Canada introducing ITC for solar PV, energy storage and low-carbon hydrogen

Canada’s Deputy Prime Minister Chrystia Freeland, pictured on a visit to an industrial facility in Alberta earlier this month, announced the Fall Economic Statement yesterday. Image: Chrystia Freeland via Twitter.

Canada’s government will introduce tax incentives for clean energy technologies, including solar PV, battery storage, and hydrogen.

Announced yesterday by Deputy Prime Minister Chrystia Freeland as part of Canada’s Fall Economic Statement 2022, the move has already been welcomed by renewable energy, energy storage and manufacturing trade groups.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The government proposes to introduce a refundable tax credit equivalent to 30% of the cost of capital investment into electricity generation systems, stationary electricity storage systems, low-carbon heat equipment and industrial zero-emissions vehicles and related charging or refueling equipment. Projects that do not meet requirements on local labour conditions will get a 10% reduction in the minimum tax credit rate

A higher rate of investment tax credit, 40%, will be available for hydrogen projects that meet all eligibility requirements on carbon intensity, with incentives reducing as related carbon emissions go up. As with generation and storage, meeting labour conditions will be worth 10% of the credit.

“With major investment tax credits for clean technology and clean hydrogen, we will make it more attractive for businesses to invest in Canada to produce the energy that will power a net-zero global economy,” Freeland said.

The move comes close on the heels of the US’ Inflation Reduction Act (IRA), which introduced an investment tax credit for standalone energy storage projects, extended the existing solar PV ITC and wind production tax credits for 10 years and introduced incentives for manufacturing and hiring domestically.

Canada’s government has sought to close a competitive gap that the US’ IRA legislation’s US$369 billion of climate spending and investment looks set to open.

To read the full version of this story, visit

21 March 2024
4pm (GMT)
This special webinar will look at one of the most important changes impacting PV manufacturing today; how to establish and sustain new facilities around the world. For more than two decades, policy-makers have grappled with the challenges of nurturing domestic manufacturing sectors. Many countries have tried to create domestic sectors: Japan, Taiwan, South Korea, India, Europe and the U.S. But success stories have been rare. Mistakes seem to be repeated. And all the while, Chinese dominance of the industry has only increased. However, in the past 2-3 years, new drivers have emerged that suggest the dream of a global PV manufacturing ecosystem could be a reality. Join us as we shed light on this.
26 November 2024
Málaga, Spain
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.

Read Next

Subscribe to Newsletter

Upcoming Events

Solar Media Events
March 12, 2024
Frankfurt, Germany
Upcoming Webinars
March 13, 2024
9am EDT / 1pm GMT / 2pm CET
Solar Media Events
March 19, 2024
Texas, USA