Solar Financing Options in Vancouver (2024 Update)

The economic and environmental assets of the sun’s power are driving growth in photovoltaic (PV) system installations across Canada. Calgary, with its ample sunshine hours, offers a prime location for homeowners and businesses to harness solar energy solutions.  As per the recent news from BC Hydro announcing rebate programs, homeowners can now expect rebates of up to $10,000 for qualified systems, while larger entities like apartment buildings and businesses can see rebates ranging from $50,000 to $150,000. This financial incentive, supported by each solar energy company Calgary, is expected to accelerate the adoption of solar technology to contribute to cleaner provincial renewable power solutions.

Calgary’s Solar Potential and Demand

Calgary boasts an average of 2,396 hours of sunshine annually, a significant advantage for installing solar panels. This translates to a strong PV insolation rating, a metric indicating the amount of sunlight received by a specific location. The province targets 15% residential electricity use offset by 2030, so house owners and companies should expect a positive upswing. In fact, installed rooftop Calgary solar panels have nearly tripled since 2019, which indicates a growing trend.

Factors Driving Increased Demand

• Rising electricity prices in Alberta have spurred interest in cost-effective alternatives. With proper system sizing (kW), home and business owners can reduce their electricity bills and achieve power independence over time with installed solar panels in Calgary.
• Solar companies, along with federal and provincial initiatives, such as rebates and incentives, have made PV installations more accessible.
• Growing focus on sustainability motivativates residents to adopt cleaner power sources. Solar power generation reduces reliance on fossil fuels and lessens greenhouse gas emissions for the better future.
• Panel efficiencies have steadily improved, leading to increased electricity output per square meter. Electric vehicle charging and battery storage technology evolves to allow residents to have a reservoir of power for use during peak hours or periods of low sunlight.

Canada Greener Homes Grant

Although the Canada Greener Homes Grant (CGHG) program has ended, it’s a significant driver of residential energy efficiency upgrades across Canada.  The program offered grants of up to $5,000, along with support for pre-and post-retrofit EnerGuide evaluations (up to $600), that incentivized homeowners to undertake power-saving retrofits in their dwellings.

Impact of the CGHG Program

• Over 524,708 grant applications were received, with approximately $700 million distributed to 165,000 homeowners. This results in an increase in power-efficient renovations, leading to a projected decrease in national energy costs.
• Targeted specific retrofit measures with proven energy-saving benefits to produce power. This included insulation upgrades, energy-saving heating and cooling systems, and renewable power installations for a more sustainable future.
• Emphasized the importance of pre-and post-retrofit EnerGuide evaluations conducted by qualified electricity advisors and PV installers to establish a baseline power performance and verify the effectiveness of the implemented retrofits

Solar Financing Options in Calgary

Clean Energy Improvement Program (CEIP)

Allows homeowners to finance energy efficiency upgrades, including PV systems, through a Property Assessed Clean Energy (PACE) financing model.

Benefits

• Unlike traditional loan structures, CEIP can to finance 100% of a solar panel installation or other qualifying electricity solutions.
• Repayment occurs through the property tax bill, simplifying the process and offering continuity even if the property changes ownership. New homeowners benefit from inheriting the solar system and reduced energy bills while taking on the remaining loan obligation.
• Offer competitive interest rates and extended repayment periods for up to 20 years, depending on the project type.
• Provides freedom to repay the loan balance in full at any time without penalty

Application

• PV systems must be connected to the electrical grid and comply with Alberta Micro-generation regulations.
• Panels and related equipment must be certified by the Canadian Standards Association (CSA) and UL (Underwriters Laboratories).
• Requires the use of brand-new, unused materials for the PV installation.
• Large micro-generation projects exceeding 150 kW capacity require operational procedures to be established during installation.

Note: The program mandates a minimum 25-year performance warranty for PV panels, a 10-year manufacturing warranty, and a 10-year warranty for inverters or microinverters. The qualified solar energy contractor must provide a 1-year warranty for any material or labour defects.

Examples of Canadian PACE Programs

Halifax City Program	Offers 10-year fixed-rate financing at 4.75% for installations, with repayments integrated into property tax bills.
Toronto Home Energy Loan Program (HELP)	Offers low-interest financing (as low as 2%) for sun-powered upgrades, with terms of up to 15 years. Requires a home energy audit as part of the application process.
Alberta PACE Legislation	Provides Albertan homeowners with a new pathway to finance PV panels and other clean power projects through property tax assessments.

Clean Energy Loan (EQUS)

EQUS is a non-profit organization, offering financing options for renewable energy solutions, including solar PV systems. Eligible members have the potential to receive up to $1,500 per kW installed, with a total financing cap of $15,000. By teaming up with Rewatt Power, you can tap into the Alberta offset credits program to boost your investment returns. Although the current maximum loan amount is $15,000, this is helpful to reduce the upfront costs of a PV installation, which means saving money for homeowners. 

Other PV Financing in Canada 

Clean Energy Loan – RBC Energy Saver Loan

This loan supports various clean energy investments to produce power for hybrid electric vehicles, star-certified appliances through renewable energy projects like PV installations. Borrowers can choose between a 1% interest rate reduction or a $100 rebate bundled with the loan.

Mortgage Loan Rebate for Certified Green Homes 

The program applies to homes certified under-recognized green building standards like R-2000, ENERGY STAR, Built Green, and LEED. These certifications demonstrate a home’s superior energy efficiency compared to conventional house construction. This program offers a 25% rebate on mortgage loan insurance premiums to provide financial savings for customers.

Canada Green Affordable Housing Program (CMHC)

Homeowners meeting affordability criteria can apply for funding for retrofits, but specific pre-retrofit activities, such as energy audits and energy modelling studies, are mandatory.  Canada Mortgage and Housing Corporation (CMHC) offers either forgivable loans or grants, covering up to 100% of eligible retrofit costs, with a maximum of $170,000 per unit.

Forgivable Clean Energy Loan

Nunavut Housing Corporation provides forgivable loans for home energy upgrades, covering structural, heating, electrical, and plumbing improvements.  The loan amount, up to $65,000, depends on household income. To qualify, your adjusted household income must be below the HPIE limit, generally exceeding $158,000 annually.    

Financing a Greener Future

Calgary’s photovoltaic irradiance is undeniable, so the government offers financing programs to reduce upfront costs of installing PV systems. These programs help property owners to reduce energy costs while fighting climate change. Now, is the best time to choose the right financing option and partner with a reliable company to install PV panels in your property. A leading provider like MAG Solar can guide you through the system design considerations and all aspects of your PV project development. Inquire to our reliable customer care service and let’s ensure your smooth transition to sustainable and cost-effective energy solutions.