The True Cost of Solar Power in Canada
Thinking about going solar, but you’re not sure what the real costs and benefits are here in Canada? You’re not alone. With electricity rates climbing, new government incentives rolling out, and the benefits of alternative energy being more substantial than ever, solar is certainly one of the most impactful home upgrades you can make.
The catch is, understanding the costs of going solar isn’t as simple as looking at the price tag on the equipment. You need to consider many factors, such as installation costs, long-term savings, available rebates and tax credits, provincial differences, energy price trends, and the peace of mind that comes with having reliable backup power.
Here, we’ve compiled some of the most common questions and concerns to help break it down and make it easier than ever to understand the true cost of making the switch to solar power in Canada.
How Much Does Solar Cost Upfront in Canada?
If you’ve already done a bit of Googling before you arrived here, you’ve probably seen a rather wide range of numbers when it comes to solar power kits and equipment. It’s not unusual to see prices range from $10,000 or less to $40,000 or more for a complete solar package. Why is there such a big spread? Because the total cost depends on a few key factors.
System Size: Quite simply, bigger homes need bigger solar power systems. A small 6kW grid-tied solar system might cost around $5,500, while a 14kW off-grid solar system with batteries could cost around $20,000. Determining the estimated amount of power your home requires each month will help give you a much better idea of what to look for in terms of kW capacity.
Province: Energy prices charged by utility companies can vary significantly by region, and rates are continually showing increases year over year. The average cost for electricity in Canada (all provinces and territories) is around $0.20 per kWh. Some provinces are substantially lower (ex: Quebec is the lowest at around $0.07 per kWh for the first 40kWh per day, then increases to $0.106 per kWh) while other areas (ex: NWT is the highest at around $0.41 per kWh). Ontario, the most populous province in Canada, has an average rate of about $0.17 per kWh. Comparatively, the cost of energy produced by a 10kW solar system installed by Solar Power Store Canada breaks down to be around $0.07 per kWh.
For those who choose to handle the installation themselves, this would be closer to .04 (assuming DIY installation), and as little as $0.04 per kWh for a grid-tied package. When you consider the long lifespan of solar power systems (25+ years), this kWh savings rapidly adds up to tens of thousands of dollars, and upwards of $100,000+ over the life of the system!
Equipment Quality: Premium solar panels from well-known brands such as Longi, Thornova and Maple Leaf Power Systems, and solar inverters from SolarEdge, NEP and Fox ESS may cost a bit more upfront than cheaper alternatives, but quality matters. Choosing a higher-quality product will certainly save you more in the long term due to improved performance, greater durability, and increased efficiency. Investing in more efficient technology means your solar system can generate and store more kWh per $ of equipment costs, making the savings accumulate faster and shortening the payback period.
Labor and Permits: Different municipalities often have different permit fee structures and inspection rules, so this will affect the total cost in some cases. Actual installation labour costs can vary quite a bit, depending on the location of the installation amount of equipment to be installed. However, a reasonable estimate on this would be somewhere in the $3000-$6000 range. Of course, if you choose to install the system yourself, you can save a significant amount on the labour costs of installation.
DIY Installation: If you choose to go this route, Solar Power Store offers DIYers technical support and installation guidance you can take advantage of to ensure your system is set up properly. Plus, we can also assist with the paperwork and permitting aspects so you can focus on the more exciting “hands-on” parts of installation.
Battery Storage: Although not required in all solar installations (strictly grid-tied solar systems do not have batteries), adding battery storage may increase upfront costs by $5,000–$15,000, depending on the total capacity of the battery array. The benefits of adding a battery to your solar system are numerous, and we’ll discuss this in more detail further down.
Many homeowners choose to include battery solutions for the benefits of having stored energy available for backup use and for powering the home during peak utility cost periods, thereby providing additional payback and boosting ROI. This is referred to as ‘load shifting’, when the stored energy in the batteries is used during high-rate times, and grid power is only used as needed during lower-rate periods. Also, it’s important to remember that battery systems can also help your solar system qualify for other incentive rebate programs.
Example: In Ontario, a 7kW grid-tied system might cost about $18,000 before the rebates are applied. With federal and provincial incentives, you could see that total drop to around $13,000 when it’s all said and done. If the system included a battery system, total costs for a system of this size might end up around $23-$26k, but applying the available incentives would likely bring that number down to less than $20k.
While it might seem like a lot at first, considering solar systems are often financed, and the impact of incentives and rebates, the truth is that solar systems are much more affordable than ever. It’s wise to think of investing in solar power as pre-paying for 30+ years of electricity. The initial cost may seem big, but you’re buying decades of clean, reliable energy and cutting your monthly electric bills down to almost nothing.
What Does That Cost Include?
A solar system quote includes many different elements. Here's how the total cost usually breaks down by the types of equipment comprising the system and associated services.
· Solar panels (up to 40%) – the most visible part.
· Labour, permits & logistics (up to 35%) – all the behind-the-scenes work.
· Inverter (up to 25%) – converts solar power into usable electricity.
· Racking & mounting (Up to 15%) – supports and secures panels on your roof.
