In a 6-3 decision, the Supreme Court of Canada has ruled that the federal Liberal government’s carbon pricing is constitutional — a major decision that allows Ottawa to push ahead with its ambitious plan to ensure every province and territory has a price on carbon to curb greenhouse gas emissions.
So, what does this mean for Alberta?
In 2018, Alberta – among other provinces – forcefully opposed the Federal Governments carbon tax legislation, arguing natural resources are in the provinces’ jurisdiction under the Constitution.
But today, the supreme court of Canada ruled the Federal Governments carbon pricing is constitutional and now the federal government is free to impose minimum pricing standards to carbon emissions. This will mean Alberta’s carbon pricing will increase from $30 to $170 by 2030.
How will the Carbon Tax changes affect you as an Albertan?
Although we may not see the effects right away, Albertan’s can expect to pay more for carbon-intensive products in the coming years. This means forking out more money to fill your car, heat your home and power your electronics. Concerns for business owners, already struggling heavily from the covid-19 pandemic, are paramount as well.
Business owners and operators in Alberta have every right to be concerned over the financial implications of a federal carbon tax. Among countless other sectors, Alberta’s electricity market will be highly impacted. Forecasts show that a federal carbon tax will cause electricity prices in Alberta to increase at twice the expected rate over the next 15 years. By 2035, prices are expected to be 50% higher than today, with 30% of that coming from the federal tax.
If they haven’t already, businesses should be looking towards solutions to mitigate these rising costs and uncertainties. Part of that solution, according to many businesses across Alberta, is to install a solar energy generating system.
How can Solar curb the Carbon Tax cost increase?
Businesses across Alberta have already begun investing heavily into solar energy. For some it is an environmental stewardship that is core to their business ethos, but for many others it just makes financial sense.
Solar energy is unlike any other electricity source. Not only does it covert sunlight into electricity with no moving parts or emissions, but it does so with a high degree of certainty. Although minor fluctuations are normal, solar energy systems are highly predictable and provide a consistent source of electricity for their 30+ year service life.
In this highly unpredictable time, business owners that have already invested in solar energy can take solace in the fact that their electricity costs will remain low. As a consolation to today’s announcement, their investment in solar energy just became more lucrative.
At Inferno Solar, we have a highly experienced team that can help you navigate the new Carbon Tax Legislation and keep your bottom line in place.
Contact us today to find out how we can help!