Solar Panel Incentives and Rebates in Canada
Jul 8th 2021
Solar Panel Incentives and Rebates in Canada
Solar power is a cost-effective renewable energy source that only continues to grow in popularity.
Solar power systems not only reduce your ongoing energy costs, but they can also be cheaper to install than you might think. Solar incentives in Canada could help you save thousands of dollars off the cost of your solar installation through solar financing and subsidies.
Making the switch to solar power offers many long-term benefits for the environment, as well as ongoing cost savings. Solar panels are low maintenance, and the initial solar setup is the primary investment.
Solar panel installation does come with upfront hardware and installation costs which can be daunting. Luckily, the Canadian government and provinces offer some incentives so homeowners can reduce the initial cost of installing solar power systems.
There are several solar panel incentives available in Canada to encourage residents to switch to solar power. We'll break down how solar financial incentives work in Canada and how to find them.
How do solar incentives work in Canada?
Canada-Wide Programs
Canadians can benefit from ongoing electricity savings and up-front financial rewards when switching to solar power. Incentives differ across Canadian provinces because some provincial governments have not yet committed to carbon pollution pricing systems.
Solar incentives in Canada by Province
Alberta Incentives
Alberta has several incentives to encourage residents to install solar PV systems. Alberta also gets more sunshine than almost anywhere else in Canada, making it an ideal location to switch to solar power. The following incentives are available in Alberta. There are also additional incentives available specific to the towns of Medicine Hat, Banff, and Edmonton.
Although Manitoba is one of the sunniest provinces of Canada, it, unfortunately, does not offer regular net metering. However, there is one loan incentive available.
Residents in British Columbia can take advantage of the following solar rebates.
New Brunswick has several cost-saving incentives for both homeowners and commercial businesses. These incentives are:
Although Newfoundland and Labrador are not the sunniest spots in Canada, they do have high electricity rates. The high cost of electricity makes switching to solar power an attractive option. However, the province only offers net metering as a financial incentive. NL Hydro offers annual net-metering up to 100 kW.
Northwest Territories Incentives
Both Northland Utilities and Northwest Territories Power Corporation offer net metering in the Northwest Territories.
Nova Scotia is one of the best places in Canada to switch to solar power. This province is currently offering both net-metering and an additional solar installation incentive:
Nunavut has very high electricity prices that can make the switch to solar power well-worth it, even though it's not the sunniest part of the country. These rebates can help ease the costs of installation:
Ontario only offers net-metering to its residents and no other solar rebates. The net-metering initiative applies to renewable energy generators up to 500kW or less. Strict rules make it difficult and expensive to connect solar power systems over 10 kW to the grid in Ontario, meaning parts of Ontario are currently "grid constrained."
Prince Edward Island Incentives
Prince Edward Island only offers annual net-metering for residents and no other rebates. Net-metering is provided through the Renewable Energy Actfor solar power systems up to 100 kW in size.
Quebec Incentives
Most of Quebec's electricity comes from hydropower, but it's still a great place to switch to solar with the following incentives:
Saskatchewan is the sunniest place in southern Canada, making it a great spot for switching to solar power. Unfortunately, Saskatchewan has some of the worst solar incentives. There used to be more incentives available in Saskatchewan, but the following two are all that remains:
Yukon does not offer net metering. However, there are other incentives available.
A federal incentive known as the Climate Action Incentive Fund is available for residents in Saskatchewan, Ontario, Manitoba, and New Brunswick. The funding for this Climate Action program comes from the carbon tax because the provincial governments in these areas have not committed to carbon pollution pricing systems.
The Climate Action Incentive Fund provides rebates to residents of up to 25% of their solar project cost, which can range from $20,000 to $250,000. Various energy efficiency upgrades are eligible for this rebate, including hydro, solar PV, and wind power generation. Solar power is usually the most straightforward and most accessible of these green energy options.
Financing through solar installers
Solar panel systems can have a lifespan of around 25 years, so it's natural to want to spread out the installation cost. Compared to the United States, Canadian homeowners have far fewer financing options available for solar installations.
Property Assessed Clean Energy (PACE) Financing
Property Assessed Clean Energy (PACE) Financing originated in California and has since been adopted by several Canadian municipalities. PACE allows property owners to finance solar panel kits and other clean energy retrofits through their annual property taxes.
Conclusion
Across many Canadian provinces, the electricity produced from solar panels is less expensive or on par with electricity costs from the local electricity provider. You can use our solar panel calculator to estimate your energy consumption and solar power usage.
Electricity prices continue to increase, while the cost of installing solar power has reduced. By switching to solar power now you can take advantage of early adopter solar financing incentives and watch your savings increase even further over the 25-year lifespan of your solar power system.
