The 2023 Federal Budget has brought about a new era for Canadian renewables, and Charge Solar is excited to be a part of this progress. As Canada’s leading solar, battery storage, and EV charging distributor, Charge Solar believes that the new investment tax credits will be a significant boost for the solar and storage industry. The following incentives are included in the 2023 Canadian Federal Budget:
Clean Technology Investment Tax Credit
Initially announced during the Fall 2022 Economic Update, the Clean Technology Investment Tax Credit is a refundable 30% tax credit on the capital cost of investments made by taxable entities in wind, solar PV, and energy-storage technologies. This credit will be available for all project spending from March 28, 2023, to 2034 when it is scheduled to reduce below the initial 30% credit. The investment tax credit will encourage more businesses to invest in renewable energy, resulting in faster deployment of solar, wind, and storage projects across the country.
Clean Electricity Investment Tax Credit
Introduced during the March 28th, 2023, Budget Announcement, the new Clean Electricity Investment Tax Credit is a refundable 15% tax credit on the capital costs of investments made by non-taxable entities, such as Indigenous communities, municipally owned utilities, and Crown corporations. This credit is available for investments in renewable energy, energy storage, and inter-provincial transmission and other non-emitting electricity infrastructure. This initiative will help create jobs and drive economic growth, while promoting the use of clean energy.
Net-zero Transmission Project Support
The federal government has also announced an upcoming consultation on the best means to support intra-provincial transmission that support Canada’s net-zero grid objectives. This support will be a significant boost for solar and storage projects, as it will facilitate the development of a more robust and reliable grid infrastructure to support these technologies.
Canadian Infrastructure Bank
The 2023 Budget includes $20 billion in support for Clean Electricity investments, including at least $10 billion through the Clean Power priority area and at least $10 billion through the Green Infrastructure priority area. This funding will be managed by the Canadian Infrastructure Bank, creating new opportunities for renewable energy investment across the country.
Recapitalization of SREPs
The Smart Renewables and Electrification Pathways (SREPs) program will receive a total of $3 billion to support regional priorities and Indigenous-led projects. This funding will enable more solar and storage projects to be deployed in remote and underserved communities, creating new economic opportunities and contributing to Canada’s transition to a low-carbon economy.
Charge Solar’s Perspective
Solar is already an economically feasible investment in Canada; however, the introduction of the ITC’s was a necessary step to accelerate Canada’s clean energy transition towards a net-zero electricity grid in 2035 and net-zero greenhouse gas emissions by 2050. In addition, the tax credits will drive economic growth and job creation across the country.
The new investment tax credits are an excellent opportunity for businesses to invest in renewable energy. Charge Solar is committed to helping solar installers take full advantage of these incentives, providing the necessary equipment, engineering and marketing services to facilitate the development of solar and storage projects across Canada.