The landscape of solar incentives across Canada is continuously evolving as governments at federal, provincial, and municipal levels work to accelerate the adoption of renewable energy. For homeowners and businesses considering solar investments, navigating these incentives can significantly impact the financial viability of your project. This comprehensive guide breaks down the current rebates, tax credits, and programs available across Canada as of July 2023.
Federal Incentives Available to All Canadians
Canadian Greener Homes Grant
The federal government's flagship program for residential renewable energy:
- Grant Amount: Up to $5,000 for solar PV systems (and other energy-efficient home improvements)
- Eligibility: Homeowners with property as primary residence; requires pre- and post-installation EnerGuide home evaluations
- Process: Register through the program portal, complete required evaluations, and submit receipts for reimbursement
- Additional Benefit: Includes up to $600 to help cover the cost of home evaluations
Greener Homes Interest-Free Loan
Complements the grant program by providing financing:
- Loan Amount: Up to $40,000 interest-free for eligible home improvements including solar installations
- Term: 10-year repayment period
- Integration: Can be combined with the grant program
Canadian Renewable and Conservation Expense (CRCE)
Tax benefits for businesses investing in renewable energy:
- Benefit: 100% write-off for specific renewable energy equipment through accelerated Capital Cost Allowance
- Application: Primarily benefits commercial installations
- Requirements: System must meet technical criteria defined by Natural Resources Canada
Provincial Incentives
Alberta
Despite the end of the provincial-level rebate program, solar remains financially viable in Alberta due to high electricity rates and abundant sunlight:
- Municipal Programs: Several municipalities offer local incentives:
- Medicine Hat: Solar thermal rebate of $0.62/kWh saved
- Edmonton: Home Energy Retrofit Accelerator offers $0.40/watt up to $5,000
- Calgary: Home Energy Savings Program provides rebates for various energy upgrades
- Micro-Generation Regulation: Allows system owners to receive credit for excess electricity fed into the grid
- Carbon Offset Credits: Available for larger commercial installations
British Columbia
BC has focused on climate action with attractive incentives:
- CleanBC Better Homes Program: Offers rebates for various energy-efficient upgrades, though direct solar PV incentives are limited
- Net Metering: BC Hydro and FortisBC allow solar system owners to receive credits for excess generation
- PST Exemption: Solar PV equipment is exempt from Provincial Sales Tax
- Commercial Incentives: CleanBC Custom Program for businesses offers incentives for major energy projects that reduce emissions
Manitoba
Manitoba's incentives include:
- Solar Energy Program: Manitoba Hydro offers a program for grid-connected solar PV systems
- Efficiency Manitoba: Provides rebates for energy efficiency upgrades that complement solar installations
- Finance Programs: Home Energy Efficiency Loan offers financing for renewable energy projects
New Brunswick
New Brunswick offers several programs:
- Total Home Energy Savings Program: Provides rebates for energy efficiency improvements, which can complement solar installations
- Net Metering: NB Power allows customers to generate their own electricity and send excess to the grid for credit
- Low-Interest Loans: Available through the Environmental Trust Fund for renewable energy projects
Newfoundland and Labrador
The province's offerings include:
- Net Metering: Newfoundland Power and Newfoundland and Labrador Hydro allow customers to receive credit for excess generation
- Energy Efficiency Rebates: While not specifically for solar, these programs help reduce overall energy consumption, improving ROI for solar investments
Nova Scotia
Nova Scotia has been progressive with solar incentives:
- SolarHomes Program: Offers rebates of $0.30/watt up to $3,000 for residential solar PV installations
- Solar Electricity for Community Buildings Program: Supports solar projects on community buildings
- Affordable Multi-Family Housing Energy Program: Provides funding for multi-unit residential buildings to install solar systems
- Enhanced Net Metering: Allows system owners to receive credit for excess production
Ontario
While the province discontinued its MicroFIT program, other incentives remain:
- Net Metering: Ontario's net metering program allows homeowners and businesses to receive credits for excess electricity
- Property Tax Exemption: Renewable energy installations may qualify for property tax exemptions
- Municipal Programs: Some municipalities offer local incentives:
- Toronto: Home Energy Loan Program (HELP) provides low-interest loans for energy upgrades
- Ottawa: Better Homes Ottawa Loan Program offers financing for energy improvements
- IESO Save on Energy Program: Offers incentives for businesses making energy efficiency improvements
"In Ontario, while direct solar rebates have decreased, the economics still make sense for many homeowners due to rising electricity rates and the steady decrease in solar installation costs. The ROI continues to improve year over year."
