Canada's Solar Energy Growth: Provinces Chart Diverse Paths to 2035 Goals

Canada's solar energy sector is experiencing uneven but growing momentum across its provinces and territories, driven by differing local policies and market conditions. While some regions accelerate development, others adopt a more cautious approach as each jurisdiction charts its own path toward renewable energy goals. Industry leaders say the sector is expanding, particularly where storage-paired systems and government incentives intersect.

Phil McKay, Senior Director of Member Programs at the Canadian Renewable Energy Association (CanREA), told pv magazine that while official figures for 2026 solar additions are not yet available, member feedback indicates a strong year. He highlighted rising interest in solar-plus-storage systems, which combine photovoltaic generation with battery backup for greater reliability and grid value. McKay described Canada’s solar market as “13 different markets,” shaped by the country’s fragmented electricity system of independently governed regional grids.

In Québec, solar development has received a significant boost through a new provincial incentive program. Launched in April by Hydro-Québec, the utility offers a direct cash rebate of CAN $1,000 per kilowatt, covering up to 40 percent of eligible installation costs for residential and commercial customers. The program reduces typical payback periods from 25–30 years to 10–12 years. Québec also aims to integrate 3 GW of solar capacity by 2035. McKay noted a surge in inquiries from local companies since the program’s launch.

Ontario remains a leader in solar expansion. In April, the province approved 12 solar projects totaling 915 MW through its long-term energy procurement process. These projects are backed by 20-year agreements and expected to begin operations by May 2030. Notably, the procurement includes agrivoltaics—solar systems co-located with agricultural land—competing directly with natural gas in cost terms. “This is an open, cost-competitive environment where agrivoltaics are competing with gas,” McKay said.

Meanwhile, several provinces are reassessing net metering policies. British Columbia has replaced net metering with a fixed export rate of CAN $0.10/kWh, below retail prices, while New Brunswick is considering a similar shift. McKay said the rationale reflects concerns that solar producers are not paying their fair share of grid costs, though the changes have sparked public pushback. “There is huge pushback in the province, a lot of people are very upset about it,” he said.

Policy uncertainty is compounded by recent US trade actions. McKay noted that new 50 percent tariffs on Canadian goods entering the United States create uncertainty across the sector. He emphasized the impact of US policy on supply chains, including content requirements for Chinese imports, which can influence Canadian market access. Canadian Prime Minister Mark Carney responded to the tariffs with a speech reaffirming the federal budget’s commitment to double the country’s electricity grid with sustainable energy. McKay described the language as “very policy-driven for solar, wind, and storage markets,” and part of a broader “build Canada strong” narrative.

On the community level, grassroots solar initiatives are also gaining traction. Discussions are underway around plug-in solar systems, including the development of a new bi-national safety standard (UL 3700) for Canada and the US. While the standard is still under debate at the Canadian Standards Association, interest from environmental groups is rising. McKay said these organizations view plug-in solar as a form of “energy freedom,” offering Canadians more control over their energy choices. However, no compliant products are currently available, and manufacturers are still designing systems to meet the pending standard.

McKay stressed that once UL 3703-compliant products enter the market, adoption could accelerate nationwide. Until then, the sector remains in a preparatory phase, balancing provincial ambition with federal direction and external trade pressures.

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