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Solar Financing Options

Explore all the ways to pay for your solar installation and maximize your savings.

How Can You Pay for Solar?

The upfront cost of solar is significant - typically $18,000-$30,000 for a residential system. The good news: multiple financing options make solar accessible regardless of whether you have cash on hand.

Your Main Options

MethodProsCons
CashBest ROI, own outrightHigh upfront cost
FinanceitSolar-specific lender, fast approval, no down paymentInterest adds to total cost
Solar Loan / Bank LoanFixed rate, no down paymentInterest adds to total cost
HELOCLowest rates, interest may be tax-deductibleUses home equity as collateral

Paying Cash

Paying cash provides the highest return on investment since you avoid all financing costs. Here's what a typical cash purchase looks like:

Example: 10 kW System in Saskatchewan

MetricValue
System Cost$25,000
Year 1 Savings$2,300
Payback Period9-10 years
25-Year Savings$70,000+
ROI~180%

Cash Purchase Benefits

  • Maximum savings: No interest costs eating into returns
  • Immediate ownership: System is yours from day one
  • Simpler process: No loan applications or approvals
  • Full incentive benefit: All rebates go directly to you

Cash vs. Investment

Compare solar ROI to other investments. A 10-year payback with 25+ year lifespan equals ~10% annual return. That's competitive with stock market averages, with zero volatility and guaranteed energy cost reduction.

Solar Loans

Solar-specific loans are designed for renewable energy purchases. They're often easier to qualify for than traditional loans because the solar system adds value to your property.

Typical Solar Loan Terms

  • Down payment: Often $0 required
  • Interest rates: 5-10% typical (varies by lender and credit)
  • Terms: 5-15 years
  • Monthly payment: Often less than electricity savings

Example: 10 kW System with 10-Year Loan

Scenario7% Rate
System Cost$25,000
Monthly Payment$290
Monthly Savings~$190
Net Monthly Cost$100
After 10 Years$0 payment + ~$200/mo savings
Total Interest Paid~$9,800

Solar Loan Sources

  • Credit unions: Often have solar-specific programs with competitive rates
  • Banks: Personal loans or solar-specific financing
  • Solar installers: Some offer financing partnerships
  • Green banks: Organizations focused on clean energy lending

Home Equity Options

If you have equity in your home, you can tap it for solar financing. These often offer the lowest interest rates available.

Home Equity Line of Credit (HELOC)

  • Rates: Prime + 0.5-2% typical (currently 5-7%)
  • Flexibility: Draw what you need, pay interest only on balance
  • Tax benefit: Interest may be tax-deductible (consult accountant)
  • Risk: Your home is collateral

Home Equity Loan

  • Rates: Fixed rate, often slightly higher than HELOC
  • Predictability: Fixed monthly payments
  • Lump sum: Receive full amount upfront

Mortgage Refinance

  • Roll solar into mortgage: Spread cost over 25-30 years
  • Lowest monthly impact: Small increase to mortgage payment
  • Highest total interest: Long term = more interest paid

Home Equity Consideration

Solar increases your home's value by roughly the system cost. So you're borrowing against equity to create more equity - while reducing operating costs. It's a wealth-building move if done responsibly.

Available Incentives (2026)

Federal Clean Technology ITC — 30% (Incorporated Businesses + Farms)

For incorporated entities, this is the strongest federal solar incentive in 2026.

  • Amount: 30% of solar equipment cost, refundable
  • Type: Real cash from CRA, not a deduction
  • Window: Full 30% rate runs 2026-2029, then phases down
  • Stacks with: 100% CCA in year one and full GST recovery

100% Capital Cost Allowance — Year One

Incorporated businesses write off 100% of the net solar system cost (after ITC) in the first year under CCA Class 43.1/43.2 — dramatically reducing taxable income in the year of install.

SaskPower Net Metering

While not direct financing, SaskPower's net metering program is effectively a subsidy:

  • Full retail rate credit for exported power
  • 12-month credit banking
  • No monthly fees for participation
  • Available for systems up to 100 kW

What Happened to the Greener Homes Programs?

The Canada Greener Homes Grant ($5,000) and Greener Homes Loan ($40,000 at 0%) were both wound down in 2024 and are no longer accepting new applications. If you're reading this hoping to find them — they're gone, and there's no current federal residential equivalent. The federal solar money in 2026 flows through the Clean Technology ITC for incorporated businesses and farms. For residential, the math still works on net metering + Financeit financing.

Quick Comparison

Here's how different financing methods compare for a $25,000 system:

MethodMonthly CostTotal Cost25-Yr Savings
Cash$0$25,000~$70,000
Financeit (8%, 10yr)$303~$36,000~$59,000
Bank Solar Loan (7%, 10yr)$290~$35,000~$60,000
HELOC (6%, 10yr)$277~$33,000~$62,000

Note: Assumes 3% annual electricity rate increase. Monthly savings varies by usage.

FAQ

Frequently Asked Questions

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