Installing solar panels in Ontario right now is confusing. The old federal grant is gone, a new provincial rebate has appeared, and the rules have changed. My job is to cut through that noise. This guide will break down the real costs, but more importantly, it will clarify the single biggest decision you’ll face: taking the new rebate versus using the traditional net-metering program. You can’t do both, and making the wrong choice could cost you thousands.
Canada goes Solar, and it’s time to find out if it’s the right move for your home.
What is the Average Cost of Solar Panels in Ontario?
Let’s get right to the main question: how much does a solar panel system cost in Ontario? Based on recent data, the average installation cost in Ontario for 2025 sits somewhere between $2.40 and $3.00 per watt.
So, what does that mean for a typical family home? Most households need a system between 5 kW and 10 kW to cover a good portion of their energy needs.
A 5 kW solar energy system will likely cost you between $12,000 and $15,000.
A larger 10 kW solar system will be in the range of $24,000 to $30,000.
This all-in price covers the major components, but let’s break it down. For a typical $13,500 system, the costs might look something like this:
Solar Panels (40%): ~$5,400
Inverter & Racking (20%): ~$2,700
Labor & Installation (20%): ~$2,700
Permits, Fees & Other (20%): ~$2,700
Knowing this helps you compare quotes more effectively.
Factors Affecting Solar Panel Costs in 2025
The price tag on your solar project isn’t one-size-fits-all. Several things can change the overall cost of installing solar panels.
System Size (kW): This is the biggest factor. The more power you need, the more panels you’ll have to put on your roof, and the higher the installation cost. Your energy usage, which you can find on your electricity bills, will determine the right size for your home or business.
Equipment Quality: Just like with cars or appliances, you have different tiers of quality. Premium, high-efficiency panels cost more upfront but can generate more power, especially on smaller roofs. The type of inverter you choose—either a central string inverter or individual microinverters—also affects the price and performance.
Roof Complexity: A simple, south-facing roof with a gentle slope is the ideal scenario. If your roof is steep, has multiple angles, or requires special mounting equipment, expect the labour costs to go up.
The Solar Installer: A reputable, experienced solar installer might have higher labour rates, but they also bring expertise that can save you from problems down the road. They handle the permits, ensure the work meets code, and provide solid warranties.
Tip for Getting Accurate Quotes: When you start talking to installers, make sure their quotes are “all-in.” Ask them if the price includes permit fees, engineering reports, and any necessary electrical upgrades. I’ve seen homeowners get hit with an extra 10-20% in surprise costs because the initial quote didn’t cover everything.
Comparing Installation Costs: Rooftop vs. Ground-Mounted Systems
Most residential solar panel systems are installed on the roof because it’s the most efficient use of space. However, if you have a larger property, a ground-mounted system is another option.
System Type
Pros
Cons
Best For
Rooftop
– Lower overall cost<br>- Uses existing structure<br>- Less intrusive
– Limited by roof size/angle<br>- Potential roof work needed<br>- Slightly less efficient
Most urban and suburban property owners.
Ground-Mounted
– Optimal angle for energy generation<br>- Easier to clean/maintain<br>- Can be placed for maximum sun
– Higher installation cost (trenching, foundation)<br>- Takes up yard space<br>- May have stricter permit rules
Rural homeowners with ample, unshaded land.
Generally, a ground-mounted system will cost more due to the extra labour and materials for the foundation and trenching electrical lines to the house.
How Much Can Homeowners Save by Going Solar?
Let’s talk returns. Going solar is an investment, and you get your money back by slashing your monthly electricity bills. In Ontario, the average electricity rate is around $0.13 per kWh, but this is a blended number. Your actual savings depend on your utility’s rate structure—usually Time-of-Use (TOU).
With TOU pricing, electricity costs more during peak hours (like weekday afternoons) and less overnight. The good news is that solar panels generate the most power during those expensive peak and mid-peak hours. Every kilowatt-hour your panels produce is one you don’t have to buy from the grid at the highest rates.
