What’s the best thing that happened during our trip to Calgary besides getting to experience their first snow of the season? Getting to talk to Canadian solar installers at ETC. ETC (or Electricity Transformation Canada) brings together key players from across the Canadian solar industry, including manufacturers, developers, policy advocates, and installers, to discuss the latest developments in Canada’s solar market.
For Bodhi, it was an opportunity to connect with solar installers from across Canada. In the process, we learned a lot about the challenges, trends, and growth opportunities in the Canadian solar market—and we ate and shared a lot of Tim Hortons Timbits in the process!
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Here’s a breakdown of our top eight takeaways from ETC, highlighting the most notable similarities and differences between the Canadian and US solar market.
Difference 1: Cost of solar – CA$2.5/W vs. US$4.0/W
One of the starkest differences we observed is the cost at which solar is sold in Canada versus the U.S. In Canada, average selling prices range between CA$2.5 and CA$3.0 per watt (about $2 USD at the current exchange rate). This is significantly lower than the U.S. market, where prices hover around US$4.0 per watt, according to Ohm Analytics.
The discrepancy is partly due to lower customer acquisition costs in Canada, which makes the market more accessible to homeowners at a lower price point to help offset their generally lower electricity rates and solar irradiance. Another factor influencing this cost gap is that U.S. pricing often includes additional dealer fees of 25-35% for solar financing. More on this in Difference #2.
Related: Why is customer acquisition cost (CAC) so high?
Similarity 1: Long permitting times
Across both Canada and the U.S., the permitting process has lengthened considerably as solar adoption rates climb. Municipal permits and utility interconnection requests, which once took days to approve, can now take weeks or even months. The increased demand for solar in Canada has challenged local government agencies and utilities to keep up, mirroring what we’re seeing in the States as well.
For solar companies, these extended permitting times mean delays in revenue realization and added challenges in managing customer expectations. One project manager told us,
"Our project pipeline has expanded from 3 weeks to 6 months. I’m communicating significantly more with clients every day."
As demand continues to rise, streamlining this part of the process will be crucial for market growth.
Difference 2: Limited financing options
The Canadian market does not have the extensive range of specialized solar financing options available in the U.S. In the States, companies like Mosaic and Dividend offer tailored 20-30 year solar loans that have fueled growth by making financing more accessible. Canada, by contrast, lacks this kind of private sector solar loan infrastructure. One salesperson we spoke with said he’d love to offer a 25 year loan to his customers. However, when I told him about the 35% dealer that normally comes with these loans, he said, “Nevermind.”
On the other hand, Canada does have the government-sponsored Greener Home Loan program offering homeowners a 10-year interest-free loan for energy efficiency improvements. Even better, these loans do not have the 25-35% dealer fees that come with the US solar loans. The Greener Home Loan program and incentives from the provincial governments and local utilities are the primary catalysts for Canada’s current growth.
Similarity 2: Customer communication challenges
Despite geographic differences, the challenge of customer communication in the solar industry is universal. Solar is still a new concept for many homeowners in Canada, and the process of purchasing solar can feel complex and overwhelming. As installation timelines stretch because of permitting delays and longer install queues, it’s increasingly difficult to keep customers updated and assured throughout the process.
Installers across Canada report that extended project timelines place an additional strain on their staff. Ensuring that customers remain informed and feel positive about their decision to go solar requires a lot of time and effort. Addressing these communication challenges is key to organic growth through word-of-mouth and referrals..
Related: The hidden costs of poor communication with solar customers
Difference 3: Market dominated by regional installers
Most of the installers we met at ETC were regional players who have operated for years. These companies are deeply rooted in their local markets, with a solid understanding of the unique needs of their communities. While there are some national players, like Polaron, the Canadian market remains largely decentralized compared to the U.S., where larger, multi-state companies have become more common (at least before the recent bankruptcies).
Many of the installers we spoke with have ambitions to expand into other provinces, signaling a trend toward increased competition across regions. In this way, the Canadian market could soon resemble the multi-regional model seen in the U.S.
Similarity 3: Door-knockers have crossed the border
The “door-to-door” sales approach, familiar in the U.S., has now crossed the border into Canada. As the Canadian solar market grows, American-style door-knocking teams have started entering Canadian cities leading to an uptick in aggressive, high-touch sales tactics. For example, we heard of door-knocking “blitzes” occurring in Calgary this past summer.
With this influx, Canadians are experiencing both the benefits and drawbacks of door-to-door sales efforts. While it raises awareness and drives interest, it also brings a wave of complaints about intrusive sales methods and $8/W contracts. The rapid arrival of door-knockers signals a significant shift, as it points to a maturing market poised for rapid growth but with a need for mindful sales practices.
Difference 4: No sales dealer/EPC model
In Canada, solar companies operate largely as vertically integrated businesses, with internal sales teams handling most sales opportunities. While some companies subcontract their installations, most keep administrative and operational work in-house. This contrasts with the U.S. model, where the sales-dealer/EPC structure is more prevalent, with independent sales teams often partnering with EPCs for the design, permitting, and installation process.
The Canadian model seems to reflect a desire for greater control over the customer experience from start to finish, which may also contribute to the lower cost per watt in Canada. By centralizing these operations, Canadian companies can reduce overhead costs and simplify workflows.
Similarity 4: Need for automation
As in the U.S., the growth of the Canadian solar market is driving the need for greater operational efficiency. Companies are increasingly reluctant to keep adding to their staff to handle growing demand and are instead focusing on streamlining and automating workflows. The desire to stay competitive—both with other Canadian installers and with U.S. companies expanding into Canada—means that automation and operational efficiencies are a priority.
Related: Easy automation hacks for your solar business
Automation solutions that streamline customer communication, reduce manual work, and simplify the installation process are becoming critical for Canadian installers who want to keep pace with a rapidly evolving industry. Companies aiming to scale and retain customer satisfaction know they need efficient processes to thrive.
Conclusion
Attending ETC was a fascinating opportunity for the Bodhi team to dive into the nuances of the Canadian solar market and see firsthand where it aligns—and diverges—from the U.S. market. Many of the challenges, from extended permitting times to customer communication issues, are similar in both countries, but Canada’s unique approach to pricing, financing, and business models highlights its distinct market.
For installers tackling these challenges, Bodhi can help you streamline operations and enhance customer experiences. Book a time to chat with us to learn more about how we can support your business in this dynamic market.
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