Solar Incentives

For Canadian businesses, solar adoption isn’t just a step towards sustainability; it’s a savvy business decision that will make them save money over the long term. However, the upfront costs are still a barrier for many owners. Fortunately, the Government is supporting the adoption of solar and other forms of clean energy as part of the efforts to make Canada a net-zero emission country by 2050 and is offering financial incentives that make going solar much more attractive from a business perspective. This blog will give you an overview of the solar incentives available in Canada and Alberta for commercial adopters, so you know which option suits your business best.  Federal Incentives The Clean Technology Investment Tax Credit This tax credit aims to support the investment in clean energy projects and allows taxable Canadian corporations to claim up to a 30% refundable tax credit for the capital cost of eligible equipment required for energy production through solar and other clean sources, bought and available for use on or after March 28, 2023, and before 2034. For equipment that becomes available for use in 2034, the tax credit would be up to 15%. The Accelerated Investment Incentive This incentive provides commercial users who invest in solar or other forms of clean energy to support their activities with an enhanced first-year tax deduction for the equipment subject to the capital cost allowance regulations. This allows them to deduct a more significant portion of the cost of these assets in the year they are put into use rather than spreading the deduction over several years through depreciation. The deduction applies to property purchased after November 20, 2018, and scales down over time.  Canadian Renewable and Conservation Expense (CRCE) The CRCE covers the intangible costs of clean energy projects, such as feasibility studies and pre-construction development expenses, and allows taxpayers to deduct these expenses for the year incurred entirely. Alberta Incentives Emission Reductions Alberta This initiative allows Alberta’s small and medium businesses to get funding for their clean energy projects. (This program was closed when we wrote this blog, but you can join the waitlist to be among the first ones to know when the program receives funding.) Clean Energy Improvement Financing Program This program offers financing up to 100% of clean energy projects and upgrades on commercial property in Edmonton. It offers an up-to-20-year repayment period through your property tax bill and competitive interest rates. The program is planned to reopen for applications in Spring 2024, and you can join its newsletter to stay informed. An Investment With Long-lasting Benefits Few investments can give a business instant cash flow relief the way a solar system can, and with the financial incentives we discussed, going solar is an attainable option for businesses of all sizes. When your panels start producing energy, you can invest the money you save in bills in other areas of your business while knowing your activities will be powered by a reliable energy source. We would love to hear from you if you have any questions or would like more information. Contact us for a free consultation to ask us all your solar questions.

Business activities in the modern world go beyond profit generation, and the general public expects businesses to engage in socially responsible practices that demonstrate a sense of responsibility, ethical behaviour and care for the community in which they do business.  A business can give back to its community in many ways, but incorporating solar energy into its operations is a significant step toward enhancing Corporate Social Responsibility (CSR.) We will discuss the link between solar energy and Corporate Social Responsibility and how we at Solar YYC choose to give back to our community as a solar energy business. Why Solar Energy and Corporate Social Responsibility Is a Win-Win for Businesses Reduced Carbon Footprint and Regulatory Compliance With the Government’s goal of becoming a net-zero emissions country by 2050, companies have a significant role to play in achieving this result and going solar is one of the best ways to contribute to this effort, as it significantly reduces a businesses’ reliance on traditional energy sources, consequently lowering their greenhouse gas emissions, reducing their carbon footprint, and showcasing their commitment to compliance and responsible business practices. Positive Public Perception  A business’s image plays a significant role in its success. The general public’s increase in awareness towards environmental issues has made them pay special attention to the way companies they support power their operations, as a recent customer study showed that consumers’ demand for products from brands known for their efforts towards sustainability has increased with a 56% of offer growth in five years. Companies that adopt solar energy or other environmentally-friendly practices to show their commitment to sustainability are more prone to have an overall positive brand image, increased customer loyalty and a higher expenditure per purchase, as eco-conscious buyers are inclined to pay more for products and services from companies that align with their values. Employee Engagement Like consumers, employees, especially Millennials and Gen Z workers, increasingly value working for socially responsible companies. By incorporating solar energy, businesses can enhance employee satisfaction by demonstrating a commitment to environmental and sustainability practices. Educational Initiatives One of the ways to combine CSR and solar energy adoption to strengthen a business relationship with its community is to implement educational programs to raise awareness among employees and the local community about the benefits of solar energy. This can include workshops, seminars, or informational campaigns to foster a culture of sustainability.  Partnerships and Collaborations Businesses can strengthen their CSR efforts by partnering with environmental organizations or participating in green initiatives related to solar energy awareness or other ecological endeavours. Collaborative efforts can amplify the positive impact sustainability practices and open the door to future business opportunities. Investor Relations Many investors are increasingly considering environmental and social factors in their investment decisions. As reported by the Harvard Business Review, companies with strong CSR practices may attract a broader investor base, including those focusing on sustainability and ethical investing. How Solar YYC Gives Back The solar industry has been booming in recent years, and we wanted to share our success by donating a portion of our revenue to a charity that resonated with our team’s values. We chose to work with I Can for Kids, a non-profit that supports and empowers children and families facing food insecurity by donating grocery store gift cards and helping them shop for the groceries they need when and how they see fit. We already have donated over $40,000 and are sure we and our clients will surpass this amount in 2024. If you want to know more about I Can for Kids and their fantastic work, check out their website or contact them via email. Take the First Step Whether you run a solar-related business or not, you can contribute to your community’s growth and well-being and share your company’s accomplishments by committing to sustainable practices. If every business thinks about how they can contribute to a better future, we can make a difference for the current and next generations.

