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Solar Rebate Calculator (Federal + Provincial)

Free solar rebate calculator for Canadian homeowners. Estimate the value of the Greener Homes Loan, provincial rebates (PEI Solar Electric, NS SolarHomes, AB residential), and net cost after every incentive.

Solar Panel Tax Credit Calculator

Gross cost
$22,000
Total incentive
$5,000
Percentage credit value: $0
Rebate value: $5,000
Net cost after rebate
$17,000
Effective discount
22.7%
Moderate — verify provincial top-up

How to use this calculator

The calculator stacks the Greener Homes Loan amount, provincial rebate, and gross system cost to produce a net cost figure for Canadian homeowners:

  1. Gross system cost — total contract price quoted by your installer before any rebates. April 2026 typical Canadian residential solar runs C$2.50–C$3.50/W installed; a 7 kW system is C$17,500–C$24,500. The CanREA 2025 Annual Report median is C$3.10/W, higher than U.S. equivalents due to snow-rated mounting, smaller market, and CSA C22.1 inspection costs.
  2. Tax credit (% of cost) — leave at 0% for residential. Canada has no federal residential tax credit. If you are a small business or running a home office on the residential property, enter 100% to model Class 43.1 accelerated CCA in year 1 (commercial only — see solar investment tax credit calculator).
  3. Federal/provincial rebate (C$) — flat rebate slot. Add Greener Homes Loan amount (you receive it as a loan, not a grant — model only the principal not the interest savings vs market rate), plus any provincial cash rebate.

How the math works for Canadian homeowners

Canadian residential solar incentives are structurally provincial-led, with one federal financing instrument:

gross_cost      = pre-rebate contract price
flat_rebate     = greener_homes_loan_amount + provincial_rebate
net_cost        = gross_cost - flat_rebate (loan is repaid over 10 years interest-free)

Worked example for a typical Halifax home (April 2026):

  • 7 kW system, gross: C$22,000
  • Greener Homes Loan: C$22,000 (interest-free, 10-year repayment — loan, not grant)
  • NS SolarHomes rebate (C$0.30/W × 7,000 W): C$2,100
  • Effective net cost (cash flow): C$0 day one + C$1,990/yr loan repayment = C$19,900 total over 10 years
  • After SolarHomes rebate, cash needed: C$0 with C$1,990/yr × 10 yrs - C$2,100 grant = C$17,800 effective lifetime cost

For modeling purposes, treat the Greener Homes Loan as financing (interest-saving vs market rate of ~6% over 10 yr ≈ C$3,400 NPV benefit) and the provincial rebate as the true incentive.

Provincial rebates by province (April 2026)

Comprehensive rebate table for Canadian residential solar:

ProvinceProgramRebateCapEligibility
PEISolar Electric RebateC$1.00/WC$10,000Owner-occupied, ≤10 kW
Nova ScotiaSolarHomesC$0.30/WC$3,000Owner-occupied, EnerGuide eval
YukonGood Energy RebateVariableC$5,000Owner-occupied, qualifying installer
New BrunswickTotal Home Energy SavingsUp to C$5,000 (multi-measure)C$5,000Owner-occupied, NB Power
NewfoundlandtakeCHARGE RebateC$0.20/WC$3,000Owner-occupied, ≤10 kW
QuebecRénoclimatC$1,250 (multi-measure)C$1,250Owner-occupied, post-eval
OntarioNone federal/provincial——Greener Homes Loan only
ManitobaNone active——Net metering at retail; Greener Homes Loan
SaskatchewanNone active——Net metering; Greener Homes Loan
AlbertaNone provincial; some municipal (Banff, Canmore)Variable—Municipal only
BCNone provincial; some utility rebatesVariable—BC Hydro net metering
NWTNWT Energy RebateVariableC$5,000Owner-occupied
NunavutNone——Limited grid; off-grid mostly

PEI and Nova Scotia remain the most generous on a C$/W basis. Quebec’s provincial rebate is small but the net-metering banking is the best in the country (Hydro-Quebec D rate at C$0.078/kWh banked annually). Alberta has no provincial rebate but its deregulated electricity market and high retail rates (C$0.18+/kWh under most retailers in 2026) make economics work without one.

Canada Greener Homes Loan — federal financing

Run by Natural Resources Canada (NRCan), the Greener Homes Loan covers solar PV, batteries, heat pumps, insulation, and other qualifying retrofits:

  • Loan amount: C$5,000 to C$40,000
  • Interest rate: 0% (interest-free)
  • Term: 10 years repayment
  • Eligibility: owner-occupied principal residence, completion of pre-retrofit EnerGuide evaluation through Service Organization (~C$300, typically reimbursed if loan approved), use of contractor with appropriate trade certification, post-retrofit EnerGuide audit
  • Application: online via the Canada Greener Homes Portal
  • Disbursement: paid directly to the homeowner after post-retrofit audit confirms work was completed to spec

Compared to a market rate green loan (RBC Energy Saver Loan ~5.99% fixed, BMO Greener Future Financing ~6.49%, TD Green Loan ~6.49%), the Greener Homes 0% APR saves about C$8,000–C$13,000 in interest over a C$25,000 / 10-year term.

