Ontario Solar Rebates & Incentives Guide 2026
A practical 2026 walkthrough of every federal and Ontario-specific solar rebate, tax credit, and financing path available to homeowners and businesses — with the numbers, eligibility rules, and timing notes that actually matter.
(solar + battery)
TORONTO · OTTAWA · 8+ CITIES
cap (May 2026)
in Ontario
For homeowners outside Toronto HELP / Ottawa Better Homes areas, or who prefer a simpler process — we offer monthly installments on the cost remaining after HRSP. Solar from $0 upfront.
What's inside
Quick summary
Federal: The 30% Clean Technology Investment Tax Credit (ITC) is reserved for taxable Canadian corporations and REITs — it does not apply to homeowners installing solar on a primary residence. The Canada Greener Homes Grant closed to new applicants in early 2024; the Greener Homes Loan closed in October 2025. The Canada Greener Homes Affordability Program (CGHAP) launched September 2025 but only for low-to-median-income households, and Ontario's solar inclusion is not yet confirmed.
Ontario: The Home Renovation Savings Program (HRSP) pays up to $10,000 — $5,000 for solar panels ($1,000/kW, 5 kW cap, max 50% of cost) plus $5,000 for battery storage ($300/kWh, max 50% of cost). HRSP is load-displacement only and cannot be combined with net metering. Pre-approval through a registered contractor is mandatory before any equipment is purchased or installed.
Net metering: Surplus kWh credited at retail rate, 12-month rollover, credits reset to $0 after 12 months. Effective May 1, 2026, the residential micro-embedded generation cap increased from 10 kW to 12 kW AC (OEB Distribution System Code amendment). Net metering is an alternative to HRSP — you must choose one.
Stacking: HRSP stacks with municipal LIC/PACE financing — Toronto HELP (up to $125,000), Ottawa Better Homes (up to $125,000 at 4.33%, 20-year term, 0% for income-qualified), plus programs in Hamilton, Dufferin, London, Aurora, Kingston, Guelph, Lanark County, Durham.
Top 3 programs to know in Ontario (2026)
$5,000 for solar + $5,000 for battery, paid at $1,000/kW solar + $300/kWh battery, both capped at 50% of cost and $5,000 each. Load-displacement only — not compatible with net metering. Pre-approval through a registered installer is mandatory. Active until November 2026, first-come, first-served budget.
● Active · pre-approval requiredSurplus kWh credited at the full retail rate, rolling over for up to 12 months. Regulated by the OEB with no budget cap. As of May 1, 2026, the residential micro-generation cap increased from 10 kW to 12 kW AC, allowing larger systems. Alternative to HRSP — the two do not stack.
● Active · regulated by OEBLow-interest property-tax-secured financing that does stack on top of HRSP. Toronto HELP and Ottawa Better Homes lend up to $125,000 (Ottawa at ~4.33% over 20 years). Similar programs run in Hamilton, Dufferin, London, Aurora, Kingston, Guelph and Durham. Ottawa Better Homes also offers a 0% interest option for income-qualified households.
● Active · municipality-specificWorth knowing, but not in the Top 3: The Federal Clean Technology ITC (30%) is reserved for taxable Canadian corporations and REITs — homeowners cannot claim it on a primary residence. The Canada Greener Homes Grant and Loan are closed to new applicants. The Ontario Ultra-Low Overnight (ULO) rate plan is not a rebate, but paired with battery storage it generates roughly $1,000–$1,500 / year of arbitrage by charging overnight at 3.9¢/kWh and avoiding the on-peak rate of 39.1¢/kWh (4–9 pm weekdays).
HRSP or Net Metering: which path fits your home?
This is the most important decision for Ontario homeowners in 2026. You can use one or the other — not both.
Choose HRSP (rebate, load displacement) if:
- You want $5,000–$10,000 cash off the upfront cost
- You plan to add battery storage now or later
- Your daytime electricity use is high (work from home, EV charging, electric heating)
- You're willing to size the system to displace your own load (no export)
- You'll switch to the ULO rate plan to maximize battery arbitrage
Choose Net Metering (1:1 retail credits, grid-tied) if:
- You want a simpler grid-tied system without a battery
- Your roof has more capacity than your daytime usage needs
- You're comfortable carrying the full upfront cost (no rebate)
- You plan to size up to the new 12 kW AC cap (effective May 1, 2026)
- You want flexibility for future electrification (heat pump, EV)
A typical Ontario home will see one path produce $5,000–$15,000 more 25-year return than the other — and which one depends on your annual consumption curve, roof orientation, current rate plan, and whether a battery is in the budget. The right answer is the one supported by 12 months of your actual hydro consumption, not a generic recommendation. Superior Solar Pros models both paths against your usage before quoting.
