installer?
At SolarGuide, we take the guesswork out of finding a reputable solar installer in Ontario. Here’s how it works:
We Rigorously Screen Every Installer
Only reputable, highly rated companies make our approved list.
Quality Comes First
We select installers based on proven performance — supported by verified reviews, transparent pricing, solid warranties, and industry expertise.
Easy Quote Comparison
Receive multiple competitive quotes, making it simple to choose the best system at the best price.
No Pressure, No Obligation
You’re in control — review your options and decide. If nothing fits, there’s zero obligation to proceed.
Get a Quote from a Pre-Vetted Solar Installer in Ontario
Want to find a trusted installer in Ontario? We’ve done the research for you. Get a free, no-obligation quote from a top-ranked, pre-vetted solar installer in your local area today!
9. Top 3 Solar Companies Serving Ontario
Company | Customer Rating | # of Reviews | Get a Quote |
Energy Pal | 4.9 | 1.5K | |
XOLAR INC | 4.6 | 640 | |
Polaron Solar Energy | 4.5 | 353 |
10. The Solar Installation Journey in Ontario
Mounting solar panels on your rooftop is a straightforward process, but there are important steps that you should consider. These steps are related to the actual assessment of your rooftop, getting the permits and approvals that are necessary, the installation of the solar panels, the inspection, grid connection or interconnection, and monitoring your solar savings.
Step 1: Site Evaluation & Getting Your Solar Quote (1–2 Weeks)
When it comes to the site assessment and the solar quote, this is a necessary step and a very crucial step that also includes an energy audit. So, a professional solar installer will visit your home to take a look at your rooftop. You should prepare several energy bills so that your total annual energy consumption can be seen.
Pro Tip: You should always get multiple quotes from experienced installers and then compare them before choosing the installer to go with.
Step 2: Securing Permits and Approvals (2–6 Weeks)
A good solar installer will be able to get the permits and approvals that are necessary. This is a long process that lasts anywhere between two and six weeks. These permits and approvals include municipal building permits, electrical permits, approval from your utility company, and interconnection study if necessary. During this period, you should also pay all the interconnection fees and interconnection study fees, which can go anywhere between $0 and $1,700, depending on your utility company.
Pro Tip: Some installers offer faster processing times because they have a lot of experience in handling all the necessary paperwork.
Step 3: Installing Your Solar Panels (1–3 Days)
Installation itself takes anywhere between one and three days, but most household systems can be installed in a single day. The installation team mounts solar panels on your rooftop. They install inverters and all the wiring that is necessary. If you want the battery storage as well, a solar charger and a solar battery are installed too.
Pro Tip: How long it will take to install your solar panels depends mostly on your roof slope and its condition.
Step 4: Final Inspection and Grid Connection (1–4 Weeks)
The inspection and grid connection take anywhere between one and four weeks. During this time, a final electrical inspection takes place and ensures the safety of the system being attached to the grid. Your utility company approves and activates bidirectional meters and net metering, and if you are approved, your system is finally turned on.
Pro Tip: After installation, you can expect anywhere between 1 – 4 weeks for the final inspection and approval by the utility company.
Step 5: Start Monitoring and Enjoying Your Solar Savings
Your solar installer will oftentimes be able to provide you with an app where you can monitor energy production in real time.
How to Get Started
Ready to install solar? Get a quote from a pre-vetted, highly ranked solar installer in Ontario today.
11. Selling Extra Solar Energy: A Guide to Net Metering
Net Metering Explained for Ontario Homeowners
Net metering program is one of the biggest benefits of going solar in Ontario. This program allows you to feed into the grid all the solar energy generated but not used right away.
How Ontario’s Net Metering Program Works
Net metering in Ontario works by:
- your solar panels generating electricity,
- your home using all the energy that it needs at that particular moment,
- feeding all the extra energy into the grid,
- you will be given credits for every kWh of energy you feed into the grid, and it is these credits that you actually pull from when you need energy later on in the year.
Pro Tip: You should think of net metering as banking all the excess energy that you produce for later use.
What Do Utilities Pay for Surplus Solar Power?
In most cases, utilities will give you credits instead of payback for the solar electricity that you deliver into the grid.
Pro Tip: Before installing solar, you should first understand the net metering rates and how they can help you save.
Pro Tip: Before installing solar, you should first understand the net metering rates and how they can help you save.
Who Benefits Most from Net Metering?
- Solar home owners that can generate more electricity than they can use during the summer.
- Those that look for maximizing their return on investment, and
- Anyone who wants energy prices that are significantly lower, especially in the long run.
Net metering makes solar energy very affordable and very cost-effective for most households. In fact, what most households in Canada do is that they take out a solar loan with a low interest rate and then they install solar panels. The savings that they see on their energy bill are the money that is then sent to the banks to pay off the solar loan. After a while, usually after some six to ten years, the solar loan has been paid off and households can enjoy some 15 years of free solar electricity.
Ontario’s Solar Net Metering Buyback Rates (2025)
Solar buyback in Ontario works a little bit different when compared to solar buyback in other Canadian provinces. Namely, Ontario has 3 time-of-use (TOU) electricity rates: peak, mid-peak, or off-peak rates, and you will be credited the amount of money that is equivalent to the energy prices you would have paid for using that particular period of day without having solar panels.
