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Gondaliya CPA

Corporate Tax Filing Experts

Accountant for Solar Installation Companies in Ontario and Across Canada

We carry your installation and EPC jobs as WIP, hold back the Construction Act 10% correctly, position your clients and your own equipment for the 30% Clean Technology ITC and Class 43.2 accelerated CCA, value your panel and inverter inventory, put your trucks and tools in the right class, claim your apprenticeship credit, and plan the tax on your solar installation company. Whether you run residential rooftop solar, commercial and industrial EPC projects, agricultural solar, or solar-plus-battery-storage and net-metering installs, we handle the contractor books, the percentage-of-completion WIP and holdbacks, the Clean Technology ITC and Class 43.2 accelerated CCA, the panel, inverter and battery inventory, the ESA-licensed electrician and apprentice payroll with WSIB and the apprenticeship credit, and the T5018 subcontractor filing, and plan the salary, dividends and eventual sale of your company — with AFFORDABLE flat fees.

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AFFORDABLE Solar Installation Company Tax Accountant

Running a solar installation company means your rooftop and EPC jobs are carried as work-in-progress on percentage-of-completion, the Ontario Construction Act keeps 10% of every progress billing back until the lien period runs, your clients expect you to know the 30% Clean Technology ITC and Class 43.2 accelerated CCA cold, your panels and inverters sit on the balance sheet as inventory, and your ESA-licensed electricians and apprentices have to be paid every two weeks. That is why you need a specialist accountant for solar installation companies in Ontario. At Gondaliya CPA, we deliver WIP-and-clean-energy-ITC bookkeeping and corporate tax planning for solar installation companies, providing AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.

As experienced accountants for solar contractors, we work with residential rooftop installers, commercial and industrial EPC firms, agricultural solar builders, and solar-plus-battery-storage and net-metering installers across Ontario, with year-round support rather than a once-a-year filing. We tell you plainly what you can deduct, what you cannot, and how to capture every clean-energy credit and accelerated-CCA dollar the Income Tax Act allows.

Let us handle the numbers so you can focus on getting systems on roofs and connected to the grid.

Gondaliya CPA team - accounting and tax services for solar installation companies

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Accounting That Understands How a Solar Installation Company Actually Works

A solar installation company is a construction and electrical contractor whose clients get some of the biggest clean-energy tax breaks in the Income Tax Act, and the tax turns on getting both sides right. You carry jobs as work-in-progress, hold back the Construction Act 10%, position equipment for the Clean Technology ITC and Class 43.2 CCA, value panel inventory, and run a licensed electrical crew. At Gondaliya CPA, we understand that financial reality and provide practical, solar-contractor-focused solutions across the GTA and all of Ontario.

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Installation WIP & Holdbacks

Your rooftop and EPC jobs are carried as work-in-progress, and the Construction Act keeps 10% back until the lien period runs.

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Clean Technology ITC & CCA

The 30% refundable clean-tech credit and Class 43.2 accelerated CCA change the economics of every system you quote.

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Panels, Fleet & Tools

Your panels, inverters and batteries are inventory, and your trucks and tools each depreciate in a different CCA class.

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Electricians & Apprentices

Your ESA-licensed electricians and apprentices sit on payroll with WSIB, and the apprenticeship credit puts money back.

Stay Compliant and Minimize Your Solar Installation Company Tax

For a solar contractor, staying onside with CRA, ESA and WSIB while paying the least legal tax is one job. We keep every filing on schedule, time your revenue and holdbacks correctly, and capture every clean-energy credit and CCA dollar, so nothing is missed and nothing invites a reassessment.

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ESA, Construction Act & Subcontractor Reporting

Operating as a solar installer means holding the ECRA electrical contractor licence through the Electrical Safety Authority, keeping your licensed electricians current, and treating the Ontario Construction Act 10% statutory holdback as not earned until the lien period expires. We also prepare the T5018 Contract Payment Reporting slips your subcontractor payments trigger, keep WSIB coverage and building permits documented, and hold the six years of records section 230 of the Income Tax Act requires. Correct handling protects your bonding and stops a T5018 filing from drawing the $100-per-slip penalty.

CRA Obligations for Solar Companies

Staying compliant with CRA means far more than one return a year. We manage your 13% HST on installations, correct percentage-of-completion WIP and Construction Act holdback timing, the 30% Clean Technology ITC and Class 43.2 CCA claims, payroll remittances on the PD7A, and the Apprenticeship Job Creation Tax Credit on Schedule 31. By monitoring the areas CRA reviews most often on contractor files, we reduce your audit exposure and keep your solar company financially sound.

