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Solar Tax Credits, Incentives and Solar Rebates in Manitoba
Latest Update:by Simone Garneau
|Solar Value Index||$488|
|Solar Energy Produced||5,783 kWh / year|
|Average retail electricity price (2016 data)||8.43 cents / kWh|
|Average annual consumption per household (2014 data)||17,328 kWh|
|Installed solar PV capacity (2014 data)||0.4 MW|
|Levelized Cost||9.32 cents / kWh|
|Reached grid parity?||Not yet|
|Solar Installer||City||Sunmetrix Solar Score||Sunmetrix Cashback|
The southern portions of the prairie provinces have the best solar energy potential in Canada. In Winnipeg alone, it's estimated that the solar photovoltaic rooftop potential is 3,000 megawatts. Up to this point, it's been hard to compete with hydro-electricity. However, the picture is set to change with significant utility rate hikes by Manitoba Hydro in the coming years. The future for solar in Manitoba is bright!
At 8.43 cents/ kWh, the electricity prices in the province are below the national average of 12.2 cents / kWh. When it comes to average electricity consumption per household, residents of this province consume 17,328 kWh per year, above the national average of 13,300 kWh.
Although the cost of solar power in the province didn't reach grid parity yet, the incentives listed below can significantly increase the affordability of solar energy.
- Residential Earth Power Loan
Our Residential Earth Power Loan is an option if you would like to make energy efficiency upgrades to your home, including solar photovoltaic systems. The loan is applicable to residential, non-seasonal customers only. Your monthly payment will be added to your energy bill. The minimum allowable loan amount is $500, and up to $30,000 for solar photovoltaic panels. Solar PV financing is calculated based on $3 per watt installed; the maximum term is 15 years; no down payment is required; the loan becomes due and payable when the house is sold; the loan is not transferrable; and the annual interest rate is fixed at 4.9 per cent (O.A.C.) for the first 5 years.
- Solar Energy Program
A solar PV incentive is available to residential, commercial, and industrial customers. The incentive, based on a minimum 1 kW, maximum 200 kW system size, is $1 per watt incentive (as per the DC rating of the solar PV system). A certified electrical contractor must install the system. Once the system is installed and inspected, a bi-directional meter will be installed. This meter monitors power imported from the grid, as well as power exported from the solar panels. Any excess energy is sold back to Manitoba Hydro at the residential rate of $.07672/kWh. Note: If participating in both the loan and incentive program, the incentive will be applied to the loan to reduce the financing amount.
- Customer Owned Generation
Customers who own their own electric renewable generation systems may connect to our distribution system, as long as they follow procedures that have been adopted to safely protect the customer and Manitoba Hydro. Customer owned generation (10 MW or less, at a voltage no greater than 25 kV) refers to electricity production that is created by the customer using renewable energy (e.g. wind or solar) or non-renewable energy (e.g. fossil fuels). This generation must meet applicable provincial, federal, and municipal licenses, permits, and approvals. If a generator produces less than 200 kW, we will purchase excess energy at the standard residential run-off rate. For generators producing 200 kW or greater, we will negotiate a Power Purchase Agreement (PPA) with the generator based on hours of operation, type, reliability, etc.
- 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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- We will find you up to 3 installers in your area to provide free, no-obligation quotes.
- See their consumer reviews and compare cashback deals - up to $500.
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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.