The Ultimate Guide to Solar Rebates in Canada: Savings for 2026
Solar installation rebates are valuable financial incentives that make it easier for businesses to transition to solar technology. A solar rebate can greatly reduce installation costs, making solar an excellent choice for businesses.
In this article, we will discuss the various federal, provincial and municipal solar rebates available in Canada, including recently updated federal tax credits that significantly impact project economics in 2026.
What Are Solar Rebates?
Governments and other organizations provide solar rebates as financial incentives to lower the cost of installing solar energy systems. There are two primary types of rebates available in Canada for solar technology. In 2026 and beyond, federal investment tax credits are the most impactful incentives for commercial solar projects in Canada.
Federal Rebates: Solar rebates offered by the Canadian government, such as the Clean Technology Investment Tax Credit (CT ITC).
Provincial Rebates: There are provincial solar rebates and/or net metering programs available for businesses offered by most Canadian provinces. An example is New Brunswick’s Energy Smart Commercial Buildings Retrofit Program, or Save on Energy grants available in Ontario for specific regions or sectors.
Municipal Rebates: Some cities offer rebates for solar over and above federal and provincial incentives, such as the City of Edmonton’s Solar Rebate Program.
Key Solar Installation Rebates In Canada
Clean Technology Investment Tax Credit (CT ITC)
Overview
Canada’s Clean Technology Investment Tax Credit (CT ITC) is a refundable tax credit that supports the federal government’s broader strategy to increase the adoption of clean energy and reduce carbon emissions. It provides financial incentives for businesses that invest in environmentally friendly alternatives such as clean energy generation. Although not exclusive to solar, solar energy generation is a focal point of this tax credit.
How Much Can Your Business Save with the Clean Technology Investment Tax Credit?
The Clean Technology Investment Tax Credit is a refundable tax credit that offers up to 30% of capital costs back for eligible clean technology investments made between March 28, 2023 and December 31, 2033.
Projects completed in 2034 are eligible for a reduced 15% credit, after which the program is scheduled to phase out.
Eligibility Criteria
Eligible Investments: The tax credit applies to investments in a variety of eligible clean technologies, including:
Clean energy generation
Energy storage systems
Eligible Businesses: Any tax paying Canadian corporation, or any Real Estate Investment Trust (REIT’s).
Geographic Requirements: The investments must be made within Canada in order to qualify for this tax credit.
Compliance with Labour Conditions: To qualify for the full 30% credit, projects must meet federal labour requirements, including prevailing wage and apprenticeship participation.
Tax Incentives
The Clean Technology Investment Tax Credit provides two primary incentives:
Refundable Tax Credits: Businesses can reduce their tax burden, or get money back at tax time, provided the credit is more than taxes owed.
Stackable with Other Incentives: You can combine the Clean Technology Investment Tax Credit (CT ITC) with other tax credits and incentives, including those for clean energy investments.
Lastly, battery energy storage systems and EV charging infrastructure are also eligible under this tax credit, making it a key driver of modern solar + storage project economics.
Clean Electricity Investment Tax Credit (CE ITC) *NEW*
Overview
The Clean Electricity Investment Tax Credit (CE ITC) is a federal refundable tax credit introduced under Budget 2025 and now formally enacted. It provides a 15% tax credit for investments in clean electricity generation and related infrastructure.
Learn more about how it works here.
How Much Can Your Business Save with the Clean Electricity Investment Tax Credit (CE ITC)?
Eligible entities can receive up to 15% of project costs as a refundable tax credit between April 2024 and December 2034.
Eligibility Criteria
Eligibility for the CE ITC is limited to specific types of entities, including:
Taxable Canadian corporations
Municipal and municipal-owned corporations
Provincial Crown corporations
Indigenous-government-owned corporations
Certain pension-backed entities
Eligible Property Includes:
Solar PV and other non-emitting electricity generation equipment
Battery energy storage systems
Infrastructure as part of new builds or qualifying refurbishments
Important Update: Charities and non-profit organizations are not directly eligible for the CE ITC. This is a key clarification following the final legislation and differs from earlier expectations.
Accelerated Capital Cost Allowance (Classes 43.1 & 43.2) *NEW*
Overview
The federal government offers Accelerated Capital Cost Allowance (ACCA) to encourage businesses to invest in clean energy, such as solar. Under Classes 43.1 and 43.2, eligible clean energy equipment can be written off much faster than standard depreciation, reducing taxable income sooner and improving project cash flow.
Upon request, the Canada Revenue Agency is able to confirm whether you are eligible before project costs are incurred.
Eligibility Criteria
The equipment must qualify under Class 43.1 or Class 43.2 of the Income Tax Regulations.
To qualify for Class 43.2, the equipment must otherwise be eligible for Class 43.1 and be acquired after February 22, 2005 and before 2025.
The property must be acquired after November 20, 2018 and become available for use before 2028 to qualify for the first-year deduction.
50% of the project’s total capital costs must relate to eligible Class 43.1 or 43.2 equipment. If unrelated costs total 50% or more, your project may be ineligible.
Eligible equipment and expenses must meet the technical requirements set out by Natural Resources Canada and the Canada Revenue Agency.
Canadian Renewable and Conservation Expenses (CRCE) *NEW*
Overview
Canadian Renewable and Conservation Expenses (CRCE) allow businesses investing in clean energy projects, including solar, to deduct certain development and start-up costs much sooner than normal. The CRCE lets businesses deduct these early expenses immediately or defer them for future years.
