Solar Energy

How Much Are Residential Solar Panels?

Switching to residential solar panels remains one of the smartest ways to cut electricity bills, protect against rising energy costs, and reduce your carbon footprint. Yet, the cost of panels in Canada depends on many factors. Your province, sunlight hours, roof size, local utility rates, and the type of system you choose all contribute to the final price.

Know how much you can expect to invest in solar installations, what influences installation costs, and which incentives or rebates can help you save money and gain energy independence.

Key Takeaways

  • Residential solar prices in Canada depend on system size, panel type and installation costs.
  • Provincial labour rates and local utility rules affect final solar installation prices across Canada.
  • Government grants, tax credits, and utility rebates can reduce upfront solar costs and improve return on investment.

Cost of Solar Panels By Type

The right solar panels are a big part of making your solar investment work for your budget and your energy needs. Prices vary based on the materials used, efficiency rates, and how each type performs on a home’s roof in different conditions.

Here’s what homeowners should know before going solar:

Thin-Film Panels

Appeal to homeowners looking for the lowest upfront cost. These panels use less raw material, which keeps manufacturing simple and affordable. The lighter weight makes solar panel installation easier for older roofs needing fewer electrical upgrades.

  • Average price per watt: $1.50–$2.50
  • Lower efficiency means you may need more panels to power your home
  • Shorter lifespan compared to other types

Polycrystalline Panels

Offer a middle ground for many families interested in renewable energy without stretching the budget too far. These panels come from melted silicon fragments, which lowers production costs.

  • Average price per watt: $2.00–$3.00
  • Moderate efficiency helps balance cost and clean energy output
  • Durable and reliable for most residential needs

Monocrystalline Panels

For homeowners aiming for maximum clean energy output from limited roof space, monocrystalline panels stand out. Made from pure silicon, these modules are highly efficient and durable. Many buyers choose them to reduce long-term reliance on the grid.

  • Average price per watt: $2.50–$3.50
  • Sleek design works well with visible roof areas
  • Good option for larger systems with battery storage systems

Building-Integrated Photovoltaics (BIPV)

Combines energy generation with building materials. These systems replace parts of your roof or walls with solar cells. Saves space but adds complexity to the installation process.

  • Average price per watt: $3.00–$4.50
  • Ideal for new builds or major renovations
  • Blends with architectural design while generating clean energy

Solar Shingles

Looks like standard roofing, but works like solar panels. These modules suit new builds or full roof replacements. Expect higher prices due to advanced technology and extra installation steps.

  • Average price per watt: $4.00–$7.50
  • Long-lasting and aesthetically pleasing
  • Boost resale value for home buyers interested in going solar

Matching the right panel type to your home’s roof and budget will help protect your solar investment and keep your renewable energy goals realistic.

Price by Kilowatt System in Canada

Knowing how much power you need to generate helps shape the size of your solar setup and the final cost. Most Canadian homeowners install systems between 5 kW and 10 kW to cover their average household energy use and offset rising utility bills. Each system includes panels, mounting hardware, an inverter, wiring and other electrical parts needed to safely connect to the grid or a battery backup.

Price Ranges by System Size

  • 5 kW System
    • Panels: $12,500–$17,500 ($2.50–$3.50 per watt)
    • Installation: $5,000–$7,500 ($1,000–$1,500 per kW)
    • Total Cost: $17,500–$25,000
  • 10 kW System
    • Panels: $25,000–$35,000
    • Installation: $10,000–$15,000
    • Total Cost: $35,000–$50,000

Factors Affecting Final Costs

  • Panel Type and Efficiency: Higher efficiency panels cost more but need fewer units to reach your target output. This helps if the roof space is tight or your goal is to store excess solar energy with battery systems.
  • Location and Labour: Costs vary by province. For example, British Columbia or Ontario have different installer rates, local utility fees and permitting needs. Remote locations may see higher delivery charges, too.
  • Permitting and Fees: Local regulations can add extra steps. For example, installing in Toronto might require multiple permits plus a zoning check for ground-mounted systems.

Beyond that, other factors may include:

  • Insurance premiums could rise as your home’s value grows.
  • Smart monitoring systems track how many solar panels you have, how much energy you produce and help manage net metering credits with BC Hydro or other local utilities.
  • Adding an electric vehicle, heat pump or extra inverters may increase upfront cost but bring long-term savings and more energy independence for homeowners and communities.

Make your solar investment simple and stress-free — let MAG Solar handle design, installation and permits so you enjoy clean energy sooner.

Price Differences & Cost of Installing Solar Panels By Province

Professional installation makes up a big part of the total cost when planning a self-generation program for your home. Knowing what to expect helps budget the entire process and prepare for the long-term benefits, like sending excess energy back to the grid or having backup in a power outage.

The table below shows the average installation costs per kilowatt (kW) for each province. These estimates do not include the cost of panels but cover mounting hardware, inverters, wiring and labour needed to safely connect your system to the sun and deliver clean energy with clear environmental benefits.