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Year-End Deliverables for Solar Installers

At year-end, a solar installation company needs a proper trial balance, financial statements showing work-in-progress, holdback receivable, panel and inverter inventory, and clean-energy and fleet assets, plus a T2 with GIFI and the Clean Technology ITC and CCA schedules. Where a bonding surety or equipment lender is involved, you also need CPA-compiled statements. Our team prepares every deliverable on time, so your file is audit-ready and financing-ready.

Accounting & Tax Experts for Solar Installation Companies

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  • AFFORDABLE + Fully Registered CPA Firm
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Why Choose Our Accounting Services for Solar Installation Companies?

1
🎯

Tax Planning — Clean-Energy & Contractor Expertise

We know the levers that carry a solar company: the 30% Clean Technology ITC, Class 43.1 and 43.2 accelerated CCA, the Schedule 31 apprenticeship credit, the section 85 rollover and the $500,000 Small Business Deduction. We claim every allowable amount and tell you which ones will not survive a CRA review.

2
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Consulting — WIP & Clean-Energy ITC Bookkeeping

Our bookkeeping is built for solar contractors. We run percentage-of-completion WIP, track Construction Act holdbacks, tag Clean Technology ITC-eligible assets, and cost every rooftop and EPC job so your margins and your tax position are visible in real time.

3
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CRA Representation — WIP, ITC & T5018 Audit

When CRA questions your revenue timing, your Clean Technology ITC and holdback treatment, or your T5018 filings, we prepare the response, defend the WIP and clean-energy claims, and pursue relief on Form RC4288 where penalties came from someone else’s error.

4
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Bookkeeping — Inventory, Payroll & Sale

We value your panel and inverter inventory, run your electrician and apprentice payroll with WSIB, and when you sell, structure the disposition and the section 85 rollover so the $1.25M LCGE is available on your qualifying shares.

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Solar Installation Company Tax and Accounting Services in Ontario

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Corporate Tax Filing for Solar Installation Companies

Professional T2 corporate return preparation with WIP, panel inventory, Clean Technology ITC and CCA schedules filed accurately and on time.

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Accounting & Bookkeeping for Solar Installation Companies

Reliable job-cost and WIP bookkeeping with financial statements, clean records, and monthly reporting built for a solar contractor.

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Corporate Tax Planning for Solar Installation Companies

Smart tax planning to protect the Small Business Deduction, time the Clean Technology ITC and Class 43.2 CCA, and plan salary and dividends.

Catch-Up Corporate Tax Filing for Solar Installation Companies

File overdue T2 and HST returns, rebuild missing records, and get back into CRA compliance with accurate catch-up filing support.

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GST/HST Filing for Solar Installation Companies

AFFORDABLE 13% HST filing with full input tax credits on panels, inverters, trucks and tools, so you remit correctly and avoid penalties.

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Corporate Tax Cleanup for Solar Installation Companies

Restate WIP and holdbacks, capture missed Clean Technology ITC and Class 43.2 CCA, and bring every filing fully compliant and up to date.

🛡

CRA Audit Resolution Services for Solar Installation Companies

Expert support for WIP, holdback, Clean Technology ITC and T5018 audits, reviews, objections, and negotiations with confidence.

📊

CPA Compilation Report (Notice to Reader) for Solar Installation Companies

CPA-compiled financial statements that bonding sureties and equipment lenders accept for financing and surety programs.

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Incorporation Services for Solar Installation Companies

Full incorporation including NUANS, articles, share structure, and the section 85 rollover of your existing solar business.

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Catch-Up Bookkeeping Services for Solar Installation Companies

Reconstruct months of job-cost ledgers, progress-billing holdbacks, panel inventory and unfiled T5018 subcontractor totals so your solar installation books are current, reconciled and audit-ready.

🌐

US Corporation & LLC Tax Filing for Solar Installation Companies

Cross-border 1120, 1120-F treaty and 5472 filings for solar installers working across the US border, with foreign tax credits, permanent-establishment and state nexus handled.

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Voluntary Disclosure Program for Solar Installation Companies

Correct unreported income, unremitted HST or unfiled T5018 slips through a Voluntary Disclosures Program application that limits penalties before CRA contacts your solar business.

