Electricity discount program to promote greenhouse development

Summary of the measure

Under the March 2017 Québec Economic Plan, the government announced the establishment of an electricity discount program to promote greenhouse development.

Through the program, greenhouse producers that carry out one or more eligible investment projects can receive government assistance in the form of reduced electricity bills.

The assistance paid in the form of reduced electricity costs allows for the reimbursement of up to 50% of the eligible costs, namely:

  • the reimbursement of 40% of the eligible costs incurred;
  • an additional reimbursement of up to 10% of the eligible costs incurred for projects to convert the heating system to electricity.
    • The additional discount will also be available for new greenhouse projects in respect of which an electric heating system is chosen.

The maximum reduction of the electricity bill is 20%, for a maximum period of four years or, in the case of an application where the eligible costs are at least $5 million dollars, six years. The reduction will apply in addition to the applicable rate options regardless of the applicable electricity rate.

Eligibility

To be eligible for the measure, investment projects must be carried out in Québec in a greenhouse whose main activity is commercial. The application for eligibility that a business submits can combine several investment projects.

The total planned investments in the application must reach a minimum investment threshold of $125 000.

Projects that begin starting January 1, 2019 can be submitted until December 31, 2019.

Eligibility certificate

Businesses must submit a detailed investment plan and show that each of the projects achieves one of the program’s objectives, namely:

  • a start-up or increased production;
  • enhanced productivity through the modernization of equipment or production methods;
  • the conversion of a fossil-fuel heating system to an electric heating system.

Application period for the measure

A discount can be applied to an establishment’s electricity bill for consumption between September 30, 2017 and December 31, 2028. The discount will take effect once the first audit report is produced. Furthermore, an electricity bill can be reduced for a maximum period of four years or, where the eligible costs are at least $5 million, six years.

In cases where more than one discount can be applied, unless otherwise indicated by the business, the discounts can be applied consecutively in the order in which they are requested.

Maximum reduction of the electricity bill

The maximum reduction of the electricity bill will be 20%, for a maximum period of four consecutive years or, where the eligible costs are at least $5 million dollars, six years.

The amount of the eligible reimbursement is calculated according to the investments made. If the amount of the eligible reimbursement for a given year exceeds the maximum reduction of 20% of electricity costs, the surplus may be carried over to subsequent years.

Parameters and terms and conditions of the measure