Canada CleanTech Funding Guide
The complete handbook for environmental innovators. Secure SDTC grants, Clean Tech ITCs, and Net Zero Accelerator funding.
Top CleanTech Funding Streams
The premier funding body for Canadian cleantech. SDTC funds pre-commercial demonstration of technologies that address climate change, clean air, clean water, or clean soil.
- Average Contribution: $2M - $5M
- Non-Repayable (Grant)
- Funds 33-40% of project costs
- TRL 5-8 (Beyond prototype, not yet sales)
- Strong consortium (partners)
- Quantifiable environmental benefits
A powerful refundable tax credit for businesses investing in eligible clean energy equipment.
*Must pay prevailing wages for installation labor to get full rate.
For massive industrial decarbonization projects. Part of the Strategic Innovation Fund.
SDTC Application Lifecycle
Phase 1: Initial Proposal (SOI)
Submit a Statement of Interest (SOI). This is a shorter document outlining the technology, the market, and the environmental benefits.
Phase 2: Full Proposal
If invited, submit the Full Project Proposal (FPP). This requires a detailed GANTT chart, full financial workbooks, and confirmed consortium partners.
Phase 3: Due Diligence
SDTC sends external experts (technical and financial) to grill your team. They verify your claims and check your IP status.
Approval & Board Presentation
Final approval by the SDTC Project Review Committee and Board.
CleanTech Winning Strategies
SDTC hates "lone wolf" projects. You need a Consortium: A partner who is a potential first customer, validating the tech in the real world.
Vague promises like "cleaner air" fail. You need: "Reduces GHG by 50,000 tonnes CO2e/year by 2030, verified by ISO 14064."
CleanTech Funding FAQs
Can early-stage startups apply for SDTC?
Typically no. SDTC is for "Demonstration" (TRL 5-8). If you are still in R&D (TRL 1-4), look at IRAP or SDTC Seed Funding (via accelerators).
Is the Clean Tech ITC taxable?
Yes. The ITC reduces the capital cost of the equipment for CCA (depreciation) purposes, effectively increasing taxable income over time, but providing immediate cash flow.
What happens if I sell the equipment?
If you sell ITC-funded equipment within a certain period (usually 10-20 years), there may be a recapture of the tax credit.
Common Questions About CleanTech Funding
1. Is the Clean Technology ITC refundable?
Yes. The 30% Investment Tax Credit (ITC) is fully refundable. This means if you have no tax payable, the CRA will send you a cheque for the credit amount.
2. Does SDTC take equity?
No. SDTC contributions are non-repayable grants. They do not take equity, IP rights, or require repayment (unless you default on the contract terms).
3. What equipment qualifies for the ITC?
Eligible property includes solar, wind, and water energy systems, stationary electricity storage (batteries), and low-carbon heat equipment. Consult the CRA Class 43.1/43.2 guide for details.
4. Can I stack SDTC with the ITC?
Yes, but the "capital cost" used to calculate your ITC will be reduced by the amount of the SDTC grant. You cannot get funded for more than 100% of the asset's cost.
5. What TRL does SDTC fund?
SDTC focuses on TRL 5-8 (Technology Readiness Level). This means you have a working prototype and are now testing it in a real operational environment (demonstration). They do not fund early stage R&D (TRL 1-4).
6. Is there funding for EV charging?
Yes. The ZEVIP (Zero Emission Vehicle Infrastructure Program) offers up to 50% funding for installing EV chargers at workplaces or public sites.
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