Understanding costs and incentives

Costs

Solar hot water systems cost in the range of $7,000 to $10,000 for a system that can serve a family of four year round. Actual price will depend on the size of the system and the complexity of the installation.   For the average family of four, a solar water system could reduce utility bills by $325 per year if you use an electric water heater and by $250 a year if you use a gas water heater.

Incentives

We are no longer offering the Solar Neighbourhoods incentive or financing — due to popular demand, our program has been sold out. However, there are still valuable incentives available for solar hot water systems. See the information below.

Toronto SOLAR NEIGHBOURHOODS  Incentive:  Sorry - the Solar Neighbourhoods incentive program has now been fully subscribed.

ecoENERGY Incentive:  The federal ecoENERGY program will provide a $1250 rebate on the cost of a solar hot water system, but you must complete the two-part ecoENERGY Home assessment (cost of approximately $225 after provincial rebate) carried out by our ecoENERGY program experts, Windfall Ecology Centre.  Your ecoENERGY assessment will also qualify you for rebates on other home upgrades, such as improved insulation, a new furnace, and new windows and doors. 

Ontario Home Energy Savings program: The Ontario Home Energy Savings program will match the federal ecoENERGY incentive with an additional $1,250 rebate.  You will receive both the federal and provincial rebates as a single payment once you have completed the ecoENERGY assessment.

Federal Home Renovation Tax Credit: The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009.  The 15 percent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.  The credit applies to the cost of the system and associated expenses such as building permits, professional services, equipment rentals and incidental expenses. The credit will apply to the cost of your solar system before incentive payments (see the example in the chart to the left). Important Notice: Eligible expenses for goods acquired during this period, even if they are installed after January 2010, will still qualify. If an eligible expense involves work performed by a contractor or a third party, and the work is not completed by the end of the eligible period, only the portion that is completed before February 1, 2010 will qualify even if a payment has been made.

Provincial PST exemption: Renewable energy systems are exempt from provincial sales tax until Jan. 1, 2010.

Financing: Some suppliers, including the Bullfrog-Enbridge solar program, offer special financing or you can talk to your bank about options like a secured line of credit. This can reduce the cost of solar to what you pay for cable TV every month

Click here for a full list of energy conservation and renewable energy incentives

**System must meet NRCan performance standards to receive ecoENERGY incentives. See the Solar Neighbourhoods supplier list for more information.