For years, solar panels have been the symbol of a “green” home. These panels—technically called photovoltaic or PV panels—turn sunshine into free electricity. The cost to install them has dropped a lot over the years, but they’re still a big-ticket item—most Toronto homes are looking at $10,000 to $30,000 for a rooftop array. 

So, why install solar panels? 

Solar can: 

• Cut your utility bills—after all, the electricity they make is free. It’s one of the home upgrades that will eventually pay for itself… but you’ll likely be waiting 9–12 years before you’ve covered your investment. 

• Shield you from future electricity price hikes. 

• Possibly bump up your home’s resale value. 

• Provide backup energy and greater resiliency during grid outages. 

• Reduce pollution from your day-to-day energy use*.

    

*That last point comes with a little asterisk for Toronto homeowners: our grid electricity is already very clean. If you want to make the biggest dent in your home’s carbon footprint, then swap your gas furnace for a heat pump. That's not to say solar isn't worth it—it's just not carrying the heaviest load in our climate efforts. 

How solar works in Toronto 

Your panels will only make electricity when the sun’s shining, and they’ll make way more in summer than winter—over three times more in July than December. On sunny summer days, you might make more electricity than you can use right then. On winter days, you’ll be using more than you make. That’s why solar is usually paired with one (or both) of these: 

• Batteries to store daytime power for later use. 

• Net metering, which lets you send extra electricity to Toronto Hydro’s grid and “bank” credits for future use. Note: this isn’t the same as Toronto Hydro paying you to generate electricity—you only get credits up to your annual electricity usage.  

Is your home a good solar candidate? 

Not every roof is a solar superstar. The City of Toronto’s SolarTO website has a handy map that estimates your home’s solar potential and payback period—just type in your address. For a more detailed estimate on how much electricity you could generate with solar panels, you’ll want an installer to do a site visit. 

Solar panels or solar shingles? 

Most people go with panels mounted on top of their roof. But there’s another option: solar shingles, which double as roofing material. Which is better depends on your roof’s slope, direction, and whether you’re installing on an existing roof or a brand-new one. 

A few things to know: 

• Panels can be tilted toward the sun even if your roof isn’t perfectly positioned (south-facing is ideal). Brackets make this possible, but some people don’t love the look, and it might not suit heritage buildings. 

• It’s best to install on a roof that’s in good shape. Removing and reinstalling panels for a re-roof adds cost. 

• Panels can actually protect the shingles underneath from wear, and mesh around the panels keeps squirrels from chewing cables. 

• Panels last 20–25 years (often more). 

• Solar shingles look great but usually make less power per square metre than panels. They can be a good choice if you’re re-roofing anyway and want a sleeker look. 

How your panels connect to your home 

Solar panels are just the beginning—you also need a solar energy system. That includes: 

• The panels (which make direct current, or DC electricity). 

• An inverter (which turns DC into the alternating current—AC—that your home uses). 

• Sometimes optimizers to make sure each panel is pulling its weight. 

Two main inverter setups: 

• Central (string) inverter: Cheaper, simpler, but  the electricity current can only flow as fast as the weakest panel allows. If one panel is shaded, the whole system takes a hit. Warranties are usually 10–13 years. Adding optimizers to each panel fixes that problem and can extend warranties. 

• Microinverters: One inverter per panel, so shading doesn’t spread trouble. Easier to expand later, but pricier upfront. Warranties are longer (25–30 years). 

Net metering vs batteries (or both) 

Net metering means your extra power goes to Toronto Hydro, and you get a credit on your bill. Summer surplus can be used in the winter—credits last up to 12 months. It’s a great way to make your summer sun work for you year-round. 

Batteries store a smaller amount of electricity for use later the same day. They can also keep essentials running during a blackout. 

You can do either, or both. Just know that the current Save on Energy’s Home Renovation Savings Program (offering rebates up to $10,000 towards solar panels and a battery) doesn’t allow net metering. This takes away a big financial perk of going solar. 

How big should your system be? 

Your roof might decide this for you. But if space isn’t an issue and you’re doing net metering, aim for a system that makes about as much electricity as you use in a year. An average single-family home in Toronto consumes about 9500 kilowatt-hours If net metering, Toronto Hydro won’t pay you for extra—credits are capped at your annual usage—so oversizing doesn’t pay off unless you plan to use more electricity soon (say, for an EV charger or switching from gas appliances). 

You’ll see size measured in kilowatts (kW). Most home systems here are 3–8 kW. Each kW can generate up to 1,200 kilowatt-hours a year in Toronto (less if shaded or facing the wrong way). 

Picking the right installer 

This is worth taking your time on. Talk to at least three contractors and compare quotes—they can vary a lot. Look for someone with: 

• Solid references for similar projects. 

• Experience with permits, inspections, and working with Toronto Hydro. 

• Clear answers to questions about warranties, roof protection, wiring, and upgrade options. 

The Harbord Village Residents Association created a shortlist of recommended installers based on work done in their neighbourhood.  

Tracking your solar power 

If you’re net metering, your hydro bill will show how much you’ve sent to the grid. Most inverters also come with apps or online portals so you can track production in real time. 

Want to dig deeper? 

• Solar Power and Battery Backup Webinar – The Pocket Change Project 

• Don’t have a roof that you can work on? You can still support renewable energy by signing up for Bullfrog Power or joining a community solar project.