Federal solar incentives for 2026
In 2026, there is no federal rebate or tax credit for residential rooftop solar in Canada. The 30% Clean Technology Investment Tax Credit (ITC) is reserved for taxable Canadian corporations and REITs — homeowners installing solar on a primary residence cannot claim it. The previous Canada Greener Homes Grant ($5,000) and Greener Homes Loan ($40,000) are both closed. The new Canada Greener Homes Affordability Program (CGHAP) launched in September 2025 with $800 million, but it targets only low-to-median-income households via direct-install, and Ontario's solar inclusion under CGHAP has not yet been confirmed. For most Ontario homeowners, the practical incentive stack is provincial HRSP + municipal LIC/PACE financing.
Clean Technology Investment Tax Credit (ITC)
The 30% ITC covers eligible capital costs for solar PV and battery storage on commercial properties owned by taxable Canadian corporations and REITs. Individual homeowners cannot claim the ITC on a primary residence — this is fundamentally different from the United States, where a 30% federal residential credit exists.
| Program | Who qualifies | Max benefit | 2026 status |
|---|---|---|---|
| Clean Technology ITC (30%) | Taxable Canadian corporations, REITs — not individual homeowners | 30% of eligible capital cost | Active (business / commercial only) |
| Canada Greener Homes Grant | Was for all homeowners | Up to $5,000 | Closed to new applicants (Feb 2024) |
| Canada Greener Homes Loan | Was for all homeowners | Up to $40,000 interest-free | Closed to new applicants (Oct 2025) |
| Canada Greener Homes Affordability Program (CGHAP) | Low-to-median-income households (incl. renters) | No-cost direct-install | Rolling out; Ontario solar inclusion TBD |
Heads up: do not plan around a hypothetical future residential solar tax credit. As of mid-2026, no such federal program has been proposed by the Department of Finance Canada.
Ontario solar rebates & utility programs
Ontario residential solar runs on three real levers in 2026: the Home Renovation Savings Program (HRSP) rebate, net metering (as an alternative to HRSP), and municipal LIC/PACE financing that stacks on top. There is no separate "provincial solar tax credit" in Ontario, and individual LDCs (Hydro One, Toronto Hydro, Alectra, etc.) do not run their own residential solar rebate programs — they deliver HRSP and process net-metering connections.
| Program | Type | Benefit | Key rule |
|---|---|---|---|
| Home Renovation Savings Program (HRSP) | Provincial rebate | $5,000 solar ($1,000/kW, 5 kW cap, ≤50% of cost) + $5,000 battery ($300/kWh, ≤50% of cost). Max $10,000 combined. | Load displacement only — cannot stack with net metering. Pre-approval required before purchase/install. Active through Nov 2026, budget-capped. |
| Net metering (Ontario) | Bill credit | 1:1 retail-rate credit on surplus kWh, 12-month rollover, expires to $0 after 12 months. Offsets electricity consumption charges only — not delivery, regulatory or HST. | Effective May 1, 2026, residential cap raised from 10 → 12 kW AC. Register with your LDC. Alternative to HRSP. |
| Municipal LIC / PACE financing | Property-tax-secured loan | Toronto HELP: up to $125,000, fixed low interest, 20-yr term, M-postal code only. Ottawa Better Homes: up to $125,000 at 4.33% / 20 yr (0% income-qualified, min $10K). Hamilton Better Homes, BetterHomes Dufferin / London / Kingston, Guelph Greener Homes, Aurora Energy Retrofit, Durham Greener Homes available. | Stacks on top of HRSP. Loan attaches to property, transfers on sale. |
| Ontario Electricity Rebate (OER) | Automatic bill credit | 23.5% off pre-HST electricity charges (since Nov 1, 2025). | Not a solar rebate, but reduces your effective electricity rate — factor it into payback math. Automatic for homes under 50 kW demand. |
Program availability: HRSP runs on a first-come, first-served budget through November 2026 — funding can deplete before the program closes. Get pre-approval before signing any contract. Municipal LIC programs operate independently and have their own intake windows. Superior Solar Pros can check live availability for your address before you commit.
Solar financing options in Ontario
Beyond rebates, several financing paths help spread the upfront cost. Most Ontario homeowners we work with combine HRSP with municipal LIC/PACE financing or a green loan so their monthly payment lands close to — or below — their current hydro bill.
Municipal LIC / PACE financing
Property-tax-secured loans through your city — the lowest-rate financing available for Ontario solar. The loan attaches to the property (not you personally) and transfers on sale. Toronto HELP, Ottawa Better Homes, Hamilton, Dufferin, London, Kingston, Guelph, Aurora and Durham all run versions.
