What incentives are available for businesses in Canada and for the Maritimes provinces to help the transition to renewable energies?
What if you were paid for the transition of your building to renewable energy?
September 2, 2021
Thanks to its diverse geography from coast to coast, Canada can count on renewable energy as diverse as its landscapes. Currently, Canada is only fueled by renewable energy at 18.9% (solar, geothermal, wind, etc.), but the objective seems to be to increase that rate and if you are the owner or manager of a business or any commercial, industrial or institutional buildings, you can count on generous government incentives to contribute to the energy transition.
These incentives or grants very often amount to several thousand dollars depending on your province of residence.
These government incentives for renewable energy can take the form of tax credits or reimbursement of a portion of the costs incurred in installing and upgrading infrastructure to make your building run on renewable energy. Some incentives even help defray the costs to consult a specialized firm like vadimUS to 1) make the best decisions concerning the energies to be implemented in your company and 2) be accompanied by experts.
Here is a list of incentives available as of September 1st , 2021 across Canada and the specific incentives for the Maritimes provinces. (A review of specific incentives for the western and central provinces of Canada will follow shortly.)
Renewable energy tax savings available across Canada
Aside from subsidies and monetary incentives, the government also offers you attractive tax savings to make the energy transition. Under classes 43.1 and 43.2 described in Schedule II of the Income Tax Regulations, certain capital costs associated with systems that produce energy from renewable energy sources or from fuels derived from waste or who save energy by using fuel more efficiently are eligible for an accelerated capital cost allowance.
To be eligible as Canadian renewable and conservation expenses (CRCE), expenses must be incurred in respect of a project for which it is reasonable to expect at least 50 percent of the capital costs incurred for the project would be the capital costs of equipment described in Class 43.1 or 43.2.
According to the technical guide for categories 43.1 and 43.2, here are some categories that are eligible for these tax savings for renewable energy:
- Geothermal pump
- Wind energy conversion systems
- Photovoltaic electricity production equipment
- Geothermal energy equipment
- Equipment for producing electricity from wave, tidal or tidal energy
- District energy networks / district energy network equipment
- Electrical energy storage equipment
- Charging stations for electric vehicles.
Source: Tax Savings for industry https://www.nrcan.gc.ca/science-data/funding-partnerships/funding-opportunities/funding-grants-incentives/tax-savings-industry/5147
Incentives available for Newfoundland and Labrador
The Take Charge initiative from NLHydro and NewFoundland helps businesses and individuals find solutions to save big and, above all, reduce their environmental footprint.
Learn more : https://takechargenl.ca/business/custom-solutions/
Incentives available for Nova Scotia
In Nova Scotia, the Efficiency Nova Scotia program helps businesses in the commercial, cultural, institutional and industrial sectors make an energy difference. Whether it's a factory, hotel, grocery store or retail business, there are plenty of incentives for businesses to become more energy efficient and save on energy related costs like energy efficient heating systems such as air-fired and ground-source heat pumps, heating, ventilation and air conditioning (HVAC) system sensors.
Thanks to this program, almost 80% of the costs can be absorbed by the incentives. A solution like vadiMAP is complementary to the energy efficiency measures of this program and considers the measures implemented to make sure that the proposed system is not oversized.
All programs: https://www.efficiencyns.ca/business/business-types/
Incentives available for New Brunswick
Industrial Energy Efficiency Program
The Industrial Energy Efficiency Program has funding available for both electric and non-electric saving opportunities. Incentives for non-electric projects are available until December 2023 (or until all funds have been awarded; whichever comes first).
Through this program, small and large industries can receive up to 100% of the eligible costs incurred for an energy audit or feasibility study, 25% of eligible capital costs for projects aimed at reducing emissions and 50% of eligible study costs related energy management information systems (EMIS).
Other programs for commercial, industrial and institutional buildings in NB
NB Power offers many other programs to commercial, industrial and institutional organizations across the province of New-Brunswick.
Programs such as:
- Small business lighting program – Get up to $10,000 back per business
- The Commercial Buildings Retrofit Program - Get up to $1.1 Million towards energy efficient upgrades!
- The Business Rebate Program - Earn 25% back for your business with approved energy upgrades.
- The Peak Rebate Program - You can get $20/kW incentive payments for your average demand reduction across all demand response events.
- Low Carbon Economy Leadership Fund – Available for commercial, industrial, institutions and even non-profit.
See all programs here: https://www.econergienb.ca/en/save-energy/
In addition to the costs saved using renewable energy daily and of course the immense benefit to our planet and future generations, transitioning your company to renewable energy (fully or partially) is a great way to improve your brand and even stand out from your competitors.
Whatever your motivations for taking part in the energy transition within your company, you don't have to do it alone or take great financial risks. With the support of the vadiMAP solution, the vadimUS team, and the incentives available in your area, you have all the tools to get started.