Solar Panel Installation in Canada: Costs, Sizing & ROI
Written by Solenery
2 min read
Introduction
Thinking about installing solar panels on your home? You’re in good company. With rising electricity rates and growing support from net metering and provincial rebates, solar is more accessible than ever in Canada — and it’s not just for warm-weather provinces.
But how much does it really cost? How many panels do you need? And when will it start paying off?
This guide answers the most common questions Canadians have about solar panel installation, including system sizing, real-world costs, and return on investment (ROI). Want a shortcut? Just enter your postal code on Solenery Insights to get personalized savings and sizing estimates.
How Much Do Solar Panels Cost in Canada (2025)?
Costs vary by province, roof size, and energy consumption — but here’s a rough idea:
| System Size | Avg. Installed Cost (Before Incentives) | Avg. Cost After Rebates |
|---|---|---|
| 4 kW (small home) | $10,000–$12,000 | ~$7,000–$9,000 |
| 6 kW (avg. home) | $13,000–$15,000 | ~$10,000–$12,500 |
| 10 kW (large home) | $20,000–$25,000 | ~$16,000–$20,000 |
What affects price?
- Roof type (asphalt = cheaper; metal/sloped = more labour)
- System size (larger = lower cost per watt)
- Local installer rates and permit costs
How Many Panels Do I Need?
It depends on your annual electricity usage, climate, and panel efficiency.
Quick Formula:
System Size (kW) = Annual kWh ÷ Local Production Factor (kWh/kW/year)
Example:
A Toronto home using 9,000 kWh/year
Solar production = 1,200 kWh/kW/year
9,000 ÷ 1,200 = 7.5 kW system (~20 panels)
| Province | Avg. Solar Yield (kWh/kW/year) |
|---|---|
| Alberta | 1,300–1,400 |
| Ontario | 1,100–1,300 |
| Nova Scotia | 1,100–1,200 |
| BC Interior | 1,200–1,300 |
| Quebec | 1,000–1,150 |
Tip: Make insulation or HVAC upgrades first to reduce the system size you’ll need.
What Is Net Metering & How Does It Work in Canada?
Net metering lets you feed excess solar power into the grid and earn credits on your utility bill.
How It Works:
- You generate solar power during the day
- Extra electricity goes to the grid
- You earn credits to use at night or in winter
| Province | Net Metering Highlights |
|---|---|
| Ontario | 12-month rollover; net billing pilot underway |
| Alberta | Net billing (paid at market rate) |
| BC | Full retail credit, annual settlement |
| Quebec | Credits valid for 2 years |
| PEI | Credits roll over yearly; 100 kW system cap |
| Manitoba | Credits apply monthly via Hydro’s net metering |
| Nova Scotia | Annual credit rollover via Nova Scotia Power |
Solenery Tip: A right-sized system can zero out your electricity bill April–October in most provinces.
When Will My Solar System Pay for Itself?
In most provinces, solar pays for itself in 8 to 12 years — faster with rebates and high hydro rates.
ROI Example:
- System Size: 6.5 kW
- Installed Cost After Rebates: ~$11,000
- Annual Energy Savings: ~$1,200
- Payback Period: ~9 years
- Panel Lifespan: 25+ years
- Free Energy After Year 9? Yes.
What affects ROI:
- Local hydro prices
- Rebate availability
- Solar production (panel direction & shading)
- Snow cover, efficiency losses
What Rebates Are Available (No Federal Grant)?
| Province | Program | Rebate Amount |
|---|---|---|
| Ontario | Enbridge HER+ | Up to $1,250 for solar |
| PEI | Energy Efficiency Rebate (PEIEC) | Up to $10,000 total (solar + HVAC) |
| Nova Scotia | Efficiency NS Solar Program | Up to $9,000 (stackable) |
| Alberta | Medicine Hat Solar Rebate | $1,000/kW (max $5,000) |
| Alberta | Banff Solar Program | 50% of system cost (max $5,000) |
| Yukon | Good Energy Program | $0.80/W up to $5,000 |
| Manitoba | Efficiency MB + Net Metering | $500/kW + access to loan program |
Tip: Municipal programs (like CEIP in Alberta) offer additional low-interest financing.
Bonus Benefits of Going Solar in Canada
- Increase home value: Net-zero-ready homes are more attractive to buyers
- Hedge against rising rates: Lock in decades of fixed energy production
- Peace of mind: Add battery backup for outages
- Environmental impact: Cut 1–3 tonnes of CO₂ annually
Conclusion
With the right sizing, installer, and provincial rebates, solar panels offer a strong return on investment for Canadian homeowners. Even in colder provinces, solar can slash your utility bills and boost your home’s value — no sunny California required.