Solar Generated Electricity Rebates and Incentives in Canada

Solar power is on the rise in Canada and globally. Affordable PV modules make solar panels are cost-effective, offsetting electricity prices. The value of reducing carbon footprint has surged due to climate concerns. Provincial governments incentivise solar adoption, offering financial and environmental benefits. Specific incentives and rebates vary by province. By seizing these opportunities, Canadians can switch to solar power for financial and environmental gains, contributing to a sustainable and greener future.

We try to keep this page up-to-date, but with so much happening in renewable energy in Canada some of the information will inevitably no longer be accurate. If you know of any changes, please let us know so we can keep this page relevant.

Federal Incentives

Get them while they last! In some provinces the federal incentives are the only thing going, and as we know these are only a change in government from disappearing again.

The Canada Greener Homes Grant

A $5,000 grant is available to home owners to make their house more energy-efficient, and this includes solar PV. The process involves getting an energy audit done beforehand, which identifies areas of improvement (and that means you have to inform the auditor that you are planning on adding solar PV), then implementing one or more of those improvements, and finally a second audit that lists what has been done. Besides the $5,000, another $600 is available to cover the costs of the energy audits.

In addition to the $5,000 grant, the federal government also makes an interest-free loan of up to $40,000 available for energy efficiency upgrades, including solar PV! With a term of 10 years and 0% interest this is too good to pass up.

Provinces/Territories Quick Overview

Ontario Incentive

Ontario Net-Metering

Electricity consumers in Ontario may take advantage of the net-metering initiative with renewable energy generators up to 500kW or less. Net metering allows Ontarians to send excess electricity to the distribution system for a credit toward energy costs. Once you’re connected to the distribution system, your local distribution company will continue to read your meter just as they do now and then subtract the value of electricity you supply to the grid from the value of what you take from the grid. What you’ll see on your bill is the “net” difference between these two amounts. Credits can be used up within one year, any remaining credits after that are reset to zero (i.e. you give them away to the electrical company).

Important Notes

Connecting systems over 10 kW to the grid becomes more challenging and costlier due to regulations. Residential use has a practical limit of 10 kW for solar PV (inverter size matters). Moreover, several areas in Ontario face grid constraints, reaching the 7% renewable source limit set by providers like Hydro-One. Consequently, new renewable energy systems cannot connect to the grid in those regions.

Manitoba Incentives

Manitoba Customer Owned Generation

Though it is one of the sunniest provinces of Canada, Manitoba does unfortunately NOT offer regular net-metering at this time. Customers who own their own electric renewable generation systems may connect to the distribution system. For small systems up to 10 kW the process is simple.  The produced energy can be used to offset ones own use, and the excess is paid by Manitoba Hydro at a rate of $0.02403/kWh for systems up to 200 kW in size (at the time this was written that represents about half the cost for electricity purchased from the grid). For generators producing more than 200 kW, Manitoba Hydro will negotiate a Power Purchase Agreement (PPA) with the generator based on hours of operation, type, reliability, etc. Generation systems up to 10 MW are possible.

Manitoba Residential Earth Power Loan

Consider the Residential Earth Power Loan for energy efficiency upgrades, including solar PV systems. Available to residential, non-seasonal customers, the loan is added to your monthly energy bill. Solar PV financing ranges from $500 to $30,000, calculated at $3 per watt installed. The loan term is 15 years, with no down payment. Repayment is due upon home sale, and the fixed annual interest rate for the first 5 years is 4.8%.

Quebec Incentives

Hydro-Quebec Net-Metering

Despite the abundance of renewable energy production (most of Quebec’s electricity is truly generated via hydro power), this province is currently one of the best places to be for solar power!  Solar Power Quebec (2023 Guide) allows for renewable power generation, including solar, up to 20 kW for single-phase (most residential customers) and 50 kW for 3-phase. Overproduction is credit as kWh’s on the customer’s account, and the credits can be used up when production falls short. The credits reset after only 2 years. Unique in Canada!

Quebec Heating with Green Power

Homeowners in Quebec can receive financial assistance through the Heating with Green Power program. This program supports the replacement of fossil-fueled home heating and water heater systems with electricity or renewable energy sources, such as solar energy. By taking advantage of this opportunity, you can enhance your home’s energy efficiency, reduce greenhouse gas emissions, and contribute to a more sustainable future.