Cost of Solar Panels in Ontario: Complete 2026 Guide
by Xolar |
In 2026, the typical Ontario homeowner who went solar with Xolar paid about $36,400 including HST, before rebates, for a 5 kW system with a 16 kWh battery, and 92% of our Ontario customers this year chose solar plus a battery. This guide shows what 73 Ontario homeowners actually signed for in 2026, our current price list, and the rebates that bring the cost down. Switching to solar energy is becoming more popular in Ontario, thanks to the environmental benefits and long-term savings. At Xolar, we help homeowners understand the costs, the installation process, and the available incentives to make switching to solar simple and affordable.
Looking for exact figures? See Xolar’s current solar panel pricing for installed costs, price per watt, and financing options across Canada.
What Ontario Homeowners Actually Paid in 2026 (Xolar Contract Data)
Price lists and national averages only go so far. Here is what Ontario homeowners actually signed for with Xolar this year, taken from the residential solar contracts we signed in Ontario between January 1 and September 26, 2026 that have a recorded price and system size (73 contracts), with 2025 (92 contracts) for comparison.
The big change in 2026: almost everyone added a battery. 92% of our 2026 Ontario contracts included battery storage, up from 48% in 2025. The typical system also got smaller, from about 9.5 kW to 5 kW (ten 500 W panels). Both changes line up with the Home Renovation Savings Program (HRSP), which added solar and batteries in January 2026. It pays $1,000 per kW of solar up to 5 kW, plus $300 per kWh of battery storage up to $5,000, and it requires the system to be sized for your own use rather than for exporting.
What Ontario homeowners paid (Xolar contracts):
| System | Contracts | Median price | Middle half paid | Approx. after HRSP |
|---|---|---|---|---|
| ~5 kW solar + one 16 kWh battery (Renon) | 35 (2026) | $36,400 | $33,400–$41,800 | $26,600 |
| ~5 kW solar + two 16 kWh batteries | 14 (2026) | $41,300 | $40,300–$42,600 | $31,300 |
| ~5 kW solar + three 16 kWh batteries | 6 (2026) | $53,400 | $44,900–$57,800 | $43,400 |
| ~10 kW solar + one Tesla Powerwall | 22 (2025) | $52,100 | $45,900–$57,700 | $43,100 |
| ~9.5 kW solar only | 48 (2025) | $39,300 | $33,100–$44,300 | $34,300, or no rebate with net metering |
Source: Xolar’s records of signed residential solar contracts in Ontario, excluding cancelled projects. Prices are contract prices including 13% HST and before rebates. “Middle half” is the 25th to 75th percentile. “After HRSP” subtracts the maximum HRSP solar and battery amounts that system would qualify for under today’s rules (2025 contracts were signed before HRSP covered solar); HRSP requires pre-approval and rules out net metering. System types with fewer than 5 contracts are not shown. Updated September 26, 2026.
What this means for you:
- The most common 2026 system, 5 kW of solar with one 16 kWh battery, had a median price of $36,400 including HST (about $32,200 before HST). With the full HRSP rebate of about $9,800, that works out to roughly $26,600.
- A second 16 kWh battery added about $5,000 at the median. HRSP’s battery rebate tops out at $5,000, so the second battery gets only about $200 more in rebate.
- Solar-only systems in 2025 were larger (about 9.5 kW) and cost a median $3.78 per watt including HST (about $3.35 before HST). HRSP didn’t cover solar until January 2026, so these were priced without it.
How Much Do Solar Panels Cost in Ontario in 2026?
On Xolar’s current price list (June 2026), solar-only systems in Ontario range from about $2.10 to $4.10 per watt before HST, with cost per watt dropping significantly as system size increases. For a typical Ontario home, a professionally installed system costs between $23,800 and $26,000 before HST and rebates. The Ontario HRSP solar rebate ($5,000) can bring that down to $18,800 to $21,000, though claiming it means the system cannot be enrolled in net metering.
Solar installations in Ontario produce an average of 1,166 kWh of electricity per year for every 1 kW installed, meaning a properly sized solar system can offset 80–100% of your electricity use (fixed delivery and account charges remain).
