A No-Nonsense Guide to Solar Panel Costs in Canada, 2025
- Simo D
- Nov 4
- 9 min read
Originally published to Green Building Canada on December 18, 2024
Investing in solar panels is an effective way for Canadians to reduce energy costs and minimize environmental impact. However, prices vary widely, and understanding the associated expenses is crucial to making informed decisions. This guide provides a comprehensive overview of 2024 solar panel costs in Canada, including factors influencing prices, regional variations, installation expenses, and available incentives.
Costs Explained: Prices by PV Type
The following outlines the most common photovoltaics on the Canadian market in ascending order, briefly explaining why they cost what they do. Costs vary based on the type and efficiency of the panels.
Thin-Film Panels
Thin-film panels are the cheapest solar panels available due to straightforward manufacturing processes that use less semiconductive material. They are versatile but have lower efficiency and shorter lifespans than other panel types. The average price per watt is $1.50 – $2.50.
Polycrystalline Panels
Manufactured using a less costly process—using silicon fragments—Polycrystalline panels are moderately efficient and more affordable than their monocrystalline counterpart. The average price per watt is $2.00 – $3.00.
Monocrystalline Panels
Monocrystalline panels are efficient at converting sunlight into electricity panels due to the use of high-purity silicon. Their price reflects a complex and resource-intensive manufacturing process, increased durability, and sleeker design. The average cost per watt is $2.50 – $3.50.
Building-Integrated Photovoltaics (BIPV)
BIPV systems integrate into building materials like roof shingles, windows, or facades. Their dual-purpose nature and custom installations drive up their costs. The average price per watt is $3.00 – $4.50.
Solar Shingles
On the high end of the market lies solar shingles, which mimic traditional roofing materials. Their high cost stems from the advanced technology and complex installation. The averagepricet per watt is $4.00 – $7.50.
Solar Panel Costs, Canada at a Glance
Panel Type | Description | Cost/ Watt Installed |
Thin Film | Lightweight and flexible; lower efficiency and shorter lifespan. | $1.50 – $2.50 |
Polycrystalline | Moderate efficiency; more affordable than monocrystalline. | $2.00 – $3.00 |
Monocrystalline | High efficiency and longevity; typically more expensive. | $2.50 – $3.50 |
Building-Integrated PV | Integrated into building materials like facades; higher aesthetic appeal. | $3.00 – $4.50 |
Solar Shingles | Power-generating shingle; higher costs due to being a specialty product. | $4.00 – $7.00 |
Note: Prices are approximate and fluctuate on brand, quality, and market conditions.
Price by Kilowatt System
When preparing to purchase a solar power setup, it's crucial to understand that the size of the system, meaning its kilowatt (kW) capacity, affects the needed components and the installation costs.
A typical component list includes solar panels, mounting hardware, a charge controller, an inverter (often one system), wiring, and other electrical components needed to connect the system safely. Below is a breakdown of standard system sizes, the associated costs, and other factors affecting price.
For a typical 5 kW residential system, with panels costing between $2.50–$3.50 per watt ($12,500–$17,500) and installation costs ranging from $1,000–$1,500 per kW ($5,000–$7,500), the homeowner is looking at a price range of $17,500–$25,000. Similarly, the total price for a 10 kW system falls between $35,000 and $50,000.
Factors Affecting Costs
Panel Type and Efficiency
The type of panel you choose will affect the overall cost of your system. For example, selecting high-efficiency monocrystalline panels is more expensive but requires less of them to achieve the desired system size. This option may provide the most value if you have limited space for a PV array.
Number of Panels
A significant energy demand requires higher capacity—meaning more panels—increasing material and labor costs. However, economies of scale often reduce the per-watt cost for larger installations.
Location
Provincial regulations, availability of qualified installers, and local market conditions influence price. For example, installation costs in Ontario range from $2.42 to $3.05 per watt, making it one of the more affordable provinces for solar installations.
Installation Complexity
Roof pitch and design, tree or building cover, and structural considerations can affect installation difficulty and, consequently, the overall cost.
Other Factors Affecting Cost
Quality of Components
Investing in reputable brands and durable materials can affect the overall cost but offer greater longevity and better performance.
Market Conditions
As with most consumer products, prices fluctuate based on supply and demand, availability of materials, and technological advancements.
Permitting Fees
Depending on local regulations, there could be costs associated with obtaining the necessary permits for installation. For example, in Toronto, anyone planning to install solar on their property needs a building permit, an Electrical Safety Authority (ESA) permit, compliance from the utility provider, and a zoning bylaw review if you plan to install a ground-mounted system.