An average solar system in Ontario (around 7 kW) can produce about 8,000 kWh per year. At an average rate of $0.13/kWh, that’s over $1,000 in energy savings in the first year alone. As the electricity rate from power plants climbs over time, your savings will grow each year. The typical payback period for a solar energy system in Ontario is between 9 and 15 years.
How Does the Installation Process Work for Solar Panels?
Getting panels installed isn’t as complicated as you might think. A good solar installer will guide you through it, but it helps to know the roadmap.
Steps Involved in Installing Solar Systems
Consultation and Quote: You’ll talk to a few solar companies. They’ll look at your energy bills and use satellite imagery to give you a preliminary design and quote.
Site Assessment: Once you choose an installer, they’ll send someone to your home to take precise roof measurements and check your electrical panel. This confirms the final design.
Permits and Paperwork: Your installer will handle the applications for building permits and the connection agreement with your local utility. This part can take a few weeks.
Installation Day: The installation crew arrives. For an average-sized system, the work takes 1 to 3 days. They’ll mount the racking, attach the panels, and run the wiring to the inverter and your electrical panel.
Inspection and Grid Connection: An inspector from the Electrical Safety Authority (ESA) must approve the work. After that, your local utility gives the final permission to turn the system on. You are now officially using solar power!
Choosing the Best Solar Installer in Ontario
This is one of the most important decisions you’ll make. A great installation is key to a system that performs well for 25+ years.
I once helped a neighbour who was getting quotes for a solar panel system. One company was thousands of dollars cheaper than the others. It seemed like a great deal, but when we looked closer, they weren’t using licensed electricians and their warranty was vague. We ended up going with a slightly more expensive but highly reputable local company. Two years later, my neighbour’s system is working perfectly, while we heard the cheaper company had gone out of business. It’s a real-world lesson: you’re not just buying panels, you’re buying the peace of mind that comes with quality work.
Tip for Vetting Installers:
Get at least three quotes. This gives you a clear sense of the market rate.
Check for ESA/ECRA certification. This is non-negotiable. It means they employ licensed electricians.
Read reviews and ask for references. Don’t just ask if past customers are happy. Ask specific questions: ‘Was the project completed on time and on budget? How did the installer handle unexpected issues? Is the system producing what they promised?’ The answers to these questions are more revealing than a simple star rating.
Verify their insurance. They must have liability insurance and WSIB coverage.
Review the warranty. Make sure you get a warranty on both the equipment and the workmanship. A good workmanship warranty is at least 5-10 years. You can find a list of qualified professionals at the Canadian Renewable Energy Association (CanREA).
What Are the Benefits of Switching to Solar Energy?
The reasons for going solar go beyond just the financial payback. Ontario homeowners are switching to solar for a mix of environmental and practical benefits.
Environmental Impact of Solar Power
Using solar power directly reduces your home’s carbon footprint. A standard 7 kW solar panel system in southern Ontario can prevent over 4 tonnes of carbon emissions from entering the atmosphere each year. That’s like taking a car off the road. By generating your own clean energy, you’re doing your part to help Ontario move away from fossil fuels and build a more resilient grid.
Financial Incentives and Savings
This is where things get interesting for 2025. The incentive landscape has changed significantly. While the federal Greener Homes Grant is closed to new applicants, there are still programs to help with the cost of installing solar panels.
The biggest long-term benefit is locking in your energy costs. While the provincial electricity rate is expected to rise by 2-3% per year, your cost for solar energy is fixed from day one.
Are There Any Solar Incentives Available in Ontario in 2025?
Yes, but you have a major choice to make. The federal government and the province have different programs available, and they don’t always work together.
Exploring Ontario’s Home Renovation Savings Program
The province has introduced the Home Renovation Savings Program. For solar, it offers a rebate that covers up to 30% of your costs, with a maximum value of $5,000. If you pair your panels with a battery, you can get another $5,000. This is a direct, upfront reduction in the cost of your system.
