Solar Energy Canada 2023 — Getting Started

Canada is introducing tax credit incentives and investments for the development and manufacture of solar photovoltaics, energy storage, and other renewable energy technologies. Think about it: the Inflation Reduction Act is heading north. Under the 2015 Paris Agreement, Canada has committed to reducing greenhouse gas (GHG) emissions by 40-45% from 2005 levels by 2030 and committing to net zero emissions by 2050. Canada's solar energy is the big winner, as the country aims to generate 90% of its electricity from renewable and non-emission resources by 2030.

The Government of Canada's 2023 Budget has made the development of a clean economy one of its core priorities. Its Made in Canada program is based on a federal toolkit that invests in a clean economy. It includes a suite of investment tax credits, low-cost strategic financing, and targeted investment and planning to meet the unique needs of sectors or projects of national economic significance. To support and accelerate clean electricity investments, Budget 2023 proposes to introduce a 15% refundable tax credit for eligible investments in non-emission power generation systems. Budget 2023 proposes a refundable tax credit equal to 30% of the cost of investment in machinery and equipment used to manufacture or process critical cleantech and to extract, process or recycle certain critical minerals necessary for the cleantech supply chain.

As Canada moves toward its goal of becoming a net-zero economy by 2050, more tax refunds, incentives, and tax breaks are being introduced. SolarX has compiled a reference for these federal and provincial solar incentives in Canada, including energy efficiency programs, incentives offered by major Canadian cities and least developed countries.

The US-based Solar Alliance says the introduction of a 15% Clean Electricity Investment Tax Credit ("ITC") has the potential to rapidly accelerate the adoption of solar energy in Canada. Several other provisions will support the transition to clean electricity and benefit the industry. But they say the ITC will have the greatest direct impact on investments in clean power generation and storage by non-taxable entities, such as Indigenous communities and municipal utilities. The goal of Canada's ITC and other incentives is to improve the country's competitiveness, which will make Canada more attractive to investors and level the playing field with the United States.

As part of the budget announcement, the Canadian Infrastructure Bank will invest up to C$20 billion (US$14.7 billion) in clean energy growth and infrastructure projects in the form of two separate C$10 billion (US$7.3 billion) facilities through its Clean Energy Priority Area and Green Infrastructure Priority Area. The government said the investments would come from existing resources.

According to the Canadian Renewable Energy Association, there are currently more than 43,000 solar (PV) energy installations on residential, commercial and industrial rooftops across the country, directly powering these homes and businesses. The majority of Canada's solar PV capacity consists of utility-scale solar installations, often referred to as "solar farms". The industry is poised for significant growth, driven by significant cost reductions and the demand for non-greenhouse gas power generation to combat climate change.

Ontario is one of the provinces in Canada that actively promotes the use of solar energy. In recent years, the government has introduced several incentives to encourage homeowners and businesses to adopt renewable energy, especially solar. EcoWatch has compiled a detailed list of companies and terms for Ontario homeowners to consult when considering taking advantage of incentives.

Who's Who in Solar Energy Canada

一些主要参与者是 AMP Solar Group Inc.、BluEarth Renewables Inc.、Canadian Solar Inc.、Greengate Power Corporation 和 Quadra Power Inc.。

AMP Solar Group Inc. started as a small solar developer in Ontario in 2009 and has grown to become a large-scale, multi-technology global developer. In Canada and the U.S., it works with a wide range of utility and commercial and industrial customers to develop a decarbonization roadmap to drive net-zero emissions.

BluEarth Renewables has more than 1GWAC (total) of operational, under-construction and pre-contracted projects, and more than 7GW of high-quality development projects under active advancement. In March, the company announced the acquisition of seven wind and solar development projects in the United States, with a total installed capacity of about 1 gigawatt. BluEarth acquired this development portfolio from Ozone Renewables, LLC ("Ozone"), which includes projects in Washington, Oregon, Ohio and Oklahoma.

On April 10, Canadian Solar announced that it had renamed its wholly-owned global energy subsidiary Recurrent Energy. Previously the company's utility-scale solar and storage project developer in North America, Recurrent Energy will now include all of Canadian Solar's global development and services operations. Last week, Canadian Solar announced its financial results for the first quarter ended March 31, 2023. Here are some highlights:

• Solar module shipments grew 66% y-o-y to 6.1 GW, in line with expectations of 5.9 GW to 6.2 GW;
• Revenue increased 36% year-over-year to $1.7 billion, in line with expectations of $1.6 billion to $1.8 billion;
• gross margin of 18.7%, in line with the guidance of 18% to 20%;
• Net income attributable to Canadian Solar was $84 million, or $1.19 per diluted share;
• a 25GWp solar development pipeline and a 47GWh battery storage development pipeline; and
• The IPO of CSI Solar's subsidiary is expected to close in the second quarter of 2023.

Greengate Power Corporation's Lathom Solar, which began development in 2017, comprises nearly 1,280 acres of land located approximately 15 kilometers southeast of the town of Basano in Newell County. The project area has strong solar energy resources and will generate clean energy over its 35+ year life cycle.

Quadra Power has been active in the development of small and large facilities in Ontario, Canada since 2007. As a renewable energy company, its focus area is the construction of solar projects and the development of photovoltaic power plants, including "on-grid" and "off-grid", and it provides 200 MW of direct solar power construction projects. It works with its sister company, Quadra Solar, for business, financial and engineering experience.

Final Thoughts on Solar Energy in Canada

Canadian solar projections, starting in 2023 and expanding further, are positive. As Canada plans to achieve net-zero emissions by 2050 and is expected to replace fossil fuels' share of the energy mix with renewable energy, there are plenty of opportunities in the solar energy market in the coming years.

In the medium term, factors such as upcoming solar projects and supportive government policies to reduce dependence on fossil fuels are expected to drive the growth of the Canadian solar market. The country's total installed solar capacity is expected to reach 35 GW by 2050, which will significantly increase its share of renewable energy generation.