Furthermore, the Ontario government requires a Renewable Energy Approval (REA) for any Class 3 system—a solar PV installation of 500 kilowatts or less—with a $1000 application fee.
Taxes
Solar panels and components are not exempt from provincial and federal taxes—HST—and subsequently add to the overall cost of the components. However, for those registered with a GST/HST number, you may be eligible to claim an Input Tax Credit (ITC) for the GST/HST paid on the purchase and installation of a solar panel system. This credit can offset the taxes paid, effectively reducing the overall cost of your PV system.
Shipping and Delivery
Depending on your location, there may be additional costs for transporting the components to your site.
Monitoring Systems
Monitoring systems using smart technology help track the performance of your solar setup. Costs can range from $200-500 for initial setup, with possible additional subscription fees.
Maintenance
Regular cleaning and inspections are required to maintain the performance of your PVs. Depending on the rainfall frequency in your area, a cleaning schedule can range from 0-4 four times annually, with warmer and drier regions requiring more. According to SolVoltaics, professional maintenance services can cost $150- 330 per year.
Insurance
Solar panels can increase your home's replacement value, potentially increasing insurance premiums. While costs will fluctuate based on provider and specifics related to your home, local environment, and solar setup, research suggests you may pay an additional fee of $75- 150 per year to insure solar. Consult with your insurance provider to understand their specific coverage details.
2024 Installation Costs in Canada
Beyond the cost of solar panels, installation expenses constitute a significant portion of the total investment in a solar energy system. These costs vary across provinces due to labor rates, local regulations, and market demand.
The following table outlines the average professional installation costs per kilowatt (kW) in Canadian dollars (CAD) for each province, excluding the cost of panels:
Province | Average Cost Range/ kW (CAD) |
Ontario | $1,000 – $1,500 |
British Columbia | $1,200 – $1,700 |
Alberta | $1,100 – $1,600 |
Manitoba | $1,100 – $1,600 |
Saskatchewan | $1,100 – $1,600 |
Quebec | $1,100 – $1,600 |
New Brunswick | $1,100 – $1,600 |
Nova Scotia | $1,100 – $1,600 |
Prince Edward Island | $1,100 – $1,600 |
Newfoundland and Labrador | $1,500 – $2,000 |
Yukon | $1,000 – $1,500 |
Northwest Territories | $1,200 – $1,700 |
Nunavut | $1,500 – $2,500 |
Cost of Professional Installation vs. DIY Installation
Choosing a DIY installation can provide considerable savings. However, completing the projects yourself comes with distinct challenges and concerns, like access to specific tools, knowledge of electrical and PV systems and codes, and warranty considerations. Below is a comparison of professional versus DIY installation.
Challenges of DIY Installation
Safety Standards: Adhering to national and provincial electrical codes is crucial to ensure safety and compliance.
Permitting: Navigating the permitting process can be complex and time-consuming, requiring detailed knowledge of local regulations.
Climate Considerations: Canada's diverse climate necessitates careful planning to ensure the system withstands local weather conditions, including snow loads, wind gusts, and temperature fluctuations.
Pricing Differences Across Canada
Understandably, the cost of solar panels and installation varies across the country. Factors like supplier and installer availability, regional incentives, and provincial market conditions play a significant role. The figures below provide a general guideline, but for precise costs, you should consult local solar suppliers and installers to receive tailored quotes for your specific location and energy needs.
Average System Cost by Location
Province/Territory | Price/ Watt (CAD) |
Ontario | $2.42 – $3.05 |
British Columbia | $2.60 – $3.27 |
Alberta | $2.51 – $2.77 |
Manitoba | $2.60 – $3.27 |
Saskatchewan | $2.60 – $3.27 |
Quebec | $2.60 – $3.27 |
New Brunswick | $2.60 – $3.27 |
Nova Scotia | $2.60 – $3.27 |
Prince Edward Island | $2.60 – $3.27 |
Newfoundland and Labrador | $4.00+ |
Yukon Territory | $2.29 – $2.81 |
Northwest Territories | $2.43 – $2.68 |
Nunavut | $4.00+ |
Provincial and Territorial Price Differences
Provinces with well-established solar markets and a higher number of suppliers, like Ontario and British Columbia, often benefit from competitive pricing. In contrast, regions with fewer suppliers or challenging transportation logistics, such as the Northern Territories, may experience higher costs.
