IMARC Group has recently released a new research study titled “Canada Solar Energy Market Report by Technology (Solar Photovoltaic (PV), Concentrated Solar Power (CSP)), Application (On-grid, Off-grid), End User (Residential, Commercial, Industrial), and Region, 2026-2034,” offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.

Canada Solar Energy Market Size, Growth, and Forecast (2026-2034)

The canada solar energy market size reached 7.9 GW in 2025 and is projected to reach 14.5 GW by 2034, growing at a CAGR of 6.93% during 2026-2034. Increasing awareness of environmental sustainability, rising government incentives for renewable energy, reducing costs of solar panels, and growing demand for clean energy solutions are the primary factors driving the market.

Solar energy in Canada is generated primarily through solar photovoltaic (PV) systems and, to a lesser extent, concentrated solar power (CSP) technology, converting sunlight into electricity for residential, commercial, industrial, and utility-scale applications. Continued declines in panel and installation costs, combined with expanding financing options such as pay-as-you-go models, are making solar adoption increasingly accessible across the country.

Provincial and federal programs, including tax credits, rebates, and grants, are lowering the upfront cost of solar installations and encouraging both households and businesses to invest in on-site generation. This policy support, together with steady technological improvement, continues to reinforce the canadian solar market share held by both distributed rooftop systems and larger utility-scale projects.

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Key Trends Driving the Canada Solar Energy Market

• Government incentives and policies: Tax credits, rebates, and grants, along with programs such as the Solar Electricity for Community Buildings Program and the SolarHomes Program, are making solar investments more financially attractive. Canada aims to install 35 GW of solar capacity by 2050, and the country's cumulative installed solar PV capacity has already grown to over 6,400 MW.
• Decreasing cost of solar technology: Falling panel and equipment prices are making solar installations more economically viable for homeowners as well as large commercial and industrial operators. The Canadian Renewable Energy Association reports more than 43,000 solar PV installations on residential, commercial, and industrial rooftops across the country, directly supplying power to homes and businesses.
• Accelerating utility-scale and behind-the-meter growth: The Canadian Renewable Energy Association reported that Canada deployed 57 MW of new utility-scale solar in 2025 across Alberta, British Columbia, and the Yukon, with roughly 750 MW of additional utility-scale projects already under construction. Cumulative solar capacity is forecast to surge from around 5.4 GW today to approximately 21 GW by 2035.

Canada Solar Energy Market Segmentation:

The Canada Solar Energy Market report provides a detailed segmentation analysis to help businesses identify key growth segments and evolving industry dynamics. The market is categorized based on technology, application, end user, and region, offering comprehensive insights into the canadian solar market share held across each segment.

Technology Insights:

• Solar Photovoltaic (PV): Solar PV systems account for the large majority of installed capacity in Canada, converting sunlight directly into electricity through semiconductor-based panels deployed on rooftops and ground-mounted arrays.
• Concentrated Solar Power (CSP): CSP technology, which uses mirrors or lenses to concentrate sunlight for thermal electricity generation, represents a smaller but developing share of the market, primarily suited to large-scale utility applications.

Application Insights:

• On-grid: On-grid solar installations, connected directly to the utility grid, represent the dominant application as homeowners, businesses, and utilities feed generated electricity into existing transmission and distribution networks.
• Off-grid: Off-grid solar systems serve remote and rural communities, including areas not connected to the main electricity grid, providing a reliable power source where traditional grid infrastructure is limited or unavailable.

Where is Solar Energy Used in Canada?

Solar energy in Canada is deployed across a wide range of settings. Residential rooftop systems allow homeowners to generate their own electricity and reduce utility bills, while commercial and industrial facilities install larger rooftop and ground-mounted arrays to offset operational energy costs. Utility-scale solar farms in provinces such as Alberta, Ontario, and British Columbia feed electricity directly into the grid under power purchase agreements, and off-grid systems provide power to remote and Indigenous communities, military bases, and other locations beyond the reach of conventional grid infrastructure.

Regional Insights:

• Ontario: Ontario leads much of Canada's distributed solar activity, supported by established procurement programs and a large base of commercial and residential rooftop installations.
• Quebec: Quebec is expanding its solar footprint through utility-led procurement, including Hydro-Quebec's efforts to add several gigawatts of solar capacity over the coming decade.
• Alberta: Alberta remains a hub for utility-scale solar development, benefiting from strong solar resources and an active project pipeline of large ground-mounted installations.
• British Columbia: British Columbia is seeing steady growth in both utility-scale and behind-the-meter solar installations as provincial clean energy targets advance.
• Others: Other provinces and territories, including remote and northern regions, continue to adopt solar energy, particularly for off-grid and community-scale applications.

