Quebec Grants for Businesses in 2025

Quebec offers a robust portfolio of grants, refundable contributions, and utility incentives that help companies de risk capital projects, accelerate innovation, and cut operating costs. The provincial landscape rewards projects with measurable greenhouse gas reductions, energy savings, productivity gains, and strong commercialization potential. If you operate in Quebec, you can often combine a provincial program with a federal instrument to reduce net costs and shorten payback. The overview below explains how the main program families work, which projects fit, and how to approach an application that reviewers will trust.

Energy efficiency and fuel switching in facilities Quebec’s flagship support for energy efficiency focuses on projects that improve building systems and industrial processes. Typical activities include heat recovery, process optimization, boiler upgrades, electrification of thermal loads, and recommissioning. Funding usually covers both studies and implementation, with clear rules for baselines, eligible measures, and measurement and verification. Strong proposals quantify energy savings in kilowatt hours or gigajoules, convert those savings into greenhouse gas reductions, and show a credible schedule for procurement and commissioning. Companies that prepare an energy audit, establish a before and after metering plan, and attach vendor quotations tend to move faster through screening.

Demonstration of innovative low carbon technologies For precommercial technologies that are beyond lab stage but not yet widely deployed, Quebec provides demonstration support that can bridge the gap to first commercial references. These calls are suitable for pilot systems in real operating conditions, for example advanced control platforms, bioenergy solutions, waste heat to power, or novel materials that reduce process emissions. Reviewers look for technology readiness, a site host with clear objectives, an independent evaluation plan, and a path to replication in Quebec after a successful pilot. If your company can document prior testing, third party validation, and a commercialization plan, a demonstration stream is often the right first step before large scale rollouts.

Utility incentives from Hydro Quebec Hydro Quebec’s programs complement grants by funding studies, prescriptive equipment, and custom projects that reduce electricity use or shift demand. Incentives typically address lighting, motors and drives, HVAC, thermal storage, and process electrification. Many applicants begin with a feasibility study to size the opportunity and then proceed to implementation support once savings are confirmed. Since program rules and calculation tools evolve, applicants should verify the latest participation guides and ensure that engineering models align with current methodologies. Pairing utility incentives with an energy efficiency grant can materially increase total funding while keeping documentation consistent across both applications.

Investment support for major projects Quebec also offers investment focused streams for projects that lift productivity, exports, or regional development and that may include decarbonization elements. These streams can support new lines, plant expansions, digitalization, or energy transition infrastructure. They often come as a mix of non repayable contributions and repayable assistance depending on project size and impact. Successful files present a clear business case, credible job and export forecasts, supplier development in Quebec, and proof that the project strengthens strategic value chains such as batteries, transportation equipment, agri food processing, or critical materials. Intake windows and budgets can shift during the year, so early eligibility checks are important.

Transportation electrification and fleet decarbonization For companies operating vehicle fleets, Quebec supports planning, charging infrastructure, and large deployments that reduce petroleum use. Eligible costs can include site design, make ready work, charging hardware, and in some cases on site energy management to limit peak demand. Projects that combine route analysis, phased charger deployment, and a total cost of ownership model are more compelling. Where appropriate, businesses can combine provincial support with federal vehicle purchase incentives or infrastructure funding. It is helpful to align charger power levels, utility connection timelines, and construction schedules with program milestones to keep claims simple.

How to choose the right program Start with your main outcome. If your priority is measurable greenhouse gas reduction in an existing facility, build a stack around energy efficiency and utility incentives. If your priority is to validate a technology with commercial potential in Quebec, target a demonstration stream with a strong host and monitoring plan. If you are building a new line or expanding a plant, screen investment streams that weigh economic and environmental impacts together. Fleet projects should map charging needs, grid capacity, and depot operations first, then match funding to the resulting deployment plan. In all cases, confirm intake status, eligible cost categories, and stacking limits before you commit engineering resources.

What reviewers expect to see Reviewers want quantified impact, technical credibility, and governance. Provide an energy model with transparent assumptions, metering locations, and a calculation of avoided emissions. Cite standards where relevant and describe commissioning and operator training. Show a realistic schedule with critical path items such as equipment lead times, permitting, and utility upgrades. Identify risks like supply chain delays or integration complexity and explain how you will mitigate them. For demonstration projects, define success metrics that matter to the host, not just to the technology provider, and include a plan to scale the solution after the pilot.

