Solar Loan Calculator (Canada)
Free Canadian solar loan calculator. Estimate the monthly payment, total interest, and year-1 net cash flow on a financed residential PV system using the federal Greener Homes Loan and major bank rates.
Solar Loan Calculator
Monthly payment
$244
Total paid over term
$29,296
Total interest
$7,296
Year-1 net monthly cash flow
-$138
Negative — payment exceeds savings (improves as rates rise)
Annual amortisation schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $1,273 | $1,657 | $20,343 |
| 2 | $1,171 | $1,759 | $18,584 |
| 3 | $1,062 | $1,867 | $16,717 |
| 4 | $948 | $1,982 | $14,735 |
| 5 | $825 | $2,104 | $12,631 |
| 6 | $696 | $2,234 | $10,397 |
| 7 | $558 | $2,371 | $8,026 |
| 8 | $412 | $2,517 | $5,509 |
| 9 | $257 | $2,672 | $2,837 |
| 10 | $93 | $2,837 | $0 |
How to use this calculator
Enter four numbers and the calculator returns your monthly payment, total paid over the term, total interest, and year-1 net monthly cash flow:
- Loan amount — the financed cost. The default C$22,000 reflects a 7 kW residential system at C$3.10/W after a typical 25% provincial rebate (NRCan PVAvailability 2026, NS SolarHomes, PEI Solar Electric). The Greener Homes Loan covers up to C$40,000 at 0% — for systems under that ceiling, the financed amount equals the gross quote.
- APR — federal Greener Homes Loan 0%, big-bank green loans 5.49-7.99%, HELOC at prime + 0.5% (currently 5.7-6.2%), private solar finance 6.99-9.99%. Default 5.99% reflects a typical mid-market RBC/BMO/TD green loan; set to 0% if you’ve secured the Greener Homes Loan.
- Term — Canadian solar loans run 5-15 years. Greener Homes 10 years. Default 10 years.
- Year-1 monthly bill savings — annual production × your provincial retail rate ÷ 12. NRCan PV Potential maps a 7 kW system at 7,500 kWh/year in Toronto, 8,800 kWh in Calgary, 9,200 kWh in Regina, 6,500 kWh in Vancouver, 6,200 kWh in Halifax. Provincial rates: ON 13.4 ¢, AB 18 ¢, BC 11.5 ¢ (Step 2), QC 7.6 ¢, SK 18.5 ¢, MB 10.4 ¢, NS 18 ¢, NB 14.6 ¢, PE 16.7 ¢, NL 14.5 ¢ (2026 averages).
How the math works
Standard amortising-loan formula:
monthly_payment = P × r / (1 - (1 + r)^-n)
where:
P = principal (financed amount, in CAD)
r = APR ÷ 12 (monthly rate, decimal — set to 0 for Greener Homes)
n = term in monthsWorked example for the en-ca defaults (C$22,000, 5.99% APR, 10 years):
- r = 0.0599 / 12 = 0.004992
- n = 120 months
- monthly = 22,000 × 0.004992 / (1 - 1.004992^-120) = C$244.20/month
- Total paid = 244.20 × 120 = C$29,304
- Total interest = C$29,304 - C$22,000 = C$7,304
If financed at 0% Greener Homes Loan: monthly = 22,000 / 120 = C$183.33 with zero interest.
Net cash flow with default C$106/mo savings, 5.99% loan: C$106 - C$244 = -C$138/mo year 1. With Greener Homes 0%: C$106 - C$183 = -C$77/mo. Canadian payback is generally slow due to a combination of cheap hydro-dominated rates and high installed cost — high-rate provinces (SK, NS, AB, PE) and the 0% loan flip cash-flow far closer to neutral.
Canadian loan economics by province (2026 reference)
| Province | Annual generation | Retail rate | Year-1 monthly savings | Net vs C$244 / 5.99% | Net vs C$183 / 0% Greener Homes |
|---|---|---|---|---|---|
| Saskatchewan | 9,200 kWh | 18.5 ¢ | C$142 | -C$102 | -C$41 |
| Alberta | 8,800 kWh | 18.0 ¢ | C$132 | -C$112 | -C$51 |
| Nova Scotia | 6,200 kWh | 18.0 ¢ | C$93 | -C$151 | -C$90 |
| Prince Edward Island | 6,300 kWh | 16.7 ¢ | C$88 | -C$156 | -C$95 |
| New Brunswick | 6,400 kWh | 14.6 ¢ | C$78 | -C$166 | -C$105 |
| Newfoundland & Labrador | 6,000 kWh | 14.5 ¢ | C$73 | -C$171 | -C$110 |
| Ontario | 7,500 kWh | 13.4 ¢ | C$84 | -C$160 | -C$99 |
| British Columbia | 6,500 kWh | 11.5 ¢ | C$62 | -C$182 | -C$121 |
| Manitoba | 7,200 kWh | 10.4 ¢ | C$62 | -C$182 | -C$121 |
| Quebec | 6,800 kWh | 7.6 ¢ | C$43 | -C$201 | -C$140 |
These year-1 figures look discouraging. After 10 years of 4-5%/year provincial rate escalation (Statistics Canada CANSIM 25-10-0021-01 trend), most provinces flip to positive monthly cash flow. The long-term lifetime savings remain meaningful in SK, AB, NS, PE — less so in QC, MB, BC where retail rates are too low to make solar finance compelling without the 0% loan.
