Solar Financing in Ontario: What to Check Before You Sign

Review financing terms carefully and compare the total cost over the full term. The proposals that deserve the most scrutiny are the ones that sound too good to be true.

Low or 0% interest doesn't always mean free financing. In many cases, the financing cost is built into the system price through a dealer fee, which raises the total amount you pay. In quotes we review, that fee commonly adds 25–35% to the system price.

The 0% or low rate often applies only for a limited promotional period. Once it expires, the remaining balance is refinanced at a much higher rate, often 10% or more.

Ask: "What is the cash price compared to the financed price?"

Ask: "Is there a finance dealer fee included in this price?"

Ask: "When will the initial term of this loan end?"

Some solar financing offers are structured so that the installer or a third party owns the system. You pay a monthly fee over a long term, such as 15 years. The quote may read like a loan. In reality:

• You may not fully own the solar system
• The long-term commitment limits your flexibility
• Selling your home can get complicated: the contract may need to transfer to the buyer or be bought out when you sell

In some arrangements, the provider owns the system and can claim commercial tax incentives or depreciation benefits that homeowners can't. Those benefits improve the project's economics for the provider. Ask whether any of that saving shows up in your price.

If you're considering a lease or subscription, know that it may not qualify for Ontario's Home Renovation Savings Program (HRSP). The HRSP Terms and Conditions state:

"Rental, leasing, and lease-to-own procurement arrangements for the Eligible Measure are not permitted."

Under many lease and subscription arrangements, you don't own the system, so the project may not be eligible for HRSP rebates. Before signing, confirm that the financing structure meets the program's eligibility rules and that any rebate you're counting on will still be available.

Ask: "Will I own the system outright from the start?"

Ask: "What happens if I sell my home before the contract ends?"

Ask: "What maintenance is actually needed?"

Ask: "Will the system meet HRSP eligibility requirements?"

If a proposal leans on wording like "Only $X per month" or "Lower than your current electricity bill", take a step back. Monthly payments make a project feel affordable, but they often hide the full project cost, the total interest paid and the true long-term return.

Once you count the interest, the economics of a solar project can deteriorate quickly. In many cases, you would be better off waiting until you can access a cheaper source of financing.

Rates as of July 2026; see the City's HELP page for current terms. HELP's low rate is subsidized by the City. Unlike many installer "0%" offers, there is no dealer fee built into the price.

Ask: "What will I pay in total over the life of the agreement?"

Ask: "What will my monthly payment be after the promotional period ends?"

Ask: "What is your current non-promotional interest rate?"

Be cautious of artificial deadlines. If a rate, discount or promotion will disappear in a few days, ask why. Solar will sit on your roof for decades. You can take the time to compare quotes and understand the terms before you sign.

You may hear phrases like "This rate is only available this month" or "You need to sign today to lock this in." Legitimate promotions do exist. Understanding the pricing, financing and contract terms matters more than catching one.

A reputable installer will give you time to evaluate the proposal, seek independent advice and compare alternatives without pressure.

Ask: "Can I take a few weeks to get competing quotes before making a decision?"

Ask: "If I obtain additional quotes, will you still honour this pricing?"

Ask: "Why is the promotion expiring?"

Financing a solar installation can be a reasonable, cash-flow-friendly choice when you know all the details and the long-term implications. Paying cash is usually the most transparent option with the best long-term savings. If cash isn't the plan, consider these before installer financing:

Some municipalities offer low-interest solar financing through Property Assessed Clean Energy (PACE) programs. You repay through your property tax bill, usually at lower rates and on better terms than private solar financing. Examples include:

• Toronto's Home Energy Loan Program (HELP)
• Durham Greener Homes

For more on these programs, see Solar Costs & Financing.

A HELOC often beats installer financing on interest rates, offers more flexible repayment terms, and has no embedded dealer fees. A mortgage refinance can also free up home equity to cover a solar project, spreading the cost over a longer term at much lower rates. If your mortgage isn't close to renewal, though, refinancing may not be practical: penalties or bridge financing can eat the advantage. Compare those costs against your other options first.

Use this checklist to evaluate any solar financing proposal:

• How much is the cash price vs financed cost?
• Is there a dealer fee included? How much?

• What is the interest rate today vs 5 years from now?
• What is your current non-promotional rate?
• When will the current rate end?
• What happens after the promotional period ends?
• What is the total amount paid over the full term?

• Who owns the system once it is installed?
• Will I own the system at the end of the agreement?
• What happens if I sell my home?
• Are there any buyout terms, transfer requirements or early termination penalties?

• What happens if a rebate or incentive does not come through?
• Are there any incentives that you receive but I don't?

• Is the financing clearly separated from the equipment and installation costs?
• Is the financing easy to understand?
• Does the proposal include a breakdown of all fees, interest, and total payments?
• Do I have enough time to review and compare other options before making a decision?

The single most effective way to protect yourself is to get at least three quotes.

• Identify pricing differences
• Compare financing structures
• Understand what's standard and what isn't

Homeowners we advise often find several thousand dollars in savings by comparing options alone. For what to look for beyond financing, see Comparing Solar Quotes. The program's free Quote Comparison Report puts multiple quotes into one consistent format so the differences are visible.

If you're considering solar or have already received a quote, the Home Solar Accelerator can help.

The Home Solar Accelerator is a free program for homeowners in the Greater Toronto and Hamilton Area that provides independent, expert advice on solar, 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. and financing. Funded by The Atmospheric Fund, the program helps homeowners understand their options before making a major financial decision.

Our independent Solar Advisors can help you:

• Compare quotes from vetted local installers
• Review financing options and explain how they work
• Identify dealer fees, hidden costs and other red flags
• Compare cash purchases, loans, leases, and municipal financing programs
• Review existing quotes and answer your questions before you sign

Just getting started? Apply to the Home Solar Accelerator to receive independent advice and multiple quotes from vetted local installers.

Already have a quote? Email it to hello@solaraccelerator.ca for a free independent review.