EditTax Implications
EditIncome and Property Tax
Questions keep coming up about income tax implications of owning a solar electric system and selling your power back to the grid under Ontario's Feed-In Tarrifs (FITs) program, so this brief is intended to capture all of what is known about the topic so far.
The link below will take you to another website, maintained by one of the Our Power Steering Committee members. The page will be updated as more is learned, and what is currently there is based on Tax Act Rules of April 2009.
Tax ImplicationsEditProperty Tax
The Ontario Ministry of Finance has confirmed recently with Our Power that the addition of a solar PV system does NOT affect property value assessments for tax purposes in Ontario. Solar PV systems are considered "Machinery for producing electric power" and the following is the specific direct exempt from the Ontario Property Assessment Act covering them:
Ontario Assessment Act R.S.O. 1990, CHAPTER A.31 Property assessable and taxable, exemptions
3. (1) All real property in Ontario is liable to assessment and taxation, subject to the following exemptions from taxation: Machinery for producing electric power
18. All machinery and equipment including the foundations on which they rest to the extent and in the proportion used for producing electric power but not including any buildings, structures, structural facilities or fixtures used in connection therewith.Note that solar PV ground mount systems over 10kW in size may, however cause a change of land use which may increase your taxes even though the property assessment remains unchanged (i.e. a change from "Rural" classification to "commercial").
If you have any difficulty with MPAC in this regard, please notify us immediately at ken@ourpower.ca and cc mikebrigham@sympatico.ca.
For more complete information on taxation and the applicable deductions related to revenues from solar PV electricity production, please see
Tax ImplicationsDisclaimer: This information is intended to make residential homeowners aware of residential solar electric system income tax implications as a guide only, but does not constitute an opinion and should not be relied upon as such. The advisability of any course of action mentioned above depends on your particular financial, tax and legal circumstances. Readers may wish to consult an accountant before implementing the suggestions made above.