Accounting & Tax Services Tailored for Solar Installation Companies

Real, practitioner-level CPA expertise for residential rooftop installers, commercial and industrial EPC firms, agricultural solar builders, and solar-plus-battery-storage and net-metering companies across Ontario — built for how a solar contractor actually runs.

  • We prepare your T2 return with the Schedule 100 and Schedule 125 GIFI and recognize installation contract revenue on percentage-of-completion, so work in progress is taxed in the correct year at the 12.2% Ontario small-business rate rather than reassessed by CRA.
  • We file Schedule 8 splitting your service vehicles into Class 10 at 30%, your install tools into Class 8 at 20%, and your design computers into Class 50 at 55%, so each pool depreciates correctly and no CRA auditor collapses them into one wrong rate.
  • We claim your owned clean-energy assets in accelerated CCA Class 43.2 at 50%, capturing a first-year deduction on solar arrays your company keeps for net metering that a standard Class 8 filing would slow to a fraction of the write-off.
  • We carry your solar panel inventory at the lower of cost or market under ITA section 10, so panels and racking sitting in your warehouse at year-end are not expensed early and cannot be reversed by CRA into a $50,000-plus income adjustment.
  • We attach the Clean Technology Investment Tax Credit schedule to your T2 to claim the refundable 30% credit on eligible storage and generation property, coordinating it with GIFI so the credit lands as cash rather than being lost to a filing omission.
  • We run percentage-of-completion job-cost bookkeeping in QuickBooks Online or Sage 50 synced to Aurora Solar and ServiceTitan, so every rooftop and EPC project over $100,000 shows cost-to-date, billings and margin, and your work-in-progress schedule ties out at year-end.
  • We track the Construction Act 10% holdback receivable in a separate account rather than as revenue, so the amount withheld on your progress billings is not recognized or taxed until the lien period expires and the holdback is released.
  • We value inverter inventory and battery storage inventory by job and location, reconciling Aurora Solar counts to Jobber and Simpro, so a $40,000 stock of unbilled equipment is never buried in cost of goods sold and mis-stating your margin.
  • We capture every supplier receipt through Dext and post panels, racking and subcontractor costs to the correct job, reconciling the 13% HST input tax credits on each purchase and keeping the six years of records section 230 of the Income Tax Act requires.
  • We build your chart of accounts in Xero mapped to installation, monitoring and O&M revenue and to WIP, holdback and inventory accounts, and reconcile deposits so a $25,000 equipment deposit is booked as a liability, not revenue, until the work is earned.
  • We model the salary-versus-dividend mix for the owners, protecting the $500,000 Small Business Deduction limit under section 125 so your active installation profit is taxed at 12.2% in Ontario rather than pushed into the 26.5% general corporate rate.
  • We time your Clean Technology ITC and Class 43.2 claims to the year they deliver the most benefit, because the enhanced first-year allowance phases out through 2027, so deferring an owned-array purchase can cost you thousands in the 30% refundable credit.
  • We claim the Apprenticeship Job Creation Tax Credit on Schedule 31 at 10% of eligible apprentice wages to a maximum of $2,000 per apprentice, cutting your corporate tax bill dollar-for-dollar for every registered electrical apprentice on your crew.
  • We plan the $1.25M Lifetime Capital Gains Exemption years ahead of a sale, structuring qualified small business corporation shares so the gain on selling your solar company is sheltered instead of taxed at up to 26.76% on the capital gain.
  • We set your fiscal year-end and instalment schedule to smooth cash flow and pay a reasonable owner-manager salary to create RRSP room, keeping active income under the ceiling where a second associated company would otherwise grind down your $500,000 limit.
  • We file every unfiled T2 and outstanding HST year, reconstructing installation and EPC revenue from your Aurora Solar proposals, job records and progress billings, and recover the 13% input tax credits that unfiled years left unclaimed instead of guessing at round numbers CRA will challenge.
  • We stop the late-filing penalty of 5% of the balance owing plus 1% per month from compounding by filing your oldest outstanding T2 first, because once CRA issues a demand the penalty doubles to 10% plus 2% per month.
  • We rebuild your work-in-progress and Construction Act 10% holdback position for each missed year from contract records, so catch-up returns recognize revenue on percentage-of-completion correctly rather than overstating income CRA would otherwise tax twice.
  • We recover missed Clean Technology ITC and Class 43.2 accelerated CCA across every unfiled year, because a catch-up T2 that reports income but ignores the 30% refundable credit and undepreciated capital cost hands CRA thousands you never owed.
