Ontario is Canada’s largest provincial electricity market and — with roughly 3 GW of installed solar capacity — one of the country’s most active solar markets. The regulatory framework, however, looks nothing like it did a decade ago. The provincial Feed-in Tariff (FIT) program for large projects ended in 2022. The microFIT program for residential generators (up to 10 kW) closed to new applications in 2017. Today, net metering under Ontario Regulation 541/05 is the standard path for homeowners, businesses, and farms going solar in Ontario.
This guide covers the complete compliance pathway: how net metering credits work, the ESA electrical permit process, LDC connection requirements, current incentive programs, and the financial picture for Ontario solar in 2026.
FIT and microFIT Have Ended
Ontario’s Feed-in Tariff (FIT) program closed to large renewable projects in 2022. The microFIT program, which paid a fixed tariff per kWh exported by small generators (up to 10 kW), closed to new applicants in 2017. Existing microFIT and FIT contract holders continue on their contracts. For any new solar installation in Ontario, net metering under Reg. 541/05 is the only grid-connected path available.
Ontario’s Net Metering Framework (Regulation 541/05)
Ontario Regulation 541/05 establishes the province-wide rules for net metering. Every licensed electricity distributor in Ontario — all approximately 60 LDCs — is legally required to offer net metering to eligible customers. The key provisions:
Eligibility: Any customer connected to a licensed distributor’s system who generates electricity from a renewable source (solar, wind, water, biogas, or biomass) primarily for their own use. The generator must be located on the same property as the load it serves.
System size cap: 500 kW nameplate capacity. This covers residential rooftop systems (typically 5–20 kW), commercial systems, and small-to-mid industrial installations. Systems above 500 kW do not qualify for net metering under this regulation.
Connection process tiers:
- Systems up to 10 kW: micro-generator process (Form C). Simpler review, faster LDC turnaround.
- Systems above 10 kW: embedded generator process (Form B). Requires additional technical review; the LDC assesses the impact on the local distribution system.
How credits are calculated: The distributor measures electricity imported from the grid and electricity exported to the grid separately (via a bidirectional meter). When export exceeds import in a billing period, the difference creates a credit. That credit is calculated at the same rate the customer would otherwise pay for electricity — the commodity rate — for their rate class.
What credits can and cannot offset: Credits apply to electricity commodity charges only. Delivery charges, regulatory charges, and the debt retirement charge are not offset, even if a customer’s solar system produces more energy than they consume annually. This means customers with net metering always pay some monthly charges — the delivery portion of the bill remains regardless of generation.
12-month rollover rule: Credits carry forward for up to 12 consecutive months. If a credit balance remains after 12 months, it resets to zero. Ontario does not pay cash for unused surplus generation. A properly sized system builds credits through summer and draws them down through winter — avoiding end-of-cycle forfeitures.
Third-party ownership: A 2022 amendment to Reg. 541/05 explicitly permits third-party ownership arrangements — leases, financing agreements, and power purchase agreements. This was a significant change that enabled broader residential solar financing options in the province.
Upfront connection costs: Also removed by the 2022 amendments. LDCs cannot charge customers upfront costs for processing a net metering application. The LDC installs the bidirectional meter at no charge to the customer.
Local Distribution Companies in Ontario
Ontario’s electricity distribution system is fragmented across roughly 60 LDCs — a mix of municipally owned utilities and the province-wide Hydro One network. All operate under OEB rules. Application processes, review timelines, and customer service vary considerably.
| LDC | Primary Service Area | Application Contact | Typical Timeline |
|---|---|---|---|
| Hydro One | Rural and suburban Ontario; vast territory across the province | 1-877-447-4412 / DxGenerationConnections@HydroOne.com | 3–6 months |
| Toronto Hydro | City of Toronto | der@torontohydro.com / 416-542-3099 | 4–8 weeks |
| Hydro Ottawa | City of Ottawa | hydroottawa.com/DER | 6–10 weeks |
| London Hydro | City of London | londonhydro.com | 6–10 weeks |
| Enova Power Corp | Waterloo Region, Brantford, Norfolk | enovapower.com | 8–12 weeks |
| Alectra Utilities | Mississauga, Brampton, Hamilton, Guelph, Barrie, Markham | alectrautilities.com | 8–12 weeks |
| Veridian / Durham | Ajax, Pickering, Clarington, Belleville | veridiancorporation.com | 6–10 weeks |
| Eastern Ontario Power | Cornwall, Embrun, Casselman | easternontariopower.com | 6–10 weeks |
Hydro One serves the largest geographic territory — most of rural Ontario, including cottage country and agricultural areas. Its large service area means some feeders have constrained capacity, and connection timelines can extend beyond six months for larger commercial systems. Contact their Distributed Connections Group before incurring any design costs.
