Update on Incentives for Solar Energy in BC

The following incentives are currently available in BC:

PST Exemption

  • Systems purchased in BC are exempt from PST.
  • Solar panels are always exempt
  • Other equipment is exempt if purchased at the same time as panels (same invoice) but not batteries

 

Canada Greener Home Loan

  • Interest free loan of up to 40,000 can be deferred for up to 12 month. The Green Homes Grant is no longer available.
  • On grid and off-grid systems qualify.
  • Retro-fits only – does not apply to new construction (needs 6 months occupancy).
  • Requires pre-retrofit and post-retrofit evaluation by Energy Advisor. Up to $600 to offset this cost.
  • To learn more about the program visit:https://www.nrcan.gc.ca/energy-efficiency/homes/canada-greener-homes-grant/23441

 

BC Hydro Rebates for Residential Customers

  • There is a rebate from BC Hydro that provides up to $5,000 for solar and another $5,000 for batteries.
  • These rebates are available for any system installed after June 27th, 2024.
  • When you accept the rebate you agree to a new rate class schedule from BC Hydro that might pay you less for any net power exported. If you are able to provided detailed consumption data (which you can download from your online BC Hydro account) we can analyze if the rebates will save you money in the long term.
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BC Hydro Rebates for Commercial Customers

  • There is a rebate from BC Hydro that provides up to $25,000 for solar and another $25,000 for batteries.

 

Investment Tax Credits

  • The 2023 Budget introduced two new investment tax credits (ITC) that are applicable to the work VREC does.
  • These ITCs are not available to detached residential homeowners (only incorporated commercial / institutional projects)
  • These two ITCs can not be combined – must choose one or the other
  • To get the maximum amount of the credit there are labour requirements:
    • Pay the “prevailing” wage
    • Have an apprenticeship program
    • VREC meets both these requirements
 

1. Investment Tax Credit for Clean Electricity (15%)

  • https://www.budget.canada.ca/2023/report-rapport/chap3-en.html#a6
  • up to 15% (if VREC does the work it always qualifies for the full 15%)
  • applies to PV installations and batteries
  • available for taxable and non-taxable entities (Crown corporations and publicly owned utilities, corporations owned by Indigenous communities, and pension funds)
  • project must start after Budget Day 2023
  • credit won't be available until after Budget 2024

 

2. Clean Technology Tax Credit (30%)

  • up to 30%  (if VREC does the work it always qualifies for the full 30%)
  • applies to PV installations and batteries (CCA Class 43.1 and 43.2)
  • available for taxable Canadian corporations.  Taxable entities are organizations that are required to file taxes (but not necessarily pay taxes).  It includes corporations, co-ops, and stratas.
  • project must start on or after Budget Day 2023
  • credit will be applied when taxes are filed.  If there are no taxes to be paid, or the credit is greater than the taxes owed,a cheque will be issued.
  • applies only to Canadian Corporations

 

Accelerated CCA

  • Photovoltaic systems qualify for accelerated capital cost allowance (CCA) write-offs for your corporate tax. You may be able to reduce your taxable income by the cost of the system over the first two years for this system (or spread it out over a longer period). For businesses with large tax bills this can result in significant savings. Consult with your accountant for more information.