  • We file a Voluntary Disclosures Program application on Form RC199 before CRA contacts you, which cancels penalties in full and gives 50% interest relief on the older years, protecting your bonding and equipment-lender relationships.
  • We charge and remit 13% HST on your residential installation and commercial EPC revenue and claim the full input tax credits on panels, inverters, service vehicles and tools, so you never over-remit or leave recoverable tax on the table.
  • We register your HST account the moment taxable installation sales cross the $30,000 small-supplier threshold across four consecutive quarters, so CRA cannot assess you for tax you failed to collect once your solar company exceeded the limit.
  • We reconcile line 101 of your GST/HST return to the installation and monitoring revenue on your T2, because CRA’s matching program compares the two and a $100,000 mismatch is one of the fastest ways a solar contractor is flagged for audit.
  • We claim input tax credits on the business-use portion of trucks, warehouse costs and diagnostic equipment at the 13% Ontario rate on line 108, a recovery many installers miss because the personal or capital split is never documented.
  • We handle HST on customer rebates and net-metering credits correctly, keeping Canada Greener Homes and Home Renovation Savings Program amounts out of your taxable supplies where they are not consideration, so you never remit tax on a $5,000 rebate.
  • We restate prior-year work-in-progress and the Construction Act 10% holdback receivable where a previous preparer recognized revenue on completion or on cash, correcting the percentage-of-completion figures through an amended T2 so your income lands in the right year.
  • We claim the missed Clean Technology ITC and Class 43.2 CCA a prior accountant left off your owned solar arrays, filing amended returns to recover the refundable 30% credit and the accelerated first-year deduction as cash back to your company.
  • We correct panel and inverter inventory that was fully expensed instead of carried under ITA section 10, adding it back to inventory so a $60,000 year-end stock is not understating income and inviting a reassessment.
  • We catch up unfiled T5018 Contract Payment Reporting slips on your subcontractor payments, filing the outstanding information returns to stop the $100-per-slip penalty CRA charges on late or missing construction subcontractor filings.
  • We reclassify install tools, trailers and computers that were expensed in full into Class 8, Class 12 for small tools under $500, and Class 50, restoring the undepreciated capital cost pool so you claim CCA every future year instead of losing the deduction CRA disallows.
  • We defend your percentage-of-completion revenue and work-in-progress on a CRA audit, presenting job-cost ledgers, progress billings and Aurora Solar records that prove your installation income was recognized in the correct year and not deferred to dodge the 12.2% rate.
  • We respond to Clean Technology ITC and Class 43.2 reviews with the eligibility analysis and available-for-use dates CRA requires, protecting your refundable 30% credit and accelerated CCA from a denial worth tens of thousands of dollars.
  • We handle T5018 audits by reconciling your subcontractor payments to the slips filed, resolving discrepancies before CRA applies the $100-per-slip penalty and expands the review into your whole installation subcontractor ledger.
  • We answer indirect-verification audits on cash service and repair calls with a source-and-application-of-funds reconciliation, closing the gap between deposits and reported monitoring and O&M revenue before CRA imputes income and adds the 50% gross-negligence penalty under subsection 163(2).
  • We file RC4288 Taxpayer Relief applications for penalties and interest caused by a prior accountant’s error, covering the ten calendar years preceding the request, and file the Notice of Objection within the 90-day window to stop the 10% penalty and protect your appeal rights.
  • We prepare CSRS 4200 compilation engagement financial statements for your solar company, which bonding sureties and equipment lenders require when a $500,000 EPC contract or a fleet-financing application cannot proceed on tax returns alone.
  • Your compiled statement of financial position shows work-in-progress, holdback receivable, panel inventory and a clean-energy asset base at book value for two fiscal years, giving a surety the picture a bare T2 covering $250,000 of assets cannot provide.
  • We compile the statement of operations with installation and EPC revenue, cost of sales and gross margin classified consistently across two years and tied to the T2 filed with CRA, so a lender sees whether your 20% margin is holding rather than reclassified noise.
  • The required CSRS 4200 communication discloses that no audit or review was performed, and the notes set out your basis of accounting and any shareholder loans under subsection 15(2), without which a surety rejects a $100,000 bonding or credit application.
