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Ontario · London Hydro · Updated October 2026

Commercial Solar in London (2026)

London commercial solar runs $1.70–$1.90 per watt installed in 2026, pays back in 7-9 years post-federal ITC on an incorporated business, and interconnects through London Hydro. This page covers the specific economic stack, local permitting path, and three considerations that matter for London commercial sites.

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At-a-glance economics

Pricing per watt installed

$1.70–$1.90/W

Blended commercial rate

12.5¢/kWh

Demand charge exposure

$11-$15/kW

Typical payback post-ITC

7-9 years

Local utility / interconnection

London Hydro

Net stacked incentive

~35-40% net via federal ITC + Class 43

The London commercial solar market

London Hydro is a municipally-owned utility with one of the most straightforward net-metering interconnection processes in Ontario — typical approval 2-3 weeks for commercial systems. London's commercial market is driven by the manufacturing + agricultural-processing base in Southwestern Ontario, plus the growing data-center cluster near Highway 401 (Compute Ontario infrastructure).

Three local considerations for London commercial sites

  • check_circleLondon Hydro's rate class 1A (small commercial) is favourable for solar — low demand-charge exposure means solar savings concentrate on energy consumption offset.
  • check_circleThe city has studied municipal PACE financing (Alberta CEIP model) but has not yet implemented it — follow updates for commercial availability.
  • check_circleWestern University and Fanshawe College drive meaningful institutional commercial solar demand — large flat roofs with 25-year lifecycle alignment.

The London commercial incentive stack

~35-40% net via federal ITC + Class 43.1. No municipal commercial rebate.

Federal
Clean Technology ITC — 30% refundable

Full eligibility rules, labour conditions, worked examples.

Provincial
Ontario rebate stack

Current open programs for Ontario commercial.

London commercial solar FAQs

How much does commercial solar cost in London?

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Commercial solar in London runs $1.70–$1.90 per watt installed in 2026, depending on system size (per-watt cost drops as system size grows). A 100 kW rooftop system lands at roughly $170,000–$190,000 before incentives. The federal 30% Clean Tech ITC refunds $57,000+ on that project. Combined incentive stack lands ~35-40% net via federal itc + class 43.1. no municipal commercial rebate.

What's the payback period on commercial solar in London?

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Post-ITC commercial solar payback in London typically lands 7-9 years for a well-designed system on an incorporated Canadian business. 12.5¢/kWh blended London Hydro commercial rate + $11-$15/kW demand charge exposure drive the specific economics.

Which utility handles commercial solar interconnection in London?

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London Hydro handles distribution and net-metering interconnection for commercial solar in London. Specific permitting + approval timeline details are covered in the "local considerations" section above.

Does the federal Clean Tech ITC apply to London commercial solar?

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Yes — the 30% refundable federal Clean Technology Investment Tax Credit applies to taxable Canadian corporations (including CCPCs) operating in London. On a $200,000 commercial install, that's $60,000 refunded by CRA within the fiscal cycle equipment is put in service. Full details in our Clean Tech ITC guide.

Should I incorporate before installing commercial solar in London?

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For a sole-proprietor business in London considering a $100,000+ solar install, yes — the 30% Clean Tech ITC refund (available only to incorporated taxable Canadian corporations) typically exceeds the incorporation + ongoing accounting costs within year 1. Discuss with your accountant before signing an installer contract.

Related reading for London commercial buyers

Pricing
Commercial Solar Cost in Canada (2026)

Full per-watt pricing from 25 kW to 2 MW, Clean Tech ITC math, Class 43.1 CCA, worked example for a 250 kW CCPC.

Federal
Federal Clean Technology ITC Guide

30% refundable, labour conditions, three worked examples (farm/warehouse/manufacturing), CRA process.

Ontario
Ontario Commercial Solar (2026)

Province-specific regulatory + incentive deep-dive for London's commercial solar market.

Tool
Commercial Solar Calculator

Enter postal code + annual kWh → system size, cost, Clean Tech ITC refund, payback year.

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