Federal action on tax credits gives investors long-term certainty to build more wind, solar and energy storage
Ottawa, November 5, 2026—The Canadian Renewable Energy Association (CanREA) welcomes Budget 2026, which adopts key recommendations from CanREA’s Clean Power Nation report and federal advocacy to build more affordable electricity for Canadians.
Tabled today by the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, Budget 2026: Masters of our Destiny extends the Clean Technology and Clean Electricity investment tax credits to 2040, expands the Clean Electricity credit to high-voltage transmission within provinces, and introduces a bonus for projects that use Canadian-made components.
The budget is paired with Powering Canada Strong: From Strategy to Action, the federal action plan to double Canada’s electricity system by 2050, backed by $52 billion in new funding. The plan includes nearly $4 billion to expand electricity infrastructure and renewable energy, including new funding for the Smart Renewables and Electrification Pathways Program. It also draws on Clean Power Nation research showing up to $100 billion in Canadian manufacturing opportunities for wind, solar and battery technologies.
“This is a strong budget for affordable, reliable electricity, and we’re proud to see key Clean Power Nation recommendations adopted,” said Vittoria Bellissimo, CanREA’s President and CEO. “Affordability is Canadians’ top priority, and wind, solar and energy storage deliver affordable, clean power quickly. The federal government has shown vision by extending tax credits to 2040, giving investors the certainty to build more projects, create jobs and strengthen Canada’s renewable energy industry.”
The Canada Energy Regulator projects that electricity demand could grow by 26% to 85% by 2050. About 24 GW of wind, solar and energy storage is already being procured across Canada, and with stable, competitive policies, the sector could attract up to $200 billion in investment by the mid-2030s and support 250,000 to 350,000 job-years.
“Transmission connects the lowest-cost new power to the people and businesses who need it,” said Bellissimo. “Extending the Clean Electricity Investment Tax Credit to high-voltage transmission within provinces is a smart, practical move. It lowers the cost of building those lines, and that helps keep power bills down for families and businesses.”
The budget also launches a 60-day consultation to determine the scope and parameters of a bonus of up to 10 percentage points under the Clean Technology credit and up to 5 points under the Clean Electricity credit for projects that use Canadian-made components. CanREA recommended a bonus instead of a mandatory requirement because it rewards projects that buy Canadian and grows domestic manufacturing without putting projects at risk.
CanREA will continue to work with the federal government, provinces, Indigenous partners and industry to turn these commitments into projects, including timely implementing legislation, faster processing of tax credit claims and designing the domestic content bonus through the upcoming consultation.
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Quotes
“This is a strong budget for affordable, reliable electricity, and we’re proud to see key Clean Power Nation recommendations adopted. Affordability is Canadians’ top priority, and wind, solar and energy storage deliver affordable, clean power quickly. The federal government has shown vision by extending tax credits to 2040, giving investors the certainty to build more projects, create jobs and strengthen Canada’s renewable energy industry.”
“Transmission connects the lowest-cost new power to the people and businesses who need it. Extending the Clean Electricity Investment Tax Credit to high-voltage transmission within provinces is a smart, practical move. It lowers the cost of building those lines, and that helps keep power bills down for families and businesses.”
—Vittoria Bellissimo, President and CEO, Canadian Renewable Energy Association (CanREA)
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About CanREA
The Canadian Renewable Energy Association (CanREA) is the voice for wind energy, solar energy and energy storage solutions that will power Canada’s energy future. We work to create the conditions for a modern energy system through policy advocacy and stakeholder engagement. Our diverse members are uniquely positioned to deliver clean, low-cost, reliable, flexible and scalable solutions for Canada’s energy needs. For more information on how wind energy, solar energy and energy storage can decarbonize and modernize Canada’s electricity systems quickly and affordably, follow us on LinkedIn and visit www.renewablesassociation.ca.