OTTAWA - Canada's solar energy industry is experiencing accelerating growth across its provinces in 2026, though the pace and nature of development vary significantly from one jurisdiction to the next. With the country's cumulative installed solar capacity standing at approximately 5.4 gigawatts (GW) at the end of 2025, industry forecasts point toward a dramatic expansion-with the Canadian Renewable Energy Association (CanREA) projecting that cumulative capacity could surge to around 21 GW by the middle of the next decade, driven largely by forthcoming utility-scale procurements. In the longer term, CanREA expects Canada to add between 17 GW and 26 GW of new solar PV capacity over the decade to 2035.
Canada's solar market, however, is far from monolithic. As Phil McKay, Senior Director of Member Programs at CanREA, recently told pv magazine, the country effectively operates as "13 different markets," with each province and territory charting its own energy policies and prioritizing solar buildout to different degrees. This fragmented structure-rooted in Canada's system of multiple, independently governed electricity grids-has produced a patchwork of opportunities, challenges, and momentum across the nation.
Ontario Leads with Landmark Procurement
By 2026, Ontario became the leader in the market, winning a lot of contracts from operators. The Independent Electricity System Operator (IESO) of the province announced a total of 14 new renewable energy projects in the first window of the long-term 2 (LT2) procurement process. Among the projects, there are 12 solar energy projects with a total capacity of 915.1 MW and two wind projects that will generate 400 MW. Overall, extra capacity will allow the generation of more than three TWh of electricity per year, enough to power 350 thousand households.
Notably, all 14 projects include First Nations partners with 50 per cent or greater equity ownership, ensuring that Indigenous communities share directly in the economic benefits. The contracts, awarded at an average price of approximately 8.8 cents per kilowatt-hour, are 21 per cent lower than previous large-scale renewable agreements and 73 per cent lower than costs from older programs. The projects are scheduled to begin commercial operation by May 1, 2030, under 20-year agreements.
"Ontario's Integrated Energy Plan is focused on keeping power flowing and costs down, with shorter term renewables, storage, and natural gas bridging the gap as we expand nuclear and hydro over the medium term," said Stephen Lecce, Ontario's Minister of Energy and Mines.
Alberta: A Market in Transition
Alberta, historically Canada's renewable energy investment leader, faces a more uncertain near-term outlook. The province's power purchase agreement (PPA) market softened considerably during 2025, and industry observers remain cautious about the immediate future. "It's very doubtful that renewables [generation] investment will pick back up in the near term," said Jorden Dye, director of BRC-Canada, during a January webinar.
Nevertheless, there still are indications of strength and long-term possibilities. Canada and Alberta signed an Implementation Agreement on May 15, 2026, which clarifies long-term strategy of Alberta's Technology Innovation and Emissions Reduction (TIER) system till the year 2040. It plans to preserve the carbon fee in the amount of $95 per tonne in 2026 and $140 by 2040. Major projects continue to be successful: NU E Power Corp. has been developing the Alberta 503.5 MWac solar project, and Westbridge Renewable Energy has made the announcement of selling its Red Willow solar storage project in Alberta with the capacity of 225 MWac.
Notably, Alberta's solar micro-generation sector has demonstrated robust growth, with total capacity doubling from 2023 to 2025. More than 1,000 Mattamy homes across the province have been equipped with solar panels, accounting for approximately 1.8 per cent of all micro-gen solar capacity added between June 2024 and April 2026.
Saskatchewan Breaks Ground on First 100 MW Facility
With the development of Turning Sun Solar going on near Estevan, Saskatchewan is on its way towards achieving a milestone by building 100 MW worth of utility-scale solar power plants. The project of building the facility is a partnership between Greenwood Sustainable Infrastructure and Ocean Man Nakoda Nation and it has received $200 million for funding and $15 million in investment from the federal government. After it will be operational in 2027, it will produce enough power to provide 25,000 households with electricity.