Toronto Hydro is notably faster than the provincial average. Its online Generation and Storage Capacity Lookup Tool lets designers check whether a specific feeder has available capacity before applying. Toronto also requires checking for “restricted feeders” — areas where system hosting capacity is limited due to high solar density on aging urban distribution infrastructure.
Hydro Ottawa administers a DER application process through its online portal and distinguishes between net metering (excess generation credited against the customer’s bill) and load displacement (no grid export — credits not applicable). Most solar customers apply for net metering.
Pro Tip: Contact the LDC Before Finalising System Design
In Ontario, the LDC must approve the connection before the system can be energised. Some urban feeders — particularly in dense Toronto and Mississauga neighbourhoods — have restricted capacity that limits the export rate for new systems. Getting a preliminary capacity check from the LDC at the design stage prevents surprises after installation. Use solar design software that generates LDC-ready single-line diagrams to accelerate the application review.
Technical Requirements
All solar PV installations in Ontario must comply with the Ontario Electrical Safety Code (OESC) 29th Edition, which came into effect May 1, 2025. The OESC incorporates the Canadian Electrical Code, Part I, with Ontario-specific amendments. Key technical requirements for solar PV:
Inverter certification: Inverters must be certified to CSA or UL standards and must meet IEEE 1547 interconnection requirements. The OEB’s Distributed Energy Resources Connection Procedure references CSA C22.3 No. 9 for interconnection technical standards. Only certified inverters are permitted for grid-connected systems.
Anti-islanding protection: All grid-tied inverters must include anti-islanding protection, which shuts down the inverter when the grid fails. This is a mandatory requirement under CSA C22.3 No. 9 and a standard feature of all certified grid-tie inverters. LDCs verify anti-islanding capability during the connection review.
Rapid shutdown: The 2025 OESC 29th Edition includes updated requirements for energy storage systems at residential buildings. For solar PV rapid shutdown, Ontario follows the Canadian Electrical Code, Part I requirements. Designers should confirm the applicable rapid shutdown zone requirements for rooftop PV under the current edition before specifying module-level power electronics.
Bidirectional metering: The LDC installs a bidirectional (two-register) smart meter after the ESA Certificate of Inspection is issued. Customers do not arrange their own meter — the LDC owns and installs the meter as part of the net metering connection process.
CSA/UL panel certification: All PV modules must be certified to CSA or UL standards. The ESA inspector verifies certification labelling as part of the inspection.
Step-by-Step: Going Solar in Ontario
Assess site and system size
Confirm the system will be on the same property as the electrical load. Size the system for on-site consumption rather than export maximisation — credits only offset the commodity portion of the electricity bill, and unused credits expire. Use generation and financial modelling tools to calculate Ontario-specific payback periods against current TOU or tiered rates.
Contact the LDC for preliminary capacity check
Before finalising the design, contact the LDC serving the address. For systems above 10 kW, the LDC performs a system impact assessment. Confirm whether the feeder has available capacity. Request the appropriate application form (Form C for ≤10 kW, Form B for >10 kW).
Obtain municipal building permit
Most Ontario municipalities require a building permit before solar installation. Toronto requires one for PV systems with an installation area above 5 square metres. Ottawa requires one to verify structural and load adequacy. Submit structural drawings if required. Building permit processing typically takes 1–4 weeks.
File ESA Notification of Work (electrical permit)
The licensed Electrical Contractor files a Notification of Work through esasafe.com before installation begins. This is separate from the building permit. ESA fees apply; the fee schedule was updated April 1, 2026 (1.9% increase). The contractor is responsible for ensuring the installation meets the OESC 29th Edition.
Install and request ESA inspection
After installation, the contractor requests an ESA inspection through esasafe.com. The ESA inspector checks inverter certification, wiring compliance, anti-islanding, labelling, and disconnects. If the inspection passes, ESA issues a Certificate of Inspection. If it fails, deficiencies must be corrected and a re-inspection requested.
Submit LDC net metering application
Submit the completed LDC application form with the ESA Certificate of Inspection, inverter specifications, single-line diagram, and any LDC-specific documentation. The LDC reviews the package and, once approved, schedules a bidirectional meter installation. The system cannot be energised for grid export until the LDC grants permission to operate.
