Investing in solar panels is an effective way to reduce energy costs and minimize environmental impact. Yet, prices vary widely, and understanding the associated expenses is crucial to making informed decisions. This guide provides a comprehensive overview of solar photovoltaic system costs in Canada, including factors influencing prices, regional variations, installation expenses and available incentives.

In general, the average cost to install solar panels in Canada is $2.40 to $3.30 per watt. That price is for the most commonly installed type of panels: monocrystalline. In the section below we break costs down based on different types of panels.

Costs Explained: Prices by PV Type

---

The following outlines the most common photovoltaics on the Canadian market, briefly explaining why they cost what they do. Costs vary based on the type and efficiency of the panels.

Thin-Film Panels

If you’re just searching for the lowest solar panel prices, thin-film would be it. They’re cheaper since they use less material and have a more straightforward manufacturing process. They’re versatile but have lower efficiency (10 to 15 percent) and shorter lifespans than other panel types.

Average price per watt = $1.70 to $2.40

Polycrystalline Panels

Manufactured using a less costly process, using silicon fragments, polycrystalline panels are moderately efficient at 15 to 17 percent and more affordable than their monocrystalline counterpart.

Average price per watt = $2.00 to $2.80

Monocrystalline Panels 

Monocrystalline panels are efficient at converting sunlight into electricity due to the use of high-purity silicon with an efficiency of 18 to 23 percent. Their price reflects a complex and resource-intensive manufacturing process, increased durability and sleeker design.

Average price per watt = $2.40 to $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.

Average price per watt = $3.00 to $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.

Average price per watt = $4.00 to $7.50

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. In general, the larger the system, the lower the per-watt cost to install.

A typical component list includes solar panels, mounting hardware, a charge controller, an inverter, 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 the average cost is between $2.40 to 3.50 per watt, the homeowner is looking at the higher end of that price range of $12,000 to $17,500 while a larger system of 10 kW system falls on the lower end of $24,000 and $35,000. 

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 labour 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. See the ‘Pricing Differences Across the Country‘ section below to get an idea of what installations cost according to province.

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

---

Aside from the primary factors listed above, there are several others that can also affect solar panels prices.

Quality of Components

Investing in reputable brands like SunPower Maxeon, Canadian Solar or REC Solar 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, geopolitical events and technological advancements. In 2024, the United States imposed a 50 percent tariff on Chinese solar panels. Canada is reviewing the market and looking to impose tariffs of their own. A tariff of that magnitude will significantly impact the cost of the product as manufacturers pass on all or most of the tariff cost to the consumer.

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 $1,000 application fee. 

Taxes

Solar panels and components are not exempt from provincial and federal taxes 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 to help track the performance of your solar setup. Costs can range from $200 to 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 could be up to twice annually, with warmer and drier regions requiring more. Professional maintenance services can cost $150 to 400 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, you may pay an additional fee of $75 to 150 per year to insure solar. Consult with your insurance provider to understand their specific coverage details.

Pricing Differences Across the Country

---

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 may experience higher costs.

Furthermore, large urban centres generally have higher labour 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 labour 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 2026

British Columbia – Solar installations in BC cost around $2.60 to $3.27 per watt, with costs influenced by higher labour expenses but offset by provincial rebates and net metering programs.

Alberta – Alberta offers relatively low costs, ranging from $2.40 to $3.01 per watt, driven by the high level of competition and deregulated energy market.

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.

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.

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.

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.

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.

Nova Scotia – Nova Scotia’s solar installation costs average $2.60 to $3.27 per watt, with support from the SolarHomes Program encouraging adoption.

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.

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.

Territories – Installing solar panels in the territories costs over $4.00 per watt, reflecting the high transportation and installation expenses in these remote parts of the country.

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 lithium ion, lead acid – flooded, gel and absorbent glass mat (AGM). There are also some lesser-used and emerging battery options, like flow and sodium ion, which may see greater adoption in the future. 

On average in Canada, the installed cost for solar batteries run around $700 to $2,000 per kWh. That wide spread reflects the premium people pay for a popular brand name like Tesla Powerwall as compared to a lesser-known Chinese brand. You’ll see this pricing differential reflected in the chart below.

Like with solar panels, the larger the battery the lower the cost per kWh. 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.

Average Cost of Solar Battery Installation in Canada

System Size	Typical Installed Cost ($CAD)	Notes
Small (5 kWh)	$4,000 – $10,000	Good for partial backup or limited load shifting
Mid-range (10 kWh)	$7,000 – $20,000	Common size for residential solar + battery installs
Large (20 kWh)	$12,000 – $35,000	Whole-home backup and longer outage coverage

Professional Installation vs DIY Installation

---

Opting for a DIY installation can result in considerable savings. It is rare though, and some provinces do not even allow it. Completing a project like this yourself comes with distinct challenges and concerns, like access to specific tools, knowledge of electrical and PV systems and codes, and warranty considerations.

DIY installation still requires a licensed electrician to sign off on the work. Finding an electrician to do that can be challenging so it’s worth thinking things through well before going ahead and purchasing your panels.

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.

Federal, Provincial and Utility Incentives

---

The Federal government is no longer accepting new applicants for the Canada Greener Homes Grant, however, the Fed does still offer the Canada Greener Homes Loan. 

In addition, some provinces and utility providers offer rebates and loans for eligible solar installations. Below is a list of incentive programs for each province that has them. For a complete list of federal, provincial, municipal and utility incentives view our Solar Incentive Finder.