Stacking with federal tools Quebec programs frequently allow stacking with federal instruments when rules are respected. A common approach is to use a provincial grant for part of the capital cost, add a utility incentive for electrical savings, and then apply a federal tax credit where available. Stacking rules can cap total public funding as a share of eligible costs, so applicants should track sources carefully and keep a single cost ledger that tags each invoice to a specific funder. Align scopes early to avoid double counting and to make claims straightforward.

Major Federal Clean Tech Funding Programs

The Government of Canada offers several high-impact programs to support clean technology development and adoption. Here are some of the most significant initiatives available to businesses nationwide:

• Strategic Innovation Fund (SIF) – Net Zero Accelerator: A flagship federal program providing large-scale funding contributions to transformative clean tech projects. The Net Zero Accelerator stream of SIF earmarks up to $8 billion for projects that sharply reduce emissions in key industries. Companies investing in initiatives like battery manufacturing, zero-emission vehicle production, low-carbon steel or cement, or other big decarbonization projects can apply. SIF support often covers a sizable portion of project costs (sometimes 30–50%) through repayable contributions or grants. The catch: projects must be highly impactful – think major emissions reductions, innovation, and job creation. SIF is a go-to program for medium and large enterprises pursuing ambitious clean technology initiatives at scale.

• Sustainable Development Technology Canada (SDTC): SDTC provides non-repayable grants to cleantech innovators, primarily small and medium-sized enterprises (SMEs). It funds the development and demonstration of new technologies that benefit the environment. An SDTC contribution can cover approximately 33%–40% of project costs, with typical awards in the $1–5 million range for projects in areas like renewable energy, cleaner manufacturing processes, agri-tech, or advanced materials. This program has been pivotal in helping Canadian startups and scale-ups bridge the gap from lab to market. If your company has a promising technology that cuts emissions or pollution and needs funding to build a pilot or proof-of-concept, SDTC is one of the first doors to knock on.

• Industrial Research Assistance Program (IRAP): IRAP offers grants and advisory services to innovative SMEs in Canada and heavily supports projects involving clean technology. If your company is developing a new cleantech product or process (for example, a more efficient energy storage system or a waste-reducing manufacturing process), IRAP can help fund the R&D work. Eligible firms (generally under 500 employees) can receive IRAP contributions for a portion of salaries and contractor costs related to research and development. IRAP’s support can range from tens of thousands up to several hundred thousand dollars depending on the project scope. This funding helps de-risk the R&D phase, allowing companies to push the envelope in clean innovation with less financial strain.

• Canada Growth Fund (CGF): The Canada Growth Fund is a $15 billion fund created to attract private investment in clean technologies and decarbonization projects. It doesn’t hand out traditional grants; instead, it de-risks projects by offering instruments like loan guarantees or contracts for difference (which can guarantee a carbon price for investors). The goal is to leverage public capital to pull much larger sums of private capital into climate solutions – such as large carbon capture facilities, clean fuel production, or green infrastructure. For companies, the CGF can make financing easier for big projects that might be considered too risky by commercial lenders alone. Essentially, if you have a high-impact project (e.g. a cutting-edge clean technology plant) that needs significant investment, the CGF could help secure the funding by sharing risks with private investors.

• Export Development Canada (EDC) and Business Development Bank (BDC): In addition to grants, Canada’s federal financial agencies provide support for cleantech businesses. EDC has a mandate to provide $10+ billion in financing and insurance to cleantech exporters and projects. They offer loans, guarantees, and credit insurance that help companies scale up and enter global markets. BDC has introduced a Climate Tech Fund that invests equity in promising cleantech startups and provides growth capital. While these are not “free money,” they play a crucial role in the clean tech ecosystem: a company might use grant funding for product development, then turn to EDC or BDC for commercial expansion and international growth.

• Clean Growth Hub: The Clean Growth Hub is a federal advisory service that acts as a one-stop shop for businesses seeking cleantech funding. It doesn’t provide money directly, but it will point you to the right programs. If navigating dozens of grants and tax incentives feels daunting, the Hub’s experts can help identify which federal (or even provincial) programs best fit your project. They maintain an up-to-date database of active funding opportunities across many departments. Engaging with the Clean Growth Hub can save time and ensure you’re aware of all available support.

