Canadians are turning to solar panels as a solution to the rising costs of energy. From tax credits to net metering programs, solar panel incentives in Canada make it more affordable and accessible for Canadians to invest in renewable energy. Let us look at how they can benefit you and check are there grants for solar panels in Canada.
What is the Solar Incentive Program in Canada?
The demand for electricity is increasing every day. To generate more electricity, governments around the world are trying to switch to a sustainable means of generating electricity. Now, what is the solar incentive program in Canada? To promote the usage of solar energy, the government of Canada is offering solar incentives to Canadians to promote switching to solar energy. In this way, it can help reduce carbon footprints as well.
One of the most popular incentives that the Canadian government offers is the Canada Greener Homes Grant. The Canada Greener Homes Grant program is part of the federal government’s commitment to reduce Canada’s greenhouse gas emissions by 40-45% below 2005 levels by 2030. Let’s have an in-depth discussion about this in the upcoming segment.
What are Solar Panel Incentives in Canada?
Now that you are aware of the solar incentive program in Canada, you should know about the types of incentives offered by the government of Canada.
1. Canada Greener Homes Grant
The most common incentive is the Canada Greener Homes Grant. The Canada Greener Homes Grant is a federal program that provides homeowners with up to $5,000 in grants to make energy-efficient home improvements, including the installation of solar panels. The grant is part of the government’s plan to reduce greenhouse gas emissions.
It covers a range of energy-efficient upgrades, including insulation, air sealing, windows and doors, heating systems, and renewable energy systems like solar panels. The grant will cover up to 90% of the cost of the upgrades, and homeowners can use the grant to cover the cost of materials, labor, and permits. The federal government offers an interest-free loan of up to $40,000 for upgrades including solar PV.
Apart from this, solar panel incentives in Canada are categorized by province. Some of them are:
2. Alberta Incentives
a. Alberta Micro-Generation Regulation
It is a regulation implemented by the government of Alberta, Canada, that encourages the development of small-scale renewable energy systems, such as solar panels, wind turbines, and hydro systems. Net-metering is permitted for PV installations up to 5 MW or 5,000 kW under the Alberta Micro-Generation Regulation. In addition, customers can apply for a grant to cover up to 30% of the cost of their micro-generation system, up to a maximum of $10,000.
b. Alberta Solar for Schools Program
It is an initiative aimed at supporting the installation of solar panels on school rooftops throughout the province of Alberta, Canada. The eligible schools can apply for a grant of up to $10,000 to cover the cost of installing solar panels on their rooftops. The school must have a minimum roof area of 100 square meters and a minimum energy requirement of 10,000 kWh per year.
3. Ontario Incentives
Currently, only one incentive plan is active in Ontario which is Net Metering. Ontario’s net metering program allows you to generate your own electricity from renewable sources, such as solar panels, to send excess electricity back to the grid and receive credits on your electricity bills. Renewable energy manufacturers that produce up to 500kW or less are eligible for the net-metering initiative.
Additionally, check out the Ontario Solar Panel Program.
4. Quebec Incentives
a. Hydro-Quebec Net-Metering
Under the program, customers can install renewable energy systems with a capacity of up to 50 kW. Any excess electricity generated by the system can be sent back to the grid, and the customer will receive a credit on their electricity bill equal to the retail rate for electricity.
b. Quebec Heating with Green Power
Property owners receive financial aid to switch from fossil fuel-powered water heaters and home heating systems to more eco-friendly alternatives.
You can also take a look at the Florida Solar Incentives 2023.
5. British Columbia Incentives
a. Net-Metering & BC Hydro
For both residential and commercial customers, BC Hydro offers yearly net metering. A clean or renewable power generation with a combined nameplate capacity of no more than 100kW must be linked to the BC Hydro distribution system for a customer to be eligible. Larger systems go through a more complicated procedure whereas systems with 27 kW or less can use the simple net-metering method.
b. BC Regional District of Nanaimo Renewable Energy System Incentive
With the help of this $250 incentive, households in the District of Lantzville and the RDN Electoral Areas can switch to energy-efficient technologies without spending a great deal of money.
