Ontario's commercial solar incentive landscape changed significantly on June 30, 2026. If you're evaluating solar for your business or industrial facility — or if you were waiting to see whether the incentive reduction made solar unviable — this guide gives you the complete, current picture: what changed, what's still available, and what a fully stacked incentive package actually looks like for an Ontario manufacturer in 2026.
What Changed in Ontario's Save on Energy Solar Incentive?
Effective June 30, 2026, Ontario's Save on Energy Retrofit Program updated the incentive rate for eligible commercial solar PV projects.
| Program | Previous Rate | Current Rate |
|---|---|---|
| Save on Energy Retrofit — Commercial Solar PV | $860/kW-AC | $770/kW-AC |
| Microgeneration (up to 10 kW DC) | $1,000/kW-DC | $1,000/kW-DC (unchanged) |
| Ground-mount commercial solar | Not eligible | Not eligible |
Does the Incentive Reduction Mean Solar Is No Longer Worth It?
No. A 500 kW commercial solar system still qualifies for approximately $385,000 in Save on Energy incentive funding at the current rate. Combined with federal programs, the effective project cost reduction for eligible businesses remains substantial.
Ontario wholesale electricity prices should rise significantly through 2026, and provincial electricity demand should grow 75% by 2050 as EV charging and industrial electrification accelerate. As a result, a solar system installed today locks in on-site generation at a stable cost for 25–30 years against a rising rate baseline.
Use our free solar savings calculator →
What Other Solar Incentives Are Available in Ontario in 2026?
Federal Clean Technology Investment Tax Credit (CT ITC)
Eligible businesses can claim a 30% refundable tax credit on eligible commercial solar PV system costs. Because it is refundable, the credit delivers cash even if the business's tax liability is zero. The CT ITC applies to qualifying new installations.
Accelerated Capital Cost Allowance (ACCA)
Under Class 43.1/43.2, eligible businesses can write off the full cost of qualifying clean energy equipment in year one. Additionally, combined with the 30% CT ITC, businesses can achieve effective first-year cost reductions of up to 55% of eligible project costs.
Federal Clean Technology ITC (30% of remaining $365,000): − $109,500
Net cost before ACCA: ~$255,500
In turn, first-year ACCA write-off on $255,500 provides additional tax shield. Combined effective cost reduction: 50–55%+. Review with your financial and tax advisors.
How Do I Apply for the Save on Energy Commercial Solar Incentive?
- First, create a Retrofit Portal account at saveonenergy.ca before doing anything else.
- Next, submit a Retrofit application for pre-approval before entering any binding commitment. Specifically, do not issue a purchase order for solar equipment before submitting your application.
- Then, receive LDC approval to connect and complete the solar installation.
- Finally, submit your post-project application and invoice through the portal. Project must be complete within 24 months of pre-approval.
Can I Stack Ontario and Federal Solar Incentives?
Yes. Businesses can apply both the Save on Energy Retrofit incentive and the federal Clean Technology ITC to the same project. The ITC applies to net eligible costs calculated after other grants — meaning after deducting Save on Energy. Combined with ACCA, businesses can achieve 50–55%+ effective cost reduction in year one.
What Is Net Metering and Does It Apply to Commercial Solar in Ontario?
Net metering allows facilities to receive bill credits for excess solar electricity exported to the grid. Important: net metering and the Save on Energy Retrofit solar incentive are mutually exclusive — a project cannot participate in both simultaneously. The Save on Energy Retrofit incentive applies to behind-the-meter load displacement systems (solar consumed on-site). By contrast, net metering applies to systems designed to export surplus generation. Confirm which model is right for your facility with your LDC before submitting any incentive application.
Frequently Asked Questions: Ontario Commercial Solar Incentives 2026
Frequently Asked Questions
Has the Save on Energy solar incentive ended?
No. The incentive remains available, though the rate changed from $860/kW-AC to $770/kW-AC for complete applications submitted after June 30, 2026. However, the microgeneration rate ($1,000/kW-DC for systems up to 10 kW DC) did not change.
Does the Save on Energy solar incentive apply to ground-mount systems?
No. The Save on Energy Retrofit solar incentive applies to rooftop-mounted systems only. Ground-mount commercial solar installations, however, are not eligible under the current Retrofit Program.
Can I combine the Save on Energy incentive with the federal Clean Technology ITC?
Yes. Both can be applied to the same project. The federal ITC (30% refundable) applies to net eligible costs calculated after Save on Energy. Combined with accelerated capital cost allowance (ACCA), eligible businesses can achieve effective first-year cost reductions of 50–55%+.
What is the maximum Save on Energy incentive for a commercial solar project?
The incentive caps out at 50% of eligible project costs, with a rate of $770/kW-AC (post June 30, 2026) for rooftop-mounted systems from 10 kW to 1 MW AC. For example, a 500 kW system at $770/kW-AC = $385,000, subject to the 50% project cost cap.
What is the payback period for commercial solar in Ontario in 2026?
With Save on Energy and federal ITC applied, typical payback is 6–9 years for solar-only installations (500 kW+, high daytime load). Class A customers combining solar with BESS typically achieve 3–5 year combined payback due to Global Adjustment savings of approximately $400,000/MW/year.
Do I need to submit my application before buying the solar equipment?
Yes. Save on Energy requires a pre-approved Retrofit application before any binding commitment, including issuing a purchase order for solar equipment. As a result, applications submitted after equipment purchase are not eligible. The incentive rate locks in at the date of complete application submission.
Ready to Evaluate Your Facility for Commercial Solar?
Circuit Energy's licensed P.Eng. engineering team provides free solar opportunity assessments for Ontario businesses and manufacturers — including incentive modelling, generation estimates, and payback analysis based on your actual energy data.
Key Takeaways
- Save on Energy Retrofit is $770/kW-AC for applications after June 30, 2026 (rooftop only, capped at 50% of eligible project costs).
- Submit and pre-approve your application before issuing any purchase order.
- Federal CT ITC (30% refundable) and ACCA (100% first-year depreciation) stack with Save on Energy for 50–55%+ effective cost reduction.
- Class A manufacturers combining solar with BESS achieve 3–5 year payback due to Global Adjustment reduction.
- Ontario electricity costs are rising — on-site solar locks in stable generation costs for 25–30 years.
Sources: Save on Energy Retrofit Program (saveonenergy.ca) · Federal Clean Technology Investment Tax Credit (canada.ca) · IESO Ontario Market Prices · Ontario Energy Board electricity rates
