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Incentives PDF Print E-mail

Solar Water Heater Incentives

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More than $1,300 in provincial and federal incentives are available to homeowners that install a solar water heater.

Homes must undergo a residential energy efficiency assessment by a licensed energy auditor to be eligible for grants.

Ontario currently offers $150 toward the cost of a home energy audit. The auditor completes the paperwork to apply for the grants and submits it on behalf of the homeowner.

For installations recommended by the audit, homeowners can receive up to $5,000 in grants from the Province, which match federal grants. In the case of a solar water heater, Ontario offers a grant of $500, which matches the $500 federal grant.

The Province also provides a rebate of the provincial sales tax on qualifying solar (and other renewable) energy systems.

Ontario’s program is based on eligibility for the federal ecoENERGY Retrofit program managed by Natural Resources Canada. To find out more about the ecoENERGY Retrofit program, including incentives, qualified energy auditors, and how to apply, visit the Natural Resources Canada Web site.

If you have had an energy audit of your home in the past, through the EnerGuide program or other, you need to have another audit to qualify for this incentive, and all incentives associated with the new ecoENERGY Retrofit program.

Total estimated costs and rebates of over $1,300 are summarized below.

Estimated Costs
  Solar water heater: $5,000 - $6,000
Home energy audit: $300
Building permit: varies by municipality
  Ontario home energy audit rebate: $150 (Ontario pays 50 per cent of cost, up to $150)
Ontario PST rebate: $170 - $204
Ontario rebate: $500
Federal rebate: $500
Total rebates: $1320 to $1354

How to Get Money Back
To access the available provincial and federal incentives, follow these steps:

  1. Book a Home Energy Retrofit audit. A list of approved auditors is available at the Natural Resources Canada Web site. The Ontario government will automatically reimburse you for 50% of the cost, up to $150, following your audit.
  2. Select and install your solar water heater. The Ontario Government has extended the retail sales tax rebate on qualifying solar equipment, saving you approximately $200.
  3. Complete your verification audit. The auditor completes your application to receive your federal and provincial grants.

For more details, visit the Ontario Ministry of Energy Web site.

Energy and Greenhouse Gas Savings
A typical family of four will also save approximately 2700 kWh or $325 per year by supplementing their electric water heater with a solar water heater. If the solar water heater is supplementing a gas water heater, the savings would be $200 per year.

Annual estimated GHG reductions would be 600 kg if supplementing an electric water heater, or 760 kg if supplementing a gas water heater.

Solar Thermal Incentive Programs for Industrial, Commercial and Institutional Users. 

Both the federal and provincial government are offering generous terms for industrial, commercial and institutional users. Here are the federal Terms and Conditions under which deployment incentives will be provided for qualified solar thermal installations in the industrial, commercial and institutional sectors.

The Ontario government is making $14.4 million available over four years to encourage the industrial/commercial/institutional sector to convert to solar thermal heating. Ontario businesses, industries, schools, universities, municipalities and hospitals would receive 25 per cent of the cost of the installation of a solar thermal heating system from the province to a maximum of $80,000.

The program is linked with the federal government’s ecoENERGY Renewable Heat Program which will also provide a contribution of 25 per cent to a maximum of $80,000. It is estimated that the program will generate 500 installations over four years.To access the provincial grant you must first access the federal grant program. 


Photovoltaic System Incentives

Sales Tax Rebate
The Ontario Government has extended the rebate on the provincial sales tax for PV systems.

The Ontario Power Authority’s Standard Offer Program

The Ontario Power Authority’s Standard Offer Program offers generators of PV electricity that are connected to Ontario’s distribution system 42 cents per kilowatt hour – more than three times the offered price for other renewable technologies. There are costs and fees associated with connecting your system to the grid. This is more suitable to larger systems. Contact your local electrical distribution company for details.

Net Metering

Residents who install smaller micro-generation PV systems who do not wish to participate in the Standard Offer Program can choose to use the electricity generated for their own consumption. Ontario's net metering regulation allows you to send electricity generated from renewable sources to the electrical grid for a credit toward your energy costs. Your utility will subtract the value of electricity you supply to the grid from the value of what you take from the grid. What you'll see on your bill is the "net" difference between those two amounts. If you supply power that is worth more than what you take from the grid over the billing period, you'll receive a credit that can help lower future energy bills.

For more details, visit the Ontario Ministry of Energy Web site.