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ESA Permits in Ontario
Every solar PV installation connected to the electrical system in Ontario requires an ESA permit (Notification of Work) before work begins. This is not optional — energising a solar array without ESA approval is illegal and voids any insurance coverage.
Who can apply: Only licensed Electrical Contractors registered with the ESA may file a Notification of Work. Verify a contractor’s licence at esasafe.com before signing any contract. A contractor holding a valid Certificate of Qualification (C of Q) in the appropriate trade — typically 309A (Industrial Electrician) or 309B (Construction and Maintenance Electrician) — is authorised to do the electrical work.
Application process: The contractor creates an account on the ESA’s online portal and files the Notification of Work before installation begins. The notification includes the project address, scope of work, customer information, and the estimated value of electrical work. Fees are assessed based on the scope.
2026 fee changes: ESA wiring and licensing fees increased 1.9% effective April 1, 2026. Actual permit fees depend on the project scope — residential solar PV falls under the standard wiring notification fee schedule. Contact ESA at 1-877-ESA-SAFE (1-877-372-7233) for a fee estimate before quoting.
What the ESA inspector checks:
- Module and inverter certification labels (CSA or UL)
- Wiring gauge, insulation, and connector ratings for DC and AC circuits
- AC disconnect switch installation and labelling
- Anti-islanding protection and inverter configuration
- Grounding and bonding of the PV array and racking
- Conduit fill and weatherproofing at outdoor penetrations
- OESC 29th Edition compliance across all aspects of the installation
Timeline from permit to certificate: For a standard residential installation, the ESA inspection can typically be scheduled within 1–2 weeks of requesting one. Corrections, if needed, require re-inspection and add time. The entire ESA process — permit to certificate — typically takes 2–4 weeks for an uncomplicated residential system.
ESA certificate to LDC meter: After receiving the ESA Certificate of Inspection, the customer or contractor submits it to the LDC. The LDC then schedules the bidirectional meter installation. Hydro One can take several weeks for rural meter installation appointments; Toronto Hydro is typically faster.
Ontario Solar Incentives (2026 Status)
The Ontario incentive landscape has consolidated considerably since the FIT era. Here is what is actually available in 2026:
Save on Energy — Home Renovation Savings (HRS) Program
The primary provincial residential incentive in 2026. The program is delivered through Save on Energy and funded by Ontario ratepayers.
- Solar panels: Up to $5,000 rebate
- Battery storage: Up to $5,000 rebate (when added with solar)
- Total maximum: $10,000 per home
- Eligibility: Ontario homeowners; any heating fuel type; no energy assessment required for solar
- Critical restriction: Participants who receive the HRS rebate for solar or battery storage cannot participate in net metering. The program is designed for load displacement systems only (no grid export). You must choose between the HRS rebate and net metering — you cannot have both.
- Pre-approval required: Applications must be submitted and approved before installation begins. Retroactive applications are not accepted.
- Program status: Confirmed through November 2026.
Toronto — Home Energy Loan Program (HELP)
A Property Assessed Clean Energy (PACE) financing program for City of Toronto homeowners.
- Amount: Up to $125,000 at low interest rates
- Repayment: Through property tax bill installments; loan transfers with the property if the home is sold
- Eligible improvements: Solar PV, battery storage, heat pumps, insulation, and other energy retrofits
- Stacking: HELP financing can be combined with net metering. It can also be stacked with the HRS rebate (if taking the load displacement path instead of net metering).
- Note: HELP is a financing tool, not a grant — no free money, but advantageous financing terms for large projects.
Durham Region — Greener Homes Deep Retrofit Rebate
- Amount: $2,500–$5,000 (plus $50 per additional 1% of greenhouse gas reduction above 50%)
- Eligibility: Must achieve at least 50% GHG reduction; pre and post EnerGuide evaluations required
- Scope: Whole-home retrofit, not solar alone
Ottawa — Large Solar PV Commercial Incentive
Hydro Ottawa’s program for commercial customers:
- Amount: $860/kW for systems 50 kW and above (max 1,000 kW)
- Type: Load displacement systems — no grid export
- Eligibility: Business customers within Hydro Ottawa service territory
Federal — Clean Technology Investment Tax Credit (CTITC)
For businesses and farms:
- Amount: 30% refundable tax credit on qualifying clean technology investments including solar PV
- Refundable: If the credit exceeds the company’s tax liability, the government refunds the difference
- Eligible: Canadian-Controlled Private Corporations and other taxable entities; not available to individual homeowners
- Timeline: 30% rate available for equipment placed in service through December 31, 2033; drops to 15% in 2034
- Stacking: Can be combined with net metering and other federal programs; consult a tax advisor on interaction with depreciation claims
Canada Greener Homes Programs — Both Closed
The Canada Greener Homes Grant closed to new applicants in February 2024. The Canada Greener Homes Loan closed to new applications on October 1, 2025. Existing approved applicants continue to be processed, but no new Ontario applications are being accepted for either program.
