With residential solar power increasing in popularity in Ontario many homeowners are seriously considering installing a solar energy system on their own homes. Although the benefits of solar energy are obvious and numerous, it is still a significant financial investment for many homeowners.
The initial upfront costs of solar may appear prohibitive. However, there are now a number of prime and subprime financing options available, allowing more people to access solar energy in their own homes.
Solar Financing
Many banks in Canada are now offering low-interest green loans aimed at customers installing solar energy systems on their homes. These type of loans often come with a loan repayment frequency aligned with your utility bill cycles and flexible term options. Several financial institutions in Ontario are currently offering solar financing: check out TD Renewable Financing, Scotia Eco Energy Financing, and RBC Energy Saver Loan programs.
If your bank does not currently have any green loan offers available, there are other options available when looking to finance your solar installation. From personal loans with banks or private providers, to re-financing your mortgage or using the equity in your home, there are many finance options available.
City of Toronto Home Energy Loan Program (HELP)
If you own a detached, semi-detached or row-house in Toronto, you can apply for a low-interest loan of up to $75,000 from the City of Toronto to cover the cost of installing solar panels on your property. You may choose different rates and terms of up to 20 years, without any penalty for paying it off early. The loan gets attached to your property, which means that you repay via installments on your property tax bill. If you decide to sell before your loan is repaid, the payments pass on to the new owner. Here’s a quick video on how it works:
Solar Leasing Options
The benefits leasing your solar energy system go beyond just the initial no up-front costs. Although you will not technically ‘own’ your solar energy system, your capital is not tied up in equipment and the monthly lease costs could be covered from your solar energy generation.
There are a number of companies in Ontario offering solar lease options, where for no-upfront costs and a fixed monthly fee, you can enjoy the benefits of solar energy.
However, it is important not be by lured by shiny lights and promises. You should conduct thorough research regarding your system’s potential solar generation vs. monthly lease costs, as well as payout options at the end of the lease. It may end up costing you more in the long run.
Sharing Solar in Ontario
Using the benefits of the MicroFIT 
program introduced by the Ontario government back in 2009 and terminated in 2017, some solar installers were offering to install solar energy systems with $0 upfront cost. With installers financing the initial cost of equipment and installation, they were repaid through a share of the revenue received under the MicroFIT program.
Don’t let easy finance cost you more
When financing your solar energy installation, it is always important to calculate the additional costs associated with application fees, interest, and monthly fees.
We recommend you check that your finance provider does not charge early payout fees and that you pay any excess earnings from your solar generation into your solar loan. With careful planning and research, it is possible to make solar finance work in your favor and save you money in the long run.
If you have found a great solar finance option in Ontario that is working for you, we would love to hear about it! Let us know if you’d like to get a free quote for your solar panels system!