Net metering by province (April 2026)

Net metering is the second major economic lever after upfront rebates:

  • PEI: Maritime Electric Net Metering — annual netting at retail rate (C$0.166/kWh in 2026), excess credits expire annually.
  • Nova Scotia: Nova Scotia Power Net Metering — monthly netting at retail; transitioning post-2025 to enhanced net metering with bidirectional rate.
  • New Brunswick: NB Power Net Metering — annual netting at retail.
  • Quebec: Hydro-Quebec D Rate — annual netting at C$0.078/kWh (the lowest retail rate in Canada — solar economics still work because system costs are lower in QC).
  • Ontario: IESO Net Metering — within-billing-period netting at time-of-use rate (least generous structurally).
  • Manitoba: Manitoba Hydro Net Billing — transitioned to bi-directional at retail less wholesale spread (~C$0.04 spread).
  • Saskatchewan: SaskPower Net Metering — monthly netting at retail (C$0.18/kWh in 2026), excess credits paid C$0.075 annually.
  • Alberta: Direct Energy / Enmax / Encor Net Billing — credit at customer’s retail rate, paid quarterly. AB has the most pro-prosumer market structure but no upfront rebate.
  • BC: BC Hydro Net Metering — annual netting at retail (Step 2 rate ~C$0.151/kWh in 2026), excess paid C$0.099/kWh annually.

The lifetime value of net metering at retail rates often exceeds the value of any upfront rebate. See solar panel savings calculator for the 25-year compounded number.

Snow, cold-climate, and Canadian solar economics

Canadian residential solar is a different beast from California or Florida. Snow-loss derate is real (CanmetENERGY studies put it at 7–12% annual production loss in southern Ontario, Quebec, Maritimes; 12–20% in the prairies and northern QC). Cold-climate gain is also real (panel efficiency rises ~0.4%/°C below 25°C — January production per peak-sun-hour can exceed June if snow-shed is good and skies are clear). The CanREA-CanmetENERGY 2024 study finds residential systems sized correctly for the climate produce 1,050–1,250 kWh/kW/yr in southern Canada vs 1,200–1,500 kWh/kW/yr in similar latitudes in the US Mountain West.

The combined effect: payback in Canada with rebate is typically 9–13 years post-incentive, vs 6–9 years in the U.S. with the 30% ITC. Provincial rebates (PEI especially) close the gap.

Pair this with the investment tax credit calculator, cost calculator, and payback calculator

For a complete picture: this calculator shows the rebate stack on day one; the investment tax credit version covers Class 43.1 accelerated CCA for commercial; the payback calculator turns it into break-even years; the cost calculator validates your gross quote against provincial benchmarks.

Sources

Frequently asked questions

Does Canada have a federal solar tax credit?
Not for homeowners. The federal Investment Tax Credit (Section 127 of the Income Tax Act) applies only to commercial Class 43.1/43.2 property. Canadian homeowners cannot claim a percentage-of-cost income-tax credit for residential solar PV. The flagship federal program for residential is the Canada Greener Homes Loan — interest-free up to C$40,000 over 10 years, repayable in monthly instalments. The companion Greener Homes Grant (up to C$5,000 cash) closed to new applicants on 21 February 2024 but applications already in the pipeline continue to fund.
Is the Canada Greener Homes Grant still available in 2026?
Closed to new applications since 21 February 2024. Applications submitted before that date are still being processed and disbursed through 2026 — so if you applied early 2024 you may still receive your C$5,000 grant. The Liberal government replaced it with the Canada Greener Homes Affordability Program (low-income variant, ongoing) and the Greener Homes Loan (interest-free, ongoing). Provinces have generally stepped in: Quebec's Rénoclimat, PEI's Solar Electric Rebate, Nova Scotia's SolarHomes, and Yukon's Good Energy Rebate continue to fund residential solar in 2026.
Does my province offer a solar rebate or tax credit?
Varies widely. As of April 2026: PEI offers C$1.00/W up to C$10,000 (Solar Electric Rebate); Nova Scotia offers C$0.30/W up to C$3,000 (SolarHomes); Yukon offers up to C$5,000 (Good Energy Rebate); New Brunswick offers Total Home Energy Savings Program rebates up to C$5,000; Saskatchewan, Alberta, Manitoba and BC have ended past programs but offer net-metering and the Greener Homes Loan; Ontario, Quebec, Newfoundland have no current upfront rebate but Quebec's net-metering credit is generous (Hydro-Quebec D rate banking).
How does net metering count compared to a tax credit?
Net metering is not a tax credit — it is a billing mechanism that lets you bank surplus generation as kWh credit on your utility bill. Each province sets its own rules: in BC, Manitoba, Alberta and PEI you net at the retail rate (the most generous form); in Ontario you net at the time-of-use rate within billing period only (less generous, banking is per-month not annual); in Quebec you net annually at retail with credits expiring; in Nova Scotia net metering is at retail through 2025 then transitions. Net-metering value over 25 years often exceeds the upfront grant — see our [solar panel savings calculator](/en-ca/calculators/solar-panel-savings-calculator/).
Can I claim solar on my Canadian income tax?
If it is a rental property: yes, depreciate at 100% under Class 43.1 (1-year accelerated investment incentive, AII, in effect through 2027) or Class 43.2 (50% rate). For your principal residence: no income-tax deduction, no credit, no GST/HST rebate (PV does not qualify under the GST/HST New Housing Rebate). If you are a sole proprietor running a home-based business (under business-use-of-home rules), the business-use percentage of the system can be capitalized and depreciated. Most homeowners simply benefit from the Greener Homes Loan + provincial rebate + net-metering.

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