By the Solar X Team (Solar X Engineering Team, ESA/ECRA Licensed Electrical Contractor, Licence 7017538, NABCEP Certified). Published June 4, 2026.
If your business has been thinking about putting solar on the roof, the math is about to shift. On June 30, 2026, Ontario's Save on Energy Retrofit Program is lowering the commercial solar incentive by 10 percent. Waiting could cost your project real money.
Here is the plain version of what is happening, who it affects, and the one thing that decides whether you get the higher rate or the lower one.
Quick answer: On June 30, 2026 the Save on Energy Retrofit Program lowers the prescriptive solar PV incentive for systems over 10 kW from $860 per kW AC to $770 per kW AC, a 10 percent cut. Complete applications submitted before June 30 are honoured at the higher rate, subject to review and approval. The microgeneration rate ($1,000 per kW DC for systems up to 10 kW DC) does not change.
If you only remember one thing:
Save on Energy locks the rate at the date a complete application is submitted, not at the date you decide to go solar. Half-finished applications sitting in the portal do not lock anything in. The work needs to be done before June 30, 2026 or the project earns 10 percent less per kW of AC capacity.
What Is Actually Changing
Save on Energy runs a program called the Retrofit Program. It pays Ontario businesses to install energy-efficient upgrades, including solar panels that feed the building's own power use. The payment is called an incentive.
Right now, larger commercial solar systems earn $860 for every kW of AC capacity they install. Starting June 30, 2026, that drops to $770 per kW of AC capacity. That is a 10 percent cut on the part of the incentive that matters most to bigger projects.
| Solar system size | Incentive before June 30, 2026 | Incentive on or after June 30, 2026 |
|---|---|---|
| Over 10 kW, up to 1 MW (AC capacity) | $860 per kW AC | $770 per kW AC |
| Up to 10 kW (DC capacity, microgeneration) | $1,000 per kW DC | $1,000 per kW DC (no change) |
Two things to notice. First, the small microgeneration rate is not changing. Only the larger systems take the hit. Most commercial solar systems sit well above 10 kW, so this is the rate that matters for a business roof. Second, the incentive is always capped at up to 50 percent of your eligible project costs, before and after the change.
Why This Matters in Dollars
The drop sounds small until you scale it. The gap is $90 for every kW of AC capacity.
On a 100 kW AC system, that is a difference of about $9,000 in incentive, just from the date on the calendar. On larger rooftops it climbs from there. This is a simple illustration, not a quote. Your actual incentive depends on your approved system size, your eligible costs, and the 50 percent cap.
The point stands either way. The same panels, the same roof, the same install can earn less support if the application lands on the wrong side of June 30.
The One Rule That Decides Your Rate
This is the part to read twice.
Save on Energy says that complete applications submitted before June 30, 2026 will be honoured at the incentive rate in place when they were submitted, subject to review and approval.
In plain terms: if your complete application is in before the deadline, you are in line for the $860 rate. If it goes in on or after June 30, you get $770.
Two cautions, because we do not believe in overpromising:
- Submitting is not the same as being approved. Save on Energy reviews each application, and approval is never guaranteed.
- The word "complete" carries weight. A half-finished application sitting in the portal does not lock anything in. Missing worksheets or documents can push you past the date.
That is exactly why the time to start is now, not in late June.
Who Can Use This Incentive
The Retrofit Program is for buildings, not homes. You can qualify if you own or lease one of these in Ontario:
- Commercial spaces
- Industrial facilities
- Municipal buildings, universities, colleges, schools, and hospitals
- Multi-residential buildings
- Agricultural facilities
If you lease your space, you need the owner's authorization to take part. The solar system has to be behind the meter, which means it offsets the power the building itself uses rather than selling power back to the grid.
Important: rooftop only
Save on Energy specifies that this prescriptive incentive applies to rooftop-mounted systems only. Ground-mount commercial solar does not qualify for the $860 or $770 per kW AC rate. Ground-mount projects can still use Ontario net metering and the federal Clean Technology Investment Tax Credit. See our ground-mount solar in Ontario guide for the alternative path.