  • We deliver compiled statements within 30 days of receiving your complete WIP, inventory and payroll records, because equipment-financing and surety approvals collapse when a lender’s conditional approval on a $75,000 loan expires before the file is produced.
  • We incorporate your solar business under the Ontario Business Corporations Act with a NUANS name search and Articles of Incorporation, giving you the limited liability and the 12.2% small-business rate a proprietorship on your personal return never provides.
  • We complete the section 85 rollover on Form T2057 to move your trucks, tools, panel inventory and goodwill into the new corporation at elected amounts, deferring the capital gain and recapture a straight sale of those assets would otherwise tax at up to 26.76%.
  • We register your Business Number, 13% HST account, payroll account and WSIB coverage, and structure the entity so your ECRA electrical contractor licence is held correctly, so your solar company can invoice clients and hire electricians from day one.
  • We design common and preferred share classes at incorporation so dividends can be paid to family shareholders and the $1.25M Lifetime Capital Gains Exemption can be multiplied on a future sale of qualified small business corporation shares.
  • We set your first fiscal year-end up to 53 weeks after incorporation and prepare the opening balance sheet, minute book and resolutions, deferring your first T2 balance-due date and pushing instalments past the $3,000 net-tax threshold into a later year.
  • We rebuild your job-cost ledgers install by install, matching progress-billing invoices, CRA holdbacks and change orders to each residential rooftop and commercial EPC contract, so revenue and work-in-progress finally reconcile to the deposits landing in your bank.
  • We reconstruct every GST/HST return you skipped, recomputing the 13% collected on installation and monitoring revenue against input tax credits on panels, inverters, service trucks and tools, then correcting the filings before CRA assesses the gap for you.
  • We clean up years of panel, inverter, racking and battery inventory that was expensed straight into cost of goods, restating the stock actually on hand so your true margin per kilowatt installed is no longer distorted by warehoused equipment.
  • We catch up the T5018 subcontractor slips never filed for your electricians and roofing crews, reconcile the source deductions on installer payroll, and clear the WSIB and remittance balances that quietly accumulated while the books sat untouched.
  • Once ledgers, HST and inventory are rebuilt, we prepare and file every outstanding back-year T2 return, so more than $50,000 of catch-up revenue is reported correctly and your solar corporation is restored to good standing with CRA.
  • We prepare the US Form 1120 corporate return for your American solar subsidiary, reporting installation and equipment-sales income, depreciating fixed assets under MACRS, and coordinating the result with your Canadian T2 so the same profit is never taxed twice.
  • When your Canadian solar company installs stateside without a US corporation, we file the treaty-based Form 1120-F, claiming Article V and VII protection so only income attributable to a genuine US permanent establishment is exposed to federal tax.
  • We file Form 5472 for every reportable transaction between your Canadian parent and its US installation entity, because a single missed or late information return carries a $25,000 penalty the IRS now assesses automatically.
  • If you operate through a US LLC, we untangle the hybrid-entity mismatch between IRS flow-through treatment and CRA’s corporate view, structuring the foreign tax credit so US tax paid on solar profits is not stranded and double-taxed.
  • We assess where your crews and warehoused panels create a US permanent establishment and economic nexus, then register and file the state corporate income and sales-tax returns each jurisdiction demands once your projects cross its dollar thresholds.
  • We prepare and submit your Form RC199 Voluntary Disclosures Program application, packaging the corrected returns, schedules and supporting records for your solar installation business so CRA accepts the disclosure and processes it as a complete, good-faith filing.
  • We confirm the disclosure meets all five acceptance conditions, that it is voluntary, complete, involves a penalty, is at least one year overdue, and includes payment of the estimated tax, before CRA can start any enforcement against you.
  • We quantify the unreported installation income and the 13% HST you collected but never remitted, disclosing both so gross-negligence penalties are waived and only the tax plus arrears interest, often more than $40,000, remains payable.
  • We disclose the T5018 subcontractor slips your solar company failed to file for its electricians, roofers and trades, correcting years of missing information returns before CRA imposes the per-slip penalties that mount quickly across a busy install season.
  • We determine whether your situation qualifies for the general program, with full penalty relief and partial interest relief, or the limited track used where conduct was gross, then present the facts to secure the most favourable outcome available.

