Canada is throwing its hat in the ring to grow the country’s commercial solar industry along with the US by promoting investments in renewable energy systems. The federal government is committed to reaching net zero by 2050. Renewable energy needs to play a crucial part in decarbonizing our energy sectors, as reports show that Canada needs to boost solar and wind energy capacity by nearly ten times to make the target timeline a reality.
Businesses and organizations that invest in commercial solar installations are eligible for a generous tax credit of up to 30% from 2023 to 2034. The new investment tax credit is a huge game changer for businesses interested in generating sustainable power for their properties.
How Does The Federal Clean Technology Investment Tax Credit Work?
The tax credit focuses on aiding commercial installations for both taxable and non-taxable organizations. This program, however, is not available for residential solar installations.
Applicants should install their solar energy system between 2023 to 2033 to qualify for the full 30%. Any systems that are installed in 2034 will only be eligible for up to 15%. The tax credit will no longer be available for any systems installed after 2034.
Investing in Solar Will Help Your Business Thrive
Solar already has immense benefits by itself. With the addition of the federal ITC, business owners can lower their payback period for even faster savings.
Another great benefit is having the ability to stack the tax credit with available rebates or funds in your area. Many provinces are working on promoting the adoption of renewable energy in their own way, offering loans and funds for your potential solar project. Use the ITC together with another incentive to lower the initial upfront cost. Depending on what your province or city offers, you could cut down your payback period to just 5 years!
The ITC is also compatible with any solar program from your utility company, including Net Metering and Behind-the-Meter. You have the flexibility to install whatever type of system your business needs.
Take Advantage of the federal solar investment tax credit with Polaron
Canada’s top solar company is here to help you get the most out of your solar investment. We’ll check how much of the solar credit you’re qualified for and help you apply for additional incentives.
By having the power to produce electricity for your business, you won’t be dependent on the grid or have to keep up with high energy rates. Watch as the savings come pouring in before you know it!
We have a highly experienced and knowledgeable team who know how to get the job done right. Contact us today for a free solar quote and consultation!
