Investment Tax Credit: Save Up to 30% on Solar and Battery Energy Storage for Businesses
If you run a business in Canada, you’ve likely noticed how your hydro bills keep climbing. The electricity rate for businesses across Canada is projected to continue rising through 2026.. But here’s the good news — you don’t have to absorb all of it.
Through Canada’s Clean Technology Investment Tax Credit (ITC) program, businesses can now recover up to 30% of the cost of installing clean-energy systems like solar and battery energy storage. That means you can qualify for refundable tax credits during your next tax season while gaining more control over long-term energy costs.
What the Clean Technology Investment Tax Credit Actually Does
This Investment Tax Credit helps Canadian corporations offset part of the cost when they invest in renewable energy projects. If your company installs a solar system, a battery backup, or another qualifying clean-tech system, you can claim up to 30% refundable tax credit on the total installation cost.
To put it simply, if your project costs $100,000, you could get up to $30,000 back through the ITC. The 30% credit applies to new, qualifying equipment installed and operational between 2023 and 2033. Companies will still have a chance to qualify for up to 15% for installations completed in 2034. After that, the tax credit will no longer be available, so now is always the best time to act.
Why This Matters for Canadian Businesses
Canadian businesses have faced steady increases in electricity costs for years, and the next few cycles don’t look any easier. Commercial facilities that depend on power for heating, cooling, or manufacturing will feel it the most.
Adding a solar and battery energy storage system changes that equation. It allows you to generate your own electricity, cut peak-hour costs, and store excess energy to use when rates are highest. When you combine that with the Clean Technology Investment Tax Credit, the numbers make even more sense — less tax, less dependency on the electricity grid, and more savings over time.
This tax incentive is already great on its own, however total system costs can be reduced further through a combination of available solar and battery rebates. This investment tax credit can be stacked on top of any other provincial or federal program, potentially cutting the total cost by over half the original price.
What Qualifies Under the Investment Tax Credit
Not every system qualifies, so it’s worth checking before you invest. The ITC covers:
- Solar PV systems are installed and used in Canada.
- Battery energy storage systems that don’t rely on fossil fuels.
- Projects owned by taxable Canadian corporations or certain trusts.
When your system meets those standards, you can claim the credit once it’s installed and ready to operate.
How to Make the Most of the Credit with Polaron
Polaron works with businesses to find solutions that make sense financially for your energy needs. Here’s how we help businesses make the installation and application process as seamless as possible.
- Assess your energy use. Get a clear picture of your power costs and daily load by simply sending over your electricity bills.
- Design a solar + battery system by Polaron’s expert team that fits your building and operating schedule based on your usage history.
- Apply for permits + Local Rebate. Before your project is installed, Polaron will handle all the application paperwork, and secure available rebates.
- Resources for tax credit application Once your system is installed, we provide you with all the information you need to successfully apply for your refundable tax credit.
Many Canadian companies are finding that with the ITC in place, solar projects pay for themselves faster than expected — sometimes in just a few years.
Why You Shouldn’t Wait
The 30% Investment Tax Credit won’t last forever. Systems put into use after 2033 will qualify for only 15%, and the program is expected to end after 2034. Combine that with the current rise in electricity rates, and it’s clear that waiting too long means losing both savings and incentives.
For most businesses, the smart move is to evaluate now, while rebates, the tax credit, and stable equipment prices all line up in your favor.
The Clean Technology Investment Tax Credit isn’t just a policy benefit — it’s a real opportunity for Canadian businesses to modernize their energy use. You’re reducing costs, boosting property value, and showing leadership in clean operations.The faster you act, the sooner your business starts generating its own power instead of paying ever-increasing hydro bills, act today!