Province

Average Installation Cost

Price Per kW

Alberta

$1,100 – $1,600

$2.51 – $2.77

British Columbia

$1,200 – $1,700

$2.60 – $3.27

Manitoba


$1,100 – $1,600


$2.60 – $3.27

New Brunswick

Newfoundland and Labrador

$1,500 – $2,000

$4.00+

Northwest Territories

$1,200 – $1,700

$2.43 – $2.68

Nova Scotia

$1,100 – $1,600

$2.60 – $3.27

Nunavut

$1,500 – $2,500

$4.00+

Ontario

$1,000 – $1,500

$2.42 – $3.05

Prince Edward Island



$1,100 – $1,600



$2.60 – $3.27

Quebec

Saskatchewan

Yukon Territory

$1,000 – $1,500

$2.29 – $2.81

Labour is frequently higher in remote areas like Nunavut, where access to materials and skilled installers adds cost. Homeowners should check with trusted local contractors to plan their budget and factor in any local incentives that help balance installation costs and bring extra savings from the sun’s energy.

How to Get Government Grants for Residential Solar Power in Canada

Solar incentives can come from the federal or provincial government. In some provinces, utility companies also provide rebates or low-interest loans to cover the cost of approved solar installations. Here are some of the supports available in Canada:

Canada-Wide

  • CMHC Eco Improvement Rebate: Up to 25% back on mortgage insurance premiums for upgrades over $20,000. Applies to new builds or homes owned for more than 6 months. Must apply within 2 years of mortgage closing.
  • Clean Technology Investment Tax Credit (ITC): Refundable tax credit covering up to 30% of eligible clean tech costs, including solar systems. For commercial, agricultural, and industrial projects until December 31, 2034.

Alberta

  • Clean Energy Improvement Program (CEIP): Finance up to 100% of solar project costs through your property taxes. Terms up to 20 years, interest rates from 1.2%–3.6%.
  • Net Billing for Excess Energy: Alberta’s micro-generation rules let you earn bill credits for excess solar energy sent back to the grid. Rates vary by provider; Solar Club members can switch between rates based on production.

British Columbia

  • BC Hydro Solar & Battery Rebates: Up to $5,000 each for solar PV systems ($1,000 per kW, max 5kW) and batteries (5kWh+ capacity). Must use BC Hydro-approved installers.
  • Social Housing & Remote Microgrid Rebates: Cover up to 75% of project costs (max $150,000 total for solar + batteries).
  • BC PST Exemption: 7% PST on solar panels, wiring, inverters and other system parts if bought together. Batteries are not exempt.
  • BC Hydro Self-Generation Program: Export unused energy to the grid for credits through net metering. Credits roll over monthly, reset each year.

Ontario

  • Home Renovation Savings Program (HRSP): Up to $5,000 rebate each for rooftop solar ($1,000/kW, up to 50% of costs) and battery storage ($300/kWh).
  • Toronto HELP Loan: Up to $125,000 low-interest loan for solar, batteries and other upgrades. Repay through your property tax bill.
  • Better Homes Ottawa Loan Program (BHOLP): Loans up to $125,000 or 10% of home value for solar, heat pumps, EV chargers and more. Zero-interest option for income-qualified households.
  • Commercial & Indigenous Programs: Save on Energy Retrofit $1,000 per kW (microgeneration), or $860 per kW (small/medium projects).
  • Ontario Indigenous Solar MicroFIT: Support for Indigenous-owned solar projects.

Cut your electricity bills and protect your home with renewable energy. Our team can help you claim rebates and start your self-generation program now.

Get an Accessible Solar Setup For Home with MAG Solar

Knowing what residential solar costs helps you plan better. From panel prices and kilowatt system sizes to installation fees and local labour rates, every dollar counts toward saving more on your energy bills. Add in rebates or tax credits, and solar becomes an investment that pays off for years.

MAG Solar team helps homeowners get clear pricing, qualify for local incentives, and complete their setup without surprise costs. Start your solar plan today and keep more money in your pocket while enjoying clean energy.

Frequently Asked Questions

How much do solar panels cost for a 2000 square foot house in Canada?

For a 2,000-square-foot house in Saskatchewan, for example, a regular 7 kW residential solar system costs about $17,500 to $24,500 installed, before any incentives. With Saskatchewan’s strong sunlight and net metering, plus federal rebates, many homeowners lower that cost to around $12,500 to $ 19,500. Generating 9,000–11,000 kWh yearly can cover most household energy needs and bring real savings on electricity bills.

What is the 20% rule for solar panels?

The 20% rule for solar panels means your residential solar system shouldn’t produce more than 20% above your yearly electricity needs. This keeps your solar panel plans aligned with local utility rules for net metering and prevents oversupplying excess energy to the grid.

Is there a 30% tax credit for solar panels in Canada?

Yes, Canada’s Clean Technology Investment Tax Credit offers a 30% refundable tax credit on eligible solar panel systems, battery storage, and related clean energy equipment. To get the full 30%, projects must meet local labour conditions; otherwise, the minimum credit drops by 10% to 20%.

What is the average cost of a residential solar system installed?

For an average 1,500 sq. ft. home in Edmonton, a fully installed residential solar system (around 7kW) commonly costs between $18,200 and $22,890. This works out to about $2.60 to $3.27 per watt, depending on equipment, roof design and installer rates. 

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