Clean Technology Investment Tax Credit

All Range Road Solar installations are performed by licensed electricians. We maintain the documentation required to support the full 30% ITC rate for qualifying projects.

The Clean Technology Investment Tax Credit (ITC) is a federal tax credit introduced in Canada's 2023 budget and expanded in subsequent fiscal years. It provides a 30% refundable tax credit on the capital cost of eligible clean energy equipment, including solar photovoltaic systems. The credit is claimed on the corporate or farm income tax return for the year the equipment is placed in service.

The ITC is available to Canadian-controlled private corporations (CCPCs), partnerships, and certain trusts. Farm operations structured as corporations or partnerships are eligible. Sole proprietors filing personal income tax may have access to a related credit — we recommend confirming eligibility with your accountant based on your specific business structure.

Eligible equipment includes solar photovoltaic panels, inverters, racking systems, and related electrical components that form part of a grid-tied or off-grid solar generation system. Battery storage systems that are co-located with eligible solar generation may also qualify. The equipment must be new (not used) and placed in service in Canada.

The credit is calculated as 30% of the capital cost of eligible equipment. For example, a $100,000 solar system would generate a $30,000 tax credit. The credit is refundable, meaning it is paid out even if the corporation has no tax owing in that year. It reduces the adjusted cost base of the equipment for CCA purposes.

Yes. To receive the full 30% credit, the installation must meet prevailing wage and apprenticeship requirements as defined in the legislation. Projects that do not meet these requirements receive a reduced credit rate of 20%. We use licensed electricians on all installations and can provide documentation of labour compliance for your accountant.

The ITC can significantly compress the payback period for eligible businesses and farm operations. A $100,000 system with a $30,000 tax credit has an effective net cost of $70,000. Combined with annual electricity savings, most rural Alberta solar systems fall in the 8–10 year payback range without incentives — with the ITC, some projects achieve payback as low as 5–7 years.

Yes. CEIP property tax financing and the federal ITC are separate programs and can be used together. CEIP covers the upfront cost through property tax repayment; the ITC reduces the effective cost of the system through a tax credit. The combination can make a large farm or acreage solar system financially straightforward even without significant upfront capital.