Canada's most complex electricity pricing — Time-of-Use or Tiered, your choice. Here's what you actually pay and how solar stacks up.
Ontario has Canada's most complex residential electricity pricing. Unlike other provinces that use a single flat rate, Ontario residents choose between Time-of-Use (TOU) pricing — where rates vary by time of day — or Tiered pricing, with a flat rate up to a monthly threshold. On top of that, a provincial government rebate (the Ontario Electricity Rebate) reduces bills by 11.7%. The all-in blended rate works out to approximately 17.0¢/kWh for a typical household, placing Ontario solidly in moderate solar ROI territory.
Ontario's commodity rates are set by the Ontario Energy Board (OEB) and adjusted twice yearly — May 1 and November 1. Delivery charges are set separately by each Local Distribution Company (LDC) and vary by region.
| Tier | Rate | Summer Threshold | Winter Threshold |
|---|---|---|---|
| Tier 1 | ~10.3¢/kWh | First 600 kWh/month | First 1,000 kWh/month |
| Tier 2 | ~12.5¢/kWh | Above 600 kWh/month | Above 1,000 kWh/month |
| Bill Component | Approximate Amount | Notes |
|---|---|---|
| Commodity charge (TOU blended) | ~$110–$130 | Depends on when you use electricity |
| Delivery charge | ~$60–$85 | Varies significantly by LDC |
| Regulatory charges | ~$3–$5 | IESO, OEB admin, etc. |
| Ontario Electricity Rebate (OER) | ~-$20 to -$25 | 11.7% credit applied pre-HST |
| HST (13%) | ~$19–$25 | Applied after OER credit |
| Total all-in bill | ~$170 | ~17.0¢/kWh blended |
⚠️ Delivery Charges Matter: Ontario's delivery charges are among the highest in Canada and vary significantly by LDC. Hydro One customers in rural Ontario can pay delivery charges of 8–12¢/kWh — nearly matching the commodity cost. Toronto Hydro customers typically pay 5–7¢/kWh in delivery. Always check your specific LDC's delivery rates when calculating solar ROI.
Since 2021, Ontario customers can choose their pricing structure. The right choice depends on your lifestyle and when you use electricity.
⏰ Choose TOU if you:
✓ Work from home and do laundry/dishwasher in the afternoon
✓ Own an EV and charge overnight (8.7¢ off-peak)
✓ Are retired and home during off-peak hours
✓ Can shift most heavy loads to evenings and weekends
✓ Have a programmable thermostat
📊 Choose Tiered if you:
✓ Work in an office 9–5 (low daytime home usage)
✓ Have predictable low consumption (under 600 kWh/month summer)
✓ Don't want to think about when you use electricity
✓ Have young children at home with unpredictable schedules
✓ Use less than 1,000 kWh/month in winter
Solar panels produce electricity from roughly 8am to 5pm — which overlaps significantly with Ontario's On-Peak and Mid-Peak TOU windows on weekdays. This means your solar generation directly displaces your most expensive electricity:
| Solar Production Window | TOU Period | Rate Displaced | Value to You |
|---|---|---|---|
| 7am – 11am (weekdays) | On-Peak | 18.2¢/kWh | Highest value generation |
| 11am – 5pm (weekdays) | Mid-Peak | 12.2¢/kWh | Good value — peak solar hours |
| 5pm – 7pm (weekdays) | On-Peak | 18.2¢/kWh | Limited production (late sun) |
| Weekends (all day) | Off-Peak | 8.7¢/kWh | Lower value generation |
💡 TOU Solar Tip: On weekdays, the bulk of Ontario solar production (roughly 9am–4pm) falls in Mid-Peak and On-Peak windows — displacing electricity at 12.2¢–18.2¢/kWh. This makes TOU pricing slightly more favourable for solar owners than Tiered pricing, where savings are capped at ~10.3–12.5¢/kWh regardless of time.
🚗 Ultra-Low Overnight (ULO) Rate — New Option: Ontario also offers a third option for EV owners: Ultra-Low Overnight pricing. ULO overnight rate drops to approximately 2.8¢/kWh (11pm–7am) specifically for EV charging. This is separate from your home electricity plan and requires a separate meter or sub-meter. If you have both solar and an EV, combining solar (for daytime grid offset) with ULO overnight charging can dramatically reduce your total energy costs.
The Ontario Electricity Rebate is a provincial subsidy that appears as a credit on every Ontario hydro bill. As of 2026, it reduces your pre-HST electricity costs by 11.7%.
What it is
A provincial subsidy to offset the cost of the Global Adjustment — the accumulated
cost of Ontario's contracted renewable energy, nuclear refurbishments, and
conservation programs.
How it appears
As a line item credit on your monthly bill, calculated as 11.7% of your
electricity charges before HST. It's automatic — no application required.
Solar impact
The OER reduces your effective savings rate from solar slightly. Calculate
solar ROI using your post-OER blended rate (~17.0¢/kWh), not the pre-OER
commodity rate.
