Ontario Solar Incentives & Rebates in 2026

The Ontario Solar Incentive Landscape in 2026

Ontario has never had a more compelling mix of solar incentives than what is available right now in 2026. Between provincial rebates, federal tax credits, utility programs, and municipal financing, homeowners and businesses can reduce the cost of going solar by 25 to 55 percent depending on their situation. This guide covers every active program, who qualifies, how much you can save, and which programs have closed so you do not waste time chasing expired incentives.

Home Renovation Savings Program (HRSP) - Up to $5,000

The Home Renovation Savings Program is Ontario's flagship residential incentive for solar in 2026. It provides a rebate of up to $5,000 for eligible home energy improvements, including the installation of solar photovoltaic systems. The rebate is available to Ontario homeowners who own and occupy their primary residence, and the work must be performed by a qualified contractor.

To qualify, you need to have an EnerGuide home energy assessment before and after the renovation. The rebate amount depends on the improvement achieved, but solar panel installations typically qualify for the maximum $5,000 rebate. Applications are processed on a first-come, first-served basis, and funding is limited, so it is important to apply promptly once your installation is complete.

The HRSP effectively reduces the cost of a typical 10 kW residential system from roughly $28,000 to $23,000, improving the payback period by one to two years.

Net Metering: Ongoing Bill Credits

While not a traditional rebate, net metering is Ontario's most valuable ongoing solar incentive. Under this program, your LDC credits you for every kilowatt-hour of surplus solar electricity you export to the grid. Credits roll forward for up to 12 months, allowing summer overproduction to offset higher winter consumption.

At current TOU rates (9.8 cents off-peak, 15.7 cents mid-peak, 20.3 cents on-peak), a well-sized 10 kW residential system can save $1,800 to $2,400 per year through net metering. Over the 25-year life of a solar system, that adds up to $45,000 to $60,000 in total electricity savings, making net metering the single largest financial benefit of going solar in Ontario.

Clean Technology Investment Tax Credit (CT ITC) - 30%

The federal Clean Technology Investment Tax Credit, introduced in the 2023 federal budget and available through 2034, provides a 30 percent refundable tax credit on the capital cost of eligible clean energy property, including solar PV systems, inverters, racking, and associated electrical equipment. This is primarily a commercial and industrial incentive, as it applies to incorporated businesses and certain other taxable entities.

For a business installing a $200,000 solar system, the CT ITC provides a $60,000 refundable tax credit. The credit is refundable, meaning even if the business owes less than $60,000 in tax, the full amount is paid out. To maintain the full 30 percent rate, businesses must meet labour requirements including paying prevailing wages. If labour conditions are not met, the credit drops to 20 percent.

The CT ITC can be combined with CCA deductions, making commercial solar in Ontario one of the most tax-efficient capital investments available.

Capital Cost Allowance (CCA) - Accelerated Depreciation

Solar energy equipment qualifies for CCA Class 43.2, which allows a 50 percent declining-balance depreciation rate. Under the federal Accelerated Investment Incentive (AII), businesses can claim up to 75 percent of the system cost as a tax deduction in the first year of operation. For a business in a 26.5 percent combined tax bracket (the Ontario small business rate), this translates to a first-year tax reduction of approximately 20 percent of the system cost.

Combined with the CT ITC, a business can effectively recover 50 percent or more of the system cost within the first year through tax mechanisms alone. It is important to note that the CT ITC reduces the CCA-eligible cost, so the two incentives do not fully stack at face value, but the combined benefit is still substantial.

IESO Save on Energy Retrofit Program

The Independent Electricity System Operator (IESO) administers the Save on Energy program, which provides incentives for energy efficiency improvements to commercial and industrial facilities. While the program focuses primarily on energy efficiency measures like lighting, HVAC, and building envelope upgrades, solar PV installations that are part of a broader energy retrofit may qualify for additional incentives.

Eligibility and incentive amounts vary by project and are assessed on a case-by-case basis. Businesses planning a solar installation should contact their local Save on Energy provider to determine if their project qualifies for supplementary funding.

Toronto HELP Loan Program

The City of Toronto's Home Energy Loan Program (HELP) offers low-interest financing for residential energy efficiency improvements, including solar panel installations. Loans of up to $125,000 are available, repaid through your property tax bill over terms up to 20 years. The interest rate is competitive with or lower than most home equity lines of credit, and the loan is tied to the property rather than the homeowner, which means it transfers to the new owner if you sell.

HELP is available to owners of residential properties within the City of Toronto. While it is not a rebate or grant, it removes the barrier of upfront cost and makes solar accessible to homeowners who may not have $20,000 to $30,000 available for a cash purchase. The program can be combined with the HRSP rebate for maximum benefit.

Closed Programs: What Is No Longer Available

Several previously popular solar incentive programs are no longer accepting applications. The Canada Greener Homes Grant, which provided up to $5,000 for solar installations, closed in 2024. The Greener Homes Loan, which offered interest-free financing up to $40,000, also closed in 2024. Ontario's microFIT and FIT programs, which offered premium rates for solar electricity sold to the grid, closed to new applicants in 2017.

If you see references to these programs online, be aware that they are no longer available. The current mix of HRSP, CT ITC, CCA, and net metering provides comparable or better value for most property owners, so the closure of these legacy programs does not diminish the case for going solar in 2026.

Maximize Your Incentives with SolarQuote

Navigating the full stack of available solar incentives can be complex, especially for commercial installations where tax strategy matters. SolarQuote connects you with experienced Ontario solar installers who understand every program, handle the paperwork, and ensure you capture the maximum available benefit. Get your free quote today and see exactly how much you can save with solar in 2026.