BC's standout incentive is its 7% PST exemption on solar equipment, layered on top of the federal Clean Technology ITC and a utility export landscape that shifted significantly in 2026.
British Columbia is the only province in Canada that exempts solar equipment from its provincial sales tax. Solar panels are always exempt; other related equipment, such as wiring, inverters, and mounting hardware, is exempt when purchased on the same invoice as the panels. This is an automatic point-of-sale exemption, not a rebate you apply for separately, and it applies to both residential and commercial purchasers.
Standalone battery storage purchased separately from a solar system does not automatically carry the same PST exemption that panels do. If you're bundling storage with a new solar installation, confirm with your installer and the province's current bulletin how the exemption applies to your specific invoice structure.
Source: Province of British Columbia, PST Exemptions and Documentation Requirements
The figures below model a representative 50 kW commercial solar system using per-kW installed costs, production, and CCA treatment consistent with the real commercial proposals and cash-flow proformas we build for clients. This is an illustrative example, not a quote, actual cost, production, and savings depend on your specific roof, electrical service, and utility rate.
| Line Item | Amount |
|---|---|
| Gross System Cost (50 kW × ~$1,850/kW) | $92,500 |
| BC PST Exemption (7%) | -$6,475 |
| Federal Clean Technology ITC (30%, refundable) | -$25,808 |
| Year 1 Accelerated CCA Deduction (illustrative, ~55% first-year rate × 25% combined tax rate) | -$11,828 |
| Net Effective Year 1 Cost | $48,389 |
| Estimated Annual Production | 55,000 kWh |
| Estimated Year 1 Utility Savings | $6,600 |
| Estimated Payback Period | ~6.6 years |
| Estimated 25-Year Lifetime Savings | $257,069 |
Modeled at $1,850/kW installed cost, 1,100 kWh/kW annual production, a 25% combined illustrative tax rate, and 3.5% annual utility rate escalation. Not a quote or tax advice, consult your accountant and request a site-specific proposal.
This chart shows the running total of cumulative savings minus the net effective system cost, illustrating when the system crosses from net cost (navy) into net positive savings (orange).
Effective July 1, 2026, BC Hydro closed its legacy net metering rate (Rate Schedule 1289) to new applicants. New commercial self-generation customers are placed on Rate Schedule 2289, which pays a flat 10¢ per kWh for electricity exported to the grid, settled each billing cycle rather than banked as credits into the following winter. Systems already on the old net metering rate keep it for 10 years from their original service start date before transitioning automatically. Export is capped at 100 kW per phase.
Source: BC Hydro, Self-Generation
Businesses in FortisBC's electric service territory, which includes parts of the Southern Interior around Kelowna, operate under a separate net metering program capped at 50 kW, crediting exported energy at the same rate FortisBC pays other power producers, banked and settled annually rather than every billing cycle. Because FortisBC and BC Hydro run different programs, which utility serves your address materially changes how a system should be sized.
Source: FortisBC, Net Metering Program
The 30% Clean Technology Investment Tax Credit and CCA Class 43.1/43.2 accelerated depreciation covered on our national incentives page apply in BC exactly as they do anywhere else in Canada, and stack with the provincial PST exemption since they operate through entirely different mechanisms. See the CRA's Clean Technology ITC page and the guide to claiming Capital Cost Allowance for full program details.
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