Solar Company Tax & ITC Check

Six quick questions on your WIP, holdbacks, clean-energy credits, CCA and subcontractor filings. No fee shown.

1. Are you carrying your installation and EPC jobs as work-in-progress?

2. Are you holding back the Construction Act 10% until the lien period runs?

3. Are you claiming the 30% Clean Technology ITC on eligible solar and storage?

4. Are you using Class 43.2 accelerated CCA on owned solar assets?

5. Are you filing T5018 slips for your subcontractors?

6. Are you claiming the apprenticeship credit for your registered apprentices?

Free CPA Consultation for Solar Installation Companies

Case Studies: Solar Installation Company Accounting & Tax

Toronto Commercial Solar EPC — WIP, Holdback & Clean Technology ITC Claimed

The problem: A commercial EPC firm was recognizing revenue only when a project was fully commissioned, so several large rooftop jobs straddling year-end were badly misstated, and the Construction Act 10% holdback withheld by general contractors was being booked as income before the lien period ran. Worse, nobody had claimed the 30% Clean Technology ITC or Class 43.2 accelerated CCA on the arrays the company owned and operated under net metering.

What we did: We rebuilt the books on percentage-of-completion in Simpro, carried work-in-progress and the holdback receivable correctly, and filed the refundable Clean Technology Investment Tax Credit with Class 43.2 CCA on the owned generation assets, amending the prior T2 to capture what had been missed.

The result:

  • Captured a $172,000 refundable Clean Technology ITC
  • Deferred $61,000 of tax by correcting WIP and holdback timing
  • Cleared a CRA revenue-timing query with no reassessment

Ottawa Residential Solar Installer — Panel Inventory, T5018 & Apprenticeship Credit

The problem: A residential rooftop installer was expensing panels, inverters and racking as bought rather than carrying them as inventory under ITA section 10, which distorted margins and overstated deductions. Two years of T5018 Contract Payment Reporting slips on subcontractor crews had never been filed, each exposed to the $100-per-slip penalty, and the apprenticeship credit for three registered electrical apprentices had been left unclaimed.

What we did: We restated panel and inverter inventory in QuickBooks Online with Dext, filed the outstanding T5018 returns, and claimed the Apprenticeship Job Creation Tax Credit on Schedule 31 at 10% of eligible wages to $2,000 per apprentice, amending the affected T2 years.

The result:

  • Recovered $6,000 in apprenticeship tax credits
  • All T5018 penalties cancelled under Form RC4288
  • Corrected a $48,000 inventory misstatement before audit

London Agricultural Solar Installer — Class 43.2 CCA, Rebate Treatment & Incorporation

The problem: A farm-solar builder operating as a sole proprietor was mixing owned generation equipment with resale inventory, had never applied Class 43.2 accelerated CCA to the arrays it kept, and was treating Canada Greener Homes and provincial rebate amounts as taxable revenue when much of it flowed through to customers. Growth had pushed profit well past the point where a proprietorship made sense.

What we did: We separated owned clean-energy assets into Class 43.2, corrected the rebate and net-metering treatment, then incorporated the business under the OBCA and rolled the trucks, tools and equipment in on a section 85 election on Form T2057 without triggering a gain.

The result:

  • Owned arrays correctly classed in accelerated Class 43.2 CCA
  • Rebate and net-metering treatment fixed and audit-ready
  • Incorporated with a clean section 85 asset rollover

Our Simple Process

How We Work With Solar Installation Companies

Know Exact Fees within 2 Minutes NOW

Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.

Here’s a simplified process approach:
Step 1

Kickoff (Document Request)

Collect prior T2 returns, open installation jobs and WIP, holdback receivables, panel and inverter counts, Clean Technology ITC and Class 43.2 asset details, payroll, apprentice and subcontractor records, fleet, tools and bank statements.

Step 2

First 30 Days (Cleanup & Setup)

Set up QuickBooks Online or Sage 50, integrate Aurora Solar, ServiceTitan or Jobber, build WIP and holdback schedules, assign Clean Technology ITC and CCA classes, and configure payroll and T5018.

Step 3

Monthly Close

Monthly reconciliations, receipt capture, job-cost and WIP updates, inventory tracking, HST, and subcontractor payment logging.

Step 4

Quarterly Planning Review

Salary and dividend mix, HST position, WIP and holdback review, Clean Technology ITC and CCA timing, and the apprenticeship credit.

Step 5

Year-End Close & T2 Filing

Trial balance, financial statements with WIP and inventory, T2 with GIFI and ITC schedules, and CRA preparation.

Get Your Solar Installation Company Taxes Done Right Today

Transparent Pricing for Solar Installation Companies

Affordable Pricing for Solar Installation Companies

Know Exact Fees within 2 Minutes NOW

We believe in clear, upfront pricing so you know exactly what to expect. All fees include HST.

