Community solar projects are an excellent example of the opportunities the shift towards net-zero presents. These projects allow multiple households or businesses to share the benefits of a single solar project.

In 2015, 196 Parties entered the Paris Agreement, a significant turning point in the fight against climate change. To limit global warming, countries have committed to reducing their greenhouse gas (GHG) emissions, with the final goal of achieving net-zero emissions by the second half of this century. This commitment has led governments worldwide to focus on political and economic policies geared towards net zero.

In this political and economic shift, governments have turned to renewable energy resources for options to reduce their GHG emissions. Solar energy has emerged as a key player, contributed mainly by factors such as the cost of solar panels falling significantly over the past few years and technological improvements to make the systems more efficient and reliable.

Canada and the US have both committed to achieving net-zero emissions by 2050. President Biden has set a target of achieving 100% clean electricity in the US by 2035. To achieve this, the Biden administration has proposed numerous measures, including tax incentives, investments in renewable energy infrastructure, and promoting community solar projects.

Bearing witness to this noteworthy development in the energy arena over the past two decades companies like SolarBank Corporation (CSE: SUNN) have been providing turn-key solutions to help business leaders and organizations achieve net zero. These organizations are dedicated to providing origination, development, engineering, installation, financing, operation, maintenance, and management of solar power infrastructures.

These companies have mastered taking advantage of governments' financial incentives regarding solar and renewable energy. For example, several federal tax incentives are available in the US for residential and commercial solar installations. The most significant of these is the solar investment tax credit (ITC), which provides a credit of 26% of the solar installation cost for residential and commercial properties. In addition to the federal tax incentives, many states also offer tax credits for solar installations. One of the most attractive states for solar developers is New York, which provides a state tax credit of up to $5,000 for commercial solar installations.

Community solar projects are an excellent example of the opportunities the shift towards net-zero presents. These projects allow multiple households or businesses to share the benefits of a single solar project. This will enable individuals who may need more space or resources to install their own solar panels to still benefit from the perks of solar energy. In addition, community solar projects can provide solar power to low-income households or communities that may otherwise cannot access it and provide greater savings in the long run.

Another opportunity the shift towards net-zero presents is the use of renewable energy credits (RECs). RECs are a way for businesses and organizations to support renewable energy projects without purchasing the electricity they produce. When a renewable energy project generates electricity, it also generates RECs. These RECs can be sold to businesses and organizations wanting to offset their carbon emissions. This provides an additional revenue stream for renewable energy projects and helps to support their continued growth.

The political shift towards net-zero has significantly affected the solar energy market, with solar energy emerging as a key player in the transition to a low-carbon economy. Canada and the US have both set ambitious net-zero targets. They are taking a variety of measures to achieve them, including tax incentives, community solar projects, and the use of RECs. The adoption of solar energy presents a range of opportunities for businesses and individuals, including community solar projects, net-metering policies, and BTM installations. By continuing to promote the adoption of solar energy, we can work towards achieving a more sustainable future for all.


Dr. Richard Lu is President and CEO of SolarBank. He possesses more than 25 years of global energy experience developing and implementing growth strategies for organizations in North America, Europe, and Asia. Visit SolarBank at www.solarbankcorp.com