Canada Residential Electricity Rates (July 2025)

Published: July 22, 2025 | Updated: Aug 05, 2025 | 10 min read

Compare the most recent average residential electricity rates across Canadian provinces and territories. With electricity costs continuing to rise across Canada, understanding your local rates is crucial for evaluating solar energy investments. This information reflects the most up-to-date regulatory filings and market estimates as of July 2025.

Province	Latest Rate (¢/kWh)	Source / Notes
British Columbia	BC Hydro: 11.72¢ (Step 1), 14.08¢ (Step 2); FortisBC: 14.96¢	BCUC, as of July 1, 2025
Alberta	25.80¢ (including delivery & admin)	Competitive market rates + delivery charges, July 2025
Saskatchewan	19.90¢	SaskPower residential rates, effective July 2025
Manitoba	10.20¢	Manitoba Hydro standard residential rate, July 2025
Ontario	14.10¢ (average TOU)	OEB regulated rates with delivery, July 2025
Quebec	7.80¢	Hydro-Québec tiered rate average; among Canada's lowest
New Brunswick	13.90¢	NB Power standard residential rate, July 2025
Nova Scotia	18.30¢	NS Power domestic rate including delivery, July 2025
Newfoundland & Labrador	14.80¢	NL Hydro/Newfoundland Power average rate
Prince Edward Island	18.40¢	Maritime Electric tiered residential rate
Yukon	18.70¢	Yukon Energy/ATCO Electric, recent board filings
Northwest Territories	41.00¢	NTPC, high due to diesel generation in remote areas
Nunavut	35.40¢	Qulliq Energy Corp., includes territorial subsidies

Electricity Cost Highlights – July 2025

Residential electricity prices in Canada vary dramatically based on location, utility structure, and energy generation sources. These price differences create varying opportunities for solar energy savings across the country.

Average Electricity Rates Across Canadian Provinces and Territories - July 2025

Average residential electricity rates across Canada (¢/kWh) - Data as of July 2025

💡 Cheapest Province

Quebec – 7.8¢/kWh. Thanks to abundant hydroelectricity and public utility structure.

🔥 Most Expensive Territory

Northwest Territories – 41.0¢/kWh. Driven by diesel generation in remote communities.

⚡ Rate Trends

Most provinces saw 2-8% increases in 2024-2025, with inflation and infrastructure costs driving rates higher.

🌟 Solar Sweet Spot

Provinces with rates above 15¢/kWh offer the most attractive solar payback periods (typically 8-12 years).

Frequently Asked Questions

Which Canadian province has the cheapest electricity?

Quebec has the cheapest residential electricity rates in Canada at approximately 7.8¢/kWh, thanks to abundant hydroelectric resources and public utility structure.

Why are electricity rates so high in the territories?

Northern territories rely heavily on diesel generation due to their remote locations, making electricity much more expensive. Northwest Territories and Nunavut have rates above 35¢/kWh.

How do electricity rates affect solar payback periods?

Higher electricity rates directly reduce solar payback periods. Provinces with rates above 18¢/kWh typically see solar payback periods of 8-12 years, while lower-rate provinces may see 15+ year paybacks.

Are electricity rates expected to increase in Canada?

Yes, most provinces are experiencing 3-5% annual electricity rate increases due to infrastructure investments, carbon pricing, and inflation. This trend makes solar increasingly attractive.

How can I reduce my electricity bill in Canada?

The most effective long-term solution is installing solar panels, especially in provinces with rates above 15¢/kWh. Energy efficiency improvements and time-of-use optimization can also help reduce costs.

Solar Savings Potential by Province

Higher electricity rates directly translate to greater solar energy savings. Here's how solar power economics stack up across Canada based on current rates:

Province	Rate (¢/kWh)	Solar Payback	25-Year Savings*
Northwest Territories	41.0¢	6-8 years	$75,000+
Nunavut	35.4¢	7-9 years	$60,000+
Alberta	25.8¢	8-10 years	$35,000+
Saskatchewan	19.9¢	9-12 years	$28,000+
Yukon	18.7¢	10-12 years	$26,000+
Prince Edward Island	18.4¢	10-12 years	$25,000+
Nova Scotia	18.3¢	10-13 years	$25,000+
Newfoundland & Labrador	14.8¢	12-15 years	$18,000+
Ontario	14.1¢	12-15 years	$17,000+
New Brunswick	13.9¢	12-15 years	$17,000+
British Columbia	11.4¢	15-18 years	$12,000+
Manitoba	10.2¢	18-22 years	$8,000+
Quebec	7.8¢	20+ years	$5,000+

*Estimates based on 10kW system, average solar irradiance, and 3% annual electricity rate increases

Estimated Monthly Electricity Bill (1,000 kWh)

Based on all-in residential rates including energy, delivery, and fixed fees (excludes sales tax). These figures help illustrate potential monthly savings from solar power systems.

