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Solar Tax Credits, Incentives and Solar Rebates in Northwest Territories
Latest Update:by Simone Garneau
|Solar Value Index||$1,563|
|Solar Energy Produced||5,111 kWh / year|
|Average retail electricity price (2016 data)||30.58 cents / kWh|
|Average annual consumption per household (2014 data)||10,560 kWh|
|Installed solar PV capacity (2014 data)||0.3 MW|
|Levelized Cost||15.07 cents / kWh|
|Reached grid parity?||Yes|
|Solar Installer||City||Sunmetrix Solar Score||Sunmetrix Cashback|
Residents of the Northwest Territories may face a considerable amount of darkness in the winter months, but the long days of summer mean that solar energy can still be a useful source of power, one that reduces the dependency on diesel engines. Not only is diesel expensive, but it also pollutes. Solar power provides an alternative and environmentally-friendly source of power during the summer months. With new incentives promoting clean energy, the Northwest Territories has seen a surge in the number of solar PV systems.
At 30.58 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 10,560 kWh per year, below the national average of 13,300 kWh.
Northwest Territories 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.
- The Alternatives Energy Technology Program (AETP)
The program assists NWT residents and businesses to integrate commercially available, clean energy technologies into their operations. The fund is intended to reduce fuel use, and lower the cost of operations. The Residential Renewable Energy Fund (RREF) is available to assist NWT residents to integrate commercially available, clean energy technologies on their property, building or other assets for the purpose of reducing fuel usage. RREF provides funding of up to one-third of the cost of qualified renewable energy systems. The maximum amount available to any recipient is $5,000 per year. The Business Renewable Energy Fund (BREF) is available to assist NWT commercial businesses including off-grid lodges and camps to integrate commercially available, clean energy technologies into their operations. The fund is intended to reduce fuel use and lower the cost of operations in remote locations where fuel prices and carbon footprints are high. BREF provides funding of up to one-third of the cost of qualified renewable energy systems. The maximum amount available per applicant is $15,000 per year. The Community Renewable Energy Program (CREP) provides funding to community and Aboriginal governments, GNWT departments, boards and agencies, and non-profit organizations. Funding is available to assist community-based installations of alternative energy systems or the conversion of an existing conventional energy system to alternative energy technology. Renewable energy projects may receive funding of up to one-half (50%) of the project cost, up to $21,000 per year.
- Net Metering
Northland Utilities and Northwest Territories Power Corporation both offer Net Metering to their customers. Net Metering allows customers to accumulate energy credits monthly for any excess electricity they produce to be used against those months when their usage exceeds their production. Customers in Net Metering receive a credit in kilowatt hours equal to the excess energy, calculated at the full retail rate. If in the event there are any credits left at the end of the Net Metering cycle on March 31, they will be reset to zero.
- 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.