2023 Canadian Solar Incentives: A Province-by-Province Guide

Federal Solar Incentives for All Canadians

Canada Greener Homes Grant

The federal government's signature program for residential renewable energy:

• Grant amount: Up to $5,000 for eligible home energy improvements, including solar PV systems
• Requirements: Must complete pre- and post-retrofit EnerGuide evaluations
• System size: Must be a minimum of 1.0kW to qualify
• Application process: Apply through the program portal at Natural Resources Canada

Greener Homes Interest-Free Loan

Complements the grant program to help with upfront costs:

• Loan amount: Up to $40,000 interest-free for 10 years
• Combined benefit: Can be used alongside the grant program
• Eligibility: Must have completed an EnerGuide evaluation

Business Tax Incentives

Significant tax breaks for commercial solar investments:

• Clean Energy Equipment (Class 43.1/43.2): Accelerated Capital Cost Allowance (CCA) allowing businesses to deduct the cost of solar equipment at rates of 30% to 50% on a declining-balance basis
• Canadian Renewable and Conservation Expense (CRCE): Allows certain development costs to be fully deducted in the year incurred or carried forward indefinitely

Provincial Solar Incentives (2023)

British Columbia

BC offers several incentives to complement federal programs:

• CleanBC Better Homes Program: Additional rebates of up to $1,000 for installing solar hot water systems
• PST Exemption: All solar PV equipment and installation costs are exempt from the 7% provincial sales tax
• BC Hydro Net Metering: Credit for excess electricity fed back to the grid at retail rates
• Municipal Programs: Various additional incentives in Victoria, Vancouver, and other municipalities

Alberta

After the conclusion of the Residential and Commercial Solar Program, Alberta still offers:

• Edmonton's Change Homes for Climate Solar Program: Rebates of $0.40/watt up to $4,000 for residential systems
• Medicine Hat Solar Incentive: Up to $6,000 rebate for residents in Medicine Hat
• Micro-generation Regulation: Allows solar system owners to receive credit for excess electricity at retail rates

Saskatchewan

Saskatchewan offers a measured approach to solar incentives:

• Net Metering Program: Credit for excess generation at retail rates, with credits carried forward for up to 12 months
• SaskPower's Solar Partnership Program: Provides technical and financial support for community solar projects

Manitoba

Manitoba's incentives focus on net metering and financing:

• Manitoba Hydro's Solar Energy Program: Provides net metering and technical support
• Efficiency Manitoba: Low-interest financing for energy efficiency upgrades, including solar installations
• First Nations Power Authority (FNPA): Specialized program supporting Indigenous solar developments

Ontario

Ontario has transitioned from the FIT program to these current incentives:

• Net Metering: Credits for surplus generation at retail rates
• Save on Energy Program: Incentives for businesses to reduce peak demand through solar and storage
• Property Tax Exemption: Renewable energy installations are exempt from property tax increases
• Indigenous Clean Energy Micro-grid Program: Supports remote and Indigenous communities transitioning to clean energy

Quebec

Quebec's unique energy market offers these opportunities:

• Rénoclimat Program: Financial assistance for energy-efficient renovations, including solar water heating
• Hydro-Québec's Net Metering Option: Credit for surplus electricity at equivalent rates
• Technoclimat Program: Supports innovative demonstration projects in renewable energy

Nova Scotia

One of Canada's most progressive provinces for solar incentives:

• Solar Homes Program: Rebates of $0.60/watt up to $6,000 for residential installations
• Low-Income Solar Program: Free solar systems for qualifying low-income homeowners
• Business Rebate: $0.30/watt for commercial installations
• Enhanced Net Metering: Credit for excess generation at retail rates

New Brunswick

New Brunswick provides these solar support mechanisms:

• Total Home Energy Savings Program: Rebates of up to $10,000 for energy efficiency upgrades, including solar PV
• NB Power Net Metering: Credit for excess generation at retail rates

Prince Edward Island

PEI offers some of Canada's most generous solar incentives:

• Solar Electric Rebate Program: $1.00/watt rebate for residential (up to $10,000) and $0.75/watt for commercial (up to $50,000)
• Home Energy Low-income Program (HELP): Free energy efficiency upgrades for low-income homeowners
• Net Metering: Credit for excess generation at retail rates

Newfoundland and Labrador

Recent additions to Newfoundland's solar landscape:

• Net Metering Policy: Allows customers to receive credit for excess generation
• Home Energy Savings Program: Rebates for energy efficiency improvements

Territories (Yukon, Northwest Territories, Nunavut)

Canada's northern territories offer specialized programs for their unique energy challenges:

• Yukon's Good Energy Program: Rebates of up to $5,000 for grid-tied solar PV systems
• Arctic Energy Alliance (NWT): Provides rebates of $1.00/watt up to $10,000 for residential and $30,000 for commercial
• Nunavut's Energy Secretariat: Case-by-case support for renewable energy projects

Maximizing Your Solar Incentives

Stacking Available Incentives

Most Canadian homeowners and businesses can combine multiple incentives:

• Federal grants and loans with provincial rebates
• Tax incentives with direct rebates
• Net metering with upfront incentives

Example: A homeowner in Nova Scotia could potentially access the federal Greener Homes Grant ($5,000), the federal interest-free loan (up to $40,000), and the provincial Solar Homes rebate (up to $6,000), for a total incentive package worth up to $51,000.

Additional Financing Options

Beyond government incentives, consider these financing pathways:

• Green Mortgages: Several Canadian banks offer preferential rates for energy-efficient homes
• PACE Financing: Property Assessed Clean Energy programs allow financing tied to property tax assessments (available in some municipalities)
• Municipal Green Funds: Many cities offer additional grants or low-interest loans

Application Tips and Timeline

Federal Incentives Application Process

1. Register for the Greener Homes Initiative
2. Complete a pre-retrofit EnerGuide evaluation
3. Obtain multiple quotes from qualified solar contractors
4. Apply for provincial incentives simultaneously
5. Complete your solar installation
6. Schedule post-retrofit evaluation
7. Submit all documentation for reimbursement

Typical timeline: 6-12 months from initial application to receipt of incentives

Documentation Checklist

Be prepared with these documents for most incentive applications:

• Proof of property ownership
• Recent energy bills
• EnerGuide evaluation reports
• Detailed quotes and invoices from certified contractors
• Technical specifications of solar equipment
• Proof of installation (photos, inspection certificates)
• Interconnection agreement with utility (for grid-tied systems)

Conclusion

2023 represents an outstanding opportunity for Canadians to invest in solar energy. With federal programs reaching maturity and provincial incentives becoming more sophisticated, the financial case for solar has never been stronger across the country.

While incentive programs continue to evolve, the overall trend is clear: governments at all levels are committed to supporting Canada's transition to renewable energy. By taking advantage of these programs, homeowners and businesses can significantly reduce the upfront costs of solar installation while contributing to Canada's climate goals.

For the most current information specific to your location and situation, we recommend consulting with a qualified solar consultant who stays up-to-date with the rapidly changing incentive landscape.