This comprehensive guide covers everything Ontario homeowners need to know about solar costs in 2026: pricing by system size, available rebates and financing, payback periods, net metering, and how to choose the right system for your home.
Solar Panel Costs by System Size in Ontario
The cost of solar panels depends primarily on system size, which is determined by your energy consumption, available roof space, and energy goals. Here’s what Ontario homeowners can expect to pay in 2026:
Cost Breakdown by System Size (Before Incentives):
| System Size | # of Panels | Annual Production | Cost Range | Best For |
|---|---|---|---|---|
| 5 kW | 10 | 5,830 kWh | $19,100–$20,300 | Small homes, 5,000–7,000 kWh/year usage |
| 7 kW | 14 | 8,162 kWh | $23,000–$24,900 | Smaller households, ~8,000 kWh/year |
| 8 kW | 16 | 9,328 kWh | $23,800–$26,000 | Average Ontario home (9,000 kWh/year) |
| 10 kW | 20 | 11,660 kWh | $27,200–$29,500 | Large homes, 10,000–12,000 kWh/year |
| 12 kW | 24 | 13,992 kWh | $30,100–$33,000 | Large homes with EV, heat pump, pool |
Prices are Xolar installed prices before HST and before rebates, current as of June 2026. Ranges reflect equipment choice (Growatt to SolarEdge).
What’s included in these costs: Solar photovoltaic panels, inverter(s), racking and mounting hardware, wiring, permits, professional installation, ESA inspection, and net metering application.
According to the Ontario Energy Board, the average Ontario household consumes about 9,000 kWh per year. To offset 100% of that usage, most homeowners need a 7.5–8 kW solar panel system, typically costing $23,800–$26,000 before HST and rebates.
Where your money goes (typical cost breakdown):
- Solar panels: 35–40% of total system costs
- Inverter(s): 20–25%
- Racking and mounting hardware: 20–25%
- Labour, logistics, and permits: 15–20%
Ontario Solar Incentives & Rebates (2026)
Ontario homeowners can access several programs that significantly reduce installation costs and improve the overall return on investment when installing solar panels.
Home Renovation Savings Program (HRSP), Up to $10,000
Ontario’s flagship solar incentive, launched January 2025 with solar and battery measures added January 2026, provides combined rebates of up to $10,000:
- Solar panels: Up to $5,000 ($1,000 per kW installed, up to 50% of total costs)
- Battery storage: Up to $5,000 (must be paired with a new solar PV system)
Delivered by Save On Energy and Enbridge Gas with support from the Ontario government.
Important note about net metering: Solar panels installed under HRSP must be sized for load displacement only, the electricity generated is used exclusively to meet your home’s consumption needs. Homeowners who receive the HRSP incentive for solar PV and battery storage are not eligible for a net metering agreement. You must choose one or the other, HRSP rebate or net metering, so discuss both options with your installer to determine which provides greater long-term savings for your situation.
Home Energy Loan Program (HELP), Toronto
Toronto homeowners can borrow up to $125,000 at low fixed interest rates for energy improvements including solar panels and battery storage. Repayment is through your property tax bill over up to 20 years, with no penalties for early payoff. This is one of the most generous municipal solar financing programs in Canada.
Better Homes Ottawa Loan Program
Ottawa homeowners can access low-interest, long-term loans for energy-efficient upgrades including solar installations. Zero-interest options are available for qualifying low-income households.
Enbridge Home Efficiency Rebate Plus
The former Home Efficiency Rebate Plus (HER+) program closed to new applicants in February 2024. It was replaced by the Home Renovation Savings Program (HRSP) described above, delivered by Enbridge Gas and Save on Energy. HER+ is no longer a separate rebate and cannot be stacked with HRSP.
Durham Greener Homes Deep Retrofit Rebate
Durham Region homeowners could earn up to $5,000 (up to $10,000 for Whitby residents) for deep retrofits that cut modelled home energy use by 50% or more, with a minimum project cost of $30,000. Status update (verified September 2026): the Durham Region portion of this rebate is now fully subscribed and closed to new applicants; Whitby’s own Deep Retrofit Rebate remains open to Whitby residents. Solar installations can qualify as part of a comprehensive retrofit package.
Federal Programs (Status Update)
Canada Greener Homes Loan, ENDED: The $40,000 interest-free federal loan program closed to new applications on October 1, 2025. Over 120,000 loans were issued before closure. No replacement program has been announced.
Canada Greener Homes Grant, ENDED: The $5,000 grant for energy-efficient retrofits closed to new applicants in 2024.
Clean Technology Investment Tax Credit (ITC): Businesses investing in clean energy equipment (including solar photovoltaic systems) may be eligible for a 30% refundable tax credit. Consult a tax professional for commercial solar installations.
Net Metering in Ontario: How It Works
Ontario’s Net Metering program allows homeowners to generate their own electricity using solar panels and receive credits on their electricity bills for any excess power they produce. The program is governed by Ontario Regulation 541/05 and administered by your local utility, available to customers of any Ontario utility, including Hydro One, Toronto Hydro, Alectra, and others.
How net metering works:
- Your solar panels generate electricity during daylight hours
- Energy you use immediately offsets your grid consumption
- Excess energy flows to the grid and earns you 1:1 credits at the retail electricity rate
- Credits carry forward on your electricity bills for up to 12 months
- Unused credits expire after 12 months (they don’t roll over indefinitely)
Why this matters for system sizing: Since Ontario credits expire annually, it doesn’t make financial sense to dramatically oversize your solar system. The goal is to match your solar production as closely as possible to your annual electricity consumption. Your installer should size your system based on your actual usage history.
Net metering systems in Ontario are limited to 500 kW, more than enough for any residential solar installation.
Note: Homeowners who receive the HRSP solar incentive are not eligible for net metering. The HRSP program requires systems to be designed for load displacement only.
Ontario Electricity Rates & Why Solar Makes Sense
Ontario’s electricity costs have been rising steadily, making solar energy increasingly attractive for homeowners looking to reduce their electricity bills and build long-term energy savings.
Current Ontario Rate Plans:
Time-of-Use (TOU) Rates (OEB, November 2025 to October 2026):
- Off-Peak: 9.8¢/kWh
- Mid-Peak: 15.7¢/kWh
- On-Peak: 20.3¢/kWh
Ultra-Low Overnight (ULO) Rate Plan (available province-wide since 2023):
- Ultra-Low Overnight (11pm–7am): 3.9¢/kWh
- Weekend Off-Peak: 9.8¢/kWh
- Mid-Peak: 15.7¢/kWh
- On-Peak (4pm–9pm weekdays): 39.1¢/kWh
Why the ULO plan is a game-changer for solar owners: With TOU or ULO billing, your solar panels produce power during the most expensive daytime hours, earning you credits at peak rates. You only draw from the grid at night during the lowest-rate periods. This rate structure makes solar installations in Ontario particularly advantageous compared to flat-rate billing provinces.
A solar system paired with battery storage lets you take even greater advantage of the ULO plan by storing daytime solar power and using it during the on-peak evening hours (39.1¢/kWh), while buying grid electricity only during ultra-low overnight hours (3.9¢/kWh).
OEB regulated rates rose nearly 30% in November 2025, and rates are expected to continue rising. Installing solar panels locks in your energy costs for 25+ years, providing long-term protection against increasing electricity bills.
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Payback Period for Solar Panels in Ontario
The payback period, how long it takes for energy savings to cover your installation costs, is the most important financial metric for any solar investment.
Payback in Ontario varies widely by household
This varies based on:
- System size and cost, larger systems cost more but produce more savings
- Your electricity consumption, higher usage = faster payback
- Rate plan, TOU and ULO plans provide better economics for solar
- Incentives applied, HRSP, HELP, or other programs reduce upfront costs
- Self-consumption ratio, using solar power directly (vs. exporting) saves more
Why we don’t quote a single payback number: taking the HRSP rebate reduces upfront cost by up to $10,000 but rules out net metering, while choosing net metering means no upfront rebate but 1:1 credits for everything you export. Your rate plan (TOU or ULO), electricity usage, and self-consumption ratio shift the math by years. Xolar provides a customized payback estimate with every quote, based on your actual usage history and current OEB rates.
After the payback period, your solar panel system continues generating free electricity for many years or decades, leading to significant long-term savings of $30,000 to $60,000+ over the system’s lifetime.
Important: This calculation does not include the increase to property value that homes receive from installing solar. Zillow research found homes with solar sell for 4.1% more on average, about $20,500 on a $500,000 home.
Battery Storage Costs in Ontario
Adding battery storage to your solar installation provides backup power during outages and lets you maximize savings by storing excess solar power for evening use.
Battery storage costs in Ontario:
- Tesla Powerwall 3: adds roughly $14,300–$18,000 before HST vs an equivalent solar-only system (13.5 kWh capacity)
- Solis inverter + Renon battery: adds roughly $8,100–$10,900 before HST vs an equivalent solar-only system
- Total solar + battery system: $30,000–$46,300 before HST for typical 5–12 kW systems
HRSP battery rebate: $300 per kWh of storage, up to $5,000, for a battery paired with a new solar PV system. One 16 kWh Renon battery qualifies for about $4,800. This brings the net battery cost premium to roughly $4,700–$12,000 depending on battery choice and system size. For what Ontario customers actually paid for solar + battery systems in 2026, see the contract data above.
Battery storage is not required for a grid-connected solar installation, but it’s increasingly popular for Ontario homeowners who want energy independence during power outages or who want to maximize TOU/ULO rate arbitrage.
Xolar systems are designed to be battery-ready, you can start with solar panels alone and add battery storage later without major modifications. Many customers start with solar and add batteries 1–2 years later after seeing their energy production patterns.
Panel Types & Equipment Quality
The solar panels, inverters, and mounting equipment you choose affect system performance, longevity, and cost. Here’s what Ontario homeowners need to know:
Solar Panel Types:
| Panel Type | Efficiency | Cost | Lifespan | Best For |
|---|---|---|---|---|
| Monocrystalline | 18–22% | Higher | 25–30 years | Maximum production per sq ft, limited roof space |
| Polycrystalline | 15–18% | Lower | 25 years | Budget-friendly, larger roof areas |
| Thin-Film | 10–13% | Lowest | 20–25 years | Flexible installations, less common residential |
Most Ontario solar installations use monocrystalline panels, they deliver the best long-term value with higher energy efficiency and production, backed by 25-year performance warranties. Leading brands installed by Xolar include premium manufacturers with strong warranty track records and panels rated for Canadian winter conditions.
Inverter options:
- String inverters: Single device near your electrical panel, 10–15 year warranty
- Microinverters: One per 1–2 panels, 25-year warranty, better for shaded roofs
- Optimizers + string inverter: Best of both worlds, panel-level optimization with 25-year warranty
Spending more on a 25-year inverter warranty upfront saves you a guaranteed replacement cost down the road, matching the lifespan of your solar panels.
Permitting & Additional Costs in Ontario
Beyond the solar panel system itself, there are a few additional costs to factor into your budget:
Municipal permits: Costs vary by municipality in Ontario. Examples:
- Toronto: Minimum $206.53 + $89.22/hr for examination and inspection
- Hamilton: Minimum $291 for residential solar installations
- Niagara Falls: Flat fee of $371
- Other municipalities: Typically $200–$500
ESA (Electrical Safety Authority) inspection: Required for all grid-connected solar installations in Ontario. Usually handled by your installer.
Utility connection fee: Your local distribution company (LDC) may charge a fee to process your net metering application and install a bi-directional meter.
HST: Ontario’s 13% Harmonized Sales Tax applies to solar panel purchases and installation. While there isn’t a specific HST rebate for solar, homeowners may be eligible for the Ontario Energy and Property Tax Credit (OEPTC).
Home insurance: Solar panels increase your home’s replacement value, which may lead to slightly higher insurance premiums ($75–$150/year additional). Notify your insurance provider when you install solar and keep documentation on file.
Good news: Xolar’s quoted prices include professional installation, engineering and design, all required permits, ESA inspection, and net metering application assistance. We provide transparent, all-in pricing with no hidden fees.
System Sizing Guide for Ontario Homes
Choosing the right solar system size is critical for maximizing your return on investment. Here’s how to determine what you need:
Step 1: Find your annual electricity consumption Check your electricity bills for the past 12 months. Add up the total kWh usage. The average Ontario home uses approximately 9,000 kWh per year.
Step 2: Calculate your required system size Divide your annual consumption by 1,166 (the average kWh production per kW installed in Ontario):
- 7,000 kWh ÷ 1,166 = 6.0 kW system
- 9,000 kWh ÷ 1,166 = 7.7 kW system
- 12,000 kWh ÷ 1,166 = 10.3 kW system
Step 3: Factor in future needs Planning to buy an electric vehicle• Add a heat pump• Growing family• Size your system (or at least your inverter) to accommodate future electricity consumption increases.
Step 4: Assess your roof South-facing roofs produce the most solar energy in Ontario. East and west-facing roofs produce ~80% of optimal. North-facing roofs are generally not suitable for solar. Flat roofs work well with tilted mounting systems.
Xolar provides a free energy assessment to recommend the perfect solar system size for your specific home, roof, and energy goals.
Frequently Asked Questions
Q: How much do solar panels cost in Ontario in 2026? A: In 2026, the most common Xolar system in Ontario was 5 kW of solar with one 16 kWh battery, at a median contract price of $36,400 including HST, before rebates (35 contracts), or about $26,600 after the full HRSP rebate. For solar only, our current price list runs about $2.10 to $4.10 per watt before HST; a typical 8 kW system is $23,800–$26,000 before HST, or $18,800–$21,000 after the $5,000 HRSP solar rebate, though claiming HRSP means the system cannot use net metering.
Q: What solar rebates are available in Ontario in 2026? A: The Home Renovation Savings Program (HRSP) provides up to $10,000 ($5,000 solar + $5,000 battery). Toronto’s HELP program offers loans up to $125,000. The former Enbridge HER+ rebate closed in 2024 and was folded into HRSP. The federal Greener Homes Loan ended October 2025.
Q: How long do solar panels take to pay for themselves in Ontario? A: It varies widely with your electricity usage, rate plan, and whether you choose the HRSP rebate or net metering (you cannot have both). After the payback period, your panels keep producing essentially free electricity for decades. Xolar includes a personalized payback estimate with every quote, based on your usage history and current OEB rates.
Q: Do solar panels work in Ontario winters? A: Yes. Solar panels produce electricity year-round, even in winter and on cloudy days. Cold temperatures actually improve panel efficiency. But winter output is much lower than summer: a December typically produces a fraction of what a June does, and snow on the panels stops production until it slides off. Annual production estimates already account for this, and net metering credits earned in sunny months carry forward for up to 12 months to cover winter bills.
Q: Should I choose HRSP rebate or net metering? A: This depends on your situation. HRSP provides $5,000–$10,000 in upfront savings but requires load-displacement-only sizing (no exporting). Net metering lets you earn credits for excess energy year-round but doesn’t provide upfront rebates. For most homeowners with moderate energy usage, HRSP + battery provides the best total savings. Discuss both options with your Xolar solar specialist.
Q: Can I add battery storage later? A: Yes, all Xolar solar installations are designed to be battery-ready. You can add a Tesla Powerwall or other battery storage at any time without major modifications. Many customers start with solar panels and add batteries 1–2 years later.
Q: How much can I save with solar panels in Ontario? A: A typical 10 kW net-metered system in Ontario produces about 11,700 kWh a year. At current Time-of-Use prices that is worth roughly $1,500–$1,750 in the first year, rising as electricity rates rise. Over 25 years, assuming rates rise 3% a year, that adds up to roughly $55,000–$64,000. Your own figure depends on your usage, your rate plan, and whether you take the HRSP rebate or net metering. Zillow research has associated solar homes with higher sale prices on average; results vary by market.
Q: What happens to my solar panels if I sell my home? A: Solar panels are a physical asset that increases your home’s value. The net metering agreement is between the utility and the account holder, so the buyer sets it up with the local utility when they take over the electricity account. We recommend selling the system with the house to maximize your return on investment.