Clean Technology Tax Credits and Incentives

Recent federal budgets have introduced powerful tax incentives to encourage businesses to invest in clean technology. These credits directly reduce project costs by providing tax rebates or reductions for eligible activities:

• Clean Technology Investment Tax Credit (30%): This is a refundable tax credit covering 30% of the cost of purchasing eligible clean technology equipment. Businesses that invest in assets such as solar panels, wind turbines, battery storage systems, certain geothermal systems, and other specified clean energy and energy storage equipment can claim this credit. “Refundable” means that if the credit amount exceeds your tax payable, the government pays out the difference – effectively turning it into a grant. This incentive is available for new investments made over the next several years (with a phase-out in the 2030s). For example, if a manufacturing company spends $1 million to install a large solar array at its facility, it could get $300,000 back via the Clean Tech ITC – dramatically improving the project’s ROI.

• Clean Hydrogen Investment Tax Credit (15–40%): To spur Canada’s emerging hydrogen economy, a refundable tax credit rewards investments in equipment used to produce clean hydrogen. Depending on the carbon intensity of the hydrogen produced, the credit ranges from 15% up to 40% of eligible costs – with the maximum for projects that achieve the strictest low-carbon hydrogen standards (e.g. “green” hydrogen from renewable-powered electrolysis). This credit can apply to investments in electrolyzers, hydrogen production plants, and related infrastructure. For companies in energy, manufacturing, or heavy transport looking at hydrogen projects, this credit is a significant sweetener – potentially knocking almost half off the capital cost if your hydrogen production is truly low-carbon.

• Carbon Capture, Utilization & Storage (CCUS) Tax Credit (up to 50%): Recognizing the importance of carbon capture in lowering industrial and energy emissions, the federal government offers a hefty tax credit for CCUS projects. Companies can claim a refundable credit for investing in equipment that captures CO2 and either stores it underground or uses it in products. The credit is up to 50% of eligible capture and storage equipment costs (and slightly lower for equipment to utilize or transport the CO2). This incentive is crucial for sectors like oil & gas, power generation, cement, and chemicals, where capturing CO2 is one of the few viable pathways to deep emissions cuts. By covering half the capital cost, the tax credit makes these large projects far more economical.

• Zero-Emission Technology Manufacturing Tax Reduction: To boost domestic production of clean technologies, companies that manufacture eligible cleantech products benefit from a reduced corporate tax rate. This measure cuts the federal tax rate by 50% for profits from manufacturing and processing certain clean tech equipment. For example, a firm building solar panels, wind turbine components, batteries, or electric vehicles in Canada would pay a federal tax rate of 7.5% instead of the normal 15% on income from those activities. This reduced rate is in effect through 2031 (phasing out gradually after that). It directly increases after-tax profits for cleantech manufacturers, freeing up capital that can be reinvested into growth and innovation. (Many provinces offer their own incentives that can stack with federal programs. For instance, Ontario recently introduced a 10% Ontario Clean Technology Tax Credit to complement the federal Clean Tech ITC, and various provincial programs provide rebates for renewable energy or energy efficiency projects. Be sure to check your province’s offerings to maximize stacking opportunities.)

Grants and Incentives Across Key Clean Tech Areas

Clean Power and Renewable Energy: Transitioning to clean electricity is a cornerstone of Canada’s climate strategy, and businesses can benefit whether they are producers of renewable energy or consumers looking to generate their own power. The federal government offers the Smart Renewables and Electrification Pathways Program (SREPs), which provides direct funding (often multi-million-dollar contributions) to renewable energy and grid modernization projects. Through SREPs and related initiatives, companies and utilities have obtained grants for projects like wind farms, solar installations, battery energy storage systems, and grid infrastructure upgrades that enable more renewable integration. Many provinces and utilities also offer their own incentives for businesses to adopt renewables – for example, rebates for installing solar panels on commercial facilities or net metering programs that credit businesses for the clean power they generate. Additionally, the forthcoming Clean Electricity Investment Tax Credit (15%) will further support large-scale clean power investments by utilities and independent power producers. The message for businesses is clear: whether you plan to generate your own renewable energy on-site or partner in grid-scale clean power projects, substantial government support is available to make it financially attractive.

