How Ottawa Businesses Can Save Big with Solar Incentives and Tax Credits

How Ottawa Businesses Can Boost Their Bottom Line with the DER Large Solar PV Funding Incentive and 30% Renewable Investment Tax Credit

If you’re an Ottawa-based business looking to lower your operating costs, increase your profitability, and future-proof your operations, there’s never been a better time to consider solar energy.

The Save on Energy Retrofit Program is offering a substantial incentive for businesses to install large solar photovoltaic (PV) systems, combined with the powerful 30% Renewable Investment Tax Credit (ITC) available to all Canadian businesses.

Let’s break down how installing solar now can boost your bottom line and increase your profits—and why taking advantage of these incentives today is a smart financial move for your business.

The Financial Opportunity: $860 per kW + 30% Tax Credit = Big Savings

Through the Save on Energy Retrofit Program, businesses in Ottawa can receive $860 per kW AC toward the installation of large solar PV systems, with a minimum system size of 50 kW.

This means that the program could provide up to $860,000 in incentives (for the maximum system size of 1,000 kW), which dramatically reduces the initial installation cost.

Additionally, businesses can take advantage of the 30% Renewable Investment Tax Credit (ITC) available for all Canadian businesses that install renewable energy systems, including solar.

The ITC allows you to deduct 30% of your total solar system installation costs from your taxable income, which translates into a third of the installation cost being refunded to your business through tax savings.

For example, if your business installs a 200 kW system costing $600,000, you could receive:

$172,000 from the Save on Energy Retrofit Program (200 kW × $860).
$180,000 through the 30% tax credit.

This means a total of $352,000 in savings, making your initial investment much more affordable and accelerating your return on investment.

So, when combined, the Save on Energy Retrofit Program and 30% ITC can significantly reduce the upfront capital required to install solar—and provide a quick return on investment.

3 Key Ways Solar Improves Your Bottom Line and Profits

1. Lower Energy Costs = Higher Profit Margins

Electricity is one of the biggest ongoing expenses for many businesses. By installing solar, you can dramatically reduce or even eliminate your energy bills, freeing up capital for other parts of your business.

Solar power lets you generate your own energy and offset your reliance on grid power, which means your business is less vulnerable to rising electricity prices.

This is especially valuable as energy rates are expected to keep climbing.

For example, a business with a solar system installed could start saving on electricity as soon as the system is up and running, lowering monthly energy expenses and improving cash flow.

2. The 30% Federal Tax Credit: Immediate Savings

The 30% Federal Tax Credit for renewable energy investments significantly lowers the upfront cost of going solar.

This means you pay less for your solar installation, allowing you to put the money you would have spent on capital expenses back into your business.

For example, if your solar installation costs $500,000, the 30% tax credit means you would save $150,000 immediately.

This upfront savings improves your business’s cash position, reduces the amount of financing you need, and accelerates your ROI, allowing you to see positive financial results much faster.

The 30% ITC, combined with the provincial incentive, makes solar one of the best investments for your business today.

3. Increase Property Value and Attract Investors

A solar installation not only lowers your energy costs but can also increase the market value of your property.

Commercial buildings with solar systems tend to attract higher valuations because they are seen as energy-efficient, cost-effective, and sustainable.

The lower operating costs associated with solar make these properties more attractive to investors, buyers, and tenants—especially those who value environmental sustainability.

Moreover, installing solar can help position your business as a forward-thinking company that is investing in long-term savings and sustainability, which can improve your brand image and attract customers who prioritize eco-consciousness.

How Solar Delivers Long-Term ROI and Profitability

Solar isn’t just about short-term savings; it’s a long-term investment in your business’s financial health.

After the initial installation, solar panels typically last 25+ years, providing decades of free, renewable energy.

The savings from reducing or eliminating energy bills can significantly exceed the initial investment within just a few years.

Once your solar system is paid off, all the savings become pure profit. Think about it: For the next 20+ years, your energy costs remain low or zero, increasing your profit margins without additional expenses.