- Up to $125,000 in Toronto and Ottawa
- 20-year repayment terms typical for solar
- Ottawa offers 0% interest for income-qualified households
Green loans
Banks and credit unions offer dedicated solar / sustainability loans with fixed rates and terms in the 5–10 year range. Rates typically land between 4.5% and 7.5% depending on credit profile.
- Unsecured — no lien on your home
- Fast approval, usually within days
- Stackable with HRSP and municipal LIC
Typical financing costs
| Financing | Typical rate | Term | Example ($30K, 10 kW system) |
|---|---|---|---|
| Toronto HELP (property-tax LIC) | Fixed low rate set by City | Up to 20 yr for solar | ~$200–$280 / month |
| Ottawa Better Homes (property-tax LIC) | 4.33% (0% income-qualified) | 20 yr | ~$180–$260 / month |
| Other municipal LIC (Hamilton, Dufferin, London, Kingston, Guelph, Aurora) | 0%–4% depending on city | 10–25 yr | Varies by program |
| Unsecured green loan (banks / credit unions) | 4.5% – 7.5% | 5–10 yr | ~$320–$450 / month |
| HELOC | Prime + 0.5% – 1% | Variable, 5–15 yr | Varies with prime rate |
| Installer financing / lease / PPA | Varies (read terms carefully) | 10–25 yr | Verify total cost of ownership |
One catch on PPAs: with a Power Purchase Agreement, you don't own the system, so you may not be able to claim HRSP rebates (the rebate goes to the system owner). Verify rebate eligibility before signing a PPA.
ROI & payback — how the math works
The Ontario calculation hinges on a single decision: HRSP rebate (load displacement, no grid export) or net metering (grid-tied, export credits). The two paths produce different payback periods and 25-year returns. Below is the formula every honest Ontario quote should show.
Payback formula
Annual savings = (kWh produced × share consumed on-site × retail rate) + (kWh produced × share exported × export price)
Payback period (years) = (System cost − Rebates) ÷ Annual savings
Two real Ontario scenarios
Scenario A — 10 kW solar + battery, load displacement
Scenario B — 10 kW solar, no battery, net metering (grid-tied)
Most homeowners miss $5K–$10K by applying after install instead of before. HRSP requires written pre-approval from both the program administrator AND your local LDC — we handle this on every quote.
Let us maximize your Ontario rebates
We track every federal and Ontario program live, handle the rebate paperwork end-to-end, and size your system to capture the maximum incentive. Get a written quote inside 24 hours.
How to maximize your Ontario incentives
1. Decide HRSP vs net metering BEFORE you sign anything
This is the single most important call in Ontario. HRSP gives you up to $10,000 cash but requires load displacement (no grid export). Net metering exports surplus for retail credits but pays no rebate. You cannot do both. A good installer will model both paths against your actual hydro consumption before quoting.
2. Get HRSP pre-approval in writing
HRSP requires written pre-approval from both the program administrator AND your local LDC before any equipment is purchased or installed. Skipping this kills your rebate eligibility entirely — no exceptions. Use a contractor registered with the program (the CanREA solar guide lists them).
3. Stack municipal LIC financing on top
If you live in Toronto, Ottawa, Hamilton, Dufferin, London, Kingston, Guelph, Aurora, or Durham, your municipality offers a property-tax-secured loan you can use to finance the net cost after HRSP. Ottawa Better Homes is 0% interest if you're income-qualified. Toronto HELP runs up to $125,000 with 20-year repayment for solar.
4. Switch to the ULO rate plan if you're getting a battery
Without a battery: stay on TOU or Tiered. With a battery: switch to ULO — the 3.9¢/kWh overnight rate vs the 39.1¢/kWh on-peak rate creates a 35.2¢ arbitrage spread that can generate $1,000–$1,500/year of extra savings on top of solar.
5. Keep clean documentation
HRSP requires: pre-installation form, post-installation checklist, contractor invoice with system specs, ESA inspection, and LDC connection approval. Keep a single PDF folder per project so the rebate application moves fast.
2026 policy watch list
Federal and Ontario-specific items that could move the rebate landscape this year. Worth tracking if you are planning an install in the second half of 2026.
Federal — CGHAP rollout in Ontario
Watch for Ontario's agreement under the Canada Greener Homes Affordability Program. Federally, solar PV is listed as an eligible technology, but each province chooses what to include (Manitoba excluded solar in its rollout). If Ontario includes solar PV, low-to-median-income households could receive no-cost installations.