Not sure if your building or project fits? That is a quick conversation. Book a free commercial assessment and we can tell you fast.
How This Fits With Other Commercial Solar Incentives
The Save on Energy incentive is not the only support available to Ontario businesses. Many commercial projects also look at the federal Clean Technology Investment Tax Credit and accelerated depreciation (CCA Class 43.2). These programs have their own rules, and the way they interact with the Save on Energy incentive affects your real numbers, so they should be modelled together rather than added up on a napkin.
We map out which incentives a project can use and how they fit. You can see the current list on our commercial incentives page, and we will build the full picture for your specific building during the assessment.
What This Is Not
It helps to clear up a few things people mix together.
- This is not the residential rebate. If you are a homeowner, this program is not for you, but residential solar options may fit.
- This is not for ground-mount systems. The small-to-medium generation prescriptive incentive is rooftop-only. Ground-mount projects use different incentives.
- This is not free money for the whole system. The incentive covers up to half of eligible costs, not the full price.
- This is not a permanent rate. Save on Energy updates these programs on a set schedule, with the next update expected in Fall 2026. Rates can move again.
What a Smart Business Does Before June 30
If commercial solar is anywhere on your roadmap, here is the order of operations that protects the higher rate:
Confirm your building qualifies
Quick check on ownership, building type, and roof or site.
Size the system early
The incentive is tied to AC capacity, so the design drives the number. A quick way to ballpark a system is our solar calculator.
Get the application complete, not just started
Worksheets, documents, and details all need to be in.
Submit before June 30, 2026
Earlier is safer. A buffer protects you from last-minute surprises.
We handle commercial solar projects across Ontario and we know the Retrofit paperwork. If you want the higher rate, the safest move is to start the application process well ahead of the deadline.
Frequently Asked Questions
What is changing with the Ontario commercial solar incentive?
On June 30, 2026 the Save on Energy Retrofit Program lowers the prescriptive solar PV incentive for small to medium generation systems over 10 kW from $860 per kW of AC capacity to $770 per kW of AC capacity. That is a 10 percent reduction.
When does the lower solar incentive take effect?
The new $770 per kW AC rate takes effect on June 30, 2026. The next planned program update after that is expected in Fall 2026.
Can a business still get the higher $860 per kW AC rate?
Save on Energy states that complete applications submitted before June 30, 2026 will be honoured at the incentive rate in place at the time of submission, subject to application review and approval. Submission does not guarantee approval, so timing and completeness matter.
Who qualifies for the Retrofit Program solar incentive?
Owners or lessees of commercial, industrial, institutional, multi-residential, agricultural, and municipal buildings in Ontario can qualify. Lessees need the owner's authorization. The system must be behind the meter to offset the building's own load.
Does the microgeneration solar incentive change too?
No. The microgeneration incentive for systems up to 10 kW of DC capacity stays at $1,000 per kW DC. Only the small-to-medium generation rate over 10 kW is being reduced.
Does ground-mount solar qualify for this incentive?
No. Save on Energy specifies that the small-to-medium generation prescriptive solar PV incentive applies to rooftop-mounted systems only. Ground-mount commercial solar does not qualify for the $860 or $770 per kW AC rate under the Retrofit Program. Ground-mount projects are still eligible for Ontario net metering and the federal Clean Technology Investment Tax Credit, just not this prescriptive incentive.
Lock in the Higher Rate Before June 30
Book a free commercial solar assessment. We will size the system, model the incentive math, and get a complete Save on Energy Retrofit application submitted before the cutoff.
Sources & Official References
- 1Save on Energy: Retrofit program changes for Spring 2026saveonenergy.ca
- 2Save on Energy: News and Updatessaveonenergy.ca
- 3Save on Energy: Retrofit Programsaveonenergy.ca
- 4Save on Energy: Solar photovoltaic incentivessaveonenergy.ca
- 5
Related Guides
This article is for general information and reflects program details as of June 4, 2026. Program rules, rates, and eligibility are set by Save on Energy and the IESO and can change. Incentive approval, amounts, and timelines are not guaranteed. Confirm current details with Save on Energy before making a decision.