Updated in March 2024 Interest from Canadian homeowners in using solar energy to power their homes has increased exponentially in the last few years. This surge of interest has led to the creation of more companies developing solar technology for residential purposes, which means that solar energy is more accessible than ever. Luckily, the federal Government and many provinces and cities want people to go solar. With the financial incentives available, adoption is increasing even more. Here’s an overview of the solar incentives in Alberta and Canada for residential use so you know which options you are eligible for. Something important to note: Solar YYC customers don’t have to figure all of this out on their own. Our consultants do virtually all the work. All you have to do is contact us and get ready to save money. Federal Incentives Canada Greener Homes Interest-Free Loan This financial incentive also offered up to $5,000 grants, but the Government closed applications for this option starting in 2024 and will only be offering loans as financial aid to homeowners wanting to install solar panels. Eligible homeowners can access interest-free loans payable over a 10-year period ranging from $5,000 to $40,000. To qualify for this loan, the property must be your primary residence, and you must prove ownership. It’s important to highlight that projects that have already started or are completed are not eligible. Alberta Incentives Calgary’s Clean Energy Improvement Program The city of Calgary offers the Clean Energy Improvement Program (CEIP) to give all homeowners access to energy efficiency and renewable energy upgrades by offering flexible and affordable financing options to pay for the eligible upgrades, with repayment collected through regular property taxes.  These are the CEIP’s details: Your home is eligible if it is: It is important to note that newly built homes are not eligible for this incentive. The program will reopen for applications starting April 9, 2024 and will include solar thermal water heating, and solar PV systems among the energy efficiency options. Medicine Hat’s Existing Homes Incentive Program Medicine Hat offers up to a $5,000 rebate to buy and install residential solar PV systems. The amount is based on the size of the system installed, and the applicants must fulfill some requirements, which include: Lethbridge’s Sunridge Builtgreen Homeowner Rebate This incentive, oriented to homebuyers in the Sunridge residential area, grants up to $3.500 in rebates for homes that meet specific environmental efficiency standards based on a previous EnerGuide assessment. Going Solar in Alberta: It’s Worth It Alberta is blessed with 312 sunny days a year. It shines bright even during the cold winter months. Installing solar panels in your home is a great way to protect yourself from the ever-rising electricity bills, save money, increase your property value, and help the environment. Solar incentives currently available on provincial and federal levels make the decision to go solar easier, as it becomes an upgrade that will pay for itself quickly and power your home for decades to come. If you’re ready to go solar or have more questions about solar incentives in Alberta, contact us.