Powering Manitoba’s Future: How Solar Energy Fits into Our Province

Solar power is transforming how the world produces electricity - even in cold climates like Manitoba. As the cost of solar technology continues to drop and traditional energy prices rise, solar has become the most affordable source of new power generation. This shift isn’t just global; it’s influencing how energy is planned and produced right here in Manitoba.

Global Growth, Local Lessons

Around the world, solar growth is strongest in unregulated energy markets, where developers can easily build large-scale solar farms and sell electricity directly into the grid.

Alberta, for example, accounted for 70% of all new solar development in Canada in 2023 thanks to its open energy market. Similarly, states like Texas are seeing major investment in utility-scale solar due to their streamlined project approvals and low-cost electricity.

The Manitoba Difference

Here in Manitoba, where power generation is managed by Manitoba Hydro, solar development follows a different path. As a winter-peaking utility, Manitoba Hydro’s highest energy demand occurs during the coldest months, when solar production is naturally at its lowest.

That said, solar still plays an important role here. While large, grid-tied solar farms may not always offer strong returns under current power purchase rates, behind-the-meter solar installations can be an excellent investment for homeowners and businesses.

What “Behind the Meter” Means

A behind-the-meter solar system produces electricity that is first used by the building itself. Any excess power that isn’t immediately consumed can be sold back to Manitoba Hydro at a prescribed rate, adjusted annually.

While that rate isn’t high enough to make large-scale energy sales profitable, the real financial benefit comes from offsetting the power you would otherwise buy from the grid. Each kilowatt-hour you produce and use on-site directly reduces your electricity costs, an advantage that becomes even more compelling when combined with Manitoba’s current incentives and tax programs.

Solar Incentives That Make It Worthwhile

Efficiency Manitoba offers both residential and commercial solar programs designed to make solar energy more affordable:

• $500 rebate per kilowatt of installed solar capacity.

• Homeowner rebate capped at $5,000, with no cap for businesses.

Businesses can also benefit from additional federal incentives:

• The Clean Technology Investment Tax Credit (ITC) provides a 30% refundable tax credit on project costs (after rebates).

• The Accelerated Capital Cost Allowance (CCA) lets businesses write off their investment more quickly, reducing taxable income.

When these programs and incentives are combined, businesses can save over 50% on the total cost of a solar installation, making solar an attractive investment even in a province with relatively low electricity rates.

Solar as a Tool for Energy-Efficient Design

For new construction projects, solar power is increasingly being used to help meet energy efficiency and sustainability targets. Once a building’s envelope, mechanical systems, and lighting have been optimized, rooftop solar can help close any remaining gap in energy modelling.

Beyond supporting certification and compliance goals, solar also reduces long-term operating costs, enhances asset value, and supports Manitoba’s broader sustainability objectives.

Solar in a Northern Climate

A common question in Manitoba is how snow affects solar performance. While snow accumulation can temporarily reduce output, the impact is minimal over the course of a year. Systems are designed and angled to maximize production during the sunniest months, and the higher summer output easily compensates for any winter losses.

Maintenance and Peace of Mind

Solar panels are largely maintenance-free, but like any electrical system, preventative maintenance can help ensure consistent performance. Regular system checks, such as thermal scanning, can help detect potential issues early before they affect performance.

Most system failures occur in inverters, which convert DC energy from the panels into usable AC power. Inverters typically come with 5-12 year warranties, but because they’re electronic components, choosing a reputable manufacturer with reliable service support is essential to long-term system reliability.

Engineering for Manitoba

At SMS Engineering, we design energy systems that make sense for Manitoba, systems that are efficient, sustainable, and engineered to perform in our northern climate. Whether you’re a homeowner looking to lower your energy costs or a business exploring sustainability upgrades, solar power can be a smart, forward-thinking investment in your future.

Delivering ingenious solutions and total peace of mind, that’s the power of smart design.