Solar Financing in Canada
Financing Solar Projects in Canada
Investing in solar doesn’t have to be complicated. VCT Group offers solar financing solutions in Canada, helping businesses of all sizes, from rooftop solar installations on buildings to large-scale buildings with rooftop solar panels with solar carports, unlock the benefits of clean, renewable energy. Our expert team structures financing to maximize savings, reduce payback periods, and increase return on investment. VCT Group provides tailored solutions that make commercial solar accessible, predictable, and profitable. With our deep experience in solar project financing across Ontario and nationwide, we ensure your solar investment pays off from day one.
How Much Does Solar Cost?
Understanding the true cost of solar begins with the variables: system size, cost of energy, leveraged IRR, and available financing. At VCT Group we help you understand these drivers — so your commercial solar investment in Ontario or anywhere in Canada becomes predictable and profitable. Learn More About Solar ROI
The importance of scale in solar PV installations
As the size of a solar PV installation increases, the associated costs are lowered.
Economic Advantages of Solar Financing
Lower electricity costs: Lock in rates for decades.
Rapid ROI: Incentives and tax credits reduce payback periods to as little as 3–5 years.
Sustainability leadership: Demonstrate ESG commitments and reduce carbon emissions.
Energy independence: Reduce reliance on fluctuating utility rates.
Long-term asset: Solar PV systems and carports provide reliable energy for 25–40+ years.
VCT Group’s financing expertise ensures your solar investment is fully optimized for both immediate savings and long-term performance.
Financing Options for Solar
Solar Grants and Incentives
Save On Energy 2025 Incentive - Save Up to 50%
Ontario businesses can receive up to 50% of eligible project costs through the Save on Energy program. Systems must be behind-the-meter and properly sized to match facility consumption.
Clean Technology Investment Tax Credit (CT ITC) – Save 30%
Claim 30% of eligible solar investments as a refundable tax credit. Applicable to electricity generation equipment, stationary storage, active solar heating, and more.
Clean Electricity Investment Tax Credit (CE ITC) – Save 15%
Eligible organizations can claim a 15% refundable federal tax credit for clean electricity investments, including solar energy systems.
PPAs
Solar Power Purchase Agreements
PPAs allow businesses to access solar energy without an upfront investment. VCT Group and partners such as CED Co-op own, install, and maintain the system while you pay a fixed electricity rate. Options include:
Physical PPA: On-site installation with energy delivered to your building.
Virtual PPA (V-PPA): Financial contract offsetting electricity use with renewable energy credits.
Corporate PPA (C-PPA): Ontario-specific, for Class A ICI participants, providing predictable rates and Global Adjustment reductions.
Solar Financing & Leasing
Work with your lender or our financing team to structure traditional solar financing solutions tailored to your project. Whether through loans, leases, or other financial arrangements, we help design a funding strategy that aligns with your capital goals and cash flow needs. Our team will guide you through available options to ensure your solar PV system delivers strong returns while minimizing upfront investment.
How Solar Net Metering Works in Ontario
Solar net metering allows your business to send excess solar power to the grid in exchange for energy credits, reducing electricity costs. A bi-directional meter tracks power used and exported, helping offset consumption.
VCT Group analyzes your energy usage to properly size your system—maximizing savings, improving efficiency, and accelerating your solar ROI.
How Load Displacement Solar Works in Ontario
Load displacement prioritizes using all solar energy on-site instead of exporting it, which is required for programs like Ontario’s Save On Energy incentive. VCT Group models different energy use and solar production scenarios to design the most efficient system—maximizing incentives, reducing waste, and ensuring long-term ROI as your energy needs grow.
Electricity Rates and Inflation
Historical trends show utility electricity rates in Ontario rising around 7% per year over the past decade. Forecasts from the Independent Electricity System Operator suggest around 4% annual increases ahead. Locking in solar fixes your electricity costs for 20‑40 years — rather than continue “renting” power from the utility.
By financing a solar PV system through VCT Group, you can spread the upfront cost while immediately benefiting from lower energy expenses. Whether for rooftop solar, commercial solar, or solar carports, our tailored financing solutions make it easier to invest in renewable energy and protect your business from rising electricity rates.
Sources: IESO, Ministry of Energy
Glossary of Terms and Concepts - Solar Cost
Leverage: Borrowing a portion of the project costs. In these scenarios, borrowing 75% of costs, at 4.5% interest, amortizing over 25 years
Debt to Equity: The amount borrowed compared to invested capital
75% borrowed, 25% invested = 3:1 debt to equity
Debt Service Coverage Ratio: DSCR, the ratio of earnings/cashflow to debt payments. Banks look for a minimum of 1.2 or higher.
Security: What a bank can hold as collateral for a loan.
Mortgage security on the building
Can now take solar assets as collateral
Accelerated Depreciation: Businesses typically “write off” or amortize equipment over the lifespan.
Solar projects currently quality for 100% write off against income in year 1
With a general income tax rate of 26.5%, a 25% investment gets all of the cash back in year 1.
Internal Rate of Return: Financial calculation assumes all free cash flow can be reinvested at a similar rate.
Payback: The number of years before the initial cash investment is fully recouped
Operating expenses: includes all operating costs (insurance, monitoring, maintenance).
Levelized cost of energy (LCOE): Takes all capital and operating expenses for the project and divides it by the kWhs produced by the system throughout its evaluation
Ready to Power Your Business with Solar
Contact our team today to start your commercial solar project.