Net-metering is a billing program that lets you send your surplus solar energy to the grid for a credit. On a sunny summer day, your panels may produce more power than your home is using. That excess power earns you credits, which you can use to pay for electricity you draw from the grid at night or during the winter. The credit rate is roughly equal to the retail electricity rate.
The Critical Choice: Rebate vs. Net-Metering
Let me be crystal clear, because this is the single most important financial decision you’ll make in this process. You have to choose one path: the provincial rebate OR the net-metering program. You cannot have both. Taking the upfront rebate means you give away your surplus power for free. Forgoing the rebate lets you earn valuable credits for that power.You must choose one or the other.
Option A: Take the Rebate. You get up to $5,000 off the initial installation cost. However, any surplus power you send to the grid is given away for free. This makes a battery system almost essential to store your excess energy for later use.
Option B: Use Net-Metering. You pay the full price for the system upfront, but you get full value for every kilowatt-hour of surplus energy you produce for the life of your system.
Here’s a simplified look at the financial impact of that choice for a 7 kW system (costing ~$20,000):
Metric
Option A: $5,000 Rebate
Option B: Net-Metering
Upfront Cost
$15,000
$20,000
Annual Savings (Year 1)
~$700 (self-consumption only)
~$1,100 (self-consumption + credits)
Estimated Payback Period
15+ years
10-12 years
25-Year Savings
~$20,000
~$35,000
For most people who plan to stay in their homes long-term, forgoing the rebate and using the net-metering program will result in far greater lifetime savings.
Federal Greener Homes Loan
The one program you can combine with either option is the Canada Greener Homes Loan. This program offers an interest-free loan of up to $40,000 with a 10-year repayment term. This can make the initial purchase much more manageable, especially if you choose the net-metering route with its higher upfront cost.
What Should Homeowners Consider Before Installing Solar Panels?
Before you sign any contracts, there are a few final things to evaluate to make sure your home is ready for solar.
Assessing Your Home’s Solar Potential
Roof Condition: Solar panels last for 25-30 years. If your roof is more than 10 years old, you should have it inspected. It’s much cheaper to replace shingles before the panels go on.
Sunlight Exposure: Your roof should get at least 5-6 hours of direct, unshaded sunlight per day. A south-facing roof is best, but east and west-facing roofs can also work well. You can use a tool like the SolarTO Map for Toronto to get a rough idea of your home’s potential.
Electrical System: An older home might need a service panel upgrade to handle the extra power from a solar panel system, which can add to the overall cost.
Understanding the Role of Ontario’s Electricity Grid
Even with solar panels, you will remain connected to the grid. Think of the grid as your backup and, with net-metering, your storage bank. In some rural areas across Ontario, there have been reports of delays in getting connection approval from Hydro One due to capacity issues on local feeder lines. Your installer should investigate this early in the process.
Evaluating Long-term Maintenance and Payback Period
Modern solar panel systems are very low-maintenance. Rain is usually enough to keep them clean. The main component to watch is the inverter. A string inverter typically has a warranty of 10-12 years and may need replacement during the system’s lifetime. Microinverters, on the other hand, often come with a 25-year warranty, matching the panels.
Your payback period is the time it takes for your accumulated energy savings to equal your initial investment. With the current incentives and electricity rates in Ontario, a carefully planned system can deliver a solid return and decades of clean energy.
Making the switch to solar is a big decision, but it’s one that can pay off for your wallet and the environment. The key is to go in with clear eyes, understand the numbers, and choose the right path for your specific situation.
If you have more questions, we at SolarEnergies.ca are here to help you figure it out.
Vitaliy Lano is a solar energy enthusiast with over 12 years of experience in home improvement and sustainability. His passion lies in making green living accessible and practical for everyone, breaking down complex solar options into clear, relatable insights. Whether it’s reviewing solar companies, exploring incentives, or guiding homeowners through the transition to renewable energy, Vitaliy combines expertise with a no-nonsense approach. His goal? To connect people with the right solar solutions—free from fluff and full of value. If there’s a way to make solar work better for your home and wallet, Vitaliy is the guy to show you how.
