Solar Tax Credits, Incentives and Solar Rebates in Canada

→ See rebates in the United States


Latest Update: December 2018

Continuous reductions in PV system costs and a handful of provincial incentive programs are slowly, but surely, changing Canada's residential electricity landscape. Motivated by environmental as well as financial reasons, more and more Canadians are switching to solar power.

With its generous rates, Ontario's feed-in-tariff program created a solar boom in this province. Currently, the vast majority of installed solar capacity in Canada is located in Ontario. However, Ontario's MicroFIT program is no longer considering applications, so homeowners that install solar panels will now be part of the province's net metering program. In Canada's other provinces and territories interest in solar energy is growing, in part as a result of new incentive programs that are designed to stimulate the demand for solar power.

Unfortunately, Canada does not have a federal tax credit for solar energy. In our opinion, a program modeled on the U.S. Federal Investment Tax Credit can be particularly effective, sending a clear message to Canadian consumers. In Canada, available incentives programs are mostly at the provincial/territorial level with a few local/municipal programs. These financial incentives and regulatory programs can significantly improve the financial feasibility of installing solar panels for your home, cottage or business. For more information on how to pay for your solar panels in Canada, click here.

Click on your province/territory to get details on incentive programs and see if solar power can save you money.


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Summary Data for Ontario

Province/Territory Capital Toronto
Solar Value Index $729
Solar Energy Produced 5611 kWh / year
Average retail electricity price (2017 data) 13.0 cents / kWh
Average annual consumption per household (2014 data) 8580 kWh
Levelized Cost of Solar Electricity 8.23 cents / kWh
Reached grid parity? Yes

Ontario is the leader for grid-connected PV systems in Canada. Thanks to generous feed-in tariff programs, solar energy really took off in the province. While those feed-in tariff programs are now closed, homeowners and businesses in Ontario will soon benefit from the new GreenON Solar Rebate program (coming summer 2018).

→ Should I get solar panels in Toronto? Ottawa? Waterloo? Kelowna? Hamilton?

Federal Incentive Programs

Methodology Notes

Latest Update: December 2018

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