Loan vs cash vs PPA — Canadian comparison
| Option | Up-front cost | 25-year net | Break-even | Best for |
|---|---|---|---|---|
| Cash | C$22,000 | C$8,000-C$15,000 savings | 14-20 yrs | Owners in SK/AB/NS/PE |
| Greener Homes Loan (0%, 10-yr) | C$0 down | C$10,000-C$17,000 savings | 13-18 yrs | Eligible owners with EnerGuide evaluation |
| Bank green loan (5.99%, 10-yr) | C$0 down | C$3,000-C$8,000 savings | 18-23 yrs | Backup if Greener Homes is over-subscribed |
| PPA / lease (rare in Canada) | C$0 down | C$1,000-C$2,000 savings | n/a (no equity) | Renters of equity, not owners |
PPA/lease structures are rare in Canada — most provincial regulators do not classify the residential homeowner as a wholesale market participant, which prevents pure PPA. Owner-financed dominant.
What changes the loan economics
Helps
- Greener Homes Loan at 0% — cuts effective interest to nil
- Provincial 0% programs (QC Rénoclimat, MB Hydro PAYS) for residents not on Greener Homes
- Battery in net-billing provinces (BC after surplus expiry, SK wholesale-only) — preserves self-consumption value
- TOU tariff — Ontario IESO peak (15 ¢) vs off-peak (8.7 ¢) makes self-consumption more valuable
Hurts
- Quebec or Manitoba retail rate under 11 ¢ — payback often exceeds system life
- Saskatchewan post-2019 net metering at wholesale (7 ¢) — drops self-consumption ROI sharply
- Snow losses of 5-15% annual production reduction — already baked into NRCan derate but the cash-flow drag is real
- No EnerGuide evaluation — disqualifies you from the Greener Homes Loan and Greener Homes Grant
Pair this with the payback calculator, system cost calculator, and ROI calculator
The loan calculator answers the monthly cash question. Payback gives you the break-even year. Cost gives you the gross-quote target. Run all three with your specific provincial rate and an EnerGuide pre-retrofit evaluation before submitting your Greener Homes application.
Sources
- NRCan — Canada Greener Homes Loan — federal 0% loan rules
- NRCan — Photovoltaic Potential — provincial generation maps
- CanmetENERGY — performance modelling, derate factors
- Statistics Canada CANSIM 25-10-0021-01 — provincial residential electricity rates
- CSA C22.1-21 Canadian Electrical Code Section 64 — PV installation rules
- HomeStars Solar Panel Cost Guide — installer-quoted regional pricing
Frequently asked questions
What APR should I expect on a 2026 Canadian solar loan?
The federal Canada Greener Homes Loan, administered by the Canada Mortgage and Housing Corporation (CMHC), remains the dominant solar finance product at 0% interest, up to C$40,000, 10-year term — currently fully subscribed but a new tranche reopened in early 2026 per NRCan. Outside the federal loan, RBC HomeProtector Plus, BMO Energy Loan, and TD Green Loan price 5.49-7.99% on solar specifically. Manitoba Hydro Pay-As-You-Save adds the loan repayment to the utility bill at 4.8% over 10-15 years. Quebec's Rénoclimat loan is 0% over 10 years up to C$20,000.
How does the federal Greener Homes Loan interact with a financed install?
The Greener Homes Loan covers up to 100% of the eligible cost (including PV, battery, and ancillary upgrades). Apply via the Greener Homes Portal before installation; an EnerGuide pre-retrofit evaluation is required. Once approved, the funds are advanced to the installer or you in two tranches. The 0% APR over 10 years on C$40,000 produces a flat C$333/month payment. Most provinces allow stacking with provincial rebates — confirm with a Registered Energy Advisor before submitting.
Should I take a Canadian solar loan or use my HELOC?
HELOCs at prime + 0.5% (5.7-6.2% in 2026) typically beat private solar loans (5.49-7.99%) but are dwarfed by the 0% Greener Homes Loan. Order of preference for Canadian homeowners: (1) Greener Homes Loan, (2) provincial 0% program (QC Rénoclimat, MB Hydro PAYS), (3) HELOC, (4) private solar loan, (5) credit-card promotional financing (avoid — usually 19.99%+ post-promo). Tax-deductibility: HELOC interest is deductible only if the borrowed funds produce business or investment income (CRA Tax Folio S3-F6-C1).
What is net metering and how does it affect cash flow?
All ten provinces and three territories operate net-metering programs but the structure varies dramatically. Ontario IESO 1:1 retail credit on a 12-month true-up. Alberta Micro-Generation Regulation 1:1 on the energy charge only (not transmission/delivery), 12-month true-up. BC Hydro 1:1 net metering, 12-month true-up, surplus credit lost. Quebec Hydro-Québec 1:1 with no expiry. Saskatchewan SaskPower phased out 1:1 in 2019 — now wholesale rate only (~7 ¢). Provincial differences mean year-1 monthly bill savings can vary by 40-60% across the same kW system. Use your specific provincial rate in the calculator above.
Is solar loan interest tax-deductible in Canada?
Owner-occupier residence: no. CRA general rule — personal-use loan interest is not deductible. Investment property or business-use solar (income-producing): yes, deductible against rental or business income. Capital cost allowance (CCA) Class 43.1 / 43.2 also applies for accelerated depreciation on commercial PV, plus the federal Atlantic Investment Tax Credit and several provincial business credits. Owner-occupier benefit is the bill savings + tax-free net-metering credit.