Global Solar PV Market Report

The growth of the solar PV industry in Canada fits into the broader context of initiatives to decarbonize the economy and arrive at a net-zero electricity supply by 2035. The federal, provincial, and territorial governments are working together to achieve the ambitious clean energy goal at the national level. To attract more businesses to invest in renewable energy and close the competitive gap with US companies, Canada introduced investment tax credits (ITCs) of up to 30% for renewable energy technologies, including solar, wind, and storage. This came into effect in March 2023 and will be available until 2034.

Lately, Corporate PPAs have gained significant traction in Canada, particularly as the C&I consumer segment continues to struggle with escalating energy expenses. They desperately seek opportunities to mitigate costs while meeting renewable energy targets. Among notable developments, in January 2023, Canadian power producer Capital Power Corp signed a 15-year deal to supply ~30MW of energy to Shaw Communications. Big organizations such as Microsoft signed 37MW solar PPA with ATCO Group to buy energy in the city of Calgary in the first half of 2022. During the same time frame, Scotiabank and Evolugen announced a ~40MW 15-year renewable energy PPA agreement in Alberta. PPAs have emerged as a primary driver for integrating new renewable energy sources in Alberta.

The March 2023 budget revealed that the Canadian government plans to seek input on creating a comprehensive strategy for carbon contracts for difference. The objective is to enhance the predictability of carbon pricing and facilitate investments required for fostering a thriving clean economy, thereby assisting Canada in achieving its climate objectives. These efforts will supplement the existing contracts for difference provided by the Canada Growth Fund.

Another factor contributing to the increased demand for solar in the region is the growing usage of energy storage. PV module manufacturers are investing heavily in energy storage technologies. Canadian Solar has doubled its energy storage shipments to 1.79GWh in 2022. CSI Energy Storage, a subsidiary of CSI Solar Co. Ltd., launched the SolBank, a proprietary designed and manufactured energy storage battery solution for utility-scale applications in September 2022.

Canada holds significant untapped potential for solar energy owing to its extensive land area. This provides considerable growth opportunities, as apart from Ontario no other provinces have made notable progress. Especially in the southern regions of Alberta and Saskatchewan, have yet to fully explore solar energy although they enjoy higher solar irradiation. The introduction of a new renewable energy strategy, the federal government’s commitment to a cleaner climate, and the adoption of advanced technologies will further enhance the prospects for solar deployment in Canada.

The federal and provincial governments in Canada are collaborating to achieve their ambitious clean energy objective on a national scale. The Canadian government has implemented various federal initiatives to support solar energy, including the $1.6 billion Smart Renewables and Electrification Pathways Program, the $500 million Low Carbon Economy Fund, the $520 million Clean Energy for Rural and Remote Communities program, and the $100 million Smart Grid program. Additionally, at the individual household level, the Canada Greener Homes Grant offers rebates of $1,000/kW for solar systems with a maximum size of 5kW.

Alberta, with its deregulated electricity market and ambitious carbon tax policy, has set a target to deploy 5GW of renewable energy by 2030. This initiative aims to ensure that 30% of the province’s electricity comes from renewable sources by the end of the decade while simultaneously phasing out coal power. As part of this renewable energy push, French renewables developer “Neoen” has commenced the construction of a 93MW solar project in Alberta. The solar plant is scheduled to get commissioned by the first quarter of 2024 and will contribute electricity to the local grid, which is managed by ATCO Electric.

In recent times, the integration of energy storage with solar power has become increasingly popular, serving as a valuable solution for enhancing grid flexibility, efficiency, and supporting Canada’s energy transition and decarbonization efforts. Notably, there are significant projects under development that combine solar and energy storage, such as Westbridge Energy Corporation’s Georgetown, Sunnynook, and Dolcy projects, which collectively incorporate 300MW of battery storage. Additionally, Jurassic Solar LP’s Jurassic Solar+ project includes 80MW of battery storage to complement its solar installation. These projects exemplify the growing trend of deploying energy storage alongside solar power to maximize the benefits of renewable energy integration. Recently, Westbridge Renewable Energy Corp. has started development of its fifth solar-plus-storage project in Alberta. The company is targeting the development of a 295MW solar PV plant with a 100MW/200MWh battery energy storage system at its Red Willow Project.