Solar Panels in Ontario: The Complete Homeowner's Guide

Rooftop solar in Ontario is neither a get-rich scheme nor a waste of money. It is a long-term investment that works well for some homes and poorly for others. Our electricity is relatively low-carbon already and the province's feed-in tariff era is long over, so the case for solar today rests on reducing your own bill over 25 years or more.

This guide, written by the Energy Efficiency Ontario editorial team, covers what a typical system produces, what it costs, how the two main incentive routes work, how long payback really takes, and what the installation process involves. Figures are estimates unless we say otherwise, and program details change, so confirm anything you rely on with the official source.

How much electricity solar produces in Ontario

Ontario gets less sun than California, but more than many people assume. Cold, clear days are actually good for panel efficiency. The bigger limits are short winter days and snow cover from roughly December to February.

For a well-oriented, unshaded array in southern Ontario, a typical specific yield is roughly 1,100–1,250 kWh per kW of panels per year. East- or west-facing roofs produce roughly 85–90% of what a south-facing roof would, and shading can reduce output much further.

System size	Approx. panels (400–450 W)	Est. annual production (south, unshaded)	Share of an 8,000 kWh/yr home
4 kW	9–10	4,400–5,000 kWh	55–63%
6 kW	14–15	6,600–7,500 kWh	83–94%
8 kW	18–20	8,800–10,000 kWh	110–125%
10 kW	22–25	11,000–12,500 kWh	138–156%

Production is strongly seasonal. A system might make four to five times as much in June as in December. That mismatch matters, because it determines how much of your solar output you use directly and how much flows to the grid.

For context, a typical Ontario home without electric heat uses roughly 7,000–9,000 kWh a year. All-electric or heat-pump homes often use 12,000–20,000 kWh or more, mostly in winter, when solar output is lowest.

What solar costs in 2026

Installed prices have fallen over the past decade but vary by roof complexity, equipment and installer. Typical 2026 ranges:

Item	Typical installed cost (estimate)
Solar array	$2.50–$3.50 per watt before incentives
6 kW system	$15,000–$21,000
8 kW system	$20,000–$28,000
Battery (about 13–16 kWh)	$12,000–$20,000
Panel removal and reinstall for a later re-roof	Often several thousand dollars (get a quote)

Things that push the price up include steep or complex roofs, multiple roof faces, a main electrical panel that needs upgrading, microinverters or optimizers, and long wire runs. Get at least three itemized quotes; our guide to choosing a solar installer explains how to compare them line by line.

Incentives: net metering or the HRS rebate

There are two main ways to get value from solar in Ontario. In most cases they are mutually exclusive, which is the single most important decision in your project.

Net metering (Ontario Regulation 541/05) lets you send surplus electricity to the grid and receive kWh credits valued at the retail commodity price. Credits roll forward for up to 12 months, then expire. There is no cash payout. It was reported that, effective 1 May 2026, the simplified micro-embedded connection threshold rose from 10 kW to 12 kW and residential customers no longer need commercial liability insurance. Check the current rules with your local distribution company (LDC). See net metering explained.

The Home Renovation Savings Program (HRS), delivered jointly by Save on Energy and Enbridge Gas, has offered up to $10,000 combined for rooftop solar plus battery storage (reported as up to $5,000 for solar and up to $5,000 for the battery). The catch: according to the program rules as published in 2026, systems that receive this rebate operate as load displacement and cannot enrol in net metering for the life of the system. Electricity you export is not credited.

Caution: Accepting the HRS solar rebate is a permanent choice for that system. An analysis by The Atmospheric Fund (July 2026) argues that many homeowners would be better off keeping net metering instead. Run your own numbers before signing, and confirm current terms on saveonenergy.ca (opens in a new tab).

Which route wins depends on how much of your solar output you would use on-site. Our worked example comparing the rebate and net metering walks through the numbers.

The old microFIT feed-in tariff has been closed to new applicants since 2017, and the federal Canada Greener Homes Grant and Loan are both closed to new applicants. Be wary of anyone who tells you otherwise.

Payback: a realistic picture

Simple payback is the installed cost after incentives divided by annual bill savings. In Ontario it is often 10–15 years or longer, depending on:

Your usage and rate plan. Solar offsets electricity you would otherwise buy at roughly 9–19¢/kWh commodity, plus some delivery and regulatory charges. Fixed monthly delivery charges do not go away.
The Ontario Electricity Rebate. The OER (15.7% from 1 November 2026) reduces what you pay for each kWh, which slightly reduces the dollar value of each kWh solar replaces.
Orientation and shade. A shaded east roof can stretch payback well beyond 20 years.
Price. Each $0.25/W difference in installed price changes payback on an 8 kW system by close to two years.

Panels are typically warrantied for 25–30 years, while inverters last roughly 10–25 years depending on type. Budget for at least one inverter replacement over the system's life. Run your own address and usage through our solar savings calculator.

When solar is probably not worth it

Your roof needs replacing within the next five to ten years and you are not prepared to re-roof first.
Most of your usable roof faces north or is heavily shaded by trees or neighbouring buildings.
You expect to move within a few years and your local market does not clearly value solar.
Your annual usage is low (under about 5,000 kWh) and cheaper measures, such as LED lighting or a price plan review, would cut your bill more per dollar.

The installation process, step by step

Site assessment. The installer reviews roof orientation, pitch, shading, structure and your electrical panel, and reviews 12 months of usage from your bills.
Design and quote. A good proposal includes a production estimate, equipment models, a single-line electrical diagram and warranty terms.
Incentive decision. Decide between net metering and any rebate before you sign. If you pursue a rebate, follow its pre-approval rules exactly.
Permits and connection. Your LDC must approve the connection. The installer obtains an ESA (Electrical Safety Authority) permit. Some municipalities also require a building permit for roof-mounted systems.
Installation. Usually one to three days on site.
Inspection and meter. ESA inspects the work; for net metering the LDC installs or reprograms a bidirectional meter. Do not switch the system on until you have permission to operate.

From signed contract to switching on typically takes one to four months, mostly waiting on approvals.

Tip: Start with efficiency. Lowering your usage first means you can buy a smaller, cheaper system. See our energy-saving tips library.

Frequently asked questions

Do solar panels work in Ontario winters?

Yes, but output is low from roughly December to February because days are short and snow can cover panels. Steeper roofs shed snow faster. Most of your annual production comes from April to September, which is why net metering's 12-month credit roll-forward is valuable.

Will solar keep my power on during an outage?

Not on its own. Grid-tied inverters shut off during outages to protect line workers. You need a battery and a suitable backup configuration to keep selected circuits running. See our home battery storage guide.

Can I get paid for the electricity I export?

Not in cash. Under net metering, exports earn bill credits that can offset future electricity charges for up to 12 months. If your system received the HRS solar rebate, exports are not credited at all.

Does solar increase my home's value?

It can, especially if the system is owned outright, well documented and still under warranty. Leased systems or systems with liens can complicate a sale. Keep your permits, ESA certificate, LDC agreement and warranties in one file for future buyers.