On-Farm Solar Energy Is More Affordable Than Ever With Incentives and Rebates

Canadian farmers have had their eye on renewable energy solutions for decades, but steep upfront costs and long payback periods kept many on the sidelines. But the economics of solar have changed, and now, it’s more attainable than ever.

With various incentives and rebates, the payback for solar has now been reduced to 5-6 years or even less when installing a DIY option, like the NOREASTER.

In a previous post, we dove into the Clean Technology Investment Tax Credit (ITC), which is a refundable tax credit on capital costs of clean energy projects. Accelerated Capital Cost Allowance (ACCA) also allows farm businesses to rapidly depreciate solar energy investments in the first year, reducing taxable income.

But did you know you can stack the Clean Technology ITC and ACCA with regional and provincial rebates and grants to save further on your solar energy system? Here are some renewable energy financial incentives available to eastern Canadian farmers at a provincial level.

New Brunswick Solar and Energy Efficiency Incentives

• Commercial Building Retrofit Program – Delivered by NB Power, offers 25% rebates on energy efficiency upgrade projects. Most New Brunswick farms are eligible for up to $250,000 in cash rebates under this program.

• Sustainable Canadian Agriculture Partnership (Sustainable CAP) – A federal provincial initiative, provides funding for various agricultural programs, including those aimed at environmental sustainability and energy efficiency.

• Atlantic Investment Tax Credit – Provides an additional 10% tax credit for eligible solar projects in Atlantic Canada, applicable to certain businesses, including farms.

Nova Scotia Solar Rebates for Agriculture

• Agriculture Beneficial Management Practices (BMP) Program – Provides support for various beneficial management practices on farms relate to energy efficiency and sustainability, for up to 50% of total project costs (maximum $30,000 per project).

Ontario Solar Funding and Energy Efficiency Programs

• Save on Energy – Retrofit Program – Provides financial incentives for upgrading and transitioning to energy-efficient equipment.

• Ontario Soil and Crop Improvement Association (OSCIA) – Energy Efficiency Improvements Program – Supports farm businesses implementing projects that reduce electrical energy or fossil fuel use on farms through energy efficiency improvements. **Applications are paused at the time of this writing due to high demand, but join the email list for future updates**

Prince Edward Island Solar Grants and Rebate Opportunities

• Solar Electric Rebate Program – Provides for farm buildings to be able to receive $1,250 per kilowatt (kW) DC installed, covering up to 40% of installation costs, with a maximum rebate of $35,000. **Applications are paused at the time of this writing due to high demand, but applicants are encouraged to check back in the future.**

• PEI Agriculture Energy Systems Pilot Program – Covers 50% of eligible expenses, up to a maximum of $75,000 per recipient.

Maximize the Incentives Available to You

Interested in seeing how these financial incentives might help you? Our Savings Calculator shows the potential incentive savings you might be eligible for depending on your province.

Your local Smart Energy Consultant can help you navigate the financial options which may be available to you and your farm business. We also encourage you to contact your accountant to confirm your eligibility for various tax incentives. Generally, stacking financial incentives works best through the following process:

• Apply for provincial rebates first.

• Use federal grants and loans to cover additional costs.

• Claim tax incentives to further reduce overall investment costs.

Looking for expert support to determine the best combination of incentives for your on-farm solar installation? Contact us to get started!