How to Access the Incentives: A Simple Path to Solar Savings

Eligibility: The Save on Energy Retrofit Program applies to businesses located within eligible Forward Sortation Areas (FSAs) in Ottawa, such as K1V, K2J, K1X, and others. Make sure your business location qualifies.
Incentive Cap: The maximum incentive you can receive is $860 per kW, with a maximum system size of 1,000 kW. Your solar system size must match your facility’s energy needs and cannot exceed your building’s load.
Behind-the-Meter Systems: The solar system must be connected directly to your building’s energy supply and used on-site (not for exporting power to the grid). This ensures you’re using the solar power to reduce your business’s energy consumption directly.
Consultation: Before applying, it’s a good idea to speak with your local distribution company to ensure your property can accommodate the system and to confirm technical requirements.
Tax Credit Application: To take advantage of the 30% Renewable Investment Tax Credit, work with your accountant to properly document and apply for the credit when filing your taxes.

Why Acting on Solar Now Is Important for Your Ottawa Business

The financial incentives available through the Save on Energy Retrofit Program and the 30% Federal Tax Credit are time-sensitive.

These programs can change or be reduced in the future, and waiting to install solar means potentially missing out on significant savings.

Moreover, Ottawa’s electricity grid is already under strain, meaning electricity prices are likely to increase. Installing solar today locks in low, predictable energy costs for the next 20+ years, helping you avoid future price hikes.

By acting now, you secure immediate financial savings through both provincial and federal incentives and start saving on your energy bills right away—leading to increased profitability over the long term.

Ready to Maximize Your Profits with Solar?

If you’re looking to improve your business’s bottom line, cut your energy costs, and take advantage of generous financial incentives, solar energy is your best option.

The $860 per kW incentive and 30% federal tax credit make solar not only affordable but also a smart financial investment that delivers long-term returns.

The longer you wait, the more you risk missing out on these valuable savings. Contact your local distribution company today to discuss your eligibility, and start planning your solar installation.

With solar energy powering your business, you’ll be well-positioned to reduce costs, increase profits, and build a sustainable future.

Ottawa Businesses and Solar Systems – FAQs

What is the Save on Energy Retrofit Program and how does my business qualify?

The Save on Energy Retrofit Program provides financial incentives to Ottawa businesses for installing large solar photovoltaic (PV) systems.

To qualify, your business must be located within eligible Forward Sortation Areas (FSAs) in Ottawa.

Additionally, your system must meet the minimum size requirement of 50 kW and be directly connected to your building’s energy supply (behind-the-meter systems).

To ensure eligibility, it’s recommended to consult with your local distribution company.

How do I apply for the 30% Renewable Investment Tax Credit (ITC)?

The 30% ITC allows businesses to deduct 30% of the cost of installing solar energy systems from their taxable income.

To apply for this tax credit, work with your accountant to properly document and claim the credit when filing your taxes.

It’s important to keep detailed records of all installation costs, including materials and labor, to ensure you receive the full benefit.

Can solar systems still benefit my business if I have limited roof space?

Yes, even if your building has limited roof space, there are still options to make solar work for your business.

Solar systems can be customized to fit the available space, and solutions like solar carports, parking lot canopies, or building-integrated solar panels may be viable alternatives.

A professional solar installer can assess your specific space and energy needs to determine the best system design.

What happens to my solar incentives if I sell my business?

If you sell your business, the solar installation and its associated incentives may transfer to the new owner, depending on the terms of the sale and the tax regulations.

It’s recommended to discuss with your accountant and legal advisor to ensure the proper steps are taken to either transfer or adjust for the incentives as part of the sale process.

How Ottawa Businesses Can Maximize Profits with Solar Incentives

Take advantage of Ottawa’s solar funding programs and tax credits to lower operating costs and boost profitability.

Now is the time to make solar work for you—take advantage of these incentives before they’re gone and watch your business thrive.