Going Solar in Ontario in 2026
Ontario is one of Canada's largest solar markets, with hundreds of thousands of homes already powered by solar energy. Ontario homeowners benefit from favorable net metering rules and no HST on residential solar installations.
Note: The federal Canada Greener Homes Grant (closed February 2024) and Canada Greener Homes Loan (closed October 2025) are no longer accepting new applications. Ontario homeowners can still benefit from the HST exemption on solar, Hydro One net metering, and local distribution company programs.
Below are the Ontario solar incentives and rebates that may benefit you.
Ontario Electricity Market
Primary utilities: Hydro One, Toronto Hydro, Alectra & local LDCs
Ontario's electricity grid is managed by the IESO and delivered through 60+ Local Distribution Companies (LDCs). Hydro One serves rural and suburban areas; Toronto Hydro, Alectra Utilities, and Entegrus cover major cities. Time-of-use (TOU) rates in 2026 often peak above $0.15/kWh on-peak, making midday solar generation especially valuable.
Ontario homeowners benefit from a full GST/HST exemption on residential solar PV — effectively a 13% discount on the entire installed cost. A typical 8 kW Ontario system ($22,000–$28,000 before tax savings) can reduce annual grid purchases by $1,400–$2,200 in the Greater Toronto Area depending on TOU optimization and system size.
Ontario Solar Incentives, Rebates, And Benefits
Canada Greener Homes Grant (Closed Feb 2024)
The Canada Greener Homes Grant closed to new applications in February 2024 (program ran May 2021–February 2024). No new applications are being accepted. Existing approved applicants may still complete their claims. Visit NRCan.gc.ca for information on any successor federal programs.
Canada Greener Homes Loan (Closed Oct 2025)
The Canada Greener Homes Loan closed in October 2025 (final application deadline was January 20, 2026). No new applications are being accepted. Visit NRCan.gc.ca for information on any successor federal financing programs.
No HST on Residential Solar (13% Savings)
The federal government exempts residential solar PV systems from GST/HST — a 13% saving on the full installed cost in Ontario. On a $25,000 system, that is roughly $3,250 in automatic tax savings with no application required beyond using a registered installer.
Net Metering Through LDCs
Ontario's Local Distribution Companies (LDCs) including Hydro One, Toronto Hydro, and others all offer net metering for residential solar owners. Excess generation is credited at the commodity price, rolling forward monthly to offset future consumption.
Ontario Net Metering
Ontario's net metering regulation requires all licensed electricity distributors to offer net metering to residential customers with solar systems up to 500 kW. Excess generation credits accumulate monthly and are settled at the end of the 12-month billing period. Ontario has one of the most established net metering frameworks in Canada.
Additional Ontario Solar Programs
Ontario Electricity Rebate
Ontario's Electricity Rebate reduces electricity bills for all residential customers, but solar owners who reduce their grid consumption benefit most since they pay the effective post-rebate rate on any net consumption while generating their own power.
Time-of-Use Rate Optimization
Ontario's time-of-use electricity pricing can be strategically combined with solar generation. By shifting consumption to off-peak periods and using solar during on-peak hours, Ontario homeowners can maximize savings beyond simple net metering alone.
Ontario Solar Incentives — At A Glance
Ontario offers an excellent solar environment with established infrastructure, HST exemption, and province-wide net metering. Average payback periods for Ontario homeowners range from 8 to 12 years, after which electricity is effectively free.
Ontario Solar FAQ
Is there an Ontario solar rebate in 2026?
Ontario does not currently offer a provincial cash rebate for residential solar. The strongest automatic incentive is the federal GST/HST exemption (13% savings). Net metering through your LDC remains the primary ongoing financial benefit.
How does net metering work with Hydro One or Toronto Hydro?
Your LDC credits excess solar generation against your consumption on a monthly rolling basis, settling annually. Credits apply to the commodity portion of your bill. Systems up to 500 kW qualify under Ontario Regulation 541/05.
Does solar increase my property taxes in Ontario?
Ontario assesses property values including solar, but the annual tax impact is typically modest compared to electricity savings. Many homeowners find bill reductions of $1,400+ per year far outweigh any assessment change.