  • Tax Preparation (Corporation) — From $400
  • Tax Return Filing (Corporation) — From $400
  • Tax Compliance Audit — FREE CRA audit support for our clients
  • Tax Strategy — FREE for our clients
  • Accounting Base Plan — From $100 per month
  • Bookkeeping Management — Free for our Accounting clients
  • Financial Reporting — Free for our Accounting clients
  • Business Formation — Flat $35
  • Incorporation Process — Flat $35
  • Entity Setup Assistance — Flat $35
  • Full-Service Payroll — From $125 per month

Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Security question: Not Applicable, as auto-deposit is enabled.

Meet Your Lead Solar Installation Accountant

Meet your lead solar installation accountant. As your clean-energy contractor tax adviser, you deal with the same two people every year.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559
sharad@gondaliyacpa.ca

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242
vandana@gondaliyacpa.ca

What Our Clients Say

1300+ five-star reviews from solar installers and small-business owners across Ontario and Canada.

Serving Solar Installation Companies Across Ontario

Our CPA team provides specialized accounting and tax solutions for solar installation companies throughout Ontario. We understand how a rooftop, EPC, agricultural or storage installer actually operates, what CRA looks at on WIP, holdbacks and clean-energy credits, and how to keep your bonding and financing in place.

Toronto (ON)

55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Mississauga (ON)

5373 Bullrush Dr, Mississauga, ON, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Brampton (ON)

4 Starhill Crescent, Brampton, ON L6R 2P9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Scarborough (ON)

24 Clementine Square, Scarborough, ON M1G 2V7, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Vaughan (ON)

19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Oshawa (ON)

210 Durham St, Oshawa, ON L1J 5R3, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Ottawa (ON)

2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Etobicoke (ON)

60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Hamilton (ON)

70 Starling Dr, Hamilton, ON L9A 0C5, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Guelph (ON)

1155 Gordon St, Guelph, ON N1L 1S8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Windsor (ON)

4387 Guppy Ct, Windsor, ON N9G 2N8, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

North York (ON)

150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada

+1 (647) 212-9559

9:00 AM – 8:30 PM (Mon – Sun)

