Current Incentives for Solar Energy in BC

Incentives as of March 2026

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

 

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 (the battery rebate is changing April 1st).
  • These rebates are available for any system installed after June 27th, 2024.


BC Hydro Rebates for Commercial Customers

  • There is a rebate from BC Hydro that provides up to $10,000 for solar and another $10,000 for batteries.
  • Larger rebates (up to 80%) are also available for both batteries and solar on larger load displacement projects.


Investment Tax Credits

  • The 2023 Federaal 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.