Solar Costs & Financing in the GTHA

Solar pricing is most commonly expressed as cost per wattThis is the unit cost of a solar panel installation. It is calculated by dividing the total system cost by the system size in watts and allows for fair comparison between quotes., which is the unit price of a solar system. Because every quoted system is custom-designed and will vary in size, total system prices can be misleading on their own as they do not take into account the system's capacity. Cost per wattThis is the unit cost of a solar panel installation. It is calculated by dividing the total system cost by the system size in watts and allows for fair comparison between quotes. allows homeowners to compare quotes fairly across different system sizes from multiple installers and is the most widely used pricing metric across the solar industry.

Most solar quotes list system size in kilowatts (kW), but cost per wattThis is the unit cost of a solar panel installation. It is calculated by dividing the total system cost by the system size in watts and allows for fair comparison between quotes. is calculated using watts (W). To calculate the cost per wattThis is the unit cost of a solar panel installation. It is calculated by dividing the total system cost by the system size in watts and allows for fair comparison between quotes., multiply the system size in kW by 1,000 to convert it to watts, then divide the total installed system cost by that number. For example, a $24,000 system rated at 8.0 kW works out to $3.00 per watt.

Total system cost ÷ (system size in kW × 1,000) = cost per wattThis is the unit cost of a solar panel installation. It is calculated by dividing the total system cost by the system size in watts and allows for fair comparison between quotes.

The sections below reference pricing using cost per wattThis is the unit cost of a solar panel installation. It is calculated by dividing the total system cost by the system size in watts and allows for fair comparison between quotes., so understanding this metric is key to interpreting the numbers that follow.

On average, GTHA homeowners can expect rooftop solar projects to fall between $2.50 per watt and $3.50 per watt. This pricing should include all materials, labour and permitting required for the installation, with no hidden fees. As a general guideline, larger and simpler systems tend to fall toward the lower end of this range, while smaller or more complex installations fall toward the higher end. This is why two homes can receive very different total prices while still being priced fairly on a cost-per-watt basis.

To put this range into context, it typically translates to the following total system costs:

• 5 kW system: approximately $12,500 to $17,500, often toward the higher end of the range due to the smaller system size
• 10 kW system: approximately $25,000 to $35,000, often near the middle of the range
• 15 kW system: approximately $37,500 to $52,500, often toward the lower end of the range due to the larger system size

Several factors can push a project toward the higher end of the cost-per-watt range. These factors generally increase labour, complexity or fixed costs relative to system size.

Common factors that increase cost per wattThis is the unit cost of a solar panel installation. It is calculated by dividing the total system cost by the system size in watts and allows for fair comparison between quotes. include:

• System size: Small systems tend to have higher unit costs as fixed permitting, design and installation work is spread over fewer watts.
• Location: Properties located outside major cities may see higher pricing due to increased travel time and logistics.
• Electrical upgrades: Extra work such as an electrical panel replacement or the addition of a subpanel can increase costs.
• Roof: Very steep roofs or uncommon roofing materials can require additional labour or specialized mounting.
• Ground-mount: If you choose to install solar panels on the ground, the additional racking, trenching and piling costs will increase the cost compared to the same size rooftop system. However, ground-mounts will often be smaller than roof-mount installs because they will be installed at an optimal angle. Your HSA Advisor will help you decide what kind of system you would like to see from the installers.

If a quote shows a cost per wattThis is the unit cost of a solar panel installation. It is calculated by dividing the total system cost by the system size in watts and allows for fair comparison between quotes. that is near or above the upper end of the typical range, it's a good idea to obtain additional quotes for comparison. This can help confirm whether higher pricing is driven by site-specific constraints or simply higher margins.

Like many home improvement industries, solar is not immune to price gouging. Some quotes may come in well above typical cost-per-watt ranges without justification. This can be driven by aggressive sales tactics, lack of competition in certain areas or homeowners not being given the context needed to evaluate pricing. Understanding cost per wattThis is the unit cost of a solar panel installation. It is calculated by dividing the total system cost by the system size in watts and allows for fair comparison between quotes. and comparing multiple quotes helps protect against this and ensures pricing reflects the actual scope and complexity of the project rather than inflated profit margins. The Home Solar Accelerator is here to help!

Because solar is a long-term home investment, homeowners use a variety of approaches to pay for their system. The right option depends on cash availability, risk tolerance and how you prefer to balance upfront cost versus long-term savings.

Paying cash results in the lowest total cost, as there are no interest charges or financing fees. This option provides the strongest long-term return and the simplest ownership structure. Many homeowners choose this approach when they have enough available savings.

Home equity lines of credit (HELOCs) or home equity loans are among the most common ways homeowners finance solar. These options often offer lower interest rates than unsecured loans and allow the system cost to be spread over time, while still maintaining full system ownership. Monthly payments can often be partially offset by hydro bill savings, depending on usage and system size.

