Government tax credits & solar incentives in Ontario.
Explore support for commercial solar, starting with the federal government tax credit. Compare the equipment deduction and Ontario incentive, then check the rules for your property.
Commercial solar is our focus. We also help homeowners explore solar and battery storage.
Government tax credits & incentives for commercial solar
Ontario businesses can explore a refundable federal tax credit, an equipment tax deduction and a solar program incentive. Ownership, eligible costs and project timing determine what applies.
Government tax credit
Clean Technology Investment Tax Credit
Up to 30%refundable credit
Eligible new commercial solar equipment may qualify for a refundable federal government tax credit. Claimants must be taxable Canadian corporations or qualifying REITs, including eligible partnership allocations. This is not a general homeowner credit.
The regular rate is 30% for eligible property acquired and available for use from March 28, 2023 through 2033, then 15% in 2034. Electing into and meeting the applicable labour requirements matters: without the election, those rates fall to 20% and 5%. Equipment, timing and eligible-cost rules also apply. Qualifying stationary storage can also be eligible; a battery is an optional addition, not a requirement for a commercial solar project.
Eligible commercial solar equipment in Class 43.1, acquired on or after January 1, 2025 and available for use before 2030, may qualify for a full first-year deduction. This reduces taxable income; it is separate from the government tax credit.
The enhanced first-year allowance for qualifying Class 43.1 equipment phases out after 2029. Class 43.2 applies to eligible property acquired before 2025. Your accountant confirms the class, eligible cost and restrictions, including how other assistance affects the calculation. A 100% deduction does not mean a 100% refund of your purchase.
The small-to-medium category covers systems above 10 kW-AC, with incentive capacity capped at 1 MW-AC. Microgeneration up to 10 kW-DC receives $1,000/kW-DC. Both are capped at 50% of eligible project costs.
Apply before a binding commitment. Submit the application and accept the participant agreement before a purchase order or installation contract. Utility connection approval is separate.
Project conditions and official sources
Eligible rooftop and parking-canopy systems must supply the facility's own needs. Receiving this incentive prevents net metering or compensation for exported electricity for the system's life. Starting before program pre-approval carries a risk of reduced or refused funding.
What is the difference between a credit, deduction and rebate?
A credit can produce a tax refund. A deduction lowers taxable income. A program incentive pays for an approved project. Assistance can reduce the cost used to calculate the federal credit. Compare the combined treatment with your accountant.
Eligible new rooftop solar receives $1,000/kW-DC; storage installed with new solar receives $300/kWh. Each rebate is capped at $5,000 and 50% of its eligible costs, excluding HST. An energy assessment is not required for this stream.
Get written program pre-approval and local utility approval before buying or installing equipment.
Homeowner eligibility and program rules
The home must be owned by the applicant, have an eligible residential electricity account on Ontario’s grid, and have no existing solar or storage system. Cornwall Electric customers are excluded. Housing type and equipment conditions also apply.
Exported renewable electricity earns credits toward future electricity consumption charges. Credits carry forward for up to 12 months and do not offset every bill charge. Your utility confirms connection requirements.
Municipal loans are financing, not rebates. They are available only for eligible properties in the municipality or region running the program, and repayment is generally added to the property tax bill. Check the full borrowing cost and any lender-consent or energy-evaluation requirements before applying.
City of Toronto: The Home Energy Loan Program (HELP) ↗ lists rooftop solar and battery storage as eligible improvements. The City has a separate process for solar-only projects; its current rates and terms are published on that page.
Durham Region: The Durham Greener Homes Loan ↗ lists solar panels and batteries. It requires program approval and pre- and post-retrofit EnerGuide evaluations. Its current page says the loan is unavailable for properties in Pickering.
Neither loan is a Canadian Clean Energy offer or a guaranteed approval. Compare any loan with the solar rebate rules before you commit.
The address, electricity distributor, system size and funding route determine which forms apply. We can help identify and coordinate the steps after discussing your property; these official pages let you see the requirements yourself.
Local approvals and applications
Is the property in the City of Toronto?