HRSP November 2026 sunset
HRSP is funded through November 2026 in its current form. Watch for an extension announcement, program changes, or replacement initiative as the date approaches. Booking the install in Q2–Q3 2026 minimizes timing risk.
Ontario Energy Board rate updates
Ontario utilities may revise net metering credit expiry rules or small generator compensation in 2026. Lock in your LDC's current rules in writing before finalizing system size.
HRSP funding refresh
HRSP allocations are reviewed quarterly. New intake windows often re-open mid-year — a good moment to time bookings if your install is flexible.
Electrification bundles
Expect more bundled incentives that pair solar + battery + heat pump or EV charger upgrades. Whole-home electrification quotes often unlock better total rebates than solar in isolation.
Grid modernization & export rules
Ontario distribution rules for behind-the-meter solar and storage are evolving. Changes through 2026+ should generally improve export valuation for customers who add a battery.
Quarterly program-update checklist
Rebate budgets and rules shift each quarter. Use this checklist to keep your install timeline aligned with whatever's actually available in Ontario right now.
Q1 (Jan–Mar) — budget & timeline check
- Call your LDC to confirm current rebate amounts and remaining budget
- Verify HRSP intake status and contractor list
- Ask about any spring/summer 2026 policy changes
- Confirm current municipal LIC program intake windows (Toronto HELP, Ottawa Better Homes, etc.)
Q2 (Apr–Jun) — rates & financing updates
- Confirm any net metering or Distribution System Code changes — the 12 kW AC cap took effect May 1, 2026; future updates possible
- Check whether mid-year budget allocations have refreshed rebates
- Monitor Ontario Energy Board decisions on rate cases
- Review interest rates from major lenders
Q3 (Jul–Sep) — utility rebate status
- See whether summer peaks have changed export compensation rules
- Confirm HRSP funding remaining and expected exhaustion date
- Ask about EV charging + solar bundled incentives
- Track CGHAP rollout status in Ontario
Q4 (Oct–Dec) — annual wrap-up & 2027 planning
- Confirm any year-end deadline for rebate applications or renewals
- Watch for HRSP extension announcement (current program sunsets Nov 2026)
- Ask your LDC about 2027 incentive outlooks and budgets
- Re-evaluate system sizing if the year's policy shifts justify it
FAQs
What federal rebates are available for solar in Canada in 2026?
The Canada Greener Homes Grant closed in February 2024; the Greener Homes Loan closed in October 2025. The 30% Clean Technology ITC is for businesses only — homeowners cannot claim it on a primary residence. The new Canada Greener Homes Affordability Program (CGHAP) targets low-to-median-income households via direct-install and is still rolling out in Ontario. For most Ontario homeowners, the real incentive stack is provincial HRSP + municipal LIC financing.
Does Ontario have its own solar rebate?
Yes. The Home Renovation Savings Program (HRSP) pays up to $10,000 ($5,000 solar + $5,000 battery) when applied through a registered contractor with pre-approval before installation. Note: HRSP is load-displacement only and cannot stack with net metering — you must choose one path. HRSP does stack with municipal LIC financing (Toronto HELP, Ottawa Better Homes, etc.), which can cover most of the remaining capital cost at low interest.
Can I combine HRSP with net metering?
No. HRSP is a load-displacement program — you have to choose between HRSP and net metering, they do not stack. HRSP does stack with municipal LIC/PACE financing like Toronto HELP or Ottawa Better Homes, which can cover most of the remaining capital cost.
Do solar rebates reduce my ROI?
Rebates improve ROI by cutting upfront cost. In Ontario, the $10,000 HRSP rebate alone typically shaves 3–4 years off payback, depending on system size, configuration (with vs without battery), and your electricity rate plan. Pair with the ULO rate plan and battery for the strongest 25-year return.
How do I apply for solar rebates in Ontario?
For HRSP, your registered contractor submits pre-installation forms and post-installation documentation on your behalf — the rebate flows to you after approval. Net metering is registered with your LDC directly. Municipal LIC financing applications go through the city. Superior Solar Pros handles the program paperwork end-to-end on every install.
Which is more important — rebates or system quality?
System quality wins long-term. A poorly designed system can leave 20–30% of potential generation on the roof for 25 years. Use rebates to lower the entry price, but never let an incentive determine your equipment choices.
Is there a federal solar tax credit for homeowners in Canada?
No. The 30% Clean Technology ITC is reserved for taxable Canadian corporations and REITs — not individual homeowners installing solar on a primary residence. This is different from the United States, where homeowners can claim a 30% federal tax credit. Be careful of installers or articles that imply otherwise.
Trusted sources & program links
Always verify program terms directly with the official administrator. The links below are the authoritative sources for federal and Ontario solar incentives.