Commercial solar rebates and clean-energy tax incentives.
Ontario businesses can access Save on Energy Solar DER incentives for eligible load-displacement projects, while qualifying businesses across Canada may also access federal clean-economy investment tax credits for solar and fixed-location energy storage.
Prescriptive Save on Energy incentive, subject to program requirements and eligible-cost limits.
Refundable tax credit for qualifying new clean technology property, including solar and fixed-location storage.
Government incentives and tax credits do not simply add together. Assistance can affect the capital-cost basis used to calculate federal ITCs.
Solar DER incentives for load-displacement projects.
The Save on Energy Retrofit program offers prescriptive incentives for eligible solar PV installations serving commercial, industrial and institutional facilities in Ontario.
Systems up to 10 kW-DC
The microgeneration Solar DER incentive is based on DC nameplate capacity and is subject to the Retrofit program's eligibility and cost caps.
Greater than 10 kW-AC up to 1 MW-AC
Larger systems may be eligible, but the available prescriptive incentive is capped at 1 MW-AC. Incentives are also limited to the program's eligible-cost cap.
The business case starts with the facility's actual load.
Save on Energy Solar DER incentives are intended for behind-the-meter load displacement. System size should be matched to the facility's consumption profile so on-site solar generation is used by the business rather than routinely exported for compensation.
Federal clean-economy tax credits can apply outside Ontario too.
These are refundable investment tax credits, not simple point-of-sale rebates. Eligibility depends on the claimant, property, timing, labour requirements and other tax rules.
Solar + fixed-location storage
Eligible property includes equipment used to generate electricity from solar and fixed-location electrical energy storage property. For property available for use through 2033, the regular rate can be up to 30% where applicable labour requirements are elected and met.
- Generally for taxable Canadian corporations and qualifying REIT mutual fund trusts
- New property situated and intended for use exclusively in Canada
- Rate drops to 15% for property available for use in 2034
Clean electricity generation + storage
The Clean Electricity ITC is a refundable credit for qualifying entities investing in eligible clean electricity property, including solar generation and fixed-location storage.
- Generally applies to eligible property acquired from April 16, 2024 and available for use by the end of 2034
- Taxable Canadian corporations may qualify
- Labour requirements can affect the credit rate
Potential accelerated tax depreciation
Qualifying clean-energy equipment can be eligible for Class 43.1 capital cost allowance. This is a tax deduction rather than a rebate and should be reviewed with the business's accountant or tax advisor.
- Solar photovoltaics can qualify where requirements are met
- Class 43.1 generally provides a 30% declining-balance CCA rate
- Enhanced first-year allowances may apply based on timing
Model the net project economics—not just the headline incentive.
Government and non-government assistance may reduce the capital cost used to calculate a federal ITC. The right project model should account for the exact incentive, tax-credit basis, tax treatment and financing structure.
Separate eligible solar, storage, engineering and installation costs from non-eligible costs.
Model the Save on Energy incentive or other applicable funding using current program rules.
Government assistance can affect capital cost for ITC purposes, so tax advice is important.
Review cash flow, CCA, financing, electricity savings and tax credits together.
From utility data to a rebate-ready project.
Review bills, interval data, operating schedule, roof/site conditions and project objectives.
Size the system around facility load, utility requirements and realistic on-site consumption.
Identify Save on Energy eligibility, federal ITC pathways and information needed by tax advisors.
Advance through LDC, engineering, ESA, permits, construction and post-project documentation.
Questions businesses ask before investing.
What is the current Save on Energy solar incentive?
How much of the project cost can Save on Energy cover?
Can the project use net metering and still receive the Solar DER incentive?
What is the federal Clean Technology ITC?
Can a business claim both the Clean Technology ITC and Clean Electricity ITC?
Do Save on Energy incentives affect the federal ITC?
Find the incentive path that fits your facility and business structure.
Smarter Power can review your utility profile, system size, Ontario incentive pathway and federal clean-energy tax-credit considerations.
Program and tax information is for general planning only. Final eligibility, incentive amounts and tax treatment are determined by the applicable program, utility, tax authority and the business's professional advisors.