Solar Financing Options in Ontario (2024 Update)
Canada Greener Homes Initiative amongst other solar financing options like the BC Hydro rebate program in the Greater Toronto Area is driving a vibrant solar market, propelled by a mix of environmental objectives.
These programs and initiatives offer up to $40,000 for solar installations, supporting homeowners in reducing utility costs with financial incentives to make solar energy more accessible.
These programs have already provided energy-efficient retrofits for over 165,000 homes and aim to reach more than 500,000 by 2027, establishing solar as a more affordable option for Canadians.
Additionally, Toronto’s Home Energy Loan Program (HELP) has extended financing of up to $125,000 for residents seeking to add solar to their properties. This Property Assessed Clean Energy (PACE) loan is unique because it attaches to the property, transferring repayment to future owners, which makes it particularly attractive for homeowners
Environmentally, Ontario’s clean energy goals align with Canada’s commitment to achieving net-zero carbon emissions by 2050. Terawatt supports these incentives to accelerate the adoption of solar systems across the Greater Toronto Area, fostering long-term sustainability and resilience in Ontario’s energy landscape.
Windsor Solar Potential and Demand
Windsor is one of Ontario’s sunniest regions, averaging 2,300 hours of sunlight annually. This exceptional solar potential, coupled with the city’s flat terrain and abundant rooftop space, makes Windsor an ideal location for solar energy installations. These conditions enhance the feasibility of large-scale solar projects, helping meet local and provincial energy needs.
The demand for solar power has risen in the GTA, driven by increasing electricity costs in southern Canada and Ontario’s growing commitment to renewable energy.
As part of its clean energy goals, the Independent Electricity System Operator (IESO) projects that by 2030, Ontario will require 2,000 MW of new non-emitting electricity sources, including solar, to support economic growth and grid decarbonization. This plan will be followed by subsequent rounds targeting an additional 3,000 MW, further reinforcing the region’s push for solar adoption.
Factors Driving Increased Solar Demand in Southern Canada
- Rising Energy Costs: Increasing electricity prices, especially in Ontario, are driving more residents and businesses to adopt solar to cut energy costs.
- Government Incentives: Programs like the Canada Greener Homes Grant and loan, and provincial energy efficiency programs like the BC Hydro rebate programs help reduce upfront costs, making solar more accessible.
- Climate and Environmental Concerns: Growing awareness of climate change is pushing individuals and corporations to seek cleaner, renewable energy sources like solar.
- Advancements in Solar Technology: Solar panel efficiency has risen by 5-8% within the last 10 years and prices have fallen alongside. This improved efficiency and affordability have made them more viable for both residential and commercial installations in 2024.
- Corporate Sustainability Goals: Businesses are adopting solar as part of their strategy to reduce energy costs and meet environmental regulations.
- Grid Modernization: Efforts to diversify and decarbonize the energy grid are making solar a crucial component in securing long-term energy supply.
Canadian Greener Home Grant
As of November 2024, the Canada Greener Homes Grant (CGHG) has closed its initial phase to new applicants, with over 282,117 households having received grants for home retrofits to improve energy efficiency.
In response to high demand, the Canadian government is preparing to launch a new phase of the program to support more Canadians, especially low- to middle-income households, as part of the broader Canada Green Buildings Strategy
The next phase is expected to expand financial accessibility, targeting those who may have been unable to afford the upfront costs associated with energy-efficient retrofits. For households still interested, the Canada Greener Homes Loan program remains available, offering interest-free loans of up to $40,000 for a similar upgrade.
Solar financing options in Ontario
From government-backed grants to innovative financing programs, these options provide paths to make solar installations more affordable and accessible, while contributing to Ontario’s renewable energy goals. Below, we break down some of the most popular options available for financing solar projects in Ontario.
Canada Greener Homes Loan (CGHL)
The Canada Greener Homes Loan (CGHL) offers homeowners in the Greater Toronto Area interest-free loans to make energy-efficient upgrades, including solar panel installations.
Administered by the federal government, the CGHL offers up to $40,000 in funding, repayable over ten years and repaid through property tax assessments. Applicants must first complete an energy assessment and may then apply for the loan to fund specific improvements identified in the assessment.
How to Apply
- Home Energy Assessment: Apply for the initial energy assessment required to identify potential upgrades through the Canada Greener Homes Grant.
- Loan Application: Once eligible, you can apply for the CGHL by submitting your home’s assessment report and completing the loan application process.
- Installation and Repayment: Use approved contractors for the installation. Repay the loan interest-free over ten years.
PACE Toronto Home Energy Loan Program (HELP) – Toronto)
The Home Energy Loan Program (HELP) helps Toronto homeowners finance energy-efficient upgrades like solar panel installations and other home improvements that reduce energy consumption.
