Transitioning to solar isn’t always easy for Canadian businesses, particularly those struggling to meet the initial investment costs. But when there are financial incentives offered, such as solar rebates, it can make it easier for businesses to invest and take steps towards reducing their carbon footprint.
Whether they’re federal, provincial, or municipal rebates or rebates provided by other organizations, they are great financial incentives that can often reduce the installation costs of solar energy systems significantly, making it far more affordable for all manner of Canadian businesses.
Below is an overview of two of the most significant solar rebates throughout the country. To find out more details about each one and whether you might be eligible, consult with a trusted solar company in Calgary:
Clean Technology Investment Tax Credit (CTITC)
This tax credit is refundable and supports a broader strategy from the federal government to increase the reduction of carbon emissions and adoption of clean energy. Offering a tax credit of 30% on clean technology asset investments, it includes commercial solar panels and runs until the 31st of December 2034.
To be eligible for this particular tax credit in full, businesses operating in Canada must invest in energy storage systems or clean energy generation (among others) and be in alignment with certain employment conditions, such as fair pay. Should a business not be compliant with such conditions, a smaller amount of the tax credit may be awarded.
For businesses investing in environmentally friendly initiatives, such as the generation of clean energy, this tax credit offers them a financial incentive.
In terms of tax incentives, the CTITC offers two main incentives:
1. Refundable tax credits
Provided the tax credit is more than the amount in taxes owed, eligible businesses can minimize their tax burden or, at tax time, get some money back.
2. Opportunity to combine with other incentives
The CTITC can be combined with other tax incentives and credits, including those targeting investments in clean energy.
Net metering programs
This program allows customers using electricity to generate their own through the use of solar panels or other sources of renewable energy. Electricity customers can be rewarded with credits when they produce excess energy, a program that doesn’t just support initiatives in renewable energy but also helps offset the cost of clean energy.
At the time of writing, net metering is available in all Canadian provinces and territories, although Manitoba is excluded and has its own form of the same metering, called net billing.
Customers who export excess energy to the grid are entitled to receive credits priced at the existing electricity rate, which will be credited to electricity bills that they’ll receive in the future.
Solar rebates are making solar panels for businesses in Calgary that bit more accessible, helping to ensure that more Canadian businesses are doing their bit to generate clean power. If your business wants to get greener by making the switch to solar, financial incentives, such as the two listed above, can help drive down the cost of installation and help you contribute towards a more sustainable future for the country and, ultimately, for the world.
