Canada’s budget includes energy storage tax credit in wave of cleantech investment

By Will Norman
LinkedIn
Twitter
Reddit
Facebook
Email

Canada will introduce tax credit incentives and invest in developing and manufacturing solar PV, energy storage and other renewable energy technologies in an Inflation Reduction Act-style scheme.

The Government of Canada has released its 2023 budget, which positions growing the clean economy as one of its core priorities, alongside healthcare and ‘affordability’. Under the budget, the government has confirmed the 30% refundable tax credit on investments made by taxable entities into clean energy technologies like solar, battery storage and wind. This builds on its first announcement in the Fall Economic Statement 2022 plan, which was covered on EnergyStorage.news.

A 15% refundable tax credit for investments into clean electricity generation and energy storage by non-taxable entities – like indigenous communities and municipally-owned utilities – was announced as well.

It also proposes to introduce a 30% refundable tax credit for clean technology manufacturing, applying to investments into machinery and equipment used for manufacturing processes as well as extracting, processing and recycling critical materials to clean supply chains.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The US’ landmark IRA, which set aside huge credits for energy transition investment, has seen others like the EU – and now Canada – trying to follow suit and remain competitive. Details of the scheme are yet to be clarified.

To read the full version of this story including further details of the fiscal budget, go to PV Tech.

Read Next

October 3, 2025
More than 30 stakeholder organisations in the US energy storage value chain have formed a new association to represent common interests.
October 2, 2025
Solar PV and energy storage firm Canadian Solar has entered into battery storage agreements (BSAs) and long-term services agreements (LTSAs) with Aypa Power for the Elora and Hedley battery energy storage system (BESS) projects in Ontario, Canada.
Premium
September 26, 2025
Energy-Storage.news Premium speaks with Thomas Cornell, CEO and President of Prevalon Energy, at the RE+ 2025 trade show, about the global consequences of the budget reconciliation bill for BESS and renewables.
September 25, 2025
Italian multinational energy company Eni intends to become a player in battery cell manufacturing for stationary energy storage systems.
September 23, 2025
Capital Power has announced commercial operations of its 120MW York battery energy storage system (BESS) and 50MW Goreway BESS projects in Ontario, Canada.

Most Popular

Email Newsletter