Is There a 30% Tax Credit for Solar Panels in Canada?
Canada’s Clean Technology Investment Tax Credit (CT ITC) provides a refundable 30% tax credit for eligible clean energy systems, including solar panels and battery storage. Available to homeowners, businesses, and other qualifying entities, the credit makes it more affordable to adopt solar technology. In this guide, we’ll explore how the program works, who qualifies, what equipment is covered, and how to claim your tax credit.
What Is the Clean Technology Investment Tax Credit (CT ITC)?
An initiative designed by the federal government, the Clean Technology Investment Tax Credit, also known as the CT ITC, is an incentive to accelerate the adoption of clean energy technologies across Canada.
Announced as part of the government’s efforts to reduce national greenhouse gas emissions, this refundable tax credit covers 30% of eligible investments in qualifying equipment, including solar panels, battery storage, and other low-emission technologies.
Unlike traditional tax deductions, the CT ITC directly reduces your tax bill or results in a refund, making it particularly appealing to homeowners, small businesses, and organizations looking to lower upfront costs. The credit supports environmental goals and economic growth in the clean energy sector, aiming to create jobs and modernize Canada's energy infrastructure.
To qualify for the 30% rate, the purchased equipment must meet specific criteria related to performance, installation, and use. The credit is expected to remain in place until at least 2034, providing long-term support for Canadians making the shift toward more sustainable power sources.
For individuals considering adding solar power to their property, either as a backup solution or for off-grid living, the CT ITC can significantly reduce initial investment costs. Solutions like EcoFlow Solar Panels allow you to take advantage of this incentive while gaining reliable, renewable power.
Who Is Eligible for the Clean Technology Investment Tax Credit?
Eligibility for the Clean Technology Investment Tax Credit extends to a wide range of Canadians and organizations committed to adopting clean energy solutions. To qualify, you must be a taxpayer in Canada who has made a qualifying investment in eligible clean technology equipment after March 28, 2023.
The credit is available to individuals, corporations, and certain partnerships. This includes homeowners investing in residential solar systems, small businesses modernizing their energy infrastructure, and even non-profits or Indigenous-owned entities that meet the federal criteria. The credit is fully refundable, meaning that even if your tax liability is low or zero, you can still receive the benefit as a direct payment.
If you want to remain eligible for the full 30% rate, your projects must also comply with Canadian labour standards, including fair wages and apprenticeship requirements where applicable. Failing to meet these standards may reduce the credit to 20%.
The equipment must be new, unused, and must meet performance standards for efficiency and installation. The installation must occur in Canada and be directly connected to a qualifying clean technology use, such as generating electricity from solar power or reducing dependency on fossil fuels.
If you're investing in rooftop solar to power your home or cabin, rigid panel systems like the EcoFlow 100W Rigid Solar Panel can be used as part of an eligible setup. With proper documentation and compliance, your purchase could qualify for this refundable tax credit, helping you save while supporting a cleaner energy future.
Also, consider pairing your system with smart gadgets like the EcoFlow WAVE 3 Portable Air Conditioner to keep cool in the heat and the EcoFlow Glacier Portable Refrigerator for ice-cold drinks on the go. With these products handy, you’ll be set for emergencies, as well as van adventures and camping trips.
What’s Covered by the 30% Tax Credit?
The Clean Technology Investment Tax Credit covers a variety of equipment designed to reduce greenhouse gas emissions and transition Canada toward clean energy. To be eligible, the equipment must be new, installed in Canada, and meet the technical performance standards outlined by the federal government.
Qualifying equipment includes:
Solar Photovoltaic (PV) Panels – These panels capture sunlight and convert it into electricity. They're the foundation of most solar energy systems, offering clean, renewable power. The EcoFlow 175W Rigid Solar Panel is a strong example, ideal for rooftop and off-grid installations due to its efficiency and durability.
Inverters – These devices convert the direct current (DC) produced by solar panels into alternating current (AC), which is required by nearly all household appliances. Without an inverter, the electricity from solar panels wouldn’t be usable in standard home systems.
Battery Storage Systems – Battery units store excess solar energy for later use, such as at night or during outages. They improve energy reliability and help maximize self-consumption of solar power, reducing reliance on the grid. EcoFlow Portable Power Stations offer excellent energy storage and efficient charging for a wide range of devices and appliances, making them a versatile addition to your solar setup.
Mounting Hardware – Secure racks and frames ensure solar panels are safely installed on rooftops or ground-based setups. Proper mounting is essential for performance, safety, and durability, especially in areas with high winds or snow loads.
Wiring and Cabling – These connect all parts of the solar system, transmitting electricity between panels, inverters, batteries, and the home’s power supply. Eligible wiring must meet Canadian safety and installation codes.
Control Equipment – Monitoring devices and smart energy controllers enhance system visibility, helping homeowners track production, usage, and efficiency.
Each of these components plays a role in a functioning solar energy system, and when bundled together, they can offer both practical and financial returns. The tax credit helps ease the upfront investment and shortens the solar payback period, making solar adoption more accessible across Canada.
How to Claim the 30% Tax Credit
Claiming the CT ITC is straightforward but requires attention to detail and proper documentation.
Here are the steps you need to take:
Purchase and install eligible clean technology equipment in Canada after March 28, 2023.
Keep detailed records, including receipts, product specs, and proof of installation.
Ensure all labor standards are met if applicable, including fair wages and apprenticeships.
Claim the credit on your federal income tax return using the appropriate CRA form.
Retain documentation in case the CRA requests verification during a review or audit.
Frequently Asked Questions
Are Homeowners Eligible for the 30% Tax Credit?
Yes. Homeowners can claim the 30% Clean Technology Investment Tax Credit if they purchase and install qualifying clean energy equipment in Canada after March 28, 2023. The credit is refundable, allowing you to receive it even with little or no tax owed.
Are Solar Panels Eligible for the CT ITC?
Absolutely. Solar photovoltaic (PV) panels are covered under the CT ITC, provided they are new, meet federal performance criteria, and are installed in Canada. This includes rooftop systems for homes, cabins, and off-grid setups that reduce greenhouse gas emissions through clean power generation.
Do You Need to Apply for the Clean Tech ITC?
No separate application is needed. You claim the CT ITC through your federal income tax return. Keep all purchase and installation documentation, as the Canada Revenue Agency may require proof that your equipment and project meet eligibility and technical standards.
Final Thoughts
Canada’s Clean Technology Investment Tax Credit provides meaningful financial support to individuals and organizations ready to adopt solar energy and reduce their environmental footprint. With a refundable 30% credit and broad eligibility, it’s a practical way to make clean energy more affordable.
Whether you’re outfitting a remote cabin or upgrading your home’s power setup, solutions like the EcoFlow 175W Rigid Solar Panel offer a dependable path toward sustainability and energy independence.