Ontario has over 60 local electricity distributors — each setting their own delivery charges on top of the OEB commodity rate. Here are the major ones:
⚠️ Hydro One Rural Customers — Higher Solar ROI: Hydro One's rural delivery charges are among the highest in Ontario. For customers paying 10–12¢/kWh in delivery charges on top of commodity costs, the effective all-in rate can reach 20–22¢/kWh — significantly improving solar payback periods compared to urban Ontario averages.
At Ontario's blended rate of ~17.0¢/kWh, solar payback periods are moderate at 12–15 years for typical grid-tied systems. However, rural Hydro One customers with high delivery charges, and TOU customers who self-consume during peak hours, can see meaningfully better returns.
| System / Scenario | Annual Production | Annual Savings | Est. System Cost | Payback |
|---|---|---|---|---|
| 5 kW — Toronto (urban) | ~6,000 kWh/yr | ~$1,020/yr at 17.0¢ | ~$15,000–$20,000 | 15–20 years |
| 10 kW — Toronto (urban) | ~12,000 kWh/yr | ~$2,040/yr at 17.0¢ | ~$25,000–$32,000 | 12–16 years |
| 10 kW — Rural Hydro One | ~12,000 kWh/yr | ~$2,520/yr at ~21¢ | ~$25,000–$32,000 | 10–13 years |
| 10 kW — TOU On-Peak optimised | ~12,000 kWh/yr | ~$2,400/yr (higher peak savings) | ~$25,000–$32,000 | 10–13 years |
| Off-Grid (Northern Ontario) | Eliminates grid entirely | Full bill + connection cost avoided | ~$30,000–$60,000 | Highly variable |
*Based on Toronto irradiance (1,440 kWh/kW/year). Assumes 3% annual rate increases and 0.5%/year panel degradation. Rural Hydro One estimate uses 21¢/kWh effective rate.
🌲 Northern Ontario Off-Grid Opportunity: Thousands of Ontario cottages, camps, and remote properties rely on diesel generators or have no electricity at all. In Northern Ontario, solar paired with battery storage is increasingly the most cost-effective solution — eliminating diesel fuel costs and providing year-round reliable power without the expense of grid line extensions that can reach $30,000–$100,000+.
| Household Type | Monthly Usage | Est. Monthly Bill (Urban) | Est. Monthly Bill (Rural Hydro One) |
|---|---|---|---|
| Apartment / condo | 300–500 kWh | ~$60–$90 | ~$75–$110 |
| Small home / townhouse | 500–800 kWh | ~$90–$135 | ~$110–$165 |
| Average Ontario home | ~800–1,000 kWh | ~$130–$170 | ~$160–$210 |
| Larger home / electric heat | 1,500–2,500 kWh | ~$230–$370 | ~$285–$460 |
| Rural property / well pump / EV | 2,000–4,000 kWh | ~$305–$595 | ~$380–$740 |
📈 Rate Outlook: Ontario electricity bills have risen approximately 26% since 2020 — more moderate than Alberta or Saskatchewan, but still significant. Ongoing nuclear refurbishments at Pickering and Darlington, plus continued grid modernization, are expected to drive further increases of 3–5% annually through 2030. The Ontario Electricity Rebate rate may also be adjusted by the provincial government.
The chart below shows estimated daily solar production per kW of installed capacity in Toronto. Southern Ontario (Windsor, Niagara) produces approximately 5% more annually. Northern Ontario (Sudbury, Thunder Bay) produces slightly less.
❄️ Winter Planning Note: Ontario winters reduce solar production by approximately 65% compared to summer peak. Off-grid systems in Ontario should size for 4–5 days of battery autonomy in December and January, and most Northern Ontario off-grid installations include a propane or diesel backup generator for extended cloudy periods.
→ Use our Solar Panel Calculator with Ontario's winter peak sun hours to properly size your system.
Ontario's net metering regulation allows customers with systems up to 500 kW to offset their electricity consumption with solar generation and receive credits for surplus exported power.
⚠️ Credit Rate
Unlike BC Hydro, Ontario net metering credits are applied at the commodity rate
only — not the full all-in retail rate including delivery. This means exported
electricity earns you less per kWh than electricity you self-consume. Always
prioritise sizing your system to match consumption, not to maximise exports.
✅ Annual Settlement
Credits accumulate monthly. An annual settlement each October pays out any
remaining credits at the commodity rate — so unlike Alberta, you don't lose
unused credits. Apply through your local LDC (Hydro One, Toronto Hydro, etc.).
