Ontario Solar
How Solar Panels Can Lower Your Electricity Bills
Rising, unpredictable power bills hurt budgets. See how solar panels can lower or offset your Ontario electricity costs, plus a 2020 cost snapshot.
Rising, unpredictable power bills hurt budgets. See how solar panels can lower or offset your Ontario electricity costs, plus a 2020 cost snapshot.
Electricity bills can be a real burden on household and business budgets. We use more devices and appliances than ever, and the cost of keeping them running has gone up. At the same time, more people are looking at alternatives to fossil-fuel power. Solar panels are one of the most direct ways to take back some control over what you pay. This guide explains the main problems with electricity bills and how a solar system can help, especially if you own a home or business in Toronto and the GTA.
What you pay for power depends on where you live, and some parts of Canada pay significantly more than others. Meanwhile, the cost of solar equipment has fallen steadily for years. The Canadian Solar Industries Association reported that panel prices dropped by about 45 percent between 2010 and the time of its report, and that the installed price of a typical residential system dropped by about 69 percent over the same period.
A snapshot from 2020 shows the picture at that time. The average residential electricity price in Canada was around 16.5 cents per kilowatt-hour, according to the National Energy Board (now the Canada Energy Regulator). The average cost of residential solar power was quoted at about 14.2 cents per kilowatt-hour. Those are dated national averages, not Ontario prices today, and they depend on assumptions about system size, financing and lifespan. Your own numbers will differ, so a site-specific quote is the only reliable comparison. The main takeaway holds: the upfront cost of solar is higher than paying a monthly bill, but the long-term savings can make it cost-effective, especially where electricity is expensive.
Grid electricity rates have gone up over the years. Growing demand, ageing infrastructure and the cost of generating and delivering power are passed on to consumers. When you generate your own electricity, you reduce your reliance on the grid and you are less exposed to future rate increases. You can track current Ontario pricing on the Ontario Energy Board website, and read about recent trends in our post on Ontario electricity rate hikes and solar.
Extreme weather, a new appliance or a change in household routine can send a bill higher than expected, which makes budgeting hard. A solar system produces a steady, forecastable amount of energy over the year, so it is easier to plan around. Combined with a clear idea of how much power you use, you can reduce the chance of a nasty surprise.
Yes. A properly sized system can offset a large portion of your usage and, in some cases, nearly all of it. Under Ontario's net metering rules, the excess power your panels export can earn credits against future bills, which is how many homeowners bring their bills down to very low levels. Learn the mechanics in our net metering guide and see a real-world example in negative electricity bills in Toronto.
Whether you can eliminate your bill entirely depends on your usage, roof space, shading and system size. Your delivery and fixed charges generally remain even with solar, so be wary of anyone who promises a zero bill without looking at your home.
With battery technology, homeowners can store energy made during the day and use it at night or during outages, which can reduce reliance on the grid further. Read more about battery storage options.
It also helps to know your own numbers. Pull up twelve months of bills, note your yearly kilowatt-hour total and look at when you use the most power. That gives a design team what it needs to size a system sensibly, and it gives you a baseline to measure savings against once your panels are running.
Electricity rates move for several reasons. Utilities need to recover the costs of maintaining, upgrading and building transmission and distribution networks, power plants and related infrastructure. The price of fuel such as natural gas can affect generation costs when supply is tight or demand rises. Regulatory and environmental requirements can also increase costs of production and delivery. As a result, customers should expect periodic rate adjustments as regulators balance financial needs with reliable, affordable service. You can read about how Ontario's system works at the IESO.
Federal and provincial incentives, financing programs and equipment prices have all moved since this article was first written. For example, earlier mentions of a federal tax credit for solar should not be assumed to apply to your situation. Please check our incentives page for the current picture, and use the solar calculator for a quick estimate.
Terawatt Solar designs and installs systems for Ontario homes and businesses with ESA-licensed in-house crews and SolarEdge inverters. We offer a free site assessment so you can see what a system could do for your bills before you decide anything. Learn about residential solar or commercial solar, then get in touch or call (877) 648-3323.
They can reduce it a lot, and net metering credits help offset usage across the year. Fixed delivery and service charges usually remain, so a bill of exactly zero is uncommon.
Generally the more the grid price rises, the more valuable each kilowatt-hour you produce yourself becomes. Actual savings depend on your system and usage.
No. They are a dated national snapshot. Ask for a site-specific quote for current pricing.
