Benefits of Solar

- Solar PPA’s allow tenants the power to better manage rising energy costs. As electricity rates have risen 7% per year on average over the past 10 years.
- Financial benefit to Solar PV system owner through a long-term revenue stream. From the free cash generated throughout the life of the project.
- Investment Tax Credit & Accelerated depreciation benefit on the capital costs of the Project. 30% ITC and 100% first-year enhanced CCA allowance.
- The Solar PV system can prolong a building’s roof life. By shading the rooftop and covering the membrane’s direct exposure to sunlight.
- Can allow both PV System owner and Electricity user to achieve corporate Sustainability Goals. Through the investment and purchase of renewable energy within their operation.
- Clean Energy Credit Value to Project Owner. Currently being implemented by the Ontario Government, which will provide additional economic benefit to the project.

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Government Incentives

In order to encourage investment into Renewable Energy generation, the government has two main tax incentives that apply to Solar PV:

1. 30% Investment Tax Credit (ITC)

Announced to take effect in 2023, Investment Tax Credit is modeled after current ITC in the US.
Targeting renewable energy generation and storage, including Solar PV, Wind, Battery Storage and EV Charging.

2. 100% Accelerated Depreciation

Class 43.1 & 43.2 Accelerated Capital Cost Allowances provides financial benefit by deferring taxation.
The enhanced allowance provides a 100 percent deduction, with a phase out for property that becomes available for use after 2023.
After 2023, the First-year Enhanced Allowance reduces to 75%.