Canada Solar Energy Market News:

• February 2025: The 5th Canadian Division Support Base in Oromocto, New Brunswick, awarded Ameresco, Inc. a CAD 26.7 million solar project to deliver an 8.9 MWdc ground-mounted system, expected to supply approximately 20% of the base's electricity needs and support the Government of Canada's clean electricity commitments.
• February 2026: The Canadian Renewable Energy Association reported that Canada deployed 57 MW of utility-scale solar in 2025 across Alberta, British Columbia, and the Yukon, bringing cumulative installed capacity to approximately 5.4 GW, with forecasts pointing to around 21 GW by 2035.

Challenges Impacting the Canada Solar Energy Market

Canada manufactures relatively little of its own solar equipment, leaving the market reliant on imported panels and components. Lengthy grid connection processes and high soft costs, including permitting and interconnection timelines, continue to slow the pace of both utility-scale and behind-the-meter deployment.

Canada's northern latitude and seasonal variation in daylight hours reduce solar output during winter months, requiring complementary generation or storage solutions to maintain consistent electricity supply, particularly for off-grid and remote installations.

Investment Opportunities in the Canada Solar Energy Market

The canada solar energy market presents compelling investment opportunities supported by its projected growth from 7.9 GW in 2025 to 14.5 GW by 2034. Utility-scale project development remains attractive, with roughly 750 MW of projects already under construction and provincial procurement calendars, led by Ontario and Quebec, expanding across most of the country.

Behind-the-meter residential and commercial installations represent a further growth avenue as soft cost reductions and financing innovations, such as pay-as-you-go models, continue to broaden access. Companies that combine competitive technology with strong regional service networks are well positioned to expand their canadian solar market share as procurement activity accelerates.

Outlook of the Canada Solar Energy Market (2026-2034)

The outlook for the canada solar energy market is positive, supported by continued government incentives, falling technology costs, and an expanding utility-scale project pipeline. The market is projected to grow from 7.9 GW in 2025 to 14.5 GW by 2034 at a CAGR of 6.93%, with the Canadian Renewable Energy Association forecasting cumulative capacity could reach approximately 21 GW by 2035.

Continued growth in provincial procurement programs, expansion of behind-the-meter installations, and rising demand for off-grid solar in remote communities will be the defining trends shaping the canada solar energy market through 2034.

Key Players in the Canada Solar Energy Market

The canada solar energy market is served by a mix of global solar technology providers, independent power producers, and regional developers competing on the basis of project scale, financing capabilities, and provincial market presence.

• Canadian Solar Inc.: A leading global solar technology provider, Canadian Solar Inc. supplies solar PV panels and integrated energy storage solutions and has partnered with homebuilders and utilities to expand distributed and residential solar deployment.
• Brookfield Renewable: A major Canada-headquartered renewable energy investor, Brookfield Renewable has expanded its clean energy portfolio through strategic investments in renewable energy platforms, reinforcing its position across the solar value chain.

Frequently Asked Questions (FAQs): Canada Solar Energy Market

1. What is the current Canada solar energy market size?

The Canada solar energy market size reached 7.9 GW in 2025 and is projected to reach 14.5 GW by 2034, growing at a CAGR of 6.93% during 2026-2034.

2. Where is solar energy used in Canada?

Solar energy in Canada is used across residential rooftops, commercial and industrial facilities, utility-scale solar farms connected to the grid, and off-grid systems serving remote and Indigenous communities, military bases, and other locations beyond conventional grid infrastructure.

3. What are the key drivers of the Canada solar energy market?

Key drivers include government incentives and policies, decreasing costs of solar technology, and rising demand for clean energy solutions across residential, commercial, and utility-scale segments.

4. Which segment holds the largest canadian solar market share?

Solar photovoltaic (PV) technology and on-grid applications account for the largest share of the canadian solar market, supported by widespread rooftop installations and expanding utility-scale procurement.

5. Who are the key players in the Canada solar energy market?

Key players in the Canada solar energy market include Canadian Solar Inc. and Brookfield Renewable, alongside other global solar technology providers and regional independent power producers.

Author IMARC Group

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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