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Solar Tax Credits, Incentives and Solar Rebates in Quebec
Latest Update:by Simone Garneau
|Province/Territory Capital||Quebec City|
|Solar Value Index||$390|
|Solar Energy Produced||5,426 kWh / year|
|Average retail electricity price (2016 data)||7.19 cents / kWh|
|Average annual consumption per household (2014 data)||22,692 kWh|
|Installed solar PV capacity (2014 data)||0.4 MW|
|Levelized Cost||11.61 cents / kWh|
|Reached grid parity?||Not yet|
|Solar Installer||City||Sunmetrix Solar Score||Sunmetrix Cashback|
With the lowest retail electricity prices in the country, due to abundant hydro-electricity in the province, Quebeckers don't generally think of solar electricity as a good option. And up until recently, there were not really any financial programs to make solar panels more affordable. A new 20% tax credit offered by Revenu Quebec changes the picture, bringing down the cost significantly. However, it's still a close call determining whether there are savings to be had, as Quebec still enjoys relatively cheap electricity.
At 7.19 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 22,692 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.
- Heating with Green Power
Financial assistance is available to you under the Heating with Green Power program for the replacement of fossil-fueled home heating systems and fossil-fueled water heater systems with systems that use electricity or other renewable sources of energy, including solar energy.
- RenoVert Tax Credit
This refundable tax credit has been introduced on a temporary basis to encourage individuals to invest in recognized eco-friendly home renovation work that has a positive environmental impact or improves their dwelling's energy efficiency. The amount of the tax credit you can claim in respect of an eligible dwelling corresponds to 20% of the portion of your eligible expenses paid after March 17, 2016, and before October 1, 2017, that exceeds $2,500, up to a maximum tax credit of $10,000. Installation of photovoltaic solar panels must comply with the CAN/CSA-C61215-08 standard.
- Hydro-Quebec Net Metering
This rate option allows eligible self-generators to feed their surplus power into the Hydro-Québec grid in exchange for credits in kilowatt-hours. These credits are applied to the self-generator's electricity bill. Inversely, if customers do not generate enough power for their needs, they can draw electricity from the grid and benefit from the reliability of Hydro-Québec's power supply.
- 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.