Solar Tax Credits, Incentives and Solar Rebates in Canada
→ See rebates in the United States
Latest Update: December 2018
Continuous reductions in PV system costs and a handful of provincial incentive programs are slowly, but surely, changing Canada's residential electricity landscape. Motivated by environmental as well as financial reasons, more and more Canadians are switching to solar power.
With its generous rates, Ontario's feed-in-tariff program created a solar boom in this province. Currently, the vast majority of installed solar capacity in Canada is located in Ontario. However, Ontario's MicroFIT program is no longer considering applications, so homeowners that install solar panels will now be part of the province's net metering program. In Canada's other provinces and territories interest in solar energy is growing, in part as a result of new incentive programs that are designed to stimulate the demand for solar power.
Unfortunately, Canada does not have a federal tax credit for solar energy. In our opinion, a program modeled on the U.S. Federal Investment Tax Credit can be particularly effective, sending a clear message to Canadian consumers. In Canada, available incentives programs are mostly at the provincial/territorial level with a few local/municipal programs. These financial incentives and regulatory programs can significantly improve the financial feasibility of installing solar panels for your home, cottage or business. For more information on how to pay for your solar panels in Canada, click here.
Click on your province/territory to get details on incentive programs and see if solar power can save you money.
Summary Data for Quebec
| Province/Territory Capital | Quebec City |
| Solar Value Index | $396 |
| Solar Energy Produced | 5426 kWh / year |
| Average retail electricity price (2017 data) | 7.3 cents / kWh |
| Average annual consumption per household (2014 data) | 22692 kWh |
| Levelized Cost of Solar Electricity | 9.95 cents / kWh |
| Reached grid parity? | Not yet |
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.
→ Should I get solar panels in Montreal? Quebec City?
List of Solar PV Incentive Programs in Quebec
Hydro-Quebec Net Metering
This rate option allows eligible self-generators to feed their surplus power into the Hydro-Quebec 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-Quebec's power supply.
Federal Incentive Programs
- 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.
Incentives for Purchasing Zero-emission Vehicles
In order to encourage the adoption of ZEVs by Canadians and Canadian businesses, the Government of Canada launched the Incentives for Zero-Emission Vehicles (iZEV) Program in May 2019. There are many different makes and models of eligible zero-emission vehicles for purchase or lease that provide consumers with iZEV Program incentives of up to $5,000. Businesses can benefit from a tax write-off. There is a limit to how many eligible ZEVs Canadians can purchase or lease under the iZEV Program. Individuals are eligible for one incentive under this Program in a calendar year. Businesses and provincial/territorial and municipal governments operating fleets are eligible for up to 10 incentives under this Program in a calendar year.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.Canada Greener Homes Grant
The Greener Homes initiative offers grants of up to $5,000 to help homeowners make energy efficiency retrofits to their primary residences. To qualify, Canadians must obtain an EnerGuide assessment prior to installing any upgrades. To qualify, homeowners must verify their home meets program eligibility requirements and obtain a pre-retrofit EnerGuide home energy evaluation before completing at least one retrofit that is both eligible and recommended by their energy advisor in their report. The amount a homeowner pays for a Home Energy Assessment is $199. Homeowners who qualify for the Greener Homes program and install at least one eligible Greener Homes retrofit recommended by your energy advisor will be reimbursed $100 following your post-retrofit evaluation. The Canada Greener Homes Grant is retroactive to December 1, 2020, provided homeowners completed their pre-retrofit evaluation on or after April 1, 2020 and their home meets program eligibility requirements. Only qualifying upgrades installed on or after Dec 1, 2020 are eligible for rebates. If your pre-retrofit assessment was conducted before April 1, 2020 your upgrades are not eligible for Greener Homes incentives.
Methodology Notes
- Average monthly electricity consumption data is from the Canadian Electricity Association (2014 data).
- Utility rates for the provinces are based on a study published by Hydro Quebec. Rates in effect in April 2017. Source: Comparison of Electricity Prices in Major North American Cities. Utility rates for the territories are based on residential rate data as reported by Qulliq Energy Corporation (as displayed on 27 September 2016); Northwest Territories Power Corporation (effective 1 October 2017); Yukon Housing Corporation (effective 1 July 2016).
- Annual solar production estimates are based on the analysis performed using our own solar energy calculator, Sunmetrix Discover.
- Default installation cost is estimated to be $3/watt (in Canadian dollars).
- The estimated lifetime of solar panels is 25 years for the purposes of calculating the Levelized Cost of Electricity (LCOE).
- 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 the Yukon, Northwest Territories and Nunavut.