This can reduce taxable income during the planning and development phase of a clean energy project, when costs are high and there aren’t any returns on investment yet.
The CRCE is different from the ACCA. The ACCA applies to the equipment itself once it’s installed, while CRCE covers early project costs like planning and setup.
How Much Can Your Business Save with Canadian Renewable and Conservation Expenses (CRCE)
There’s no set amount businesses are eligible to receive from the CRCE, as it is dependent on your project costs. The CRCE can fully deduct eligible early project expenses, either in the year they’re incurred, or carried forward in future years.
Eligibility Criteria
Expenses must be related to the development or start-up of a clean energy or energy conservation project.
The project must involve clean energy equipment that qualifies under Class 43.1 or Class 43.2.
Eligible expenses can include planning, engineering, or other early-stage project costs before the equipment is operational.
Expenses must meet technical requirements set by Natural Resources Canada and the Canada Revenue Agency.
Net Metering Programs
Overview
Net Metering is a program allowing electricity customers to generate their own electricity using solar panels or other renewable energy sources. Electricity customers will receive credits for any excess energy they produce. This program can help offset clean energy costs while supporting renewable energy initiatives. Net metering is currently available in all provinces and territories in Canada, excluding Manitoba (which has another form of net metering called net billing).
How Much Can Your Business Earn Through Net Metering Programs?
For any excess energy generated and exported to the grid, customers will receive credits at the current electricity rate. When you generate more solar power than you use, the extra energy gets credited to your future electricity bills. If you don’t accumulate any excess energy, then you will not receive any credits.
Solar Incentives for Charities and Non-Profits
While charities and non-profits are not directly eligible for federal investment tax credits, there are still effective ways to access solar incentives.
Taxable Subsidiary Model
In this approach, a charity or non-profit establishes a separate taxable corporation (often referred to as a Special Purpose Vehicle or SPV) under either the OBCA or CBCA. This subsidiary becomes the legal owner of the solar system. Because it is a taxable Canadian corporation, it can qualify for the Clean Technology Investment Tax Credit (CT ITC) and receive up to 30% of eligible project costs as a refundable tax credit.
How it works:
The non-profit incorporates a wholly-owned subsidiary
The subsidiary owns and finances the solar installation
The subsidiary signs the EPC contract and becomes the asset owner
It claims the CT ITC and other tax benefits (including depreciation)
Financial returns flow back to the parent organization via dividends or internal energy pricing
Key Benefits:
It allows access to the full 30% federal incentive
The asset remains under full organizational control
It can significantly reduce long-term energy costs or generate internal returns
Third-Party Ownership (Common Approach)
This is the most common and simplest structure for charities and non-profits.
A third-party developer (such as VCT or a financing partner) owns the solar system and claims the available federal incentives directly. The non-profit benefits through reduced electricity costs without taking on ownership or tax obligations.
How it works:
A third party finances, installs, and owns the solar system
That entity claims the CT ITC and other available incentives
The organization purchases electricity at a reduced rate or benefits through a service agreement
Savings are realized immediately through lower utility costs
Key Benefits:
No upfront capital required
No tax filings or corporate structuring needed
Minimal administrative burden for the organization
Scales easily across small and large projects
Let VCT Group Help Save You 30% On Your Next Solar Project
Solar rebates play a key role in the adoption of clean power generation. By taking advantage of these programs, businesses can lower their installation costs for solar projects. The incentives enable improved project economics and contribute to a sustainable energy future, aligning your business’ actions with Canada’s climate goals.
At VCT Group, we are committed to helping you understand solar energy, and access all of the available solar rebates and incentives in your area. We’re constantly watching for future tax incentives in North America, so return to this article periodically to see if there are any new solar rebates available for your business.
Contact us today to learn how we can assist you in harnessing the power of solar energy for your business:
Frequently Asked Questions About Solar Rebates
Is there a 30% tax credit for solar panels in Canada?
Yes, the 30% tax credit for solar equipment is known as the Clean Technology Investment Tax Credit (CT ITC), but the tax credit is only available to taxable Canadian businesses. It applies to eligible clean technology investments, solar panels being an example. You can learn more about how it works here.
Can I apply for the CT ITC if my corporation is non-profit and doesn’t pay taxes?
No, the CT ITC is exclusively for taxable Canadian corporations. Non-profit organizations and charities are also not directly eligible for the CE ITC, except in specific structured cases (such as municipal or government-owned entities). However, non-profits can still benefit from solar incentives through third-party ownership models or taxable subsidiaries.
Can I combine solar tax credits with other incentives?
Yes. Many federal solar incentives, including the CT ITC, can be stacked with other tax credits, depreciation programs, and net metering (in some cases). Please reach out to us for clarification on what you qualify for.
When do these solar tax credits expire?
The CT ITC applies to eligible investments made between March 28, 2023, and December 31, 2034, with the full 30% rate available through 2033. Some depreciation and expense programs have earlier cutoffs.
Most of these tax credits don’t have a preset “expiration date”, but are subject to federal budget changes and funding limitations.
Maximize Your Solar Incentives with VCT Group
Navigating federal, provincial, and municipal solar rebates can be complex — especially when stacking tax credits, depreciation programs, and net metering to achieve the highest possible return. At VCT Group, we help businesses, municipalities, and organizations identify every available incentive and structure projects to maximize eligibility and total savings. If you're considering solar, let our team evaluate your eligibility and build a strategy that reduces upfront costs while strengthening long-term ROI.
Contact VCT Group today to discuss your project and discover how much your organization could save.