Some homeowners choose to include the cost of a solar system when refinancing their mortgage. This spreads the cost over a longer period and often results in a lower interest rate than other financing options. While this approach can significantly reduce monthly payments, it also means paying interest over a longer term, which increases the total cost over time. This option can be a good fit when refinancing is already planned.

Some solar installers offer financing options directly or through third-party lenders. These can provide convenience but may come with higher interest rates and hidden fees built into the system price. It's important to review financing terms carefully and compare the total cost over time (not just the monthly payment). Low or 0% interest offers may have the interest built into a higher system price, emphasizing the importance of getting multiple quotes. Also watch out for promotional rates that are often time-limited, after which a higher interest rate can apply.

There are periodically government-backed programs that help homeowners reduce the upfront cost of solar or finance systems at preferential rates. These programs change over time, have eligibility requirements and may not work with net meteringA solar system configuration that allows excess solar electricity to be sent to the grid in exchange for hydro bill credits. These credits can then be used to offset future electricity imports. In Ontario, unused credits expire after 12 months. or other hydro rules. Rather than summarizing programs that may become outdated, we maintain a separate page with current information on available government financing and incentive options, including eligibility details and trade-offs.

Homeowners in the GTHA currently (March 2026) have access to three programs that can make going solar more affordable. Each one works differently, and the right fit depends on your goals, budget and long-term plans.

1. Durham Greener Homes Loan (Durham Region)

A low-interest loan program that helps Durham homeowners finance energy upgrades, including rooftop solar and battery storageA system that stores solar electricity for later use, typically during power outages. Batteries are optional and are not required for net-metered solar systems..

• Borrow up to $125,000 for eligible improvements.
• Long repayment terms with fixed interest rates.
• Can be combined with rebates to reduce upfront costs.

This program is a good fit for homeowners who want predictable financing and are planning multiple upgrades at once.

2. Home Energy Loan Program (HELP) - Toronto

Toronto's HELP program lets homeowners finance solar panels, batteries, heat pumps, EV chargers and other upgrades through a low-interest loan repaid on their property tax bill.

• The loan is tied to the property, not the homeowner.
• Borrow up to 10% of your home's assessed value (maximum $125,000).
• 20-year terms available for solar projects.
• Can be repaid at any time without penalty.

HELP is a strong fit for Toronto homeowners who want long-term, stable financing and the flexibility to transfer the loan if they sell their home.

3. Ontario Home Renovation Savings Program (HRSP)

A province-wide rebate that reduces the upfront cost of solar and battery storageA system that stores solar electricity for later use, typically during power outages. Batteries are optional and are not required for net-metered solar systems..

• $1,000 per kW of solar capacity (up to $5,000).
• $300 per kWh of battery storageA system that stores solar electricity for later use, typically during power outages. Batteries are optional and are not required for net-metered solar systems. (up to $5,000 when paired with solar).

Important trade-off: Using the HRSP solar rebate means your system is not eligible for net meteringA solar system configuration that allows excess solar electricity to be sent to the grid in exchange for hydro bill credits. These credits can then be used to offset future electricity imports. In Ontario, unused credits expire after 12 months.. Any excess electricity you export to the grid is not credited on your bill. HRSP works best for homeowners with high electricity use, limited roof space or those prioritizing backup power and lower upfront costs over long-term bill savings.

See Batteries and Storage section for how this affects system design.

If you plan to use financing, it's important to understand how loan payments and hydro bill savings interact. While solar panels reduce your annual hydro bill costs, financing introduces a new household expense. Comparing these two figures helps determine how your overall household costs will change (in a financial analysis this is referred to as cash flowThe difference between hydro bill savings and any loan or financing payments associated with a solar system.). For some households, particularly those with limited cash flowThe difference between hydro bill savings and any loan or financing payments associated with a solar system. flexibility, a solar project that increases net annual expenses may not be the right fit, even if it makes sense over the long term.

Savings aren't about guessing the perfect number, they're about understanding the trend. Most rooftop solar systems in the GTHA reach financial payback in roughly 12–18 years, depending on system cost, roof solar potentialA metric used to describe the efficiency of a solar system. It represents how many kilowatt-hours a system produces annually for each kilowatt of installed capacity., and future hydro rates. Modern solar panels are warrantied for 25–30 years and operate for many years beyond, meaning that homeowners often benefit from multiple additional years of reduced hydro bill costs after the system has paid for itself. The more hydro rates rise over time, the sooner the payback can occur.

Solar installations also tend to add value to a home, often in the range of the system's installed cost. As a result, selling a home before full payback does not necessarily mean the investment is lost.