Federal Budget 2024 a Step Forward in Keeping Canada Competitive
April 24, 2024
The Canadian Renewable Energy Association (CanREA) welcomes Budget 2024, as presented today by Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland. Budget 2024 represents positive steps for Canada’s renewable energy and energy storage industry regarding the Investment Tax Credits (ITCs), the Indigenous Loan Guarantee Program and the Green Choice Program.
First announced in last year’s Budget, Canada’s refundable ITCs for clean technologies, such as wind, solar, storage and green hydrogen, represent a Canadian response to the American incentives for credits for renewable energy and green hydrogen, per the Inflation Reduction Act 2022.
CanREA particularly commends the Government of Canada for its commitment to Indigenous economic empowerment in Budget 2024. The introduction of enabling legislation for the Indigenous Loan Guarantee Program marks a significant step towards fostering economic opportunities for Indigenous communities across the country.
“We are pleased to see that the enabling legislation for the Indigenous Loan Guarantee Program has been tabled as part of the Budget. The Indigenous Loan Guarantee 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,” said CanREA President and CEO Vittoria Bellissimo.
There was also promising news on the timeline for the Clean Technology ITC, which was put forward in the Fall Economic Statement Implementation Act, 2023 (Bill C-59), in November 2023:
“It is reassuring to hear that the government anticipates Bill C-59 receiving Royal Assent before June 1, 2024. The passage of this bill will enable CanREA’s member companies to access the Clean Technology ITC, which will spur growth in Canada’s renewable energy and energy storage sectors,” said CanREA Federal Policy Director Fernando Melo, who was on site for the introduction of the Budget today.
CanREA also appreciates the presentation of further details on the Clean Electricity Investment Tax Credit. “We look forward to the enabling legislation being tabled so that we have further details on the Clean Electricity ITC. Its speedy introduction will be critical to ensuring that Indigenous companies and corporations can fully participate in Canada’s many calls for power,” said Melo.
CanREA is also pleased that Greener Homes Initiative’s loan program will continue to be funded under Budget 2024, which proposes to provide $903.5 million to Natural Resources Canada over six years starting in 2024-25, of which $800 million will support the launch a new Canada Greener Homes Affordability Program.
This Program, which will support the direct installation of energy efficiency retrofits for Canadian households with low to median incomes, represents the next phase of the Canada Greener Homes Initiative and will be co-delivered with provincial and territorial partners. It will also be complemented by CMHC’s Greener Homes Loan program, which provides interest-free loans of up to $40,000 for energy efficiency.
“The Green Choice Program has helped thousands of Canadians go solar, and its continuation will be incredibly important for the further development of Canada’s residential solar sector,” said CanREA Director of Distributed Energy Resources, Erwin Heuck.
While Budget 2024 did not provide the implementation legislation for the Clean Technology Manufacturing ITC, Clean Hydrogen ITC, or Clean Electricity ITC, it provides an update to the timeline for these to be legislated. CanREA will continue to advocate for accelerating the rollout of Canada’s Investment Tax Credits.