Furthermore, urban centers generally have higher labor and infrastructure costs, increasing installation expenses. However, the proximity to suppliers and a larger pool of qualified installers can offset some of these costs. In rural areas, where labor costs can be lower, transportation expenses and limited access to qualified installers may lead to higher overall costs.
Overview of Solar Costs by Province and Territory in 2024
Alberta: Alberta offers relatively low costs, ranging from $2.51 to $2.77 per watt, driven by its competitive market and the Residential and Commercial Solar Program.
British Columbia: Solar installations in BC cost around $2.60 to $3.27 per watt, with costs influenced by higher labor expenses but offset by provincial rebates and net metering programs.
Manitoba: Solar panel installations in Manitoba average $2.60 to $3.27 per watt, with fewer installers but reasonable energy policies contributing to stable pricing.
New Brunswick: Solar costs in New Brunswick range between $2.60 and $3.27 per watt, with growing interest in renewable energy and available incentives.
Newfoundland and Labrador: Solar costs exceed $4.00 per watt due to limited installer availability and logistical challenges, making it one of the most expensive regions for solar in Canada.
Northwest Territories: Costs in the Northwest Territories are around $2.43 to $2.68 per watt, with unique challenges like remoteness and climate impacting installation logistics.
Nova Scotia: Nova Scotia’s solar installation costs average $2.60 to $3.27 per watt, with support from the SolarHomes Program encouraging adoption.
Nunavut: Solar panels in Nunavut cost over $4.00 per watt, reflecting the high transportation and installation expenses in this remote territory.
Ontario: The province has one of the most competitive solar markets, with average installation costs ranging from $2.42 to $3.05 per watt, thanks to a well-established network of installers and provincial incentives.
Prince Edward Island: Solar panels in PEI cost around $2.60 to $3.27 per watt, with incentives and community-based energy initiatives supporting the shift to renewables.
Quebec: In Quebec, installation costs are around $2.60 to $3.27 per watt, with established energy efficiency programs but relatively slow solar adoption due to affordable hydroelectric power.
Saskatchewan: Similar to Manitoba, solar costs in Saskatchewan average $2.60 to $3.27 per watt, with room for growth in the provincial solar market.
Yukon: Solar installations in Yukon range from $2.29 to $2.81 per watt, supported by the Yukon Energy Solutions Centre’s rebate programs for off-grid and on-grid systems.
Cost of Solar Battery Storage
While net metering programs keep the cost of solar setups to panels, components, and installation, those who want backup power or live off the grid will need batteries for their desired power storage needs.
Battery costs vary based on technology, capacity, and brand. The most common battery types used in solar installations are lead acid—flooded, gel, absorbent glass mat (AGM)—and lithium-ion. There are also some lesser-used and emerging battery options, like flow and sodium ion, which may see greater adoption in the future.
We’ll evaluate the cost of the more common lithium and lead battery types for simplicity and practicality. Selecting the appropriate battery for a PV system involves considering cost, capacity, maintenance, and lifespan factors. For example, lithium-ion batteries have higher upfront costs but offer longer lifespans and lower maintenance, making them a popular choice for residential and commercial applications.
Federal, Provincial, and Utility Incentives
The Federal government is no longer accepting new applicants for The Canada Greener Homes Grant, but the program is still available in Ontario, Quebec, and Nova Scotia through provincial authorities. However, the Fed still offers The Canada Greener Homes Loan.
In addition, some provinces and utility providers offer rebates and loans for eligible solar installations. Incentive programs vary and change as budgets are allocated, so check government websites or consult local suppliers for the most current information.
The reader is welcome to explore the list of links to active programs for each province that has them:
Alberta
British Columbia
Manitoba
New Brunswick
Nova Scotia
Ontario
Prince Edward Island
Quebec
Saskatchewan
Yukon
Making Solar Work for You
Investing in solar panels is not only about harnessing clean energy—it's about making a strategic choice for environmental responsibility balanced with long-term cost savings.
We hope this guide has equipped you with a clear understanding of solar panel costs in Canada for 2024, from the different types of panels and system sizes to installation expenses and regional price variations. Canadians can make informed decisions that align with their financial and sustainability goals by considering factors like provincial incentives, maintenance costs, and the potential for energy independence.
As you take the next steps, remember to consult local installers for tailored quotes, explore government rebate programs, and evaluate your specific energy needs. Whether aiming to reduce your utility bills or contribute to a greener future, solar energy offers a promising solution for homes and businesses across Canada. Take action today and turn sunlight into savings!
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