Solar is a wonderful alternative energy source for Canadians looking to make the switch to green energy. The average solar installation in Canada costs $22,500 for a 7.5kW system, although the total cost can vary greatly depending on the province, system size and rebates available. 

Factors that affect solar panel installation cost

Every system is uniquely designed to suit a homeowner’s roof and usage needs. There isn’t a one size fits all system which is why it’s difficult to give general estimates without looking into your home’s electricity consumption, roof, location and more. Understanding what influences a system’s installation cost can help homeowners better compare quotes and ask important questions when starting their solar journey

System size 

A proper installer will look at consumption history over the last year to evaluate how much electricity your home needs. The more power your household uses, the more solar panels you’ll require, adding to the cost of your system.

Although the overall cost increases with every new panel addition, the opposite occurs for $/Watt. This is due to fixed EPC costs associated with every installation, such as permitting fees, engineering designs, and system balance. Although you’re paying more overall, you’re also getting a better deal and lowering your payback time with a larger system. 

Depending on your province and system size, the payback period is usually between 8 to 16 years. Most panels have warranties of up to 25 years which makes going solar a great long-term investment. 


Location can affect a system’s installation cost due to policies, weather and provincial incentives. The average cost varies between provinces, with Ontario currently having the lowest cost at $2.43-2.59 per Watt. Despite this, there isn’t a huge difference between provinces, with most falling within a few cents of each other.


Brands and panel types have different price ranges. For example, monocrystalline panels offer a more premium product and design compared to polycrystalline. It’s best to look through different panel types to evaluate what suits your home best.

Monocrystalline panels might be more expensive but are best used in colder climates due to their higher efficiency and lowlight performance. 


A south-facing roof with a 30-degree angle is ideal due to more direct sun exposure and better production. You won’t need as many panels to generate energy for your household needs. 

On the other hand, complex roofs with multiple levels might make the installation process more difficult and can require extra equipment and increase installation costs. 


A big part of acquiring a system is finding a reliable and affordable installer. Homeowners have many options to choose from, reinforcing the importance of asking for multiple quotes to compare which reputable company can offer you the best package.

Prices vary between installers due to warranty and internal operations costs. Although the cheapest deal might seem the most attractive, it’s very likely quality and warranty are being sacrificed to afford those lower rates. Premium warranties add more to the total installation cost but provide security in the future in case anything needs to be repaired or replaced. 

Lowering Solar Cost

With costs falling, improved incentives and affordable financing/leasing plans, solar might be more in reach than a lot of homeowners think.

Year by year, trends show the cost of systems decreasing as solar technology improves. Since 2010, residential solar systems have gone down by 64%, largely due to lower hardware costs such as solar modules.  

However, despite falling prices, seeing the total cost of a solar system can still be discouraging for some homeowners. Even with great projected savings up ahead, it can be hard to commit to a home upgrade with a longer payback period. 


Canada is focused on reducing greenhouse gas emissions by transitioning to renewable energy sources such as solar. Both federal and provincial governments have incentives to promote green energy and help Canadians go solar at a more affordable price. 

The federal government announced their $5000 Canada Greener Homes Grant in 2021 to assist homeowners with energy-efficient home upgrades, including solar installations. 

We recommend looking at specific rebates in your province to see how much you can save on a solar system. For instance, Prince Edward Island offers their own rebate of up to $10,000 that can actually be stacked with the federal grant, significantly reducing the cost of a system. 

Financing and Leasing Options  

Financing and leasing allow homeowners to enjoy the long-term benefits of solar without enormous upfront costs. The downside of this option usually comes with interest rates that can pile on, increasing the overall cost after the finance/lease term is done. 

As the number one residential solar installer in Canada, we’re able to offer a 0% interest financing program, making it easy to go solar and enjoy savings without any financial burdens.  

Let us design your perfect affordable solar system. Qualify today for our 0% financing program and get a free quote to start your solar journey.


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