As Budget 2023 rolls out new ITCs for renewable energy, CanREA members move into position for new business opportunities.
I love the burst of energy I get from cycling outside—and this spring, I am enjoying it even more. Every time I pedal along the Ottawa River bike path, I am reminded that one of the most significant federal policies our industry has ever seen was introduced in Parliament recently—and that Canada’s wind, solar and energy-storage industries are about to pick up speed.
As CanREA’s VP of Business Development, I was thrilled with the announcement of the federal ITCs (Investment Tax Credits) and other support measures contained in Budget 2023. It is my job to provide business and organizational leadership to the association, leveraging my 20 years of experience in renewables and my expertise in the economic benefits of renewable energy. And from this business perspective, it is clear to me that this industry is shifting into high gear in Canada.
Not only were CanREA’s policy recommendations strongly reflected in these measures, as noted in CanREA’s statement, but our business goals as well.
The ITCs presented in Budget 2023 will provide much-needed momentum for Canada’s wind, solar and energy storage industries. We are now set to rapidly increase the pace of development—and in my opinion, CanREA members are ideally positioned to capitalize on these new business opportunities.
ITCs will propel renewables forward
The ITC I am watching most closely is the 30% Clean Technology Investment Tax Credit, a refundable 30% tax credit on the capital cost of investments made by taxable entities in wind, solar PV and energy-storage technologies. I am also focused on the up-to-40% Clean Hydrogen Investment Tax Credit because, as my colleague Brandy Giannetta wrote in a recent blog, green hydrogen will be a massive enabler for Canada’s wind and solar energy production.
There are other interesting elements in the Budget as well, such as:
- A 15% Clean Electricity Investment Tax Credit (for non-taxable entities, such as Indigenous communities)
- A 30% Clean Manufacturing Investment Tax Credit
- Support for net-zero transmission projects
- $20 billion for clean electricity investments through the Canadian Infrastructure Bank
- Recapitalization of the Smart Renewables and Electrification Pathways (SREPs)
- Enhanced commitment to carbon-price stability.
It is a strong leadership move by the Federal Government to leverage policy, programs and the tax system to accelerate decarbonization while supporting a strong economy. These changes will bring long-term investment stability and confidence for solar, wind, energy storage and green hydrogen, helping to accelerate the deployment of these technologies throughout the country for decades.
With these new measures in place, the renewables/storage sector is ready to gear up for a massive build-out as we head down this pathway to net-zero.
Join the lead pack
It’s clearly an exciting time for renewable energy and energy storage, and developers aren’t the only ones who will benefit—others will join the lead pack as well. With many new projects emerging, all of the vendors and suppliers involved in these projects—service providers, manufacturers, banks, insurance providers, law firms and human resources companies—can capitalize on these emerging opportunities.
Growth in renewables and energy storage will also benefit energy consumers, including industrial,commercial, institutional, small business and individual consumers. A growing market will help make it more economical for them to go green, and to find vendors.
On this score, CanREA and its 330+ members are a great source of expertise to help consumers on their ride to sustainability, and CanREA’s industry directory makes it easy to contact relevant members.
Come ride with CanREA!
The Canadian marketplace, as well as its business landscapes, will evolve rapidly. While the bold, new path ahead of us will be exhilarating, the terrain of renewable energy market and policy changes can be tough to navigate without a road map, adequate gear and support along the way.
CanREA’s policy experts work every day to advocate for regulatory and market changes that benefit our industry, including the new federal ITCs. My policy colleagues lead regional and national member groups to provide the support needed to keep members rolling smoothly in markets across Canada.
Meanwhile, CanREA’s network of member companies represent Canada’s most significant wind, solar and storage developers, manufacturers, asset owners, installers and service providers. We connect these industry-leading players through our events and engagement forums, from leading national conferences to regional networking and business development events, aiming to foster strong relationships within the industry.
Now, more than ever, joining CanREA is a good business decision, one that will allow your company to take advantage of the new opportunities about to emerge in Canada’s renewable-energy and energy storage industries, and to stay up to date on the latest market intelligence, policy news and exclusive, members-only information from CanREA, as we work to grow the industries from coast to coast.
It has already been a remarkable spring for renewables, and I can’t wait to work with our current members and welcome new members as we pick up speed on the path to net-zero.
Contact our membership team today to find out more about CanREA membership options.
