Clear answer, explained.
The federal Clean Technology Investment Tax Credit is a refundable tax credit of up to 30% applied to eligible solar, battery storage, and electrification capital costs. Refundable means the credit is returned as a tax refund even if the business has limited taxable income in the claim year — making it accessible to a broad range of commercial and industrial businesses.
The Ontario Save on Energy Solar Load Displacement Program provides incentives up to $860,000 for qualifying solar projects that support reduction in baseline energy consumption. This is a provincial program administered through the IESO and local distribution companies. Program funding envelopes and eligibility criteria change — confirming current availability is part of every project scoping conversation.
The Enhanced First Year Capital Cost Allowance allows businesses to deduct 100% of eligible clean energy capital costs in the first year of ownership — improving early-year cash flow from the investment. All three programs are identified and built into the project financial model as part of the assessment process. For combined solar and battery storage projects, both systems can qualify for the applicable federal programs independently.
What this means in practice.
- Federal Clean Technology Investment Tax Credit: up to 30% refundable credit on eligible solar capital costs
- Refundable means the credit returns as a tax refund regardless of taxable income in the claim year
- Ontario Save on Energy Solar Load Displacement Program: incentives up to $860K for qualifying solar projects
- Enhanced First Year Capital Cost Allowance: 100% CCA accelerated depreciation on eligible clean energy investments in year one
- All three programs can be stacked on the same project subject to each program's stacking rules
- All applicable programs are identified and built into the project financial model as part of the assessment process
Best-fit environments.
- You are building a commercial solar financial model and need to identify all applicable incentive programs
- Your CFO wants to understand the net capital cost after incentives before approving the project
- You are outside Ontario and want to confirm which federal programs apply to your province
- You are considering a combined solar and storage project and want to confirm both systems qualify for incentives