Carbon Capture and Industrial Decarbonization: Heavy industries and energy producers face the challenge of cutting emissions while remaining competitive. Government funding reflects this by heavily supporting carbon capture initiatives and other industrial decarbonization efforts. We’ve already discussed the 50% federal tax credit for carbon capture equipment – a major tailwind for projects aiming to capture CO2 from factories, power plants, and oil & gas facilities. On top of that, large grants are on the table for industrial emission-reduction projects via programs like the Strategic Innovation Fund’s Net Zero Accelerator. In recent years, federal and provincial governments have jointly funded transformative projects such as retrofitting steel mills with electric arc furnaces (replacing coal-fired processes) and building carbon capture units at fertilizer and petrochemical plants. Provinces like Alberta also run dedicated programs – Emissions Reduction Alberta (ERA), for instance, co-funds innovative projects in carbon capture, methane reduction, and industrial efficiency, sharing costs with companies to pilot and deploy new technologies. The takeaway is that if your business operates a high-emitting facility – be it a refinery, cement plant, or manufacturing site – there are significant funds available to help pay for the technologies and upgrades that will cut your carbon footprint. Governments are prioritizing projects that deliver sizeable, measurable cuts in GHGs, since those are needed to hit Canada’s 2030 and 2050 climate targets.

Green Manufacturing and Energy Efficiency: Manufacturers can access a variety of programs to upgrade equipment and processes for better energy efficiency and lower emissions. For example, the federal Green Industrial Facilities and Manufacturing Program (GIFMP) (mentioned earlier) offers up to 50% cost-sharing for industrial energy retrofit projects – this can cover new high-efficiency boilers, waste heat recovery systems, advanced energy management systems, and more. Many provinces offer complementary incentives: in Ontario, the Save on Energy programs provide rebates for commercial and industrial energy efficiency upgrades (lighting, HVAC, process equipment), and similar efficiency rebate programs exist through BC Hydro in British Columbia, Efficiency Manitoba, and other utility-led initiatives. The financial support from these programs can significantly reduce the payback time for capital improvements. Consider a manufacturer investing in a suite of efficiency upgrades: they might get a utility rebate covering 30% of costs, qualify for a federal tax write-off or credit on part of the equipment, and even tap a provincial grant for innovative projects – after all that, the company might only pay a fraction of the total cost, while reaping ongoing savings from reduced energy consumption. The key is that government and utility incentives are effectively lowering the hurdle for manufacturers to adopt state-of-the-art, cleaner technologies that often also improve productivity and product quality.

Hydrogen and Low-Carbon Fuels: Hydrogen and other low-carbon fuels (like renewable natural gas and biofuels) are emerging solutions for sectors that are hard to electrify, and there’s funding to support their adoption. The federal Clean Fuels Fund is investing about $1.5 billion to build new fuel production capacity and related infrastructure – including hydrogen production (electrolyzers, etc.), biofuel plants, and fueling infrastructure for alternative fuels. For industrial companies, this could mean grants to help build a hydrogen refueling station for a fleet of hydrogen-powered trucks, or to install equipment that allows a plant to switch from fossil propane to renewable natural gas. Several provinces supplement these efforts: Alberta and Ontario both launched hydrogen innovation funds (using provincial resources) to pilot how hydrogen can integrate into power grids and industrial operations. Meanwhile, programs in the Prairies support the use of agricultural biomass for bioenergy, and coastal provinces like Nova Scotia have explored funds for marine biofuels and ammonia as a shipping fuel. If your business is considering transitioning part of its energy mix to a low-carbon fuel – say, using biofuel in place of diesel generators, or blending hydrogen into industrial heat processes – there may well be a grant or incentive to assist with the upfront costs. Governments see these fuel shifts as essential demonstrations on the path to a broader clean energy economy.

