On January 4, 2012, Ontario amended O. Reg. 282/98 under the
Assessment Act to provide new rules with respect to the
assessment of property taxes on renewable energy installations.
These amendments apply to facilities that generate electricity
using solar energy, wind energy or anaerobic digestion of organic
matter. The amendments differentiate between rooftop and ground
solar installations, as well as between entities whose primary
business is the generation, transmission or distribution of
electricity (corporate power producers) and persons who are not
ordinarily in the business of electricity generation (ancillary
For rooftop solar installations the amendments provide that the
assessment and tax classification of property will not change due
to the addition of a renewable energy installation on the rooftop
of a building. For ground-mounted installations, the property tax
treatment will depend upon the size and location of the facility as
well as who is conducting the generation. Corporate power
producers will be taxed at the industrial rate, regardless of the
size of the facility. With respect to ancillary producers, no
changes were made with respect to ancillary producers up to 10 kW.
Ancillary producers of greater than 10 kW of solar or wind energy
will be taxed at the surrounding land use rate for up to 500 kW and
then at the industrial rate for the proportion over 500 kW. On-farm
anaerobic digesters over 10 kW, which are operated by farmers, will
be taxed at the surrounding land use rate regardless of size. These
amendments took effect as of January 1, 2011.
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Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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