Solberg, whose father Petter won the WRC title in 2003, won the rally by almost a minute ahead of nine-time world champion Sebastien Ogier.
He was also on course to win the final stage and collect a maximum 35 points for the weekend to take the title by two points.
However, his crash meant he finished five points behind Evans in the overall standings.
A third Toyota driver, Sami Pajari, a further one point behind in third – having seen his own title challenge evaporate on the final weekend.
An inconsolable Solberg remained in his car for some time at the end of the stage before being encouraged to take to the podium by Gazoo Racing team principal Jari-Matti Latvala and team-mate Ogier.
Evans had previously missed out on the title on the final day three times and in two of those seasons he had taken a lead into the concluding rally before losing out to Ogier in 2020 and 2025.
“I don’t really know what my reaction is. It’s surreal with how it happened. It’s a relief,” he said.
“It wouldn’t by my proudest way of winning it, but it’s job done.”
For Toyota sporting director Kaj Lindstrom there were mixed feelings.
“That was the hardest thing. The ending was quite something, I didn’t expect it,” said the Finn.
“It was a good fight and we all saw that Oliver was all or nothing. It held all the way to the end.
“Oliver still has time but Elfyn finally got his title so we’re really happy for him.”
The WRC season was reduced to 13 rounds when the Saudi Arabia event, originally planned for next month, was cancelled because of the ongoing unrest in the Middle East.