Prince Edward Island
PEI offers substantial support for solar installations:
- Solar Electric Rebate Program: Provides rebates of $1.00/watt for residential installations (up to 40% of installed costs to a maximum of $10,000)
- Commercial Solar Incentive: Offers $0.75/watt for businesses (up to 40% of costs to a maximum of $10,000)
- Net Metering: Maritime Electric allows customers to receive credit for excess generation
Quebec
Quebec's focus has been on broader energy efficiency:
- Rénoclimat Program: Offers financial assistance for energy-efficient home renovations
- Net Metering: Hydro-Québec offers a net metering option for customers with renewable energy systems
- Technoclimat Program: Provides funding for demonstration projects and innovative technologies in the energy efficiency and renewable energy sectors
Saskatchewan
Saskatchewan offers targeted solar incentives:
- Net Metering Program: SaskPower customers can generate power, receive credits for excess, and carries unused credits forward
- Power Generation Partner Program: For larger-scale renewable energy projects with standard offer contracts
- Home Renovations Tax Credit: Includes some energy efficiency improvements
Territories (Yukon, Northwest Territories, Nunavut)
Canada's northern territories offer specialized programs to address their unique energy challenges:
Yukon
- Good Energy Rebate Program: Offers up to $5,000 for grid-tied solar PV systems
- Commercial Energy Incentive: Provides incentives for businesses installing renewable energy systems
- Micro-Generation Program: Allows customers to receive premium rates for electricity fed into the grid
Northwest Territories
- Alternative Energy Technologies Program: Offers rebates up to $20,000 for solar systems in communities served by the NWT Power Corporation and up to $10,000 in communities served by Northland Utilities
- Commercial Program: Provides up to $50,000 for commercial buildings
Nunavut
- Renewable Energy Homeowner Grant: Offers funding for small-scale renewable energy systems
- Energy Efficiency Programs: Various initiatives to reduce reliance on diesel generation
Maximizing Your Incentives
Tips for Accessing Multiple Incentives
To maximize available funding, consider these strategies:
- Stack Compatible Programs: Many incentives can be combined (federal + provincial + municipal + utility)
- Timing Matters: Some programs have limited funding windows or operate on a first-come, first-served basis
- Work with Certified Installers: Many rebate programs require work to be completed by qualified contractors
- Document Everything: Keep detailed records of all expenses, permits, and communications
- Consider Energy Efficiency First: Many programs require or incentivize energy efficiency improvements before or alongside renewable energy installations
Application Process Best Practices
For successful incentive applications:
- Research program requirements thoroughly before beginning your project
- Confirm eligibility criteria and documentation requirements
- Submit pre-approval applications when required before starting work
- Schedule any required home evaluations well in advance
- Keep all receipts, contractor information, and technical specifications
- Follow up regularly on application status
- Appeal if initially denied but you believe you qualify
Beyond Direct Incentives
Even without direct rebates, solar investments are supported by:
- Net Metering: Available in all provinces, allowing you to receive credit for excess electricity
- Carbon Pricing: As carbon taxes increase, conventional energy becomes more expensive, improving solar ROI
- Property Value Increase: Studies show homes with solar systems sell for a premium
- Energy Independence: Protection against rising utility rates
- Green Business Advantages: For commercial installations, improved corporate social responsibility profile and marketing benefits
Conclusion
While incentive programs continue to evolve across Canada, the overall trend supports the growth of solar energy. The financial case for solar installations remains strong in most regions due to a combination of incentives, declining equipment costs, and rising electricity prices.
For the most current information on available incentives, we recommend:
- Contacting your local utility provider
- Consulting with a qualified solar installer familiar with regional programs
- Checking provincial energy department websites for updates
- Researching municipal programs in your specific city or town
At Lishtasatan Solar, our team stays current on all available incentives and can help you navigate the application process to maximize your benefits. We provide comprehensive support from initial assessment through incentive application to ensure you receive all eligible financial support for your solar investment.