Net Metering as an Incentive
Net metering itself functions as an ongoing financial incentive — the retail-rate credit for surplus generation is worth considerably more than any wholesale or export tariff. For most Ontario residential customers, the annual bill savings from a properly sized net metered system (10–12 kW for a typical 1,000 sq ft home) range from $1,500 to $2,500 depending on consumption pattern and rate plan.
Financial Modelling in Ontario
Ontario offers eligible customers a choice between three RPP (Regulated Price Plan) structures. The choice materially affects solar financial performance.
Time-of-Use (TOU): The default for most customers. Current rates (November 1, 2025 — April 30, 2026):
| Period | Hours | Rate |
|---|---|---|
| On-Peak | Weekdays 7–11 AM, 5–7 PM | 20.3 ¢/kWh |
| Mid-Peak | Weekdays 11 AM–5 PM | 15.7 ¢/kWh |
| Off-Peak | Evenings, nights, weekends | 9.8 ¢/kWh |
Solar behaviour under TOU: A south-facing residential array in Ontario generates primarily during mid-peak and off-peak hours on weekdays, and off-peak on weekends. The highest-value on-peak periods (morning and evening) see minimal solar output. This means the effective credit rate for most solar exports is 9.8–15.7 ¢/kWh — not the 20.3 ¢ on-peak rate. Battery storage paired with solar can shift self-consumption to on-peak hours, but net metering credits do not track time-of-use for the export rate.
Ultra-Low Overnight (ULO): A four-tier plan with a very low overnight rate (approximately 2.8 ¢/kWh) and a high on-peak rate. For customers with EVs charging overnight, ULO can be more economical. Solar-plus-battery systems can leverage the 35+ ¢/kWh gap between overnight and on-peak rates for additional savings of approximately $1,000–$1,500 annually on a typical residential system.
Tiered: A flat-rate plan with two tiers (below and above a seasonal threshold). No time-of-use component. Simpler to model for solar savings but offers no rate arbitrage opportunity.
Typical 10 kW Ontario system financial profile:
| Item | Value |
|---|---|
| Annual generation (Toronto, south-facing) | ~10,500 kWh |
| System cost (installed, 2026) | $26,000–$33,000 |
| Annual bill savings (TOU, typical self-consumption pattern) | $1,600–$2,400 |
| Simple payback | 11–15 years |
| 25-year NPV (at 5% discount rate) | $8,000–$18,000 |
Use the generation and financial tool to model specific Ontario addresses with actual irradiance data and the customer’s current rate plan.
Ontario Electricity Rebate (OER)
All Ontario residential and small business customers receive the Ontario Electricity Rebate (OER) — a percentage reduction applied to pre-tax electricity charges. The OER is currently 23.5% (effective November 1, 2025). For a typical 700 kWh/month customer, the OER reduces the bill by approximately $36/month. Solar savings interact with the OER: because savings are calculated before the OER is applied, the effective value of displaced electricity is higher than the net bill suggests. Factor this into financial models.
Permitting Across Ontario
Toronto: Two separate permits required. A City of Toronto building permit (required for PV installations above 5 square metres of area) must be obtained from Toronto Building. Separately, the licensed Electrical Contractor files the ESA Notification of Work. Both must be in place before installation. Toronto Building processes residential building permits in approximately 2–3 weeks for straightforward rooftop systems.
Ottawa: A building permit is required from the City of Ottawa’s Building Code Services. The permit confirms the roof structure can support the solar array weight under Ottawa’s snow and wind loads (which are heavier than southern Ontario). The ESA permit is separate. Budget 2–4 weeks for Ottawa building permit approval.
Rural Ontario (Hydro One territory): Building permit requirements vary by municipality — some rural municipalities have expedited processes for small residential systems. The bigger permitting consideration in rural Ontario is often the Hydro One connection timeline, which can extend to 6 months for systems requiring transformer or feeder upgrades. For any rural system above 10 kW, request a Hydro One system impact assessment early in the process.
