Solar Rebates and Incentives
Canada Solar Rebates and Incentives 2025: Fueling Green Innovation
As part of its ongoing commitment to sustainable development, Canada continues to support the adoption of solar energy through various incentives and rebates designed to make solar technology more accessible to both homeowners and businesses nationwide. The 2025 lineup of incentives reflects a diverse approach to encouraging renewable energy investments across different sectors.
For Homeowners:
Currently, the primary federal residential solar incentive in Canada is the Canada Greener Homes Loan. This program provides homeowners with up to $40,000 in interest-free financing to cover the costs of their solar system installations. However, this opportunity might not be available indefinitely, so it's advisable to take advantage of it soon!
For Businesses:
Investment Tax Credit (ITC)
On the commercial front, the Investment Tax Credit (ITC) offers a robust incentive for businesses to engage in solar energy projects. This tax credit allows for a 30% reduction in tax liability for companies that install solar technology. To qualify for the ITC, the solar installations must be owned by the business and must be implemented within the fiscal year in which the credit is claimed.
Learn more here.
This tax relief not only helps businesses reduce initial installation costs significantly but also accelerates the return on investment, thereby promoting broader adoption of solar energy within the commercial sector.
Enhanced Capital Cost Allowance:
Under the Canadian Income Tax Act, businesses investing in clean energy generation equipment, such as solar power systems, can benefit from the accelerated Capital Cost Allowance (CCA). Solar power systems fall under Class 43.2, allowing businesses to deduct 75% of their installation and purchase costs in the first year. This significant tax provision is designed to help businesses quickly recover their investments in clean energy infrastructure, encouraging more widespread adoption of sustainable energy solutions.
Learn more here.
Clean Technology Investment Tax Credit:
The Clean Technology Investment Tax Credit provides a substantial incentive for businesses investing in renewable technologies, including wind, solar, and energy storage systems. This tax credit, effective from March 28, 2023, to 2034, allows businesses to claim a refundable 30% tax credit on their capital investments in these technologies. The objective of this credit is to hasten the implementation of renewable energy projects throughout Canada, promoting a transition to more sustainable energy sources.
Learn more here.
Provincial Programs and Incentives
In addition to federal incentives, several provinces have their own unique programs to further support solar energy adoption:
- British Columbia
BC Hydro Rebates: Homeowners in British Columbia can take advantage of rebates up to $10,000 through BC Hydro, which includes up to $5,000 for eligible solar panels and an additional $5,000 for battery storage systems. These rebates aim to make solar technology more affordable for residential users.
Learn more here.
Under the latest Energy, Energy Conservation, and the ICE Fund Tax rebate scheme, materials and equipment designed for energy conservation—including those aimed at reducing heat loss in buildings—are exempt from the Provincial Sales Tax (PST). This exemption notably includes solar photovoltaic collector panels, along with associated wiring, controllers, and devices that convert direct current to alternating current, provided they are purchased as part of the solar photovoltaic setup. This tax exemption encourages British Columbia residents to adopt more environmentally-friendly technologies and home improvements.
Learn more here.
Additionally, the Regional District of Nanaimo offers rebates for renewable energy systems, including solar PV, solar thermal, geothermal, or wind systems. These rebates range from $250 to $650, depending on the system and adherence to specific installation standards and certifications as defined in the program’s terms. To be eligible, applicants must reside within an RDN Electoral Area, with the exclusion of Nanaimo, Lantzville, Parksville, and Qualicum Beach.
Learn more here.
- Alberta
Micro-Generation Regulation: Alberta's Micro-Generation Regulation encourages residents, farmers, and small business owners to produce their own renewable energy. This program allows for energy production up to one megawatt, with excess energy sold back to the grid at a rate negotiated with the energy provider.
In Edmonton, multi-unit residential property owners can take advantage of the Change Homes For Climate Solar Program, which provides a rebate of $500 per kW towards installing solar panels. In Banff, both residents and commercial businesses can access a solar rebate of $750 per kW post-installation, with a maximum of $20 kW or $15,000. The City of Medicine Hat offers a Solar Electric Incentive Program through HAT Smart, giving residential utility customers a $200 per kW rebate, up to a maximum of $1,000.
Additionally, Albertans in certain municipalities can access the Clean Energy Improvement Program (CEIP). This program offers innovative, low-interest financing that homeowners can repay through their property tax bill, akin to a property assessed clean energy or “PACE” program. A list of participating municipalities is available for interested homeowners.
- Saskatchewan
The Home Energy Loan Program (HELP) in Saskatoon is designed to assist homeowners with significant upgrades aimed at enhancing energy efficiency, implementing renewable energy solutions, or reducing water usage. This program provides low-interest loans ranging from $1,000 to $60,000 for eligible homeowners within Saskatoon to fund substantial retrofit projects. The loans come with competitive interest rates and can be repaid through property taxes over terms of 5, 10, or 20 years. HELP is specifically targeted at substantial home improvements rather than minor changes like switching to LED lighting or installing low-flow showerheads.
