The Canada Investment Tax Credit for Solar & Battery Storage

What the ITC Actually Covers

Does the ITC Apply the Same Way in Every Province?

The Clean Technology Investment Tax Credit (CT ITC) is a refundable federal tax credit worth up to 30% of the capital cost of eligible clean technology property, including commercial solar photovoltaic equipment and battery energy storage systems. It applies to property acquired and available for use between March 28, 2023 and December 31, 2033, with the rate stepping down to 15% for 2034 before the credit is scheduled to end.

Because it's refundable, the ITC pays out its full value even if your business doesn't owe enough federal tax to absorb it as a deduction, unlike a non-refundable credit, which is only useful up to the amount of tax you owe.

Who Qualifies

• Taxable Canadian corporations that own the equipment outright
• The equipment must be new (not previously used by anyone else)
• The asset must be located in and used exclusively in Canada
• Solar PV panels, mounting equipment, inverters, and battery storage systems generally qualify
• Sole proprietorships and individuals generally do not qualify, this credit is built for incorporated businesses, including agricultural operations and corporate property owners

💰 30% ITC, Illustrated on a 50 kW System

How the ITC Stacks With CCA Depreciation

The ITC doesn't replace depreciation, it reduces the capital cost base, and the remaining balance can still be written off under CCA Class 43.1 or 43.2, which offer an enhanced first-year deduction for clean energy equipment. Combined, the two mechanisms typically bring the total Year 1 incentive value on a commercial system to somewhere in the 40–45% range of gross cost. See our full national incentives page for the CCA schedule breakdown.

Yes. The Clean Technology ITC is a federal program administered by the Canada Revenue Agency, so it applies identically whether your facility is in Calgary, Edmonton, Vancouver, or Kelowna. Provincial programs like Alberta's CEIP financing or BC's PST exemption stack on top of it, but don't change how the ITC itself is calculated. See our Alberta incentives and BC incentives pages for the province-specific programs layered on top.

How to Claim It

The ITC is claimed on your corporation's federal tax return (Schedule 31 and related clean economy ITC forms) for the tax year the property becomes available for use. Documentation of the equipment's cost, in-service date, and eligibility under Class 43.1/43.2 is required. This is a filing that should go through your accountant or tax preparer, we can provide the equipment cost and in-service documentation needed to support the claim, but we don't file taxes on your behalf.

Frequently Asked Questions