The two main programs which also provide solar thermal incentives are “Renewable Energy Deployment Initiative” and the “Renewable Power Production Incentive”.
Renewable Energy Deployment Initiative
REDI is a 9-year, CAN$ 51 million program designed to stimulate the demand for renewable energy systems for water heating, space heating and cooling, which came into effect on April 1, 1998, and will expire on March 31, 2007. The initiative funds 25% of project costs for the installation of qualifying solar air or solar water heating systems. Eligible for the rebate are industry clients, businesses, public institutions, energy services companies and federal facilities. The refund rate can even reach up to 40% of development, purchase and installation costs of qualifying solar systems in remote communities. The maximum refund per installation is CAN$ 80,000 with a maximum amount of CAN$ 250,000 paid to non-federal ER for multi-installations. Solar thermal used directly in an industrial process is also eligible for the funding scheme allowing industrial process heat clients to obtain both the tax relief and the REDI incentive.
Renewable Power Production Incentive
The "Renewable Power Production Incentive" (RPPI) was introduced in 2005 to stimulate the installation of up to 1,500 MW of new renewable energy electricity generating capacity. An incentive payment of 1 cent per kilowatt-hour of production for the first 10 years of operation will be introduced for eligible projects commissioned after March 31, 2006 and before April 1, 2011. The Budget 2005 is providing CAN$ 97 million over the next five years and a total of CAN$ 886 million over 15 years.
Green Municipal Funds
The "Green Municipal Investment Fund" (GMIF) supports the implementation of innovative environmental projects. It enables a municipal government to borrow at preferred interest rates of 1.5% below the Bank of Canada bond rate. Partners are also eligible for loans at attractive rates. The fund has a volume of CAN$ 200 million which it also provides as grant for the funding of pilot projects with significant environmental impact and replication on a regional or national basis.