- Manitoba
Efficiency Manitoba: This program offers incentives for installing solar panels on residential, commercial, and agricultural properties. Homeowners can receive rebates that significantly reduce the upfront cost of solar systems, promoting wider use of clean energy throughout the province.
Learn more here.
Under the Manitoba Hydro Net-Billing Program, if you produce more electricity than you consume using a system under 100 kW, you can sell the surplus energy back to the grid. The current rate for excess energy is set at $0.06546 per kWh, valid until March 31, 2025. This rate is adjusted annually to mirror the market value. It's important to note that this rate differs from standard electricity rates as it excludes service costs such as transmission, distribution, customer service, safety, and emergency restoration. Consequently, it may vary each year depending on market conditions for excess energy.
Learn more here.
- Ontario
Ontario’s Net Metering Regulation: Allows customers to offset their electricity costs by generating their own power from renewable sources. Surplus energy is credited to their account, reducing monthly electricity expenses.
Learn more here.
Save on Energy Programs: Managed by the Independent Electricity System Operator (IESO), these programs offer incentives for various energy efficiency projects, including solar installations.
- Quebec
Hydro-Québec’s Net Metering: This program offers customers credits for surplus energy produced by their solar systems. It is an attractive option for those looking to reduce their energy bills and contribute to renewable energy production.
Learn more here.
Transition Énergétique Québec: Offers various grants and financial assistance programs to support individuals, municipalities, and businesses in adopting energy-efficient and renewable energy technologies.
- New Brunswick
NB Power’s Total Home Energy Savings Program: Provides rebates for solar panel installations, with incentives based on the system’s capacity. This program supports the province’s goal of increasing energy efficiency and renewable energy use among homeowners.
Learn more here.
- Nova Scotia
SolarHomes Program: The program offers significant rebates to homeowners installing solar PV systems, making solar energy more accessible to a broader audience and supporting the province's renewable energy targets.
Efficiency Nova Scotia is presently offering temporary incentives for eligible solar customers who invest in home battery energy storage systems paired with a solar PV system, provided the installation is carried out by certified installers.
Additionally, Efficiency Nova Scotia is extending limited-time incentives to non-profit organizations for solar PV systems up to 25kW. Organizations eligible for the Solar for Non-Profits incentive must have been active, registered non-profits or charities for a minimum of 12 months.
Learn more here.
- Newfoundland and Labrador
Net Metering Program: Offered by Newfoundland Power and Newfoundland and Labrador Hydro, this program allows customers to generate renewable energy and receive credits for excess power, enhancing energy independence and sustainability. In Canada, Canadian-controlled private corporations can benefit from a 20% green technology tax credit for investments in environmentally friendly equipment, including energy conservation and clean energy generation. This credit applies to the capital costs of eligible assets used in provincial business operations, offering up to $1 million annually, with 40% of this amount being refundable. Unused credits can be carried forward for 20 years or back for three years, applicable to fiscal years beginning after April 7, 2022.
Learn more here.
- Prince Edward Island
PEI Energy Efficiency Loan Program: Provides low-interest loans to residents and businesses installing renewable energy systems, including solar panels. This initiative helps to reduce the financial barriers associated with solar installations.
Learn more here.
The PACE Atlantic SwitchPACE Program offers fixed-rate, property-based financing to enable homeowners in participating municipalities to undertake self-funded energy-saving projects. This program features a 10-year financing term, with options up to $40,000 or 25% of the property's value, and includes a 5% administrative fee. Additionally, participants can receive up to $10,000 from Efficiency NS and $5,000 from the Greener Homes Program. The SwitchPACE loan can also serve as bridge financing for the Federal Greener Homes Loan.
Learn more here.
- Yukon
Micro-Generation Program: Encourages the installation of small-scale renewable energy projects by offering rebates based on the system’s capacity. This program supports Yukon’s sustainable development goals by fostering the adoption of green energy.They can receive up to 65% reimbursement of their system’s annual projected capacity each April.
Learn more here.
- Northwest Territories
Northland Utilities Limited (NUL) Net Metering Program
Residential and commercial customers of Northland Utilities Limited (NUL) can generate their own electricity and receive monthly energy credits for any surplus electricity produced. Through the Net Metering program, NUL credits participants for their excess energy in kilowatt hours at the full retail rate. These credits can be used within the year, but any unused credits will expire at the end of each annual netting period. The program is open to customers with systems typically under 15kW.
Learn more here.
Northwest Territories Power Corporation (NTPC) Net Metering Program
The NTPC Net Metering program enables its customers to generate their own electricity from renewable sources and contribute excess power back to the community grid, earning credits for future energy use. This program is available to both NTPC and Northland Utilities Limited customers with installations usually under 15kW. Participants accrue credits valued at the full retail rate, which are reset at the end of March each year. Customers are responsible for all setup and compliance costs, while the utility provides the necessary metering equipment. All installations must conform to Canadian standards and utilize verified renewable technologies.
Learn more here.
Each province tailors its solar incentives to meet local needs and promote the adoption of renewable energy, reflecting Canada’s diverse approach to environmental sustainability and energy independence. By exploring and utilizing these incentives, residents and businesses can significantly benefit from reduced energy costs and contribute to a greener future.