General rule: Municipal building permit + ESA electrical permit are always required before installation. LDC net metering application and meter installation happen after the ESA Certificate of Inspection is issued. Do not begin installation without both permits in place.
Common Compliance Issues
| Issue | Consequence | Fix |
|---|---|---|
| Installing before ESA permit is filed | Illegal; ESA can order disconnection; insurance voided | File Notification of Work before any wiring begins |
| Receiving HRS rebate then applying for net metering | Application rejected by LDC; no credit carryover available | Choose one path before installation — HRS rebate or net metering, not both |
| Submitting LDC application without ESA Certificate of Inspection | LDC will not process the application | Complete ESA inspection first; provide certificate number on LDC form |
| System oversized relative to annual consumption | Surplus credits expire after 12 months; no cash payout | Right-size the system using 12-month consumption history from the LDC |
| Non-certified inverter or module | ESA inspection failure; system cannot be energised | Verify CSA or UL listing for all equipment before ordering |
| Missing municipal building permit | Building bylaw violation; municipality can order removal | Obtain building permit before installation; check local requirements |
| Not contacting LDC before design (for >10 kW) | Feeder may be at capacity; system impact assessment could trigger costly upgrades | Always do a preliminary LDC capacity check before finalising design above 10 kW |
Frequently Asked Questions
What is the maximum solar system size for Ontario net metering?
500 kW nameplate capacity under Ontario Regulation 541/05. Systems up to 10 kW use the micro-generator application (Form C). Systems above 10 kW use the embedded generator application (Form B), which requires a more detailed technical review by the LDC.
Does Ontario offer any solar rebates or incentives in 2026?
Yes. The Save on Energy Home Renovation Savings (HRS) Program offers up to $5,000 for solar panels and $5,000 for battery storage. Important restriction: HRS recipients cannot participate in net metering — the programs are mutually exclusive. Businesses can claim the federal Clean Technology Investment Tax Credit at 30% of installation costs (refundable, through 2033). Toronto homeowners can access the HELP PACE loan for low-interest financing. The Canada Greener Homes Grant and Loan are both closed to new applications.
How do I get an ESA permit for solar in Ontario?
A licensed Electrical Contractor with an Ontario Certificate of Qualification files a Notification of Work at esasafe.com before work begins. After installation, the contractor requests an ESA inspection. If the installation passes, ESA issues a Certificate of Inspection. That certificate is required before the LDC will install a bidirectional meter and activate net metering. ESA fees increased 1.9% on April 1, 2026.
Do all Ontario utilities follow the same net metering rules?
Yes. All approximately 60 licensed distributors in Ontario are required to offer net metering under Reg. 541/05. Credit calculation methodology and the 12-month rollover are standardised. Application timelines vary: Toronto Hydro typically takes 4–8 weeks; Hydro One can take 3–6 months for rural areas.
Can I sell excess solar power to the grid in Ontario?
No — not under net metering. Excess generation earns a credit on your electricity bill, applied at the commodity rate for your rate class. Credits carry forward for up to 12 months. After 12 months, unused credits are forfeited at $0; Ontario does not pay cash for surplus generation. The FIT and microFIT programs that paid per-kWh export tariffs have ended and are not available to new applicants.
What electrician licence is required for solar installation in Ontario?
A licensed Electrical Contractor registered with the ESA must file the Notification of Work. The contractor employs electricians holding a valid Ontario Certificate of Qualification — typically 309A (Industrial Electrician) or 309B (Construction and Maintenance Electrician). Homeowner self-installation of grid-tied solar is not permitted; the work must be performed by or under the supervision of a licensed contractor. Verify licence status at esasafe.com.
Which edition of the Ontario Electrical Safety Code applies to solar installed in 2025 or later?
The OESC 29th Edition, which came into effect May 1, 2025. Work began before May 1, 2025 that was permitted under the previous edition may have different requirements — confirm with ESA if the project straddles the transition date.
For the full Canada solar compliance overview, see the Canada solar compliance hub. For specific Hydro One connection requirements in rural Ontario, see the Hydro One solar guide.
Use solar design software to generate LDC-ready system documentation and model Ontario net metering financial returns using real address-level irradiance data. SurgePV’s solar software supports Ontario-specific TOU and tiered rate modelling for accurate payback projections.