To qualify, you must own a detached, semi-detached, or row house in Toronto with a postal code starting with “M,” have all property owners on title consent and be up-to-date on property taxes and utility bills. If your property is mortgaged, you’ll also need your lender’s consent.
HELP allows homeowners to combine financing with other energy efficiency rebates from the City, Province, and utility companies. This program provides up to 30% of the loan upfront to kickstart projects and requires repayment through monthly installments on your property tax bill. You can repay the loan early, though service fees may apply.
Application Process
- Complete the online application.
- Book a home energy assessment with a registered Energy Advisor.
- Submit your funding request with contractor quotes and details on eligible rebates.
- Sign the Property Owner Agreement, receive funds, and start your project.
- Complete the work, have a post-retrofit assessment, and submit your final report to receive the remaining funds. Repay via property tax installments.
On-Bill Financing Programs
In cities like Penticton and Nelson, utility companies offer on-bill financing programs for renewable energy upgrades, allowing homeowners to pay for solar installations through their utility bills. Depending on your city, homeowners can borrow up to $16,000 and pay back in a 10-15 year period.
This approach simplifies the financing process, as repayment is seamlessly included in the monthly energy bill. Residents should inquire with their local utility providers to see if they offer this option, as terms and availability vary.
How to apply
- Step 1: Are you eligible? Start by filling out the HELP Application and submit it to publicworks@penticton.ca
- Step 2: Have a home energy assessment done on your home. Cost to homeowner $35.00+tax. Once you have been approved our program staff will arrange for the assessment.
- Step 3: From the Home Assessment you decide what work you want to do, choose your contractor, and get the work done.
- Step 4: Certify work is done by having the Homeowner/Contractor fill out the HELP application Forms
- Step 5: Post Assessment is done to your home. Cost to homeowner $200.00+tax.
- Step 6: Submit your documentation to City Yards @ 616 Okanagan Avenue East, Penticton, BC, before December 31, 2024.
Other Solar Financing in Canada
Clean Energy Loan (EQUS)
The Clean Energy Loan by EQUS is available exclusively in Alberta. The program offers its members affordable financing for renewable energy installations. To qualify, applicants must be EQUS members in good standing with no delinquent accounts.
The program provides loans up to $50,000, repayable over 10 years, with competitive interest rates designed to make renewable energy projects more accessible. Applications involve an assessment of credit history and project proposals, ensuring alignment with EQUS’s energy-efficiency objectives.
Clean Energy Loan – RBC Energy Saver Loan
The RBC Energy Saver Loan is available to Canadian homeowners looking to finance energy-saving home improvements, such as solar panel systems, energy-efficient windows, or new HVAC systems. RBC offers loan amounts from $5,000 up to a maximum of $40,000, with flexible repayment terms of up to 10 years. Eligible applicants include RBC clients with satisfactory credit who meet income requirements. Homeowners can benefit from a 1% interest rate reduction when undertaking eco-friendly home upgrades. Applications are processed through RBC branches or online for quick approval.
Mortgage Loan Rebate for Certified Green Homes
Several Canadian mortgage providers, including RBC, BMO, and TD, offer Mortgage Loan Rebates for homes certified as green by programs like ENERGY STAR, LEED, or EnerGuide.
This rebate incentivizes the purchase or renovation of energy-efficient homes, providing up to $2,000 in cashback or reduced mortgage rates. The rebate is available nationwide to qualifying homeowners purchasing or refinancing certified green properties. Eligibility requires certification verification, and rebates are processed upon mortgage approval, directly applied to the loan amount.
Canada Green Affordable Housing Program (CMHC)
The Canada Green Affordable Housing Program powered by CMHC to supports developers and housing providers in constructing energy-efficient and affordable housing across Canada.
Funding is available as low-interest loans and forgivable loans for projects meeting high energy efficiency and affordability standards. The program targets developers who commit to affordable housing and eco-friendly building standards, offering substantial financing depending on the project scope. Applications require a project proposal detailing energy-efficiency measures and affordability metrics, subject to CMHC’s assessment of environmental impact and long-term affordability goals.
Financing a Green, Simple, and Economical Future with Terawatt
There is currently a high solar potential and Demand in the GTA, especially for cities like Toronto and Windsor with high solar potential. With the Greener Home Grant not currently accepting new applicants, there are still many financing options for your solar project. The Terawatt solar company is your best partner when it comes to making the best solar panel choices in Southern Canada. As the leading solar panel company in Canada, you can expect exceptional services and workmanship. Begin today by taking a consultation let us help you identify the best solar financing option for you in 2024 and beyond.
