The Ultimate Guide to Solar Financing Models: Lease, PPA, and Ownership Explained for Canadians

Introduction

Thinking about going solar but unsure how to pay for it?

You’re not alone.

With average systems in Canada costing between $12,000 and $20,000, solar can feel like a big financial leap.

But here’s the good news: you don’t have to pay everything upfront—and you don’t even have to own the panels yourself to start saving.

In this guide, we break down the three most common solar financing options in Canada: Ownership, Leases, and Power Purchase Agreements (PPAs).

You’ll learn the pros, cons, and costs of each model so you can choose what fits your home, budget, and long-term goals.

Option 1: Buying Your Solar System (Outright or with a Loan)

What it means:

You own the panels outright, either by paying upfront or through financing (like the Canada Greener Homes Loan).

Pros:

• Full access to rebates and tax incentives
• All energy savings go to you
• Increases home value
• No long-term contracts

Cons:

• Highest upfront cost (unless using a loan)
• You’re responsible for maintenance (though systems need little)

Who it’s best for:

Homeowners planning to stay long-term

People wanting full control and maximum return

Canadians who qualify for interest-free federal loans

Example:

In Ontario, a homeowner uses the Greener Homes Loan to install a $16,000 system.

With $5,000 in rebates and interest-free financing over 10 years, the system pays for itself in energy savings within 9 years.

Option 2: Solar Lease (Pay Monthly, No Ownership)

What it means:

You pay a fixed monthly fee to “rent” the solar system from a provider.

You don’t own it, but you benefit from the power it produces.

Pros:

• Little or no upfront cost
• Lower monthly payments than your hydro bill
• Maintenance typically included

Cons:

• You don’t own the system (no rebates or tax benefits)
• Monthly payments continue even during cloudy periods
• Lease terms can affect home resale if not transferable

Who it’s best for:

Renters (where allowed by the landlord)

Homeowners who want to lower bills without upfront investment

People unsure about long-term ownership but want to go green

Note:

Solar leases are less common in Canada than in the U.S., but some providers in Alberta, BC, and Ontario offer them through bundled services.

Option 3: Power Purchase Agreement (PPA)

What it means:

A company installs and maintains solar panels on your home.

You agree to buy the electricity they generate at a fixed rate (usually lower than your current utility rate).

Pros:

• Zero upfront cost
• Locked-in rate protects against hydro price increases
• Provider handles all maintenance and repairs

Cons:

• No ownership or rebates
• Contracts typically run 15–25 years
• Can be complex to transfer if you sell your home

Who it’s best for:

Homeowners who want predictability without responsibility

People looking for long-term hydro savings without capital investment

Example:

A Calgary homeowner signs a 20-year PPA at 12¢/kWh—lower than their utility rate of 18¢.

They save over $500/year while reducing their carbon footprint.

Comparing the 3 Models Side by Side

Feature	Ownership	Lease	PPA
Upfront Cost	High (unless loan)	Low to none	None
Rebates & Grants	✅ Yes	❌ No	❌ No
Long-Term Savings	✅ Highest	⚠️ Moderate	✅ Moderate
Maintenance	✅ You	❌ Provider	❌ Provider
Home Resale Impact	✅ Positive	⚠️ Depends on terms	⚠️ Depends on terms
Best For	Long-term homeowners	Cash-strapped buyers	Predictable savers

Tips for Choosing the Right Financing Option

Ask about incentives first.

Rebates are only available if you own the system.

Compare your current hydro bill to projected solar savings.

Even a lease or PPA might save you money.

Check the fine print.

Review contract length, rate increases, transfer policies, and buyout clauses.

Get quotes from multiple installers.

Providers may offer different financing packages, even within the same province.

Reminder:

You can use the Solenery Insights tool to compare ownership vs. third-party models in your region, and even match with providers offering financing.

Conclusion

Going solar in Canada doesn’t have to be one-size-fits-all.

Whether you buy, lease, or sign a PPA, each model comes with trade-offs.

By understanding the differences and asking the right questions, you can find a solution that fits your lifestyle and budget—and still reduce your carbon footprint.