These are some of the popular incentives in different provinces or territories. Now, you might wonder – are there tax incentives for solar panels in Canada? Let’s find out in the next pointer.
Are there Tax Incentives for Solar Panels in Canada?
Yes, there are tax credits for solar panel incentives in Canada. The federal government, as well as some provincial and territorial governments, offer tax credits, rebates, and other incentives to individuals and businesses that install solar panels on their properties. The federal government offers a 30% Investment Tax Credit (ITC) for businesses that install solar energy systems, as well as a grant program for remote communities that want to transition to renewable energy sources.
Not only that, under the Renewable Energy Deployment Initiative (REDI), homeowners who install solar panels on their primary residence can claim a tax credit of up to 40% of the cost of the system, up to a maximum of $10,000. The credit is non-refundable and can only be used to reduce federal taxes owed. So, now you are aware of the tax incentives for solar panels in Canada, and, it’s time to switch to green energy.
Are there Grants for Solar Panels in Canada?
Yes, there are solar panel incentives in Canada also known as grants that help in reducing your energy bill.
The Canada Greener Homes Grant is the most significant grant program offered by the Canadian government. Homeowners who participate in this program are eligible for incentives up to $5,000 to upgrade their residences’ energy efficiency.
Some provinces and territories provide their own grant programs for solar panels in addition to the Canada Greener Homes Grant. For instance, British Columbians are eligible for incentives for the installation of solar panels on their houses and businesses through the CleanBC Better Homes and Home Renovation Rebate Program.
Also See: Solar Panel Rebates in BC
What are Solar Rebates in Canada?
Other than the solar panel incentives that are offered in Canada, there are some more solar rebates in Canada that the Canadian government provides. These are also categorized by provinces or territories, and they are:
1. Saskatchewan Incentives
The sunniest province in southern Canada is Saskatchewan, which makes it a fantastic site to switch to solar energy. Currently, Net Metering is one of the active incentives. Under this program, homeowners and businesses could generate their own electricity using renewable energy sources such as solar panels, and then sell any excess power back to the electrical grid. Participants are credited for the excess power they produce, which they can use to offset their own energy usage.
The Saskatchewan municipality also promotes the use of renewable energy by farmers. SaskPower provides a subsidy for solar or wind-powered pumps that pays up to $500 of the expenditures. The money can be used to buy and construct a solar system for cattle watering facilities on farms.
2. Yukon Incentives
a. Yukon Micro-Generation Program
In the Yukon Territory, the term micro-generation describes the production of energy on a small scale (the size limits vary by locality and range from 5 kW to 50 kW). It can be utilized as an alternative energy source or to complement grid electricity. Surplus energy is exported to the grid for yearly reimbursement when system size permits, and up to 65% of projected consumption is permitted.
b. Yukon Good Energy Residential Incentives Program
Yukon Energy, the main utility company in Yukon, had a residential incentives program called Good Energy. The eligible participants can receive a rebate of up to 25% of the eligible costs of their energy-efficient upgrades, to a maximum of $5,000 per project. The program covered a range of upgrades, including insulation, air sealing, heating and cooling systems, and solar panels.
3. Northwest Territories Incentives
The Alternatives Energy Technology Program (AETP) offered to help people and companies in the Northwest Territories by installing sustainable energy solutions on their properties, buildings, or other assets to rely less on fuel. AEA offered assistance for eligible renewable energy systems up to 50% of the cost, up to $20,000 for homeowners, and $50,000 for businesses, indigenous groups, and governments.
Cross-Reference: Eligible retrofits and grant amounts
Note: These are the incentives offered by the Canadian Government. For the most up-to-date information on these incentives, please visit their official websites and explore the available programs.
Many more incentives were provided by northwest territories but are not currently available. Also, other places like Toronto, Montreal, Vancouver, etc. offer rebates and incentives to promote energy production through solar panels.
The time is now! Invest in solar panel incentives in Canada and other programs offered by the government. By transitioning to solar power, you not only contribute towards a green planet but also enjoy energy bill savings through solar rebates in Canada. For more solar content, keep exploring our website.