Share this great resource

Go solar with Sunmetrix and get up to $500 cashback

Solar Tax Credits, Incentives and Solar Rebates in Ontario

Latest Update:

by Simone Garneau

Provincial Flag of OntarioSolar Energy Outlook

Summary Data for Ontario

Province/Territory Capital Toronto
Solar Value Index $834
Solar Energy Produced 5,611 kWh / year
Average retail electricity price (2016 data) 14.86 cents / kWh
Average annual consumption per household (2014 data) 8,580 kWh
Installed solar PV capacity (2014 data) 1,828 MW
Levelized Cost 13.72 cents / kWh
Reached grid parity? Yes

A Few of the Solar Companies in Ontario

Solar Installer City Sunmetrix Solar Score Sunmetrix Cashback
Ethoenergy Inc Barrie$250
Friendly Fires - Peterborough Peterborough$250
Goldwater Solar Services Toronto$250

Get Me Solar Quotes From Installers In My Area

Ontario is the leader for grid-connected PV systems in Canada. Thanks to generous feed-in tariff programs, solar energy has really taken off in the province.

At 14.86 cents/ kWh, the electricity prices in the province are above the national average of 12.2 cents / kWh. When it comes to average electricity consumption per household, residents of this province consume 8,580 kWh per year, below the national average of 13,300 kWh.

Currently, Ontario has 2 financial incentive programs and 1 regulatory programs supporting the adoption of solar energy.

Ontario is a grid parity province, making solar power cheaper than the residential utility rates. The incentives listed below can significantly reduce the cost of installation of solar panels for your home or business.

List of Solar PV Incentive Programs in Ontario

Financial Incentives

  • FIT Program (Feed-in Tariff Program)
    The FIT Program is open to projects with a rated electricity generating capacity greater than 10 kilowatts (kW) and generally up to 500 kW. Approved projects receive a fixed price for the electricity produced over a 20-year contract period. For the latest feed-in tariff rates, please visit the program website.
  • Micro-FIT Program
    The program provides homeowners and other eligible participants with the opportunity to develop a small or "micro" renewable electricity generation project (10 kilowatts (kW) or less in size) on their property. Under this program, homeowners will be paid a guaranteed price over a 20-year term for all the electricity produced and delivered to the province's electricity grid. For the latest feed-in tariff rates, please visit the program website.

Regulatory Policies

  • Net-Metering
    Electricity consumers in Ontario who produce some of their own power from a renewable resource (systems that are 500 kW or less) may take advantage of the "net metering" initiative. Net metering allows Ontarians to send excess electricity generated from renewable resources to the distribution system for a credit toward energy costs. In essence, it is a "trade" of electricity supplied against electricity consumed.

Federal Incentive Programs

    Unfortunately, there are no federal incentives for residential solar PV projects in Canada. However, if you own a business, the following programs may be applicable.
  • Capital Cost Allowance (CCA) Renewable Energy
    The Government of Canada makes clean energy projects, such as solar energy, wind energy and energy from waste, more fiscally attractive for industry by providing business income tax incentives. Under Classes 43.1 and 43.2 in Schedule II of the Income Tax Regulations, certain capital costs of systems that produce energy by using renewable energy sources or fuels from waste, or conserve energy by using fuel more efficiently are eligible for accelerated capital cost allowance. Under Class 43.1, eligible equipment may be written-off at 30 percent per year on a declining balance basis. In general, equipment that is eligible for Class 43.1 but is acquired after February 22, 2005 and before year 2020 may be written-off at 50 percent per year on a declining balance basis under Class 43.2.
  • Canadian Renewable and Conservation Expenses (CRCE)
    CRCE is designed to encourage commercial investments in clean energy generation and energy conservation projects by providing income tax incentives for certain start-up expenses associated with these projects.

Methodology Notes

  • Average monthly electricity consumption data is from the Canadian Electricity Association (2014 data).
  • Average retail electricity prices are based on studies published by Manitoba Hydro and the annual Hydro Quebec report "Comparison of Electricity Prices in Major North American Cities" and is based on 1,000 kWh/month consumption.
  • Annual solar production estimates are based on the analysis performed using our own solar energy calculator, Sunmetrix Discover.
  • Installed solar PV capacity figures are from Natural Resources Canada's report entitled "Photovoltaic Technology Status and Prospects: Canadian Annual Report (2015)".
  • The national average for utility rates in Canada excludes the rates in Northwest Territories and Nunavut.

Get your free solar quotes today!

Spread the solar goodness: please share this guide with your friends and family.

