Ontario’s New Solar Rebate: A Big Win, But At What Cost?
In early 2025, Ontario rolled out a game-changing energy efficiency initiative: the Home Renovation Savings Program, offering rebates of up to $10,000 for installing rooftop solar panels and home batteries. It’s part of a $10.9 billion investment to help homeowners fight rising energy costs and reduce carbon emissions.
At first glance, this is huge news for Ontario residents ready to go solar. But there’s a twist—accepting the rebate disqualifies you from Ontario’s Net Metering Program, meaning any energy your solar system produces beyond your usage is essentially lost.
So is the rebate worth it? Let’s break it down.
What is the Home Renovation Savings Program?
This program offers:
- Up to $5,000 for rooftop solar
- Up to $5,000 for battery storage
- Available for eligible home efficiency upgrades as well
The goal is to make solar more affordable for homeowners across the province, especially in the face of rising energy prices and grid demand.
You can also pair this rebate with the federal Canada Greener Homes Loan, offering up to $40,000 in interest-free financing over 10 years. Together, this means many homeowners could go solar with zero upfront cost.
The Net Metering Catch
Here’s where things get complicated.
Under Ontario’s Net Metering Program, homeowners with solar panels can send excess electricity back to the grid and earn energy credits, which are used to offset their electricity bills during times when their system isn’t producing (like nighttime or winter months). Over time, this can significantly increase total savings and even allow homeowners to go net-zero or net-positive.
But under the new rebate rules, you are not allowed to export electricity to the grid. Systems must be designed to only cover your own energy needs—no overproduction allowed.
In short:
- With net metering: You can export excess solar energy and get credits
- With the rebate: You can’t export—so any extra energy is wasted
Why the Restriction?
The Ontario government has not provided a clear explanation for this rule, but the likely reasons are:
- Grid stability concerns: Managing overproduction from thousands of homes can challenge an aging grid not yet modernized for distributed energy.
- Budget control: Limiting export reduces how much electricity the province must compensate through credits.
- Encouraging self-consumption: The focus is on using what you produce and reducing dependency on the grid—not becoming a small-scale power plant.
So… Should You Take the Rebate or Stick With Net Metering?
That depends on your goals, budget, and energy usage.
Take the Rebate If:
- Your roof size only supports a smaller system that won’t overproduce
- You want to pair it with a battery system for more self-consumption
- You’re focused on reducing upfront costs as much as possible
- You plan to stay in the home long enough to realize long-term benefits
Skip the Rebate If:
- Your system is likely to produce more than you consume (e.g., small household, large roof)
- You want to be fully net-zero or net-positive
- You’re thinking long-term and want to maximize every kilowatt your system can deliver
- You’d rather earn bill credits and reduce energy costs even further over time
A Real-World Example
Let’s say your home consumes 8,000 kWh/year. With net metering, a well-designed system producing 9,000 kWh/year could give you bill credits that carry you through winter and reduce your hydro bill to near zero. Over 25 years, that could mean over $40,000 in savings.
But under the rebate, your system would be capped to match your usage—and any overproduction would be lost. Your savings would still be strong, especially with a battery to store extra power, but potentially less than what net metering could deliver long-term.
What Are Solar Installers Saying?
Many solar companies in Ontario are divided. Some say the rebate helps more homeowners say yes to solar, while others worry it encourages undersized systems and leaves value on the table.
At CMI Solar, we’ve had conversations with customers on both sides. We help homeowners run the numbers, compare options, and design systems that match their goals—whether they want to go all-in with batteries and rebates or maximize long-term ROI through net metering.
The Choice Is Yours
Ontario’s new solar rebate is a major opportunity, but it’s not one-size-fits-all. Before signing anything, ask yourself:
- Do I want maximum short-term savings or long-term energy independence?
- Is my home well-suited for net metering?
- Would a battery make sense for me?
- How long do I plan to stay in the home?
Solar is a long-term investment, and choosing the right setup from the start will set you up for decades of cleaner, cheaper energy.
Need help making the right solar decision for your home?
Talk to our team at CMI Solar for a custom assessment. We’ll help you weigh every option—rebate or not—and design a system that’s truly built for your life.
<script type="text/javascript" src="https://form.jotform.com/jsform/233068413315046"></script>