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Solar Tax Credits, Incentives and Solar Rebates in Ontario
Latest Update:by Simone Garneau
|Solar Value Index||$906|
|Solar Energy Produced||5,611 kWh / year|
|Average retail electricity price (2016 data)||16.15 cents / kWh|
|Average annual consumption per household (2014 data)||8,580 kWh|
|Installed solar PV capacity (2014 data)||1828 MW|
|Levelized Cost||13.72 cents / kWh|
|Reached grid parity?||Yes|
|Solar Installer||City||Sunmetrix Solar Score||Sunmetrix Cashback|
|New Dawn Energy Solutions||Markham||$250|
|Friendly Fires - Kingston||Kingston||$250|
|The Hayter Group||Cambridge||$250|
Ontario is the leader for grid-connected PV systems in Canada. Thanks to generous feed-in tariff programs, solar energy has really taken off in the province.
At 16.15 cents/ kWh, the electricity prices in the province are above the national average of 12.2 cents / kWh. When it comes to average electricity consumption per household, residents of this province consume 8,580 kWh per year, below the national average of 13,300 kWh.
Ontario is a grid parity province, making solar power cheaper than the residential utility rates. The incentives listed below can significantly reduce the cost of installation of solar panels for your home or business.
- FIT Program (Feed-in Tariff Program)
The FIT Program is open to projects with a rated electricity generating capacity greater than 10 kilowatts (kW) and generally up to 500 kW. Approved projects receive a fixed price for the electricity produced over a 20-year contract period. For the latest feed-in tariff rates, please visit the program website.
- Micro-FIT Program
The program provides homeowners and other eligible participants with the opportunity to develop a small or "micro" renewable electricity generation project (10 kilowatts (kW) or less in size) on their property. Under this program, homeowners will be paid a guaranteed price over a 20-year term for all the electricity produced and delivered to the province's electricity grid. For the latest feed-in tariff rates, please visit the program website.
Electricity consumers in Ontario who produce some of their own power from a renewable resource (systems that are 500 kW or less) may take advantage of the "net metering" initiative. Net metering allows Ontarians to send excess electricity generated from renewable resources to the distribution system for a credit toward energy costs. In essence, it is a "trade" of electricity supplied against electricity consumed.
- Unfortunately, there are no federal incentives for residential solar PV projects in Canada. However, if you own a business, the following programs may be applicable.
- Capital Cost Allowance (CCA) Renewable Energy
The Government of Canada makes clean energy projects, such as solar energy, wind energy and energy from waste, more fiscally attractive for industry by providing business income tax incentives. Under Classes 43.1 and 43.2 in Schedule II of the Income Tax Regulations, certain capital costs of systems that produce energy by using renewable energy sources or fuels from waste, or conserve energy by using fuel more efficiently are eligible for accelerated capital cost allowance. Under Class 43.1, eligible equipment may be written-off at 30 percent per year on a declining balance basis. In general, equipment that is eligible for Class 43.1 but is acquired after February 22, 2005 and before year 2020 may be written-off at 50 percent per year on a declining balance basis under Class 43.2.
- Canadian Renewable and Conservation Expenses (CRCE)
CRCE is designed to encourage commercial investments in clean energy generation and energy conservation projects by providing income tax incentives for certain start-up expenses associated with these projects.
- Average monthly electricity consumption data is from the Canadian Electricity Association (2014 data).
- Average retail electricity prices are based on studies published by Manitoba Hydro and the annual Hydro Quebec report "Comparison of Electricity Prices in Major North American Cities" and is based on 1,000 kWh/month consumption.
- Annual solar production estimates are based on the analysis performed using our own solar energy calculator, Sunmetrix Discover.
- Installed solar PV capacity figures are from Natural Resources Canada's report entitled "Photovoltaic Technology Status and Prospects: Canadian Annual Report (2015)".
- The national average for utility rates in Canada excludes the rates in Northwest Territories and Nunavut.
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1. Defined Terms.
a. Program Website: http://sunmetrix.com/
b. INSTALLER: The solar PV installation company either selected by the QUOTE-REQUESTER or by Sunmetrix.
c. QUOTE-REQUESTER is a potential residential solar customer that meets all of the following criteria: (1) owns his or her own house in a state/province where the INSTALLER operates; (2) is a legal resident of the United States or Canada; (3) is 18 years of age or older; and (4) otherwise meets Sunmetrix’s requirements, as may be updated by Sunmetrix from time to time.
d. REFERRAL FEE: The amount the INSTALLER agrees to pay Sunmetrix upon completion of the residential INSTALLATION. For U.S. companies, the indicated amount is in U.S. dollars. For Canadian companies, the indicated amount is in Canadian dollars. In the case of commercial solar quote requests, the referral fee is determined on case by case basis.
e. CASH-BACK: The amount paid to the QUOTE-REQUESTER, representing 50% of the REFERRAL FEE paid upon completion of the residential solar photo-voltaic INSTALLATION. For U.S. residents, the indicated CASH-BACK amount is in U.S. dollars, and the CASH-BACK will be sent electronically either with a PayPal Payment or with an Amazon eGift Card. For Canadian residents, the indicated CASH-BACK amount is in Canadian dollars, and the CASH-BACK will be sent electronically with an Interac e-Transfer.
f. INSTALLATION: The solar photo-voltaic INSTALLATION is for a residential system with a minimum installed capacity of 2 kW DC. Systems that are less than the minimum will not qualify for the CASH-BACK program.