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British Columbia Commercial Solar Incentives

BC's standout incentive is its 7% PST exemption on solar equipment, layered on top of the federal Clean Technology ITC and a utility export landscape that shifted significantly in 2026.

7% PST Exemption on Solar Equipment

British Columbia is the only province in Canada that exempts solar equipment from its provincial sales tax. Solar panels are always exempt; other related equipment, such as wiring, inverters, and mounting hardware, is exempt when purchased on the same invoice as the panels. This is an automatic point-of-sale exemption, not a rebate you apply for separately, and it applies to both residential and commercial purchasers.

Note on battery storage

Standalone battery storage purchased separately from a solar system does not automatically carry the same PST exemption that panels do. If you're bundling storage with a new solar installation, confirm with your installer and the province's current bulletin how the exemption applies to your specific invoice structure.

Source: Province of British Columbia — PST Exemptions and Documentation Requirements

BC Hydro Self-Generation Service Rate (Rate Schedule 2289)

Effective July 1, 2026, BC Hydro closed its legacy net metering rate (Rate Schedule 1289) to new applicants. New commercial self-generation customers are placed on Rate Schedule 2289, which pays a flat 10¢ per kWh for electricity exported to the grid, settled each billing cycle rather than banked as credits into the following winter. Systems already on the old net metering rate keep it for 10 years from their original service start date before transitioning automatically. Export is capped at 100 kW per phase.

Source: BC Hydro — Self-Generation

FortisBC Net Metering

Businesses in FortisBC's electric service territory, which includes parts of the Southern Interior around Kelowna, operate under a separate net metering program capped at 50 kW, crediting exported energy at the same rate FortisBC pays other power producers, banked and settled annually rather than every billing cycle. Because FortisBC and BC Hydro run different programs, which utility serves your address materially changes how a system should be sized.

Federal Programs Still Apply

The 30% Clean Technology Investment Tax Credit and CCA Class 43.1/43.2 accelerated depreciation covered on our national incentives page apply in BC exactly as they do anywhere else in Canada, and stack with the provincial PST exemption since they operate through entirely different mechanisms.

Frequently Asked Questions

Is BC's PST exemption still available in 2026?

Yes. The exemption on solar panels and related equipment purchased with them remains in effect under the province's energy conservation tax bulletin, and it applies automatically at the point of sale for both residential and commercial purchasers.

Which BC Hydro rate applies to a new commercial solar project?

New commercial self-generation customers are placed on Rate Schedule 2289, the self-generation service rate, which pays a flat 10 cents per kWh for exported electricity settled each billing cycle. This replaced the older Rate Schedule 1289 net metering program for new applicants starting July 1, 2026.

Does the same BC Hydro rate apply everywhere in the province?

No. BC Hydro's rate schedules apply within its own service territory. FortisBC operates a separate net metering program in parts of the Southern Interior, including areas around Kelowna, with different terms. Confirm which utility serves your facility before finalizing a system design.

Should my system be sized differently under the new export rate?

In most cases, yes. Because BC Hydro's flat export rate is generally lower than the value of self-consumed generation, oversizing a system purely to maximize export is less financially attractive than it was under the old banking rules. Pairing solar with battery storage to shift more generation into self-consumption is now a stronger design choice for many BC facilities.

See Your BC Incentive Stack

Get a free, no-obligation review of every program your Vancouver or Kelowna project qualifies for.