ℹ️ TOU and Net Metering: If you're on TOU pricing, electricity you export during On-Peak hours (18.2¢) earns a higher commodity credit than electricity exported during Off-Peak hours (8.7¢). This creates an incentive to self-consume during off-peak periods and maximise exports during peak windows — the opposite of what most households do naturally. A home battery storage system can optimise this if you want to pursue it actively.
| Year | TOU On-Peak | TOU Off-Peak | Blended All-In | Year-over-Year |
|---|---|---|---|---|
| 2020 | ~13.0¢ | ~6.5¢ | ~13.5¢ | — |
| 2021 | ~14.4¢ | ~7.4¢ | ~14.0¢ | +3.7% |
| 2022 | ~15.1¢ | ~7.7¢ | ~14.5¢ | +3.6% |
| 2023 | ~16.2¢ | ~8.2¢ | ~15.5¢ | +6.9% |
| 2024 | ~17.0¢ | ~8.5¢ | ~16.0¢ | +3.2% |
| 2025 | ~17.6¢ | ~8.7¢ | ~16.5¢ | +3.1% |
| 2026 (current) | 18.2¢ | 8.7¢ | ~17.0¢ | +3.0% |
*Blended all-in rates include commodity, delivery, regulatory charges, and OER rebate. Historical figures are approximate. TOU rates shown are summer season rates.
📈 26% increase since 2020: Ontario's electricity rates have risen at a moderate pace compared to Alberta and Saskatchewan, largely because the Ontario Electricity Rebate has offset some increases. Ongoing nuclear refurbishments at Darlington (extending life to 2055) and Pickering (refurbishment approved 2026), combined with continued grid modernization, are expected to drive 3–4% annual increases through 2030.
Ontario's 2026 TOU commodity rates are On-Peak 18.2¢/kWh (7–11am and 5–7pm weekdays), Mid-Peak 12.2¢/kWh (11am–5pm weekdays), and Off-Peak 8.7¢/kWh (evenings and weekends). Tiered rates are approximately 10.3¢/kWh (Tier 1) and 12.5¢/kWh (Tier 2). Including delivery charges and after the Ontario Electricity Rebate, the all-in blended rate averages approximately 17.0¢/kWh for a household using 1,000 kWh/month.
It depends on your lifestyle. TOU pricing benefits people who can shift laundry, dishwashers, and EV charging to evenings and weekends (off-peak at 8.7¢). Tiered pricing suits those with predictable low consumption who don't want to manage when they use electricity. You can switch between plans once per year through your LDC. For solar owners, TOU is generally slightly more favourable as solar production overlaps with On-Peak and Mid-Peak windows on weekdays.
The Ontario Electricity Rebate (OER) is a provincial government credit that reduces electricity bills by 11.7% before HST is applied. It was introduced to offset the Global Adjustment — the accumulated cost of Ontario's long-term contracts for renewable energy, nuclear refurbishments, and conservation programs. The OER appears automatically on your monthly bill as a credit line item. No application is needed.
For most urban Ontario homeowners, grid-tied solar payback periods of 12–15 years are reasonable but not exceptional. Solar is most valuable for: (1) Rural Hydro One customers with high delivery charges (effective rates 20–22¢/kWh); (2) TOU customers who self-consume during On-Peak windows; and (3) Northern Ontario off-grid properties where grid connection costs are prohibitive. Use our Solar ROI Calculator to model your specific situation.
Yes. Ontario's net metering regulation covers systems up to 500 kW. Excess electricity exported to the grid earns credits at the commodity rate (not full retail including delivery). Credits carry forward and an annual settlement occurs in October. Apply through your local LDC — Hydro One, Toronto Hydro, Alectra, Hydro Ottawa, or your local utility. Note that net metering credits only offset the commodity portion of your bill, not delivery charges.
Manitoba and Quebec benefit from abundant, already-amortized hydroelectric power built decades ago — giving them some of the world's lowest electricity rates. Ontario's grid is more diverse: it includes nuclear power (which requires expensive refurbishments), contracted renewables (wind, solar) from the Green Energy Act era, and natural gas peaking plants. The Global Adjustment mechanism recovers these above- market costs from ratepayers, inflating Ontario's rates relative to hydro-rich provinces.
At ~17.0¢/kWh blended, Ontario ranks in the middle of Canadian provinces — below Alberta (22.9¢), Nunavut (35.4¢), NWT (25–34¢), PEI (19.7¢), Nova Scotia (19.1¢), and Saskatchewan (18.6¢), but above New Brunswick (15.4¢), Newfoundland (15.8¢), BC (10.97¢–14.08¢), Manitoba (10.6¢), and Quebec (8.3¢). See our full Canada comparison for the complete breakdown.
See how Ontario's ~17.0¢/kWh stacks up against every other province and territory.
Ontario electricity rate data sourced from the Ontario Energy Board (OEB) Regulated Price Plan rate orders effective May 1, 2026. Delivery charges are representative averages — actual charges vary by Local Distribution Company. Blended all-in rates include commodity, average delivery, regulatory charges, Ontario Electricity Rebate (11.7%), and 13% HST at 1,000 kWh/month consumption. Solar irradiance data derived from NASA POWER database for Toronto (43.65°N, 79.38°W). Savings estimates assume 3% annual rate increases and 0.5%/year panel degradation. Historical TOU rate figures are approximate based on OEB rate orders. All figures in Canadian dollars.