Residential solar installations in Canada involve meaningful upfront costs — equipment, labour, permitting, and utility interconnection fees — but a range of federal and provincial financial instruments can reduce that burden. Understanding which programs are active, what they cover, and how to access them is an important part of evaluating whether a rooftop solar installation makes financial sense for a particular household.

This article covers the main categories of financial support available as of mid-2026. Program terms change regularly, and homeowners should verify current eligibility and application requirements directly with the administering authority before making decisions based on this information.

Canada Greener Homes Initiative

The federal government's Canada Greener Homes Initiative was launched in 2021 to encourage energy-efficiency retrofits in Canadian homes, with solar panel installation among the eligible measures. The initiative had two main components:

  • Canada Greener Homes Grant: This grant program, which offered up to $5,000 for eligible home energy improvements including solar PV, closed to new applications in 2024 after funds were exhausted. Homeowners who submitted applications before the close date and have not yet received decisions may still be in the queue.
  • Canada Greener Homes Loan: An interest-free loan of up to $40,000, repayable over ten years, for eligible home retrofits including solar installations. As of mid-2026, this loan program remained open for applications. Details and eligibility are available through the Natural Resources Canada website.

Both components required a pre-retrofit EnerGuide home energy evaluation conducted by a licensed energy advisor, and for the loan, a post-retrofit evaluation to confirm the improvements were completed. The evaluation cost was partially reimbursable under the grant component while it was active.

Investment Tax Credit for Clean Energy

The federal government introduced a Clean Technology Investment Tax Credit (ITC) in the 2022 federal budget, providing a 30% refundable tax credit for investments in clean energy equipment, including solar PV systems. The measure was originally targeted at commercial and industrial installations, but subsequent budget documents extended eligibility to certain residential configurations, particularly where a solar system is paired with a battery storage unit.

The specifics of eligibility for purely residential (as opposed to small business operated from a home) installations are nuanced and depend on how the system is categorised under the Income Tax Act. Homeowners considering this credit should consult a tax professional or the Canada Revenue Agency for current guidance.

Provincial Programs

Ontario

Ontario's provincial solar incentive landscape changed substantially after the end of the microFIT and FIT programs, which had offered above-market rates for solar-generated electricity. Those programs are no longer accepting new applications. The current framework in Ontario is primarily net metering through licensed local distribution companies, governed by Ontario Regulation 541/05 and the Ontario Energy Board Act. There are no active provincial grants specific to residential solar as of mid-2026, though Ontario's Enbridge and other utilities have periodically offered rebates for energy-efficiency measures that can include solar-ready upgrades.

British Columbia

BC Hydro's net metering program, established under the Clean Energy Act, allows residential customers to offset their electricity bills with solar generation. CleanBC, the province's climate action plan, contains commitments to expand distributed energy, and BC Hydro's Power Smart program has historically included rebates for energy assessments and certain equipment. Homeowners in BC should review the current BC Hydro solar page for active offers.

Alberta

Alberta's Residential and Commercial Solar Program has provided rebates for solar installations in the province, administered through Emissions Reduction Alberta (ERA). The program has operated with annual funding rounds, and applications open on a first-come, first-served basis. Rebate amounts for residential installations have varied by year. Homeowners should check the current status at the Emissions Reduction Alberta website.

Nova Scotia

Efficiency Nova Scotia has offered solar installation rebates to homeowners, typically as part of broader home energy retrofit programs. The agency's programs have included both upfront rebates and financing assistance. Details are available through the Efficiency Nova Scotia website.

Quebec

Hydro-Québec's net metering option (auto-production) allows residential customers to offset consumption, but Quebec has historically had less emphasis on solar incentives due to the province's access to low-cost hydroelectric power. The Régie de l'énergie periodically reviews distributed generation policy, and the landscape may shift as the province pursues electrification goals.

Municipal Programs and Financing

Several Canadian municipalities have established Property Assessed Clean Energy (PACE) financing programs or similar arrangements that allow homeowners to finance solar installations through a surcharge on property taxes, repaid over time. These programs are more common in larger municipalities and vary considerably in structure and availability.

Some municipalities also offer permitting fee reductions or expedited permitting for solar installations as a measure to reduce the soft costs associated with residential solar. The local building department or municipal planning office is the appropriate contact for this information.

Combining Programs

Many financial instruments can be combined — for example, a homeowner might access the Canada Greener Homes Loan while also participating in a provincial rebate program and their utility's net metering arrangement. However, some programs have restrictions on combining with other federal support, and the eligible costs under one program may be reduced if another grant has already contributed to the same expenditure.

Working through the program documentation carefully, or consulting with an energy advisor or installer familiar with the current incentive landscape, reduces the risk of missing out on available support or making claims that conflict with program terms.

The Canadian Solar Industries Association publishes resources on residential solar financing and maintains a list of provincial programs.

Last updated: June 12, 2026