· Battery storage (up to 30%) – for hybrid and off-grid systems only, not part of strictly grid-tied systems
So, a typical $20-$25k system might include:
· $10,000 panels
· $5,500 inverter(s)
· $5,000 mounting and wiring
· $4,500 labour and permits
· If energy storage is part of the system, add approx. $10,000 for a battery array
This total value matters because some rebate programs and tax credits have minimum and/or maximum values for eligibility. It’s also important to note that some programs require batteries to be part of the system for eligibility, while in other cases, rebates may only apply for grid-tied (no battery) systems.
What Solar Power Rebates and Incentives Are Available in Canada?
Canada is rolling out some of the most generous solar incentives we’ve seen, and they are helping many Canadians quickly achieve their goals of energy independence and lower energy costs. Let’s take a look at some of the most popular incentive programs helping Canadians make the switch to solar power.
Federal Solar Incentives
Clean Technology Investment Tax Credit (for Commercial businesses): Refundable 30% of the installation cost for solar panels and energy storage for commercial applications.
Provincial Solar Incentives (Illustrative Highlights
British Columbia: Up to $5,000 for solar PV plus $5,000 for battery storage, and PST exemption.
Alberta: Municipal programs like Edmonton’s $0.50/watt rebate (max $4,000 per home), and SolarClub.ca loyalty program available for Alberta residents.
Manitoba: $500/kW rebate (up to CAD $5,000) plus Manitoba Hydro financing.
Ontario: Net metering up to 500 kW, and low-interest property-tax-incorporated loans up to $125,000 in Toronto and Ottawa, and the Save on Energy retrofit program for businesses and industrial solar applications.
Atlantic Canada (NS, NB, PEI): Rebates ranging from $200–1,000 per kW, plus Nova Scotia currently offers some of the best financing programs at just 1% over 15 years.
Territories: Generous programs in Yukon, NWT, and Nunavut to offset high installation costs.
This is just a small sample of the various programs in place across the country. To learn more about the current solar power incentives available across Canada, click here.
How Much Can I Save Long Term with Solar Power?
Solar power’s real magic comes from what you will save over time:
· Many households slash their electricity bills by 60–90%, which is the most noticeable and immediate benefit that solar power owners will realize.
· Payback periods typically range 6–11 years, depending on your province and the total size of your solar system. It's important to note that when you choose to take advantage of Solar Power Store's complete DIY support services to help guide you through the installation process, we aim for a target payback period of just 4-8 years.
· After that, electricity continues to be produced at essentially zero cost, aside from the occasional system upgrade or component replacement.
· Batteries help to reduce bills even further by allowing hybrid systems to run off battery power during peak energy rate periods, as well as helping to protect against outages and avoiding the need for generators that run off expensive gasoline.
Example 1: A 10kW system in Ontario might end up costing around $20,000, but would work to offset around $2,000 per year in utility costs, using a conservative estimate on monthly electricity charges. In addition, electricity rates have been increasing at an average of 3-4% every year. Over 25 years, that can quickly add up to nearly $100,000 saved, all for an investment of just $20,000, and that’s before rebates and incentives are applied. If you add a battery, the payback period could be even shorter, particularly if you sign up for Ultra-Low Overnight rate programs with your utility provider. The ability to leverage the load-shifting benefits of battery backup helps to cut the total payback period by a substantial amount. This more than makes the switch to solar power worthwhile for homeowners.
Bottom line: Every dollar you invest in solar potentially returns $4-$6 or more in long-term savings!
How Do Electricity Rates and Inflation Affect ROI?
· Electricity prices are rising. Many provinces have seen double-digit increases recently. Ontario, for example, raised time-of-use rates again in 2025.
· Inflation makes solar look even better. If your hydro rates climb 5% a year, your solar system’s savings escalate in proportion. If you think that's bad, then you might be even more surprised to learn that Ontario On-Peak energy rates jumped by over 25% from 15.8 (¢ per kWh) in 2024 to 20.3 (¢ per kWh) 2025.
Historical Time-of-Use Ontario Energy Rate Increases - from Jan 2022 to Nov 2025
Data from: https://www.oeb.ca/consumer-information-and-protection/electricity-rates/historical-electricity-rates
· Technology is improving. Modern panels reach 20–23% efficiency versus 14–16% a decade ago, meaning more energy—and more savings—from less roof space.
Takeaway: Even if panel prices stay steady, rising utility costs continuously speed up your ROI.
Special Electricity Plans – Ultra-Low Overnight Rates in Ontario
The Ultra-Low Overnight (ULO) program is an electricity pricing plan in Ontario, not a specific program offered by Save on Energy; however, Save on Energy offers other programs and incentives for energy-saving home improvements, such as the Energy Affordability Program and the Home Renovation Savings Program, that can help you save money on your electricity bills. To use the ULO program, you must select it from your utility provider.
