2024 Budget – Key Takeaways for Canadian Solar Installers

Canada Greener Homes Program

Greener Homes Grant (NRCan):

The first tranche of funding ($2.6B) for the Canadian Greener Homes Grant was fully subscribed in early 2024.  Applicants that received their APA numbers are still eligible to complete their retrofits and claim the grant, but the program is closed for new applicants.

Canada Greener Homes Affordability Program (NRCan):

$800 million over five years, starting in 2025-26, to launch a new Canada Greener Homes Affordability Program that will support the direct installation of energy efficiency retrofits for Canadian households with low- to median-incomes. The budget is clear that this additional $800m is for new NRCan grant funding and is to work with the existing Greener Homes Loan program, but it is now clear that there will be no new grant applications possible in 2024.  This information is found on page 79 of the budget.

Greener Homes Loan (CMHC):

The existing 0% interest, 10yr amortization loan of up to $40,000 is still in place with no change to the application process including pre- and post-audits.  Charge Solar believes that, at the current usage rate, there is sufficient remaining funds for new loan applications through to at least the end of 2024.  We will update our customers as we learn more.  Loan website here.

Investment Tax Credits

Clean Technology ITC:

The Clean Technology ITC provides a 20-30% refundable tax credit for Canadian businesses to invest in clean technologies such as solar and battery storage.  While the eligibility window started in March 2023, the legislation is still working its way through Parliament as Bill C-59.  The budget indicates on page 182 that “With the support and collaboration of Parliamentarians, the government anticipates Bill C-59 receiving Royal Assent before June 1, 2024.”  Further information on the Clean Technology ITC is available on our most recent webinar here.

Clean Electricity ITC:

The Clean Electricity ITC provides a 10-15% refundable tax credit to certain taxable and non-taxable corporations, including corporations owned by municipalities or Indigenous communities, and pension investment corporations who invest in clean electricity generating assets such as solar and battery storage.  The eligibility period started on budget day (April 16, 2024) for projects that did not begin construction before March 28, 2023.  Enabling legislation for this ITC is expected to be introduced later in 2024.

April 19, 2024
Melanie Dorocicz
Link: https://www.chargesolar.com/info-center/latest/2024-budget-key-takeaways-for-canadian-solar-installers/