Share this great resource

Written by Simone

Simone Garneau is the co-founder of Sunmetrix, an online consumer education website for residential solar energy. The goal of Sunmetrix is to help homeowners go solar and save money with our Solar Cashback Program. In addition to the 200+ articles about solar energy, Sunmetrix offers homeowners three main resources: a Consumer Report for solar energy, Discover, to preview solar energy for your home, and GO, the only solar energy test drive experience.

Receive 3 free, no-obligation solar quotes, complete your installation, and get cashback from Sunmetrix!

Sunmetrix SunShot

Sunmetrix is a Canadian winner of the business innovation contest organized by the U.S. Department of Energy

  • We will find you up to 3 installers in your area to provide free, no-obligation quotes.
  • See their consumer reviews and compare cashback deals - up to $500.
  • Select your solar company, complete your installation, and we will send you cashback, with a smile!

Your website is excellent. It provides great information and advice.

Marcelo V. Gatineau, QC

Get My Free Solar Quotes

Fields marked with a red asterisk (*) are required.

Terms and Conditions - Please click to read
These Terms and Conditions apply to the Sunmetrix CASH-BACK Program (the “Program”). By completing the INSTALLER registration, making a Solar Quote Request, or otherwise participating in the Program, INSTALLERS and QUOTE-REQUESTERS agree to be bound by these Terms and Conditions.

1. Defined Terms.

a. Program Website: http://sunmetrix.com/

b. INSTALLER: The solar PV installation company either selected by the QUOTE-REQUESTER or by Sunmetrix.

c. QUOTE-REQUESTER is a potential residential solar customer that meets all of the following criteria: (1) owns his or her own house in a state/province where the INSTALLER operates; (2) is a legal resident of the United States or Canada; (3) is 18 years of age or older; and (4) otherwise meets Sunmetrix’s requirements, as may be updated by Sunmetrix from time to time.

d. REFERRAL FEE: The amount the INSTALLER agrees to pay Sunmetrix upon completion of the residential INSTALLATION. For U.S. companies, the indicated amount is in U.S. dollars. For Canadian companies, the indicated amount is in Canadian dollars. In the case of commercial solar quote requests, the referral fee is determined on case by case basis.

e. CASH-BACK: The amount paid to the QUOTE-REQUESTER, representing 50% of the REFERRAL FEE paid upon completion of the residential solar photo-voltaic INSTALLATION. For U.S. residents, the indicated CASH-BACK amount is in U.S. dollars, and the CASH-BACK will be sent electronically either with a PayPal Payment or with an Amazon eGift Card. For Canadian residents, the indicated CASH-BACK amount is in Canadian dollars, and the CASH-BACK will be sent electronically with an Interac e-Transfer.

f. INSTALLATION: The solar photo-voltaic INSTALLATION is for a residential system with a minimum installed capacity of 2 kW DC. Systems that are less than the minimum will not qualify for the CASH-BACK program.

2. Program.

INSTALLERS must register for the program online by filling out a registration form. INSTALLERS must pay the REFERRAL FEE within 10 days of completing the INSTALLATION. INSTALLERS can change the REFERRAL FEE anytime they like by logging into their Sunmetrix account. There are no long-term commitments to be part of the program. INSTALLERS agree to pay the REFERRAL FEE that corresponds to twice the amount of the CASH-BACK appearing on the INSTALLER's Sunmetrix profile page at the time of the Solar Quote Request.

3. Program Requirements.

a. Required Information. Participation in the Program may require you to submit personal information about yourself and other parties (collectively, “Users”), such as name and email address. The personal information will be collected, processed and used in accordance with Sunmetrix’ Privacy Statement, which can be found at http:// sunmetrix.com/privacy-policy/. In addition, personal information may be used by Sunmetrix to contact Users regarding participation in the Program and to receive communications from Sunmetrix. If you provide your telephone number as part of your Solar Quote Request, your Solar Quote Request shall also constitute an express written request that authorizes Sunmetrix or any of its partner solar INSTALLERS to contact you via telephone, even if your telephone number is listed on a state or federal Do Not Call registry maintained pursuant to state or federal law. b. Quote Request Requirements. To qualify as a QUOTE-REQUESTER, an individual must meet the following criteria: i. Be a legal resident of the 50 United States or the District of Columbia or Canada; ii. Be at least 18 years of age or older. iii. Own his or her house in a state/province in which the INSTALLER offers its residential solar products; and iv. Not be an Existing Customer (Existing Customers include individuals that have contacted the INSTALLER previous to making a quote request with Sunmetrix). Notwithstanding the foregoing or anything to the contrary herein, Sunmetrix shall make the determination as to whether and pursuant to what terms it will enter a contract with any QUOTE-REQUESTER.