The ULO electricity price plan, offered by most Ontario utilities, provides different rates for electricity depending on the time of day. These rates are set by the Ontario Energy Board. To give you a general idea of what the differences in rates are during each period in Ontario as of November 1st, 2025 (rates subject to change):
This variance in cost is intended to encourage consumers to shift their high-energy usage activities, such as charging electric vehicles or doing laundry, to the off-peak period when electricity demand and prices are lowest. BC has a similar tiered-rate plan, known as ‘Time of Use’ (TOU), that operates in the same way.
Battery storage, when incorporated as part of your home solar power system, makes it extremely easy to take maximum advantage of ULO rate programs. Using load-shifting to run off stored battery energy during peak rate times and, if necessary, topping up the batteries during ULO periods, optimizes your return-on-investment and dramatically shortens your payback timeframe.
Quite simply, the homeowner can use combined daily solar power generation and stored energy in the batteries to power the home completely independently during peak and mid-peak times. This dramatically reduces the total amount of grid consumption each day, and limits grid power consumption to only occur during ULO rate periods. As you can see, the savings are impressive!
What About Backup Power and Hybrid Systems?
Beyond savings, this is where solar delivers real peace of mind. Hybrid systems with batteries store excess solar energy for use during outages, combining the benefits of a grid-tied system with the independence of an off-grid system. With battery backup, you won't have to fear losing power to vital electronics (computers, servers) and appliances (refrigerator, furnace, AC) during blackouts and emergency power outages.
Battery Backup Power Means:
· Uninterrupted power to HVAC systems, water heaters, pumps, etc.
· Refrigeration stays on to prevent spoiled food during an extended blackout.
· If you work from home, computers and communication technology stays on.
· Medical devices and essential home appliances remain powered.
Example: A 10kW battery array has the capacity to keep your fridge, lights, and other appliances going for about 1–2 days off-grid before needing a recharge. Fortunately, batteries recharge every day during grid power outages thanks to the constant flow of energy into them from the solar panels.
Why Choose Solar Power Store?
When it comes to choosing, designing, and installing solar, you don’t have to go at it alone.
Here’s How Solar Power Store Supports You, Coast to Coast:
We’re on a mission to break the solar complexity barrier and make renewable energy accessible to all Canadians.
· Our first step is to always get a clear understanding of your power needs and the specific details of your home and/or property where the system will be installed.
Next, we generate a proposal based on a budget that will fit both your energy goals and financial targets. At Solar Power Store, this part of the process is completely FREE of charge.
When we arrive at a solar solution that meets your needs, a risk-free deposit is placed (refundable upon any rejection or reason to go over budget). Our team then takes you through the entire solar journey, from helping select the right panels, inverters, and batteries, to taking care of custom designs, line drawings, load assessments, and electrical permit diagrams.
· Once the design of the solar system is finalized, we work with you on permitting, inspections, start-up, and ongoing technical support. You can even choose how hands-on or off you want to be, and we will adapt to your desired level of involvement.
· We’re based in Barrie, Ontario, but serve Canada from coast to coast through our network of approved installers and service experts to arrange the installation of your solar system.
· Alternatively, you can choose to go the do-it-yourself route and save on the costs of installation, but that doesn’t mean you’re doing it alone. You can count on Solar Power Store’s experts to provide backup assistance every step of the way. If you have any questions or require tech support, we’re just a phone call or email away.
· We are a leading distributor of top-quality solar equipment. We stock panels, inverters, batteries, mounting systems, wiring, generators, and more, from industry-leading brands like Maple Leaf, Sol-Ark, Luxpower, Pytes, Growatt, and others.
· We provide excellent support, competitive pricing, fast shipping, and smart packing to save you money on delivery charges.
Solar Power Store is your one-stop shop, helping with equipment, design, permits, installation, inspections, financing, and support. We want it to feel simple for you to go solar. We are here every step of the way to help make the switch seamless.
Is Solar Power Worth It in Canada?
· Yes, the upfront cost can feel significant, but you're effectively buying decades of energy production.
· Yes, incentives make solar more affordable than ever.
· Yes, savings are tangible. You often double or triple your investment over a system’s lifespan.
And with Solar Power Store on your side, you get trusted gear, custom solutions, permit-ready designs, installation and inspection support, financing, and ongoing help.
Beyond ROI, solar power gives you something invaluable: energy autonomy, stability, and sustainability, all while cutting your carbon footprint and potentially increasing your home’s value.
Ready to Switch to Solar?
Here’s a simple action plan:
· Check out your roof’s orientation: south-facing, low-shade is ideal.
· Gather your hydro bills for the past year to estimate your usage.
· Visit the Canadian Solar Incentives page on Solar Power Store to explore the different benefits currently available in your area.
· Request a quote: Solar Power Store’s team will work with you to design the right system, choose equipment, and estimate savings.
· Decide whether you want to include battery storage to take advantage of additional incentives and obtain the benefits of reliable backup power.
The “true cost” of solar isn’t just a number. It’s how an upfront investment unlocks years of savings, grid independence, environmental responsibility, and peace of mind. With incentives, rising electricity rates, better tech, and a trusted partner like Solar Power Store, solar in Canada isn't just financially smart, it’s transformative.
Ready to take the next step? Let Solar Power Store help you plan your solar project, for easy and confident installation.