Incentives and Costs

SolarBC is working to ensure that solar hot water is an accessible and affordable consumer choice for heating hot water in the home.

The total cost for an installed solar hot water system will range between $4,500 and $7,000. Costs will vary depending on where you live in the province and which installer and system you use. While there will be some geographical challenges and additional costs incurred in some instances due to travel, our contractors have committed to servicing customers within this price range.

SolarBC is 100 percent committed to identifying and overcoming barriers to having solar hot water installed. In terms of covering the cost of the energy assessments, LiveSmart BC will contribute $300 to the cost of both assessments ($150 towards the cost of the first assessment and $150 rebate once the second assessment is complete). In terms of covering the costs of installation, SolarBC has a number of options available for participants:

Option 1: SolarBC Incentives Only

There are up to $1,625 incentives available towards the costs of installing solar hot water. SolarBC contractors will provide you with a $1,000 discount at the point of sale and a further $625 are available from the Federal ecoEnergy Retrofit and the LiveSmart BC programs, upon completion of your second energy assessment. The remaining cost of the installation will be due for payment to your registered contractor on completion of the work.

Option 2: SolarBC Low Interest Financing

TD logo Rather than the full $1,000 point of sale discount, participants can opt for a lower $300 point of sale discount and can finance the remaining cost of the system through our SolarBC Low Interest Loan. SolarBC has negotiated a special rate for participants through our finance provider, TD Bank. The SolarBC Low Interest Loan can provide a five year, fixed rate loan at 3.75 per cent. For a $6,000 loan, this will mean payments of approximately $110 per month, making the installation costs much more affordable. Customers can also choose to pay down the loan at anytime over the five years with no penalties. This special SolarBC loan is only available to SolarBC participants who install solar hot water in their homes. SolarBC contractors will make the loan application on your behalf, in your own home and an approval decision will be provided within twenty four hours. All aspects of the loan are administered on your behalf by SolarBC. Ask your registered contractor for more information on the SolarBC Loan. You will still receive an additional $625 rebate from the Federal ecoEnergy Retrofit and the LiveSmart BC programs. So a total of $925 of incentives is available under this option when combined with a SolarBC low interest loan.

Option 3: SolarBC Neighbourhoods

While we do have contractors in place to service the whole province, the number of solar contractors is currently very small in BC. We are working towards changing that and hope to have at least 20 certified installers and more registered contractors as we move forward. In the meantime, it may be more beneficial for interested participants in more remote communities to take a ‘community’ approach by grouping together with friends and neighbours. This could help reduce travel costs for energy advisors and contractors and may even reduce installation costs if a larger number of systems are purchased. For instance, if a number of customers in the Queen Charlottes showed interest, then it would be more cost effective to organize energy assessments and installations around the same time.

Option 4: Independent Financing

Participants may also choose to arrange their own financing for their solar hot water system, independently of SolarBC, for example as part of a home mortgage or through a line of credit. With longer term loans of 20 years or more, monthly solar energy savings will normally be greater than the costs of such a loan. In addition, some lenders offer special rates for energy efficient improvements such as the Van City Bright Ideas variable rate loan at prime. To qualify, you need to make renovations recommended by an ecoENERGY Retrofit evaluation of your home. These renovations must achieve at least a five-point improvement in your home’s energy efficiency rating. See www.vancity.com for more information.

Provincial Sales Tax Exempt

Premier Gordon Campbell

Purchases and leases of prescribed wind, solar, and micro-hydro power generating equipment are exempt from PST.

Please note that while the following materials and equipment are exempt, they must be sold as complete units in order for their component parts (such as wiring, controllers, devices, tubing, etc) to qualify for the exemption. If the component parts are sold separately, they are taxable, even if the complete unit is split up and invoiced separately for shipping purposes.

  • Solar photovoltaic collector panels, together with wiring, controllers, and devices that convert direct current into alternating current, when they are sold with, and as part of, that system.
  • Solar thermal collector panels, together with wiring, pumps, tubing, and heat exchangers, when they are sold with, and as part of, that system.

Please follow this link to find out about more about Provincial Government PST exemptions for equipment and material used to conserve energy.