Ontario Construction News staff writer
The Canadian Renewable Energy Association (CanREA) has highlighted measures from the Federal budget that pertain to Canada’s renewable energy and energy storage industry, including developments in the Investment Tax Credits (ITCs), Indigenous Loan Guarantee Program, and Green Choice Program.
The budget’s approach to refundable ITCs for clean technologies such as wind, solar, storage, and green hydrogen aligns with American incentives under the Inflation Reduction Act 2022. CanREA noted the federal government’s focus on Indigenous economic empowerment through the introduction of enabling legislation for the Indigenous Loan Guarantee Program.
“We are pleased to see that the enabling legislation for the Indigenous Loan Guarantee Program has been tabled as part of the budget,” said Vittoria Bellissimo, president and CEO, CanREA. “This program is a gamechanger that will boost opportunities for Indigenous communities and companies to build the renewable energy and energy storage projects that Canada needs, both as equity partners and as developers in their own right.”
Bill C-59, anticipated to receive Royal Assent by June 1, would grant CanREA member companies access to the Clean Technology ITC, which supports say will stimulate growth in Canada’s renewable energy and energy storage sectors. Federal Policy Director Fernando Melo emphasized the need for clarity on the Clean Electricity Investment Tax Credit and urged timely legislation to enable participation by Indigenous companies and corporations in Canada’s power sector.
In addition, continued funding for the Greener Homes Initiative’s loan program was included with $903.5 million allocated over six years starting in 2024-25. The new Canada Greener Homes Affordability Program aims to directly install energy efficiency retrofits for Canadian households with low to median incomes.
While the budget did not include implementation legislation for the Clean Technology Manufacturing ITC, Clean Hydrogen ITC, or Clean Electricity ITC, CanREA will continue to advocate for the rapid rollout of Canada’s Investment Tax Credits to benefit the renewable energy sector.