The rates are as follows:
- the peak electricity rate 17 cents per kWh,
- mid-peak is 12.2 cents per kWh,
- and off-peak rates are 8.7 kWhs.
This means that during the sunniest part of the day, you’ll mostly be receiving anywhere between 12.2 and 17 cents per kWh. As this is a flexible pricing scheme, you will be able to save even more by offsetting a part of your energy consumption from peak and mid-peak to the off-peak periods of the day, which is usually during the night. That way, you will be able to earn most money during the peak and mid-peak, as you will be delivering most energy into the grid. On the other hand, you can pull energy from the grid during the off-peak periods of the day, and therefore pay less. You should be careful that any amount that is accrued to your account is nullified every 12 months.
Important Things to Keep in Mind
Seasonal Rate Adjustments
As Ontario has a flexible pricing scheme, you will be able to save by offsetting a part of your energy consumption from peak and mid-peak to the off-peak periods of the day, which is usually during the night. That way, you will be able to earn more money during the peak and mid-peak, as you will be delivering most energy into the grid. On the other hand, you can pull energy from the grid during the off-peak periods of the day, and therefore pay less. You should be careful that any amount that is accrued to your account is nullified every 12 months.
Administrative Charges
There are administrative fees that you should consider before going solar in Ontario. You should be prepared to pay anywhere between $0 and $1,700 for the interconnection study and the actual bidirectional meter. In some other provinces you do not have to pay anything, but Ontario is a little bit different in this regard.
Program Flexibility
There is a lot of program flexibility in Ontario, although this flexibility isn’t observed through the seasonal rate adjustments. In fact, all the flexibility that you will be receiving is daily flexibility and switching between as many as three different rates during a single day.
12. Common Myths & Misconceptions About Solar
Solar is growing in popularity in Ontario. Still, there are myths that are persistant. Let’s debunk some of them.
Myth #1: “Solar Panels Don’t Work in Ontario’s Cold Winters”
Fact: Contrary to the popular belief, solar panels are actually more efficient in colder climates and in colder weather. This is because the cold air helps them cool down and increases their efficiency.
Myth #2: “Cloudy Days Make Solar Power Useless”
Fact: Cloudy days do not make solar panels useless. In fact, solar panels still produce solar energy even during the overcast days, although at a slightly lower rate.
Myth #3: “Solar Energy Is Too Expensive”
Myth #4: “Solar Panels Damage Your Roof”
Fact: Solar panels do not damage your roof for as long as they are installed properly. For this reason, always look for vetted solar installers and those that have at least three years of experience.
Myth #5: “Solar Panels Need Constant Maintenance”
Fact: Solar panels do not need constant maintenance. Wind and rain will do 99% of the job for you. The only thing that you need to do is occasionally brush them off or use a hose at mild pressure to wash away any caked-on dirt.
Myth #6: “Solar Won’t Increase Property Value”
Fact: Solar panels increase your property value and if you ever decide to sell your property, you should understand that you’ll be able to sell it in a shorter time and at a higher price.
13. The Future of Solar Energy in Ontario
Future of Solar Energy in Ontario
Currently, Ontario has lower energy prices than the Canadian average. However, that still doesn’t mean that the energy prices are low. Going solar enables you to reduce how much you pay on electricity every month, and also enables you to gain more energy independence. By going solar, you will also be reducing your carbon footprint.
What’s Driving Solar Growth?
- Generous incentives and rebates on the federal level and on the provincial level help to significantly reduce the solar installation cost.
- Solar potential – although Canada is not as sunny as some other countries, it still offers plenty of sunshine for solar homeowners. Ontario features some 2,000 to 2,200 sunny hours every year.
- Canadians are also eco-conscious, so you can enjoy a reduced carbon footprint as well.
14. Not From Ontario?
If you live outside Ontario or own property in another Canadian province, explore our detailed solar guides for each region.
- Going Solar in Alberta
- Going Solar in Manitoba
- Going Solar in British Columbia
- Going Solar in Newfoundland and Labrador
- Going Solar in Nova Scotia
- Going Solar in Prince Edward Island
- Going Solar in Quebec
- Going Solar in Saskatchewan
- Going Solar in New Brunswick
15. Conclusion: Is Solar the Way to Go?
Ontario features enough sunshine to enable you to offset 100% of your energy needs. This can be done even with a system as small as 8 to 9 kW. The return on investment period is relatively short and the quality of solar panels installed in Canada is high. Obtaining all the permits takes time, but this is an easy part and can also be done by the solar installer themselves. Most Canadian provinces, and Ontario especially, allow you to connect your power system to the net metering program. On top of this, you can enjoy additional benefits and an even shorter return on investment period by tuning your energy use around time of use tariffs.
Pro Tip: When looking for a solar installer, always compare multiple quotes to make sure you find the balance between quality and price.
Key Reason to Consider Solar:
- You can reduce your energy bill by up to 90%. Most households that own solar only pay fixed energy bill costs.
- You can access generous rebates and incentives. They’re available both on the provincial level and on the federal level. In Ontario, the provincial level rebates and incentives are available only for home energy efficiency improvements.
- Increasing your property value.
- Increasing your home resale value
Get Started Today
See the cost and savings you would have if installing solar on your house: