Solar panels work in Canada, including in winter, and they can cut what you buy from the grid for decades. They also cost real money up front, produce far less in December than in June, and make more sense in some provinces and on some roofs than others. Here are the advantages and disadvantages, with sources, so you can judge your own home.
Quick answer: The main pros of solar energy are lower electricity bills, protection from rising rates, a long-lasting system with a 25-year panel warranty, rebates and net metering in most provinces, and cleaner power, especially where the grid runs on gas or coal. The main cons are the upfront cost, lower output in winter and at night, the need for a suitable roof, rebate rules that can limit net metering, and a smaller carbon benefit in provinces that already have clean hydro or nuclear power.
Key takeaways
- Cold isn’t the problem; daylight is. Snow costs less than you’d think: NAIT measured about 3% a year in Edmonton. Short winter days are the real limit.
- Panels last. Measured output loss is about 0.5% a year (the median across thousands of measurements reviewed by NREL).
- The upfront cost is the biggest con. Rebates and low-interest loans reduce it. See current prices on our pricing page.
- The carbon benefit depends on your province. It’s large in Alberta, where the grid produced 470 g CO2e/kWh in 2022, and much smaller on Canada’s hydro- and nuclear-heavy grids.
- Read the rebate rules. In Ontario, homes that take the HRSP solar rebate can’t sign a net-metering agreement.
- Roof and shade decide more than the province does. A south-, east- or west-facing roof with little shade matters more than which province you live in.
Want numbers for your home? Try the solar panel calculator, or see rebates in your province.
The advantages of solar energy
1. Lower electricity bills
Every kilowatt-hour your panels produce and you use is one you don’t buy from your utility. With net metering, power you export during the day can earn a credit against power you use at night or in winter. How much that saves depends on your rates, your usage and your roof. Our solar calculator estimates it for your home instead of quoting a national average.
2. Protection from rising rates
Once the system is paid for, the power it makes doesn’t follow utility rate increases. That matters more in provinces with time-of-use pricing. In Ontario, on-peak hours are the most expensive, and they fall during the day when panels produce. See Ontario’s TOU and ULO rates.
3. A long-lasting system
Solar panels have no moving parts. Across nearly 2,000 measured degradation rates, NREL found a median loss of about 0.5% of output per year. A 2023 NREL field study of 834 modules found about 0.6% a year. Xolar installs panels with a 25-year panel warranty.
4. They work in Canadian winters
Snow slides off tilted panels. In a five-year study on its Edmonton campus, NAIT found snow cost only about 3% of annual production, against an industry assumption of 20%. Panel tilt mattered more than snowfall.
5. Rebates, loans and net metering
Most provinces offer some help:
- Ontario: Home Renovation Savings Program rebates of up to $5,000 for solar and $5,000 for a battery. See Ontario solar rebates.
- Alberta: municipal Clean Energy Improvement Program (CEIP) loans. See Alberta solar rebates.
- Net metering: available from most utilities. See net metering by province.
Programs open and close often, so check the rebates page for what’s open now.
6. Cleaner power, especially in Alberta
Solar panels make electricity without burning fuel. The benefit is biggest where the grid is carbon-heavy. Alberta’s grid averaged 470 g CO2e per kWh in 2022, while Canada’s as a whole was about 110 g in 2020 (Canada Energy Regulator).
7. Backup power, with a battery
Pairing panels with a home battery keeps essential circuits running during an outage, which grid-tied panels alone can’t do (see disadvantage 3).
The disadvantages of solar energy
1. Upfront cost
This is the biggest drawback. A home system is a large purchase even after rebates. Current prices per watt are on our pricing page. Low-interest loans such as Toronto’s HELP and Alberta’s CEIP spread the cost, but not every municipality offers one, and several Alberta CEIP programs are full or waitlisted.
2. Less power in winter and none at night
Canadian winters have short days and a low sun, so a system makes much less in December than in June. With net metering, summer surplus credits can offset winter bills. Without it, you’ll still buy more grid power in winter.
3. Grid-tied panels shut off in an outage
For safety, a standard grid-tied system stops producing when the grid goes down. Backup power needs a battery and the right inverter, which adds cost.
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4. Not every roof suits solar
Heavy shade, a small or steep north-facing roof, or a roof that’s due for replacement soon can make solar a poor fit. If the roof needs work within a few years, it’s usually cheaper to do it before the panels go on.
5. Rebate rules can limit net metering
In Ontario, homes that take the HRSP solar rebate can’t sign a net-metering agreement. The system is meant to cover your own use rather than export for credits. Depending on your usage, the rebate or net metering may be worth more, but you can’t have both.
6. A smaller carbon benefit on clean grids
In provinces whose grids are mostly hydro or nuclear, home solar displaces power that’s already low-carbon. There the case is mostly about the bill, not emissions.
7. Programs change
Rebates and net-metering terms change with governments and utilities. Treat any article, this one included, as a starting point, and confirm current terms before you sign.
Pros and cons at a glance
| Pros | Cons | |
|---|---|---|
| Cost | Lower bills; protection from rate rises | High upfront cost |
| Climate | Works in winter; snow costs about 3% (NAIT) | Short winter days, no output at night |
| Lifespan | About 0.5%/yr output loss (NREL); 25-year panel warranty | Roof may need work first |
| Incentives | Rebates, loans and net metering in most provinces | Rules change; Ontario’s rebate excludes net metering |
| Environment | Large benefit on carbon-heavy grids | Smaller benefit on hydro and nuclear grids |
| Outages | Backup power with a battery | Panels alone shut off in an outage |
Is solar worth it for your home? A checklist
Solar tends to make sense when most of these are true:
- Your roof faces roughly south, east or west, with little shade.
- Your roof won’t need replacing in the next several years.
- You plan to stay in the home for years, not months.
- Your utility offers net metering, or a rebate you qualify for.
- Your electricity bills are significant year-round.
If several aren’t true, solar may still work, but it’s worth getting a site-specific estimate first. Get a free quote and we’ll tell you honestly if your roof isn’t a good fit.
Frequently asked questions
What is the biggest disadvantage of solar energy?
The upfront cost. Rebates and low-interest loans reduce it, and current prices are on our pricing page.
Do solar panels work in Canadian winters?
Yes. Snow cost only about 3% of annual production in NAIT’s five-year Edmonton study. Shorter days are the bigger winter factor.
How long do solar panels last?
Panels lose about 0.5% of their output per year on average (NREL), and Xolar’s panels carry a 25-year panel warranty.
Do solar panels work during a power outage?
Not on their own. Grid-tied systems shut off for safety. You need a home battery for backup power.
Can I get a rebate and net metering together?
It depends on the province. In Ontario, homes that take the HRSP solar rebate can’t sign a net-metering agreement.
Is solar better for the environment in every province?
Solar is low-carbon everywhere, but the benefit is biggest where the grid burns gas or coal, as in Alberta (470 g CO2e/kWh in 2022), and smaller on hydro- and nuclear-heavy grids.
Sources
- NAIT, Solar panels shine despite winter’s blast, July 12, 2018.
- Jordan, D. and Kurtz, S., Photovoltaic Degradation Rates: An Analytical Review, NREL.
- NREL, fielded PV module degradation study, 2023.
- Canada Energy Regulator, Provincial and Territorial Energy Profiles.
- Home Renovation Savings Program, Solar panels and battery storage.
Related: How many solar panels do I need? · How solar affects home value · What is a solar panel?
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