Solar Panel Savings Calculator (Canada)
Free solar panel savings calculator for Canadian homes. Estimate 25-year lifetime savings using your annual generation, provincial electricity rate, net-metering credit, self-consumption, and rate escalation.
Solar Panel Savings Calculator
Year 1 savings
$1,275
Avg monthly (year 1)
$106
10-year savings
$13,359
25-year lifetime savings
$36,478
Year-by-year savings
| Year | Savings | Cumulative |
|---|---|---|
| 1 | $1,275 | $1,275 |
| 2 | $1,288 | $2,563 |
| 3 | $1,301 | $3,863 |
| 4 | $1,314 | $5,177 |
| 5 | $1,328 | $6,505 |
| 6 | $1,341 | $7,846 |
| 7 | $1,356 | $9,202 |
| 8 | $1,370 | $10,572 |
| 9 | $1,385 | $11,958 |
| 10 | $1,401 | $13,359 |
| 11 | $1,416 | $14,775 |
| 12 | $1,433 | $16,208 |
| 13 | $1,449 | $17,657 |
| 14 | $1,466 | $19,122 |
| 15 | $1,483 | $20,605 |
| 16 | $1,501 | $22,106 |
| 17 | $1,519 | $23,625 |
| 18 | $1,537 | $25,162 |
| 19 | $1,556 | $26,719 |
| 20 | $1,576 | $28,294 |
| 21 | $1,595 | $29,889 |
| 22 | $1,616 | $31,505 |
| 23 | $1,636 | $33,141 |
| 24 | $1,657 | $34,799 |
| 25 | $1,679 | $36,478 |
How to use this calculator
Enter five numbers and the calculator returns year-1 savings, average monthly cash flow, 10-year savings, and the full 25-year lifetime savings:
- Annual generation (kWh) — production in year 1. NRCan’s RETScreen and PVWatts (Canada has a regional version) give per-postal-code estimates. A 8 kW South-facing system in Toronto generates 9,500-10,500 kWh/year; in Calgary, 11,000-12,500 (high insolation, cold-temperature bonus); in Vancouver, 7,500-8,500.
- Electricity rate (CAD/kWh) — your blended residential rate. ON RPP tier 2: CAD 0.155 (May-Oct), CAD 0.118 (Nov-Apr); off-peak ULO rate CAD 0.024. AB Default Rate: CAD 0.12-0.18. BC Hydro step 2: CAD 0.1503 (over 1,332 kWh/2 mo). NS Power: CAD 0.171. NB Power: CAD 0.137. QC Hydro tier 2: CAD 0.1042. PEI: CAD 0.171.
- Net-metering credit rate (CAD/kWh) — set equal to import rate for 1:1 net metering (most provinces). Set lower for AB excess-credit rate (CAD 0.07-0.09).
- Self-consumption (%) — under 1:1 retail net metering, this doesn’t affect the dollar number, so 100%. Under non-1:1 schemes (AB excess, BC annual true-up), use 60-75% for a typical home.
- Annual rate escalation (%) — see FAQ above. 3% is a reasonable national default.
How the calculation works
The same dual-stream (self-consumed + exported) logic, with the simplification that under 1:1 net metering the export rate equals the retail rate:
year_n_self_kWh = annual_kWh × (1 - 0.005)^(n-1) × self_pct
year_n_export_kWh = annual_kWh × (1 - 0.005)^(n-1) × (1 - self_pct)
year_n_savings = year_n_self_kWh × import_rate × (1 + escalation)^(n-1)
+ year_n_export_kWh × export_rate
lifetime_savings = sum of year_n_savings from y = 1 to y = 25Worked example for a Toronto home with 8 kW South-facing on Ontario RPP TOU:
- Generation: 10,000 kWh/year
- Blended rate: CAD 0.135/kWh (TOU peak/mid/off-peak weighted)
- Net-metering credit: CAD 0.135 (1:1 retail)
- Self-consumption: 60% (with mid-day load)
- Escalation: 3%
- Year 1 savings: 10,000 × CAD 0.135 = CAD 1,350
- Year 25 savings: roughly CAD 2,400
- Lifetime total: roughly CAD 45,000
Lifetime savings by Canadian province (2026 reference)
Based on NRCan and provincial-utility data, 25-year lifetime savings for a typical 8 kW South-facing system at 1:1 retail-rate net metering:
| Province | Annual generation | Avg rate | Year 1 savings | 25-yr lifetime |
|---|---|---|---|---|
| Ontario (Toronto) | 10,000 kWh | CAD 0.135 | CAD 1,350 | CAD 45,000 |
| Alberta (Calgary) | 12,000 kWh | CAD 0.150 | CAD 1,800 | CAD 60,000 |
| British Columbia (Vancouver) | 8,500 kWh | CAD 0.117 | CAD 994 | CAD 31,500 |
| Nova Scotia (Halifax) | 9,000 kWh | CAD 0.171 | CAD 1,539 | CAD 51,000 |
| New Brunswick (Fredericton) | 9,500 kWh | CAD 0.137 | CAD 1,302 | CAD 43,000 |
| Quebec (Montreal) | 9,000 kWh | CAD 0.087 | CAD 783 | CAD 25,500 |
| Saskatchewan (Regina) | 11,500 kWh | CAD 0.165 | CAD 1,898 | CAD 63,500 |
| Manitoba (Winnipeg) | 11,500 kWh | CAD 0.108 | CAD 1,242 | CAD 41,500 |
| PEI (Charlottetown) | 9,000 kWh | CAD 0.171 | CAD 1,539 | CAD 51,000 |
| Newfoundland (St. John’s) | 8,200 kWh | CAD 0.138 | CAD 1,132 | CAD 37,800 |
Quebec’s low Hydro rate (CAD 0.087) makes solar economics challenging there despite generous net metering. Saskatchewan and Alberta lead on dollar lifetime savings due to high insolation × high retail rate.
