Solar Payback in Toronto 2026
Toronto solar systems typically pay for themselves in 10 years. See the math by system size, with Toronto Hydro rates and available Ontario rebates.
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Short answer
Solar in Toronto typically pays back in 10 years for a right-sized 6 to 10 kW residential system. Payback varies with your Toronto Hydro rate (average 14.0¢/kWh), 2,066 annual sun hours in Toronto, net system cost after Ontario rebates, and how much production you self-consume. See system-by-system math below.
10 yrs
Typical Payback
14.0¢/kWh
Electricity Rate
2,066
Sun Hours/Year
$2.95/W
Installed Cost
How Toronto Solar Payback Is Calculated
Payback (years) = Net System Cost / Annual Bill Savings
Net system cost is your installed cost minus available rebates. Annual bill savings equal annual production times your effective rate, adjusted for self-consumption. In Toronto, we use 2,066 sun hours, 14% capacity factor, Toronto Hydro rate 14.0¢/kWh, and 85% self-consumption.
Assumptions used on this page
- • Installed cost mid-range: $2.95 per watt
- • Annual production: 14% capacity factor times 8,760 hours per year
- • Electricity rate: 14.0¢/kWh flat (does not model TOU or ULO)
- • Rebate: Ontario HRSP at $1,000/kW up to $5,000, 50% cap
- • Self-consumption ratio: 85%
- • No rate escalation modelled (real payback is shorter with rate increases)
Toronto Payback by System Size
| System | System cost | Rebate | Net cost | Annual savings | Payback |
|---|---|---|---|---|---|
| 4 kW | $11,800 | $4,000 | $7,800 | $584/yr | 13.4 yrs |
| 6 kW | $17,700 | $5,000 | $12,700 | $876/yr | 14.5 yrs |
| 8 kW | $23,600 | $5,000 | $18,600 | $1,168/yr | 15.9 yrs |
| 10 kW | $29,500 | $5,000 | $24,500 | $1,459/yr | 16.8 yrs |
| 12 kW | $35,400 | $5,000 | $30,400 | $1,751/yr | 17.4 yrs |
Estimates assume 14% capacity factor, 14.0¢/kWh, 85% self-consumption, no rate escalation. Actual payback varies with roof orientation, shading, usage pattern, and financing.
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Related Resources
Solar Cost in Toronto
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Learn moreSolar Rebates & Incentives
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Learn moreFree Solar Estimator
Get a quote.
Learn more— Sources: NRCan, Toronto Hydro published rates.