Off-Grid Rebates & Taxes in BC: What Applies and What Doesn’t

No BC Hydro rebate off-grid, but the PST exemption still applies to panels and inverters. Batteries are taxable either way.

This is the question we get asked earliest and answered wrongly most often. Off-grid properties in BC are not eligible for BC Hydro’s solar and battery rebates — but the provincial PST exemption on solar equipment does still apply. Here is exactly where the line falls, and why.

Why off-grid gets no BC Hydro rebate

BC Hydro’s residential solar and battery rebates are a utility programme, not a government grant, and the eligibility rules are explicit. BC Hydro states that “the property must have a BC Hydro residential account,” and that “solar generation must connect to our distribution system through the self-generation program.”

An off-grid property has neither. There is no account because there is no service, and there is nothing to connect to the distribution system. It is not a paperwork problem you can work around — the programme is designed to pay for generation that interacts with BC Hydro’s grid.

For the same reason, customers of other BC utilities are excluded: BC Hydro says “customers of other utilities within B.C., such as FortisBC, are not eligible for these rebates.”

What a grid-connected property would have got

For context, so you can weigh it against an extension quote:

  • Solar: $1,000 per kW of installed capacity, up to $5,000, capped at 50% of total installed cost including labour and materials.
  • Battery: $500 per kWh of installed storage, up to $5,000, same 50% cap, with a 5 kWh minimum system size.
  • Pre-approval is mandatory — you must be approved before purchasing equipment.
  • Peak Saver changes from 1 April 2026: batteries enrolled in Peak Saver qualify for up to $5,000; batteries paired with solar but not enrolled drop to up to $1,500; and battery-only systems without Peak Saver are no longer eligible at all.

If your extension quote is close to the off-grid system cost, the rebates are a real thumb on the scale toward connecting. Weigh both in off-grid vs a BC Hydro line extension.

The PST exemption does apply off-grid

This is the part that surprises people. BC’s PST exemption for solar equipment sits in Bulletin PST 203 (issued March 2013, revised September 2022), and it contains no requirement to be grid-connected or to hold a utility account. The exemption follows the equipment, not the connection.

The bulletin exempts “solar photovoltaic collector panels, and wiring, controllers, and devices that convert direct current into alternating current, if they are obtained with, and as part of, a system that includes solar photovoltaic collector panels.”

Two conditions are doing real work in that sentence. The equipment must be bought as part of a system that includes panels — components bought separately later do not qualify. And it is the listed items that are exempt: panels, wiring, controllers, and inverters.

Batteries are not PST-exempt

This one catches almost everybody, and it matters more off-grid than anywhere else, because off-grid systems carry the largest battery banks. Bulletin PST 203 is unambiguous: “batteries are considered generic goods and do not qualify for the exemption, even if they are obtained for the operation of ocean, wind, solar and micro-hydro power generating systems.”

So on an off-grid build, expect the panels, wiring, controllers and inverter to come through exempt, and expect PST on the battery bank. Any quote that shows the whole system as tax-free is wrong, and you would rather find that out now than at invoicing.

Net metering and Rate Schedule 2289 are irrelevant here

Off-grid, there is nothing to export and no rate schedule to sit on. The July 2026 shift that moved new grid-tied customers onto Rate Schedule 2289 — and the roughly 10¢/kWh export credit that came with it — simply does not touch you. If you are weighing a nearby connection, that shift is worth understanding: see Rate Schedule 2289 explained and is net metering going away in BC?

The short version

  • BC Hydro solar rebate — not available off-grid (requires a BC Hydro account).
  • BC Hydro battery rebate — not available off-grid (same reason).
  • PST exemption on panels, wiring, controllers, inverters — applies, when bought as part of a system.
  • PST on batteries — payable, grid-tied or off-grid.
  • Net metering / RS 2289 — not applicable.

Tax treatment and programme rules change, and this is general information rather than tax advice — confirm current rules with the B.C. Ministry of Finance or your accountant before you budget. We keep this page current as of August 2026.