Toronto generally requires a building permit for rooftop or wall-mounted solar panels covering more than 5 m². The City’s solar collector guide lists the current application, drawings and professional design documents. Ground-mounted projects follow different zoning rules. Outside Toronto, check the property municipality’s own permit requirements; Toronto forms do not apply. For example, Mississauga, Brampton and Markham publish different solar permit guidance. City solar permit guide ↗
Toronto commercial and other building owners can review the City's Energy Retrofit Loan; that program requires a broader feasibility study and City review. Neither City loan applies automatically outside Toronto.
Which electricity distributor serves the address?
Connection and net-metering forms come from the property's distributor, not from a single GTA-wide office. Use the Ontario Energy Board service-area map or the name on the electricity bill to identify it.
For Toronto Hydro, review its generation and storage connection process. It points to a micro-embedded application for systems up to 12 kW and a connection impact assessment for larger projects. Other area distributors publish their own requirements: Alectra, Elexicon, Hydro One and Burlington Hydro. The distributor confirms the correct form and connection route for the actual project.
If another company will own or finance a net-metered system, additional consumer disclosure or power-purchase documents may apply. Review the OEB third-party net-metering forms with the distributor before signing.
Applying for an Ontario solar incentive?
For the business Retrofit program, Save on Energy lists the current participant agreement and mandatory solar PV worksheet on its application documents page. Apply through the program portal before a binding project commitment.
For a home, the Home Renovation Savings solar page explains eligibility and links to a homeowner enquiry form. The contractor submits the pre-installation application; written program and utility pre-approval must arrive before equipment is bought or installed. That rebate route cannot also use net metering for the same system.
What about electrical inspection?
Ontario electrical work generally needs an Electrical Safety Authority notification before work begins. A licensed electrical contractor performing the work files it and arranges inspection; the customer should request the resulting certificate for their records. ESA notification and inspection guidance ↗
Larger solar or storage installations, and some other electrical configurations, also need ESA plan review before electrical work starts. ESA lists a greater-than-12 kW Section 64 output threshold effective July 6, 2026; the electrical designer confirms the project-specific triggers.
CRA forms for qualifying businesses
These schedules are for corporate tax claims, not solar permits or homeowner rebates. Use the version for the relevant tax year with your accountant; trust and partnership filings differ.
Bring recent electricity bills, property and roof/ownership details, equipment specifications, an itemized quote and planned installation dates. Identify the local distributor, any landlord or roof-owner approval, and whether the design will export power or provide backup. Keep invoices and evidence of eligible costs and labour compliance for the tax claim. Your accountant files the required schedules with the corporate return. CRA filing instructions ↗
For Retrofit, start with the local utility and submit the solar worksheet through the program portal before committing. Completion documents and an incentive invoice follow installation. Retrofit application process ↗
How does a homeowner apply?
The contractor submits the program application. Prepare the utility details, equipment models and capacities, itemized quote and signed participant agreement. Following installation, the contractor provides paid invoices, equipment photos, electrical inspection documents and utility connection authorization. Official application and checklists ↗
Can I write off solar on my personal home?
Personal home use does not automatically create a business deduction. The Clean Technology ITC is limited to qualifying corporations and REITs. Rental, business or electricity-sale arrangements can have different tax treatment; have your accountant review ownership and use. CRA claimant rules ↗
Who operates the sites linked here?
CRA and Natural Resources Canada publish federal information. The Ontario Energy Board publishes regulatory guidance. Save on Energy is the IESO’s program brand. Home Renovation Savings is a program website jointly operated by the IESO and Enbridge Gas, with Ontario government support.
You can cross-check the homeowner program through Enbridge’s own website, the program’s operator notice and Ontario’s announcement. Current stream requirements determine the applicable rebate. Canadian Clean Energy is an independent business; these links do not imply government or program endorsement.
Are the federal Greener Homes grant and loan available?
This guide is general information, not tax or legal advice or a guarantee of eligibility. Our assessment starts a property conversation; it does not submit a rebate or tax claim. Confirm current requirements and forms with the official administrator before applying or committing.
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