Clean Technology in Transportation (Electrification): Another aspect of clean tech funding – tangential but relevant for many businesses – is transportation electrification. Companies that operate fleets of vehicles or mobile equipment (delivery trucks, forklifts, mining trucks, etc.) can benefit from incentives to go electric or adopt other zero-emission alternatives. The federal iMHZEV program (Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles) offers rebates that can reach up to $200,000 for the purchase of electric or hydrogen heavy trucks and buses, which can significantly narrow the price gap with diesel models. Additionally, there are funding programs for installing charging stations or hydrogen fueling infrastructure, such as Natural Resources Canada’s Zero-Emission Vehicle Infrastructure Program (ZEVIP), which will pay up to 50% of the cost to deploy charging stations at workplaces, truck stops, and fleet parking facilities. Provinces often have their own EV incentives or programs (for instance, Quebec and BC provide extra rebates on electric truck purchases and grants for charging infrastructure). For manufacturers and distributors, electrifying transportation not only reduces emissions but can also cut fuel and maintenance costs. With government helping cover the capital cost of vehicles and chargers, the transition becomes far more feasible from a financial standpoint. Many companies pair these transportation grants with broader sustainability projects – for example, installing solar panels (with the Clean Tech ITC) to help power their new electric fleet, creating an even more integrated green solution.

Leveraging Grants and Incentives: Tips for Success

With so many programs on the table, businesses should approach clean tech funding strategically. Here are some best practices to make the most of Canada’s grants and incentives:

• Align Projects with Program Goals: Funding programs usually have specific objectives (e.g., reduce X tons of CO2, create jobs, spur innovation in a sector). When planning a project – whether it’s a factory retrofit or a new technology pilot – design it to clearly meet those goals. For example, if a grant’s aim is to reduce emissions, quantify the expected CO2 reduction from your project and emphasize that in your application. Tailor your proposal’s language to mirror the program’s priorities (if a program stresses economic benefits, ensure you highlight how your project drives local investment or job retention).

• Stack and Sequence Funding Sources: Don’t rely on a single program if you can combine resources. Savvy companies often use multiple incentives for one project. You might use a federal grant to cover a portion of capital costs, a provincial rebate to cover another portion, and then claim tax credits on the remaining investment. Ensure you understand each program’s rules on “stacking” (some limit the percentage of total public funding), but when allowed, combining incentives can drastically lower your net cost. Similarly, plan the sequence: for instance, use R&D grants (IRAP, etc.) to develop a solution, then demonstration funding (SDTC or a provincial pilot fund) to prove it, and finally an investment grant or tax credit to deploy it at full scale.

• Invest in Expertise for Applications: Applying for grants and incentives can be competitive and time-consuming. Many businesses engage grant consultants or dedicate internal experts to handle this task. These professionals know the nuances of eligibility and what funding agencies are looking for. A well-crafted, thorough application that clearly articulates the project’s benefits (environmental and economic) will stand out. Given that a single successful grant might be worth hundreds of thousands or even millions of dollars, the cost of getting expert help to polish your proposal is usually easily justified. Additionally, keep an organized archive of past applications, data, and supporting documents – you can often re-use or adapt these for future funding opportunities.

• Plan for Compliance and Reporting: When you do secure funding, remember that it comes with obligations. Grantees are typically required to report on project progress, expenditures, and outcomes (e.g., energy saved, emission reductions achieved) for a number of years. Put in place internal tracking from day one – assign responsibility to someone for collecting data, monitoring project performance, and preparing reports. Not only will this keep you in good standing with the funder (ensuring you receive all installments of the grant), but having a track record of delivering results can bolster future funding applications. Funders often like to support organizations that have proven they use money effectively.

By capitalizing on the available grants and incentives, Canadian businesses can accelerate their clean technology initiatives significantly. The financial support in 2025 is stronger than ever – reflecting a national commitment to combat climate change and drive innovation. For decision-makers, now is the time to act. Whether you’re retrofitting a plant with carbon-cutting equipment, investing in renewable energy, electrifying your fleet, or developing a new clean tech product, there’s likely a program to help you. Those who move quickly to secure funding will reap the rewards of lower costs, reduced risks, and a competitive edge in the growing clean economy. Embracing these opportunities is not just good for the planet – it’s smart business strategy in a world increasingly defined by sustainability.

Conclusion

Working with grant experts like helloDarwin can make all the difference. Our team specializes in identifying the best funding opportunities for your specific industry, project goals, and region. We help you understand the requirements, prepare compelling applications, and manage submissions efficiently—so you can focus on growth instead of paperwork. Whether you’re looking to finance innovation, expand operations, adopt sustainable technologies, or invest in digital transformation, helloDarwin connects you with the right funding programs and partners to make it happen. If you want to accelerate your business goals and make sure no opportunity goes unnoticed, reach out today. Our experts are here to simplify the process, save you time, and help you secure the grants your organization deserves.