Claiming HST for Your Residential Net Metering System
You may have heard through the grapevine that if you get a solar power system for net metering your residence, it is recommended that you register with Canada Revenue Agency (CRA) for an HST number to allow you to claim back the HST paid for the system and/or power purchased from your utility.
This is a myth.
Here is a small excerpt from the CRA website on the topic; the link for which can be found below.
“A GST/HST registrant (other than a financial institution) is eligible to claim full input tax credits (ITCs) for the GST/HST paid or payable by them on the purchase of capital personal property if the property is for use primarily in commercial activities of the registrant.”
Here is another link to a Tax Interpretation prepared and posted by the Legislative Policy and Regulatory Affairs Branch.
https://taxinterpretations.com/cra/severed-letters/2017-0685341e5
Before you accept tax advice and/or financial advice from friends, family and businesses (including us), please ensure you have spoken to your professional accountant and/or the CRA. Doing so can potentially save you money in the right circumstances, but it can also save you a lot of major problems if you misunderstood the rules.
Claiming HST for your residential net metering system is a great way to reduce the overall cost of going solar. By understanding the process and eligibility requirements, you can maximize your savings and make your solar investment even more affordable. Ready to explore solar energy for your home? Visit Sunly.ca to learn more about our services, check out our blog on solar panel costs, or contact us for expert guidance. Don’t forget to read our customer reviews and find out how many solar panels you might need for your home. Go solar with confidence and start saving today!
If you have any questions or concerns about this, we are always happy to help at 1-833-GO-SUNLY