The Ultimate Guide to Solar Rebates in Canada: Savings for 2025

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, as well as net-metering programs which vary by province. By understanding these incentives, your business can make informed decisions about investing in solar energy, saving on energy costs, and contributing to a greener future.

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.

1. Federal Rebates: Solar rebates offered by the Canadian government, such as the Clean Technology Investment Tax Credit (CT ITC).
2. 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.
3. 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 30% of capital back for investments in new clean technology assets in Canada between March 28, 2023, and December 31, 2034. This includes the purchase of commercial solar panels.

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: The government expects all eligible businesses to adhere to certain labour conditions, such as providing fair wages, to ensure eligibility for the full 30% tax credit. Businesses that fail to comply will get a smaller portion of the tax credit.

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.

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.

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:

Call: 519-279-4630
Email: info@vctgroup.com