Solar panels in Ontario: a homeowner's guide

How net metering works in Ontario

Ontario homeowners connect to the grid through a local distribution company — Hydro One, Toronto Hydro, Alectra, and others. Under net metering, the power your panels send back spins your meter the other way, and you are billed on the net. Surplus credits are typically carried forward for up to 12 months, so a sunny summer can offset a darker winter.

Because credits are valued at the retail rate, every kilowatt-hour you offset is worth what you would otherwise pay — including time-of-use or tiered pricing. Sizing the system to your annual use, rather than overbuilding, is usually the smart play.

What it costs, and what you save

Installed prices in Ontario commonly fall between $2.40 and $3.05 per watt, so a 7.5 kW system might run roughly $18,000–$23,000 before any incentives. With Ontario's rates, payback frequently lands in the 9–13 year range, though your roof, shading, and consumption move that number meaningfully.

In Ontario the question is rarely "does solar work?" but "is my roof and my usage a good fit?" — and that is answerable with one good site assessment.

Permits and inspection

Your installer pulls an electrical permit and the work is inspected by the Electrical Safety Authority before the utility approves your net-metering connection. A clean inspection is not optional — it is what lets you legally export power.

Is solar worth it in Ontario?

For an unshaded south- or west-facing roof on a home with average-to-high consumption, often yes. The cheap installs and retail-rate credits do a lot of the work. Get three itemised quotes, confirm the production estimate, and check the workmanship warranty before you commit.