Updated May 2026

Save Up to 60% — Commercial Solar Incentives in Ontario

Government incentive pages are confusing. Here's the short version: two programs stack, they cover up to 60% of costs, and most Ontario commercial properties qualify. Start your free energy audit below to see exactly how much you can claim and how to apply.

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At a Glance
$860
per kW-AC
Save on Energy Retrofit
Systems 10 kW – 1 MW
30%
tax credit
Federal Clean Tech ITC
Refundable for taxable Canadian corporations
Yes
Fully stackable
Both on the same project
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Incentive Programs

Two Programs. They Stack.

Ontario is the only province where commercial solar qualifies for both a provincial cash rebate and the federal tax credit on the same project.

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Provincial Rebate

Save on Energy Retrofit

Administered by IESO through local utilities

$860 /kW-AC

Systems 10 kW–1 MW · Max $860,000 or 50% of project cost

  • Direct cash rebate — paid after installation, not a tax credit
  • Behind-the-meter only — solar must offset facility consumption
  • Apply before purchasing — submit before any binding commitment
  • Regional bonus — enhanced incentives in electricity-constrained areas
Federal Tax Credit

Clean Technology ITC

Claimed through CRA on corporate tax return

30% of eligible capital cost

40% refundable for corporations · Through December 2033

  • Equipment cost only — panels, inverters, racking, wiring, battery storage
  • Labour requirements — prevailing wages + 10% apprentice hours for full 30%
  • Calculated on gross cost — before provincial rebates are deducted
  • New equipment only — must be new, situated in Canada
Incentive Stacking

How the Two Programs Stack

Example: 200 kW rooftop system on a GTA warehouse. Equipment is roughly 65% of total cost.

Total project cost (200 kW)$400,000
Equipment cost (panels, inverters, racking)$260,000
Save on Energy (200 kW × $860)− $172,000
Federal ITC (30% × $260,000)− $78,000
Your net cost$150,000
Typical payback: 4–7 years
The Federal ITC is calculated on the gross capital cost before the Save on Energy rebate. Your actual savings depend on system size, equipment, and your facility's electricity profile.

What do the numbers look like for your building?

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15+

Additional Incentive Programs

Save on Energy and the Federal ITC are the two main programs. But depending on your address, utility provider, and property type, you may qualify for additional federal, provincial, and utility-level incentives — including NRCan programs, Enbridge gas rebates, municipal grants, and regional LDC bonuses.

Solenery's free energy audit checks all of them automatically when you enter your address.

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Eligibility

Who Qualifies

Both programs are open to Ontario commercial and industrial electricity customers.

Commercial / Industrial Facility

Warehouses, manufacturing, cold storage, retail, offices, hotels, schools, hospitals, agricultural, and multi-residential buildings.

Ontario LDC Customer

Connected to a Local Distribution Company (Toronto Hydro, Hydro One, Hydro Ottawa, etc.). This covers the vast majority of Ontario — only a few municipal utilities operate outside the IESO-controlled grid. Owners or lessees with written authorization.

Taxable Canadian Corporation

Federal ITC requires Canadian incorporation. 40% refundable for CCPCs and other taxable corporations. Equipment must be new and situated in Canada.

Application Timing

Save on Energy: submit Retrofit application before signing a purchase order. 24 months from pre-approval to complete the project.

Incentive Coverage

Available Province-Wide Across Ontario

Save on Energy Retrofit is available to every commercial property connected to an Ontario Local Distribution Company. The Federal ITC applies Canada-wide. Solenery checks your specific LDC and matches all eligible programs automatically.

Including:
Metro Areas

Provincial metros

TorontoMississaugaBramptonHamiltonKitchener-WaterlooLondonOttawaMarkhamVaughanRichmond Hill
Regional Cities

Southern and eastern Ontario

Niagara / St. CatharinesKingstonBarriePeterboroughBelleville

All regions qualify for the same provincial rebate and federal tax credit.

Local Communities

Across the province

OshawaBurlingtonOakvilleCambridgeGuelphWindsorThunder BaySudbury
Lake OntarioLake ErieLake HuronGeorgian BayLake SuperiorHudson Bay / James BayTorontoHamiltonKWLondonOttawaBarrieNiagaraKingstonPeterboroughBellevilleOshawaBurlingtonOakvilleCambridgeGuelphWindsorThunder BaySudburyGTA DetailTorontoMississaugaBramptonMarkhamVaughanRichmond HillHamiltonOshawaBurlingtonOakvilleNiagaraMetro AreasRegional CitiesLocal Communities

Not sure which incentives are available in your area?

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What is Solenery?

See how Solenery simplifies clean energy — from identifying eligible incentives to connecting you with vetted professionals.

The Process

From Application to Rebate

Sequencing matters. Save on Energy must be applied for before any binding commitment.

1

Contact Your Local Utility

Confirm connection capacity and Retrofit availability with your LDC (Toronto Hydro, Hydro One, Hydro Ottawa, etc.).

2

Submit Save on Energy Retrofit Application

Create an account on the IESO Retrofit Portal. Submit your solar PV application before signing any purchase order or contract.

3

Get Pre-Approval, Then Proceed

Once pre-approved, select your installer and sign contracts. 24 months to complete the project.

4

Receive Save on Energy Rebate

After installation is verified, the rebate is paid directly. For a 200 kW system: up to $172,000.

5

Claim the Federal ITC

File CRA Schedule 31 with your next corporate tax return. 30% of gross equipment cost. Corporations receive 40% as a refund; the rest offsets taxes owed or carries forward up to 20 years.

Market Context

Why 2026 Is the Window

Ontario commercial electricity rates surged while incentives remain at peak levels. See the full business case →

Electricity Rates Up 28–68%

OEB rate increases effective November 2025 hit commercial customers hardest. Solar payback periods are shorter than ever.

ITC Drops to 15% After 2033

The 30% rate applies for equipment available for use before January 1, 2034. Then 15% for one year, then zero.

Retrofit Budget Is Finite

The program runs on a fixed budget per LDC. Once committed, new applications may be deferred.

Panel Prices Near Record Lows

Solar module costs declined through 2025–2026. Combined with peak incentives and rising rates, ROI is at its best.

FAQ

Common Questions About Commercial Solar Incentives in Ontario

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Commercial Solar Incentives Ontario — Free Energy Audit