Solar Payback Period in Ontario
Estimated payback, savings, and ROI for a residential solar system in Ontario — all figures in Canadian dollars, updated for 2026.
Payback Period
17.8 yrs
25-Year ROI
40%
Annual Savings
C$1,412
System Cost
C$25,200
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Payback by System Size in Ontario
| System Size | Cost (CAD) | Production | Annual Savings | Payback |
|---|---|---|---|---|
| 4 kW | C$13,350 | 4,646 kWh | C$706 | 18.9 yrs |
| 5 kW | C$16,313 | 5,807 kWh | C$883 | 18.5 yrs |
| 6 kW | C$19,275 | 6,969 kWh | C$1,059 | 18.2 yrs |
| 7 kW | C$22,238 | 8,130 kWh | C$1,236 | 18 yrs |
| 8 kW(typical) | C$25,200 | 9,291 kWh | C$1,412 | 17.8 yrs |
| 10 kW | C$31,125 | 11,614 kWh | C$1,765 | 17.6 yrs |
Cost model includes a fixed installation overhead that does not scale with system size, so smaller systems pay back a little slower. Savings assume the full retail rate; see the net-metering note above for where Ontario pays less on exports.
Ontario Solar Data
- Average Cost/Watt
- C$3.15
- Average Utility Rate
- C$0.152/kWh
- Peak Sun Hours
- 3.7 hrs/day
- Typical System
- 8 kW
Sources: Ontario Energy Board bill tracker (all-in residential rate); NREL PVWatts irradiance. Data as of 2026-07-01. Verify program availability before purchase decisions.
Programs and Incentives in Ontario
- Ontario net metering (energy-rate credit)
- Municipal/utility rooftop programs vary - verify current availability
There is no federal purchase credit for residential solar in Canada; the list above is what remains at the provincial or utility level.
Frequently Asked Questions — Solar in Ontario
How long is the solar payback period in Ontario?
A typical 8 kW residential system in Ontario pays for itself in about 17.8 years at an average rate of C$0.152/kWh and 3.7 peak sun hours per day. Ontario net metering credits exports at the retail energy rate (delivery charges excluded); Tiered/TOU plans differ.
How much do solar panels cost in Ontario?
An installed 8 kW system costs roughly C$25,200 (about C$3.15/W) before any provincial or utility incentives listed below. There is no federal purchase credit in Canada, so local programs and your export rate drive the real payback.
Is solar worth it in Ontario?
With a 17.8-year payback and 40% estimated 25-year return at current rates, solar in Ontario ranks 7 of 13 provinces and territories on payback speed in our model. High-rate provinces pay back faster regardless of sun hours.
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See how Ontario ranks on payback, cost per watt, and rates across all 13 provinces and territories.
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