Sources

Claiming the PST exemption properly

The exemption is not something you apply for after the fact — it is applied at the point of sale, which means the way the purchase is structured determines whether you get it.

  • Buy the qualifying items as part of a system. The bulletin’s wording is explicit that wiring, controllers and inverters qualify when “obtained with, and as part of, a system that includes solar photovoltaic collector panels.” An inverter bought on its own months later is a different transaction.
  • Make sure the invoice itemises. Exempt items and taxable items should appear as separate lines, so the tax treatment is visible and defensible.
  • Keep the documentation. If the treatment is ever questioned, the invoice showing the system purchase is the evidence.

This is one reason a single supplier contract for the whole system is usually cleaner than assembling components from several sources over a long period.

Common myths, corrected

  • “Off-grid is tax free.” No. Panels, wiring, controllers and inverters are PST-exempt; batteries are not, and on an off-grid build the battery is often the largest single line.
  • “There must be a federal grant.” The federal Greener Homes grant and loan are no longer available. Do not budget around them.
  • “I can get the BC Hydro rebate if I connect later.” Rebates require pre-approval before you purchase equipment. Buying an off-grid system now and connecting afterwards does not retroactively qualify the equipment.
  • “FortisBC customers get the same rebates.” No — BC Hydro states that customers of other utilities in B.C., such as FortisBC, are not eligible.

If the property is a business asset

The picture differs if the off-grid system serves a commercial operation rather than a private residence — a lodge, a remote worksite, a farm operation. Federal measures aimed at clean-energy equipment for businesses, including the Clean Technology investment tax credit and accelerated write-off provisions, are tax measures rather than utility programmes, so they are not conditioned on having a BC Hydro account in the way the rebates are.

Whether a given system and entity qualify is a question for your accountant, and the rules have specific conditions around ownership, use and timing. We flag it because owners of remote commercial properties frequently assume that being off-grid rules out every incentive, which is not the case on the federal tax side.

What to ask a supplier before you sign

  • Which line items are being treated as PST-exempt, and which are taxable?
  • Is the battery quoted with PST included?
  • Is anything in the quote contingent on a rebate we are not eligible for?
  • Is the whole system being supplied under one contract, so the exemption conditions are met?

A supplier who answers these crisply is a supplier who has done off-grid work in BC before. It is a useful screening question in its own right.

Frequently asked questions

Could I connect to the grid later and claim the rebate then?

Not for equipment you have already bought. BC Hydro requires application pre-approval before you purchase, so a system installed off-grid and later connected does not retroactively qualify. If there is any realistic prospect of connecting, it is worth resolving that question before you buy rather than after.

Does the PST exemption cover installation labour?

The exemption as written applies to the listed goods — panels, wiring, controllers and the devices converting DC to AC — obtained as part of a system including panels. Labour is a separate matter from the goods, and how a supplier presents it on the invoice affects clarity. Ask for an itemised quote so the treatment of each line is explicit, and confirm with the Ministry of Finance if a large sum turns on it.

What about mounting racking and the charge controller?

Controllers are named in the exemption. Racking is not named alongside them, which is why an itemised invoice matters — you want the supplier to state which lines they are treating as exempt rather than discovering the assumption later. A supplier experienced in BC off-grid work will answer this immediately.

Is there any provincial off-grid programme at all?

The main provincial measure that reaches off-grid systems is the PST exemption. The BC Hydro rebates are a utility programme conditioned on being a BC Hydro customer, so they do not. Programmes change, and this page reflects the position as of August 2026 — confirm current rules before budgeting.

Designing an off-grid system for your property

This guide is one part of a bigger picture. Our off-grid and remote solar page sets out how we approach a whole system — array, storage, generator and monitoring — for cabins, islands and acreage across coastal BC, and the other guides in this series cover the grid-extension comparison, winter sizing, rebates and PST, and batteries and generators.

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