Solar Installation Company Accounting & Tax FAQs

Should I incorporate my solar installation company?
Most established solar installers should incorporate. A corporation gives you limited liability that shields your home and savings from a jobsite claim, a 12.2% Ontario combined rate on the first $500,000 of active business income, and access to the $1.25M Lifetime Capital Gains Exemption on a future sale, none of which a sole proprietorship offers. As a proprietor your profit is taxed at your full personal rate, reaching 53.53% in Ontario, whether you draw it or leave it in the business. Incorporating also lets you split income through salary and dividends and defer tax on profit you reinvest in trucks, tools and panel inventory. The ECRA electrical contractor licence can be held in the corporation, and your existing assets move across on a section 85 rollover on Form T2057 without triggering a gain. Incorporation does bring annual T2 filing and higher compliance cost, so we model the break-even on your actual numbers before recommending it. When the answer is yes, we handle the full incorporation and rollover; when it is not yet, we say so and revisit next year.
How are solar installation companies taxed in Canada?
An incorporated solar company files a T2 corporate return and pays about 12.2% in Ontario on the first $500,000 of active business income under the Small Business Deduction, with income above that at the 26.5% general rate. Your installation and EPC revenue is recognized on percentage-of-completion with work-in-progress carried on the balance sheet, panels and inverters are inventory under ITA section 10, and you charge 13% HST on installations. Owned clean-energy equipment can attract the 30% Clean Technology ITC and Class 43.2 accelerated CCA.
What is the Clean Technology Investment Tax Credit and can my company claim it?
The Clean Technology Investment Tax Credit is a refundable 30% credit on eligible clean-technology property, including solar PV and battery storage, available for use through 2033 before dropping to 15% in 2034. It is claimed by the taxable Canadian corporation that owns the equipment, so it benefits you when your company owns and operates an array under net metering, and it benefits your customer when they own the system. We confirm eligibility and available-for-use dates and file the credit so it comes back as cash.
Can I use Class 43.2 accelerated CCA for solar equipment?
Yes, for clean-energy generation equipment your company owns. Class 43.2 gives a 50% declining-balance rate on eligible solar property acquired before 2025, and Class 43.1 gives 30% for property after that, with the enhanced first-year allowance phasing out through 2027. This applies to arrays you own and operate, not to systems you install and hand to a customer, which are inventory or contract costs. We assign the right class and coordinate it with the Clean Technology ITC.
How do I account for installation and EPC work in progress?
Long-term installation and EPC contracts are recognized on percentage-of-completion, so you record revenue as the job is built based on cost-to-date against total estimated cost, and the unbilled or under-billed portion sits on the balance sheet as work-in-progress. Booking revenue only when a project is commissioned distorts your year and invites a CRA reassessment. We run the WIP schedule in Simpro or your job-cost system and tie it to your T2.
How does the Construction Act holdback affect my taxes?
On Ontario construction and new-build jobs, the Construction Act lets your customer retain a 10% statutory holdback until the lien period expires. That amount is not earned or collectible yet, so it should be carried as a holdback receivable and not recognized as revenue or taxed until it is released. Booking it as income early overstates your profit and your tax. We track holdback separately from your progress billings so your revenue timing is correct.
Do I need to file T5018 for my subcontractors?
Yes. As a business whose primary activity is construction, you must file the T5018 Contract Payment Reporting information return for payments to subcontractors, including installation crews and electrical subs. Late or missing slips draw a penalty that starts at $100 per slip. We track subcontractor payments through the year and file the T5018 return on time so the penalty never applies.
Can I claim the apprenticeship tax credit?
Yes, if you employ registered electrical apprentices in the first two years of their program. The Apprenticeship Job Creation Tax Credit is 10% of eligible apprentice wages to a maximum of $2,000 per apprentice per year, claimed on Schedule 31 of your T2. It is a non-refundable credit that reduces your corporate tax dollar-for-dollar. We identify every eligible apprentice on your crew and claim the credit each year.
What CCA class are my install trucks and tools?
Your install and service vehicles go in Class 10 at 30%, your larger tools and equipment in Class 8 at 20%, small tools under about $500 in Class 12 at 100%, computers and design hardware in Class 50 at 55%, and office or warehouse leasehold improvements in Class 13. Owned solar generation equipment is separate, in Class 43.2 or 43.1. We file Schedule 8 so each asset depreciates in the correct pool and nothing is misclassified.
How do I value my panel and inverter inventory?
Panels, inverters, racking and batteries held for installation are inventory under ITA section 10, valued at the lower of cost or market. Expensing them when purchased rather than carrying them until installed distorts your margin and overstates deductions, which a CRA review will reverse. We count and value inventory by job and location at year-end so your cost of goods sold and your gross margin are accurate.
How do government rebates and net metering affect my taxes?
It depends on who receives the benefit. Amounts under Canada Greener Homes or the Home Renovation Savings Program that flow through to your customer are not your revenue, while incentives your company keeps may reduce the cost of an asset or be taxable. Ontario net metering through the OEB offsets your customer’s consumption rather than paying you a feed-in tariff, since microFIT and FIT are closed. We apply the correct grant and rebate treatment so nothing is over- or under-reported.
What records does CRA want from a solar company?
CRA expects contract and progress-billing records supporting your percentage-of-completion WIP, the holdback ledger, panel and inverter inventory counts, Clean Technology ITC and Class 43.2 asset details with available-for-use dates, T5018 subcontractor records, payroll and apprentice records, and your fleet and tool schedules, all kept for the six years section 230 of the Income Tax Act requires. We keep these organized in your books so an audit is answered from the file, not rebuilt.
How do I get started?
Book a free consultation and you will know your exact fees within two minutes. Call 647-212-9559 or email info@gondaliyacpa.ca.

Related Industries We Serve

Accountant for Electricians

  • Corporate tax planning for electrical contractors
  • T5018, WIP and holdback accounting
  • Tool CCA, payroll and the apprenticeship credit

Accountant for Excavation Companies

  • Job costing and equipment CCA planning
  • Construction Act holdback and T5018 filing
  • Fleet, financing and bonding statements

Accounting & Tax Services for Small Businesses

  • Corporate tax planning for small businesses
  • Business tax filing and financial statements
  • Payroll and bookkeeping services

Accountant for Incorporated Businesses

  • T2 corporate return preparation
  • Salary versus dividend and SBD planning
  • Section 85 rollover and share structuring

Solar Installation Company Accounting & Tax Done Right.

T2 filing, percentage-of-completion WIP and Construction Act holdbacks, the 30% Clean Technology ITC and Class 43.2 accelerated CCA, panel inventory, electrician and apprentice payroll, T5018 and the incorporation decision under one roof. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.



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