What changes lifetime savings in Canada
Increases savings
- Cold-climate generation bonus — PV efficiency rises about 0.45%/°C below standard test conditions, so January-March output in AB/SK/MB is 10-15% above the temperature-corrected nameplate.
- Net Billing / SREC equivalents — Ontario IESO no longer offers FIT, but solar RECs trade through the IESO Class 1 RPS. Worth roughly CAD 30-50/MWh.
- Greener Homes Loan — interest-free up to CAD 40,000, makes financing math more attractive.
- Time-of-use peak shifting (Ontario ULO/TOU) — solar generates exactly during 11-AM-to-5-PM mid-peak window; ULO peak rate of CAD 0.284 makes self-consumption 2.5× more valuable than off-peak.
Decreases savings
- Snow cover — November-March production in central/eastern provinces drops 30-50% versus the 50/50 snow-free model; PVWatts overestimates winter output.
- East/West orientation — 10-15% less generation; common on prairie homes built east-west.
- BC Hydro annual true-up — excess credits beyond your annual consumption settle at the marginal-cost rate (CAD 0.0399), which discourages oversizing.
- Inverter replacement — typical 12-15 year service life means most owners replace once (CAD 2,000-3,500 for a typical 8 kW string inverter).
Savings vs. payback vs. ROI
- Lifetime savings answers “how much over 25 years?”
- Payback period answers “when do I break even on the CAD 18,000-CAD 28,000 install?”
- ROI / IRR answers “what annualised return versus a TFSA balanced ETF?”
See our Canadian solar payback calculator and solar ROI calculator.
Pair this with the payback calculator, ROI calculator, and system cost calculator
Run all four. Verify your provincial net-metering terms before plugging in the export rate.
Sources
- NRCan / CanmetENERGY — RETScreen, generation modelling, federal energy data.
- Statistics Canada Table 25-10-0021-01 — historical residential electricity price index.
- CER (Canada Energy Regulator) — provincial electricity supply and price outlooks.
- Greener Homes Loan — federal loan terms and eligible measures.
- Solar Industry Magazine Canada — provincial market and regulatory updates.
- Provincial utilities (BC Hydro, Hydro One, Hydro Quebec, EPCOR, NS Power, NB Power, SaskPower, Manitoba Hydro) — current tariff schedules and net-metering terms.
Frequently asked questions
What is the average 25-year solar saving for a Canadian home in 2026?
NRCan and CanmetENERGY data put 25-year lifetime savings for a typical 8 kW residential system at CAD 22,000-CAD 48,000, depending heavily on province. Ontario (Toronto) at CAD 0.155/kWh tier 2: CAD 28,000-32,000. Alberta (Calgary, deregulated) at CAD 0.12-0.18: CAD 25,000-32,000. BC (Vancouver) at CAD 0.117 step 2: CAD 22,000-26,000 (low rates and limited generation hurt). Nova Scotia at CAD 0.171: CAD 30,000-35,000. PEI at CAD 0.171 (highest in Canada): CAD 32,000-38,000. Net-metering at retail rate is the rule in 9 of 10 provinces.
How does net metering work in Canada?
All ten provinces and the territories offer some form of net metering. Most credit exports at the retail rate (1:1 net metering): Ontario, Quebec, Nova Scotia, New Brunswick, PEI, Newfoundland & Labrador, Manitoba, Saskatchewan. BC's program is also 1:1 retail-rate but with annual true-up at the much lower marginal-cost rate for excess credits. Alberta's micro-generation program is retail-rate net metering up to your consumption; excess is paid out at the retail energy rate (currently 6-9¢/kWh under the Default Rate, deregulated otherwise). Set self-consumption to 100% if you have 1:1 retail net metering.
Are there federal or provincial rebates available?
The Canada Greener Homes Grant (residential) closed to new applications in February 2024 — existing approvals continue. The Greener Homes Loan (interest-free up to CAD 40,000 over 10 years) is still active. Provincial: Ontario has the Empower Me program; Saskatchewan SaskPower's Net Metering rebate covers 20% up to CAD 20,000; PEI Solar Electric Rebate Program offers CAD 1.00/W up to CAD 10,000; Yukon Good Energy Program offers up to CAD 10,000. NB Power has a Total Home Energy Savings Program. Most rebates are now one-off, point-of-sale via approved installers — they affect the up-front cost, not the savings stream.
What rate escalation should I assume in Canada?
Provincial rate trends vary widely. Statistics Canada CANSIM Table 25-10-0021-01 shows the national residential electricity index rose 3.1%/year on average 2010-2024. Ontario IESO and OEB have averaged 3-4%/year. Alberta deregulated rates are highly volatile (-15% to +25% year-on-year) — use the 5-year geometric mean of 4.5%. BC Hydro is regulated by the BCUC at roughly 2.5-3%/year. Nova Scotia Power and NB Power have been approved for ~3%/year through 2026. Use 2.5-3% as a conservative national default, 4-5% for AB/SK/NS where rate cases are more aggressive.
Are net-metering credits taxable income in Canada?
For residential homeowners, no. CRA's Folio S3-F8-C1 treats net-metering credits as a personal-use reduction of household expenses, not income. If your generation regularly exceeds your annual consumption (excess credits paid out at Alberta's micro-gen rate, for example), the cash payment for excess is technically taxable but most personal residential systems never trigger this. Commercial or rental-property installations have different treatment under ITA s. 9 — consult an accountant.