Solar Panel Incentives and Rebates in Canada

Solar Panel Incentives and Rebates in Canada

By Renogy
renogys blog Jul 8th 2021

Solar Panel Incentives and Rebates in Canada

Solar power is a cost-effective renewable energy source that only continues to grow in popularity.

Solar power systems not only reduce your ongoing energy costs, but they can also be cheaper to install than you might think. Solar incentives in Canada could help you save thousands of dollars off the cost of your solar installation through solar financing and subsidies.

Making the switch to solar power offers many long-term benefits for the environment, as well as ongoing cost savings. Solar panels are low maintenance, and the initial solar setup is the primary investment.

Solar panel installation does come with upfront hardware and installation costs which can be daunting. Luckily, the Canadian government and provinces offer some incentives so homeowners can reduce the initial cost of installing solar power systems.

There are several solar panel incentives available in Canada to encourage residents to switch to solar power. We'll break down how solar financial incentives work in Canada and how to find them.

How do solar incentives work in Canada?

Canada-Wide Programs

Canadians can benefit from ongoing electricity savings and up-front financial rewards when switching to solar power. Incentives differ across Canadian provinces because some provincial governments have not yet committed to carbon pollution pricing systems.

Solar incentives in Canada by Province

Alberta Incentives

Alberta has several incentives to encourage residents to install solar PV systems. Alberta also gets more sunshine than almost anywhere else in Canada, making it an ideal location to switch to solar power. The following incentives are available in Alberta. There are also additional incentives available specific to the towns of Medicine Hat, Banff, and Edmonton.

  • Net-Metering in Alberta: Alberta Micro-Generation Regulation allows for annual net-metering of systems up to 5 MW.
  • Alberta Solar for Schools Program: Kindergarten through grade 12 schools are eligible for a rebate. The rebate equates to $1.50/Watt for systems up to 10kW. This goes down to $1.00/Watt with large systems between 2 and 5 MW in size.
  • Alberta Municipal Program: Alberta Municipalities can also apply for solar rebates on installed solar PV through the Municipal Program. Homeowners can get up to 30% of the installed cost back as rebates. Rebates are $0.90/Watt for 10kW, going down to $0.55/Watt for systems two to five MW in size. First-time rebate applicants are also eligible to apply for an additional $0.25/Watt rebate.
  • Manitoba Incentives

    Although Manitoba is one of the sunniest provinces of Canada, it, unfortunately, does not offer regular net metering. However, there is one loan incentive available.

  • Manitoba Residential Earth Power Loan: Year-round, Manitoba residents can borrow between $500 to $30,000 to install solar photovoltaic panels with no down payment.
  • British Columbia Incentives

    Residents in British Columbia can take advantage of the following solar rebates.

  • Net-Metering & BC Hydro: British Columbia has annual net-metering for residential and commercial customers.
  • British Columbia Regional District of Nanaimo Renewable Energy System: This is a $250 incentive that enables homeowners in the District of Lantzville and RDN Electoral Areas to save when upgrading to energy-efficient technology in their homes.
  • BC PST Tax Exemption: This is a provincial sales tax exemption on renewable energy system equipment. This solar tax exemption applies to solar panels, wiring, charge controllers, and inverters.
  • New Brunswick Incentives

    New Brunswick has several cost-saving incentives for both homeowners and commercial businesses. These incentives are:

  • New Brunswick Power Net-Metering Program: Annual net-metering is available with renewable solar energy resources that do not exceed 100 kW.
  • New Brunswick Energy Smart Commercial Buildings Retrofit Program: This program provides financial incentives for solar energy upgrades in commercial buildings. The program offers up to $3,000 for an energy audit evaluation of a commercial building. Additionally, up to $75,000 is available towards the costs of the energy retrofitting project.
  • New Brunswick Total Home Energy Savings Program: This solar program pays residents between $0.20 and $0.30 per Watt of solar PV installed in their homes.
  • Newfoundland & Labrador Incentives

    Although Newfoundland and Labrador are not the sunniest spots in Canada, they do have high electricity rates. The high cost of electricity makes switching to solar power an attractive option. However, the province only offers net metering as a financial incentive. NL Hydro offers annual net-metering up to 100 kW.

    Northwest Territories Incentives

    Both Northland Utilities and Northwest Territories Power Corporation offer net metering in the Northwest Territories.