Province	Rate (¢/kWh)	Monthly Bill	Annual Cost
Quebec	7.8¢	$78	$936
Manitoba	10.2¢	$102	$1,224
British Columbia	11.4¢	$114	$1,368
New Brunswick	13.9¢	$139	$1,668
Ontario	14.1¢	$141	$1,692
Newfoundland & Labrador	14.8¢	$148	$1,776
Nova Scotia	18.3¢	$183	$2,196
Prince Edward Island	18.4¢	$184	$2,208
Yukon	18.7¢	$187	$2,244
Saskatchewan	19.9¢	$199	$2,388
Alberta	25.8¢	$258	$3,096
Nunavut	35.4¢	$354	$4,248
Northwest Territories	41.0¢	$410	$4,920

Electricity Rate Trends (2020-2025)

Understanding rate trends helps predict future solar savings potential. Most Canadian provinces have experienced steady rate increases over the past five years:

📈 Fastest Growing Rates

Alberta & Saskatchewan: 4-6% annual increases due to market deregulation and infrastructure investments.

📊 Moderate Growth

Atlantic Provinces: 2-4% annual increases driven by aging infrastructure and fuel cost volatility.

🔒 Most Stable

Quebec & Manitoba: Sub-inflation rate increases thanks to abundant hydroelectric resources.

🔮 Future Outlook

Experts predict 3-5% annual increases Canada-wide through 2030, making solar increasingly attractive.

Electricity Bill Rate Design

Electricity rate structures can significantly impact both your current bills and solar savings potential. Provinces differ in how their rate structures reward conservation and solar power adoption.

Conservation Impact Example:

Cutting electricity use from 1,500 to 750 kWh/month saves:

💰 65% in Nunavut (high flat rate)
💰 46% in Nova Scotia (moderate tiered)
💰 36% in British Columbia (progressive tiers)

🏆 Solar-Friendly Rate Designs:

Low fixed monthly fees (under $15)
High volumetric charges (energy-based pricing)
Net metering programs
Time-of-use rates that align with solar production

⚠️ Solar-Challenging Designs:

High fixed monthly fees (over $30)
Declining block rates (cheaper per kWh for higher usage)
Limited or no net metering

Understanding Different Rate Structures

Residential electricity rates in Canada vary not only by province but also by how your bill is calculated. Understanding these structures helps predict solar savings potential:

Tiered Rates

Users pay a lower rate for the first block of energy, higher rates for additional usage. Solar benefit: High - reduces expensive upper-tier consumption. Example: BC Hydro.

Time-of-Use (TOU)

Prices vary by time of day (peak vs. off-peak). Solar benefit: Excellent - solar production peaks during expensive daytime hours. Common in Ontario.

Flat Rates

Same price per kWh regardless of usage or timing. Solar benefit: Moderate - predictable savings but no peak-hour advantage. Used in Atlantic Canada.

Market-Based Pricing

Prices fluctuate with electricity market conditions. Solar benefit: Variable - can be excellent during high-price periods. Common in Alberta.

Methodology

Average provincial electricity prices were calculated using official utility tariffs and regulatory filings as of July 2025. Monthly bill estimates assume 1,000 kWh of usage and include base energy charges, delivery costs, and standard fixed fees (before taxes or rebates). Solar savings calculations are based on typical system performance and current net metering policies.

Tiered, time-of-use, and flat rates were modeled using utility-specific billing structures
Provincial averages were population-weighted by utility coverage area
Only standard residential rate classes were included (no special programs)
Solar payback estimates assume 10kW systems with average provincial solar irradiance
All rates verified against July 2025 regulatory filings where available

Data Sources

Below are the sources and methodologies used to determine the electricity rates for each Canadian province and territory. All data reflects July 2025 regulatory filings and published tariffs.

Western Canada

British Columbia: Data from BC Hydro two-tier residential rate structure and FortisBC flat residential rate. Population-weighted average with current BCUC-approved rates.

Alberta: Rates from the Alberta Utilities Commission and major retailers including ENMAX, EPCOR, and ATCO. Includes both regulated and competitive market pricing with delivery charges.

Saskatchewan: SaskPower residential rates representing approximately 85% of provincial load. Saskatoon Light & Power and other municipal utilities serve remaining areas.

Manitoba: Standard residential rates from Manitoba Hydro including basic monthly charge and energy rates. Rates stable due to abundant hydroelectric capacity.

Central Canada

Ontario: Time-of-use rates from the Ontario Energy Board, weighted by typical residential usage patterns. Includes delivery charges, regulatory fees, and Ontario Electricity Rebate.

Quebec: Hydro-Québec's two-tier residential rate (Rate D). Calculation assumes typical monthly consumption split between rate tiers including transmission and distribution.

Atlantic Canada

New Brunswick: NB Power residential service rates including energy and customer charges. Saint John Energy serves similar rate structure. Rates approved by New Brunswick Energy and Utilities Board.

Nova Scotia: Nova Scotia Power domestic service rates including basic and energy charges. Recent increases approved by Nova Scotia Utility and Review Board for system improvements.

Prince Edward Island: Maritime Electric residential rates including customer charge and tiered energy charges. Rate increases reflect power purchase agreements and system maintenance.

Newfoundland & Labrador: Blended rates from Newfoundland Power (Avalon Peninsula/eastern regions) and Newfoundland and Labrador Hydro (remainder of province). Both regulated by Public Utilities Board.

Northern Territories

Yukon: Blended rates from Yukon Energy Corporation (hydro generation) and ATCO Electric Yukon (distribution). Includes territorial energy rebates.

Northwest Territories: Northwest Territories Power Corporation rates for thermal generation communities. Includes Territorial Power Support Program subsidies. Hydro communities have lower rates.

Nunavut: Qulliq Energy Corporation community rates with territorial subsidies. All communities rely on diesel generation with significant fuel transportation costs.