Four things can cut the real cost of solar and batteries for an Ontario business: a federal tax credit of up to 30%, the Save on Energy solar incentive, fast depreciation, and the way your hydro bill is structured. Here's what each one pays, who qualifies, and the order that matters, in plain language.
Up to 30% of the capital cost, refundable
Proposed, not law yet: the federal budget tabled November 5, 2026 proposes extending the Clean Technology tax credit to the end of 2040, with the step-down to 15% moved to 2040. We'll update this page when the legislation is out.
Paid on rooftop solar that runs as load displacement
| System size | Incentive |
|---|---|
| Up to 10 kW DC (up to 12 kW DC for applications from November 30, 2026) | $1,000 per kW DC |
| Over 10 kW AC (over 12 kW AC from November 30, 2026), up to 1 MW AC | $770 per kW AC |
Example: a 100 kW AC rooftop system works out to 100 × $770 = $77,000, as long as that is no more than half of the eligible project cost.
For a profitable business, this can be worth as much as the tax credit
Solar generating equipment and qualifying electrical energy storage go in Class 43.1: 30% a year on a declining balance, much faster than a building.
The 50% class only applies to equipment acquired before 2025, so new projects fall under Class 43.1 and the first-year rules below.
CRA's accelerated investment incentive lists an enhanced first-year allowance for Class 43.1 of 55% for equipment available for use in 2026 and 2027. Federal budgets since 2025 have also introduced a 100% first-year write-off for clean energy equipment (described as available through 2029, phasing out 2030 to 2033), and a broader permanent immediate expensing measure was proposed on September 15, 2026.
Depending on when the system is bought and in service, a profitable business may be able to write off most or all of it in year one. Some of these measures are still proposals. Your accountant confirms which rule applies; we build that into the cash flow.
Government assistance, such as the Save on Energy incentive, generally reduces the cost that the tax credit and the depreciation are calculated on. We build the numbers in that order so the payback isn't overstated, and your accountant has the final word.
The bill structure is an incentive too
Ontario's regulation no longer has a size cap, as long as the system mainly supplies your own use. Exports are credited against your consumption charges (not demand charges) and credits roll forward up to 12 months. Storage is allowed. A net-metered system can't take the Save on Energy solar incentive.
The system serves your own load, with limited or no export and no credit. It is the only setup allowed with the Save on Energy solar incentive, and it suits businesses that use most of what the array makes during the day.
Sites averaging over 1 MW of peak demand can opt into Class A (over 500 kW for manufacturing, industrial and greenhouse sites; automatic over 5 MW). Global Adjustment is then charged on your share of Ontario's five highest peak hours of the year, which is where storage earns its keep.
Large Northern Ontario mining, forestry and steel operations using at least 50,000 MWh a year can get a 2¢/kWh rebate from the province. If that's you, we model solar and storage alongside it.
Farms, Northern programs and homes
Get this wrong and money walks out the door
Checked November 7, 2026. Not tax or legal advice.
Programs change. We re-check every rule before we put it in a quote, and your accountant confirms how the tax credit and depreciation apply to your business.
Send us twelve months of hydro data. We'll model solar and storage for your business with every incentive that applies, and show you the after-tax payback year by year. 249-878-5651 · info@honeybeesolar.ca
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