4. Prohibited Uses.

You agree not to a. use the Program Website or its contents for any purpose that is unlawful or prohibited by these Terms and Conditions; b. Resell any aspect of the Program Website or services available on it; c. Bypass or circumvent measures we may use to prevent, interfere, or limit access to the Program Website; d. use the Program Website to send altered, deceptive or false source-identifying information; e. use the Program Website to intercept, collect or store personal information about other users; or f. spam other users or take other actions that may affect the operation or enjoyment of the Program Website by other users.

5. Warranty Disclaimers.

THE PROGRAM WEBSITE IS PROVIDED ON AN “AS IS” AND “AS AVAILABLE” BASIS WITHOUT WARRANTIES OR COVENANTS OF ANY KIND, WHETHER EXPRESS, IMPLIED OR STATUTORY, AS TO THE OPERATION OF THE PROGRAM WEBSITE, ANY MATERIALS INCLUDED ON, DOWNLOADABLE FROM OR OTHERWISE ACCESSIBLE VIA THE PROGRAM WEBSITE, OR ANY SERVICES OR PRODUCTS AVAILABLE IN CONNECTION WITH THE PROGRAM WEBSITE, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, ACCURACY, COMPLETENESS, RELIABILITY, AND NON-INFRINGEMENT. FURTHER, SUNMETRIX DOES NOT REPRESENT OR WARRANT THAT ACCESS TO THE PROGRAM WEBSITE WILL BE UNINTERRUPTED, FREE FROM UNAUTHORIZED ACCESS, INCLUDING THIRD-PARTY HACKERS OR DENIAL OF SERVICE ATTACKS. SUNMETRIX DOES NOT AUTHORIZE ANYONE TO MAKE A WARRANTY OF ANY KIND ON OUR BEHALF AND YOU MAY NOT RELY ON ANY SUCH STATEMENT OF WARRANTY.

6. Limitations of Liability.

IN NO EVENT SHALL SUNMETRIX BE LIABLE FOR ANY DIRECT, SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, OR ANY OTHER DAMAGES OF ANY KIND, REGARDLESS OF THE TYPE OF CLAIM OR LEGAL THEORY ASSERTED, ARISING OUT OF OR IN ANY WAY CONNECTED WITH (I) THE WORK OF THE INSTALLER (II) THE USE OF OR INABILITY TO USE THE PROGRAM WEBSITE, OR (III) ANY CLAIM ATTRIBUTABLE TO ERRORS, OMISSIONS, OR OTHER INACCURACIES IN THE PROGRAM WEBSITE OR ANY REFERRALS, EVEN IF SUNMETRIX OR OUR AUTHORIZED REPRESENTATIVES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL THE AGGREGATE LIABILITY OF SUNMETRIX (WHETHER IN CONTRACT, WARRANTY, TORT, STRICT LIABILITY, OR OTHER THEORY), ARISING OUT OF OR RELATING TO THE PROGRAM WEBSITE, ANY PROGRAM WEBSITE-RELATED MATERIALS OR SERVICES, EXCEED $500.00.

7. Other Limitations.

Certain state laws do not allow limitations on implied warranties, or the exclusion or limitation of certain damages. If these laws apply to you, some or all of the above disclaimers, exclusions, or limitations may not apply to you, and you may have additional rights. In such states, Sunmetrix’s liability is limited to the greatest extent permitted by law.

8. Indemnification.

You agree to indemnify, defend, and hold harmless Sunmetrix, and our affiliates, officers, directors, employees, agents, service providers, licensors and suppliers from and against any claims, causes of action, demands, losses, expenses, damages, penalties or other costs, including but not limited to reasonable attorneys’ fees, brought by third parties as a result of: (i) your violation of these Terms, the Program Rules (ii) your use of the Program Website; or (iii) your violation of any law or the rights of a third party.

9. Additional Terms and Conditions.

a. Tax. You are responsible for any and all tax liabilities associated with the Program. b. Void Where Prohibited. This Program is void where prohibited by law. c. Governing Law. The laws of the state where QUOTE-REQUESTER resides shall govern without giving effect to the conflict of laws principles. Both parties will, in good faith, use reasonable efforts to resolve disputes. If a dispute remains unresolved after 45 days, the parties agree to final, binding arbitration pursuant to Governing Law.