  • Northwest Territories Net-Metering: NWT residents can take advantage of net metering with solar energy generators up to 15 kW in size.
  • Northwest Territories The Alternatives Energy Technology Program (AETP): The Arctic Energy Alliance program assists NWT residents and businesses in integrating solar energy technologies. AEA will fund up to half the cost of qualified systems up to a maximum of $20,000 for homeowners or $50,000 for businesses, governments, or indigenous peoples.
  • Nova Scotia Incentives

    Nova Scotia is one of the best places in Canada to switch to solar power. This province is currently offering both net-metering and an additional solar installation incentive:

  • Nova Scotia Enhanced Net-Metering: Annual net-metering program allows for systems up to 100 kW in size.
  • Nova Scotia SolarHomes Rebate: This is one of the best solar rebates currently available in Canada! The current rebate is $0.85/Watt for eligible solar PV systems. This solar rebate will equate to around 30% of the cost of most systems.
  • Nunavut Incentives

    Nunavut has very high electricity prices that can make the switch to solar power well-worth it, even though it's not the sunniest part of the country. These rebates can help ease the costs of installation:

  • Nunavut Net-Metering: Annual net-metering is available for solar panel systems up to 10 kW in size.
  • Nunavut Home Renovation Program: This comprehensive assistance program provides Nunavut residents with financial, program, and technical assistance to carry out energy efficiency upgrades to their homes. The aid comes as a forgivable loan of $50,000, with an extra $15,000 available for energy efficiency upgrades.
  • Ontario Incentives

    Ontario only offers net-metering to its residents and no other solar rebates. The net-metering initiative applies to renewable energy generators up to 500kW or less. Strict rules make it difficult and expensive to connect solar power systems over 10 kW to the grid in Ontario, meaning parts of Ontario are currently "grid constrained."

    Prince Edward Island Incentives

    Prince Edward Island only offers annual net-metering for residents and no other rebates. Net-metering is provided through the Renewable Energy Actfor solar power systems up to 100 kW in size.

    Quebec Incentives

    Most of Quebec's electricity comes from hydropower, but it's still a great place to switch to solar with the following incentives:

  • Hydro-Quebec Net-Metering: Quebec's net-metering option allows for solar power generation up to 50 kW. Quebec's net metering system is one of the best in the country.
  • Quebec Heating with Green Power: Financial assistance is available to property owners to replace fossil-fueled home heating or water heater systems with other renewable energy sources.
  • Saskatchewan Incentives

    Saskatchewan is the sunniest place in southern Canada, making it a great spot for switching to solar power. Unfortunately, Saskatchewan has some of the worst solar incentives. There used to be more incentives available in Saskatchewan, but the following two are all that remains:

  • Net Metering Program: Residents, farm owners, and businesses can apply for net metering of solar power systems of up to 100 kW of generating capacity.
  • Saskatchewan Solar or Wind-powered Water Pump Grant for Farms: Local utility provider SaskPower will offer farms a grant of 50% of costs above $500 toward the purchase and installation of solar or wind-powered water pumping systems. This grant pays out a maximum of $500.
  • Yukon Incentives

    Yukon does not offer net metering. However, there are other incentives available.

  • Yukon Micro-Generation Program : While not quite net-metering, this program is similar as it pays for the overproduction of solar energy at decent rates.
  • Yukon Good Energy Residential Incentives Program: This program offers an incentive to reduce installation costs for residential renewable energy systems. The Good Energy Residential Incentives Program offers an $0.80 per Watt rebate up to a maximum of $5,000 per solar power system per year.
  • Climate Action Incentive Fund

    A federal incentive known as the Climate Action Incentive Fund is available for residents in Saskatchewan, Ontario, Manitoba, and New Brunswick. The funding for this Climate Action program comes from the carbon tax because the provincial governments in these areas have not committed to carbon pollution pricing systems.

    The Climate Action Incentive Fund provides rebates to residents of up to 25% of their solar project cost, which can range from $20,000 to $250,000. Various energy efficiency upgrades are eligible for this rebate, including hydro, solar PV, and wind power generation. Solar power is usually the most straightforward and most accessible of these green energy options.

    Financing through solar installers

    Solar panel systems can have a lifespan of around 25 years, so it's natural to want to spread out the installation cost. Compared to the United States, Canadian homeowners have far fewer financing options available for solar installations.

    Property Assessed Clean Energy (PACE) Financing

    Property Assessed Clean Energy (PACE) Financing originated in California and has since been adopted by several Canadian municipalities. PACE allows property owners to finance solar panel kits and other clean energy retrofits through their annual property taxes.


    Across many Canadian provinces, the electricity produced from solar panels is less expensive or on par with electricity costs from the local electricity provider. You can use our solar panel calculator to estimate your energy consumption and solar power usage.

    Electricity prices continue to increase, while the cost of installing solar power has reduced. By switching to solar power now you can take advantage of early adopter solar financing incentives and watch your savings increase even further over the 25-year lifespan of your solar power system.