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The 30% federal tax credit for commercial solar, explained

The 30% federal tax credit for commercial solar, explained

While homeowner rebates closed, the Clean Technology Investment Tax Credit stayed. For Maritime businesses it is now the largest solar incentive available.

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Almost every residential solar rebate in Atlantic Canada has closed or paused. The largest incentive in the region survived all of it, and most business owners do not know it applies to them.

The Clean Technology Investment Tax Credit is a refundable federal credit worth 30 percent of eligible capital cost on solar equipment. On a commercial rooftop array, that is a materially different conversation from a $3,000 residential rebate.

What it covers

The credit applies to the equipment itself: panels, inverters, mounting, and the balance of system needed to put it into service. It is claimed for the tax year the equipment becomes available for use, not the year you sign a contract.

Because it is refundable, it does not simply reduce tax payable to zero and stop there. That distinction matters for businesses with an uneven profit history.

Why commercial roofs are good solar candidates

A warehouse, a shop, a farm building or a fleet depot usually has the three things a residential roof struggles to offer at once: a large uninterrupted surface, a low slope, and no shading from neighbouring structures.

The demand profile helps too. A business that runs refrigeration, compressors, machinery or air conditioning consumes most of its power during daylight hours, which is exactly when the array produces. Self consumed power is worth more than exported power under any net metering arrangement, so a commercial load curve tends to produce a better return than a residential one.

How it stacks with the provinces

New Brunswick's Business Rebate Program covers up to 25 percent of project cost, capped at $250,000, and NB Power net metering accepts systems up to 100 kW. Nova Scotia and PEI have their own commercial and institutional pathways. The federal credit is designed to work alongside provincial programs, and the combined position is stronger than either alone.

What to check before you go further

Roof age is the first question. Solar equipment lasts 25 years and you do not want to remove an array to reroof in year eight. If the membrane is near the end of its life, the two projects should be planned together.

Structural capacity is the second, particularly on older steel buildings and in snow load territory. And the third is your actual demand profile, because a system sized to your roof rather than to your consumption is a system sized wrong.

We design and install commercial systems across PEI, New Brunswick and Nova Scotia with our own crews, and we will tell you early if a building is not a good candidate. Talk to your accountant about the credit as it applies to your situation. We will handle the part that goes on the roof.

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