SaskPower currently has 700 MW of wind and solar in development, all of which includes strong Indigenous ownership components. "Turning Sun will provide opportunities for Indigenous business and further economic reconciliation while providing affordable power to our grid," said Rupen Pandya, SaskPower President & CEO. To date, SaskPower has 30 MW of solar power supplied to the grid by independent power producers, with additional projects-including the 100 MW Mino Giizis and Southern Springs Solar projects-in development.
Nova Scotia: Commercial Solar Booming
Nova Scotia has emerged as a standout performer in commercial solar adoption. In 2025, the province completed 99 new commercial solar installations, a 41 per cent increase over 2024, bringing the total to 342 commercial installations. Residential solar has grown even more dramatically, with more than 13,000 solar customers now connected to the Nova Scotia Power grid, capable of generating over 110 MW.
According to Michael Rendle, CEO of Watts Up Solar, "We have more jobs than ever." According to the provincial authorities, the province aims at having at least 80 percent of renewable energy used within the province by the year 2030, including a complete phase-out of coal as a source of electricity. In order to achieve this goal, there are plans for nearly 2,000 MW of clean energy from wind and solar sources in the province's Clean Power Plan.
British Columbia: First Nations Leading the Way
In British Columbia, solar development is flourishing particularly among Indigenous communities. The provincial Community Energy Diesel Reduction (CEDR) program recently awarded approximately $6.6 million to 13 remote First Nations for clean energy projects. Since its inception in 2022, including the 2026 intake, the program has provided roughly $30 million to 26 remote communities for 56 clean-energy projects. The largest award-$1.5 million-went to the Tsay Keh Dene Nation for the design of a 3.5 MW solar project.
"We're not just participating in solar development," said Rocky Dhillon, national director of Indigenous partnerships at Mag Solar. "We're focused on building indigenous-led ownership and long term [professional] capacity". Meanwhile, the Canada Infrastructure Bank closed a $35 million deal on a 15 MW Indigenous solar project in B.C., which will power more than 2,000 homes annually on Nlaka'pamux tribal lands. BC Hydro's rebate program-offering $1,000 per kW of installed capacity-continues to provide the largest direct financial incentive for solar in the province.
New Brunswick, Manitoba, and Prince Edward Island
Other provinces are also advancing. New Brunswick has seen the number of residential solar systems more than quadruple over the past three years, from 465 in spring 2023 to 2,138 today, though proposed net-billing changes from N.B. Power could slow future growth. A massive 150 MW solar farm proposal in Cookville promises to supply enough electricity for 12,500 homes.
In Manitoba, steady growth continues, with Manitoba Hydro reporting a 13 per cent increase in solar adoption over the last five years and 1,000 installations completed since 2020. The federal government is investing CAD 21.6 million in a First Nations-led renewable energy microgrid combining solar power and battery storage. Prince Edward Island, with 30 MW of installed solar capacity and a 12 per cent annual growth rate, is seeing commercial adoption through projects such as Old Dutch Foods' new energy-efficient facility featuring a 40 kW solar array.
National Outlook and Challenges
Looking ahead, CanREA expects 2026 to set the pace for sustained growth that will continue into the next decade, with wind, solar and energy storage capacity projected to grow by a third in the next four years and double in the next decade. The association is tracking procurement opportunities for up to 24 GW of new wind, solar and storage in the next 10 years, representing $44 billion in investment.
However, challenges remain. Policy uncertainty-including proposed shifts from net metering to net billing in provinces like British Columbia and New Brunswick-has generated pushback from industry stakeholders. US tariff uncertainty is also reinforcing national-level plans to invest in renewables and more integrated energy infrastructure.
Despite these headwinds, the momentum across Canada's provincial solar markets remains unmistakable. From Ontario's landmark procurements to Saskatchewan's first 100 MW facility, from Québec's aggressive incentive program to Nova Scotia's commercial solar boom, Canada's solar sector is demonstrating that growth is not only possible-it is already underway, province by province.
