Preheat your oven to 350 degrees Fahrenheit. While it warms up, grease a light-colored loaf pan thoroughly. This helps the bread to bake evenly and release easily when done.
Grate the zucchini using a medium grater. Once grated, squeeze out any excess moisture and pat it dry on paper towels. Measure out 1 1/4 cups for the batter.
In a large mixing bowl, combine the canola oil, butter, and granulated sugar. Mix them well until they’re fully incorporated and smooth.
Add the eggs and vanilla to the mixture. Stir again until everything is well blended. You want it to be creamy and free of lumps.
In a separate bowl, whisk together the flour, baking powder, and salt. This allows for even distribution of the leavening agent.
Now, alternate adding the flour mixture and buttermilk to the wet ingredients. Start and end with the flour. Scrape down the sides of the bowl to ensure everything is mixed well.
Gently fold the grated zucchini into the batter. Take care not to overmix; you want a few streaks of flour remaining.
Pour the batter into the prepared loaf pan, smoothing the top for an even bake.
For the lemon sugar topping, mix the granulated sugar with the lemon zest in a small bowl until well combined. Sprinkle it generously over the top of the loaf before baking.
Bake in the preheated oven for 45 to 60 minutes. Check for doneness by inserting a toothpick into the center. It should come out clean.
Once baked, let the bread cool in the pan for 10 to 15 minutes before removing it to cool completely on a wire rack. This helps it firm up and enhances the flavor.