Financial Incentives.

Financial Incentives to help build your business

Upgrading your business to embrace new energy efficient technologies is easier than you think. Check out the different government programs in place to help your business embrace the Clean Energy Revolution.

Financial Incentives: Industrial, Commercial and Municipal Sectors

Energy Efficiency for Industry Financial Assistance 

The Energy Efficiency for Industry program offers cost-shared assistance to industrial companies for implementing energy management projects, including CAN/CSA-ISO 50001 Energy Management Systems Standard pilots, and for two types of energy studies:
1. Process Integration
2. Computational Fluid Dynamics

Funding will cover up to 50% of eligible costs up to a maximum of $40,000.

Cost-shared financial assistance is available for projects that can be completed by March 31, 2017!

Accelerated Capital Cost Allowance Class 

Certain capital costs of systems producing energy through renewable energy sources or fuels from waste, or conserve energy by using fuel more efficiently are eligible for accelerated capital cost allowances.

Class 43.1 - Eligible equipment may be written-off at 30% per year on a declining balance basis.

Class 43.2 - Equipment that is eligible for Class 43.1 but is acquired after February 22, 2005 and before year 2020 may be written-off at 50% per year on a declining balance basis under.

Without these accelerated write-offs, many of these assets would be depreciated for income tax purposes at annual rates between 4 and 30%. (see ACCA 43.1 & 43.2 pamphlet for more information)

Canadian Renewable and Conservation Expenses 

Certain expenses incurred during the development and start-up of renewable energy and energy conservation projects [Canadian renewable and conservation expenses (CRCE)] may to be fully deducted in the year they are incurred, carried forward indefinitely and deducted in future years, or transferred to investors through a flow-through share agreement. 

To qualify as CRCE, expenses must be incurred for a project for which it is reasonable to expect at least 50% of the capital costs incurred for the project would be the capital costs of equipment described in Class 43.1 or 43.2 

EcoAction Community Funding Program 

The EcoAction Community Funding Program provides funding for community-based non-profit organizations to work on projects that have measurable, positive environmental impacts.

Keeping in line with Canada’s national environmental priorities, this program supports projects that address four themes: Clean air, clean water, climate change, and nature.

This year’s application deadline is December 12, 2016.


Alberta Ecotrust Environmental Grants 

Alberta Ecotrust grants enable Alberta ENGOs to deliver programs, projects and results that advance their environmental missions more effectively. These grant are typically available for teh following groups:

1. Public interest charities in Alberta whose vision and mission focus on protecting the environment

2. Qualified First Nations

There are three different streams of grants offered: Community Grants, Major Projects, and EcoCity Edmonton Grants.

Community Grants:

Community grants support community-based projects that typically focus on local opportunities for change through stewardship and action. These projects must be completed in one year. The maximum grant amount is $7,500.

Major Grants:

This program is designed to support more comprehensive projects that have the potential to result in substantial environmental benefit. The application process is more comprehensive and is undertaken in two parts. These projects must be completed within a year. The maximum grant amount is $30,000.

On-Farm Energy Management: Growing Forward 2 

This program shares the cost of investments that improve energy efficiency on Alberta farms, allowing producers to conserve and reduce carbon emissions. Alberta producers with a minimum of $10,000 farm commodity or livestock production income are eligible to participate in this program.

The program addresses three important priorities in the agriculture industry:

  1. Increased industry competitiveness.
  2. Improved environmental stewardship.
  3. Improved energy management

Eligible projects include, but are not limited to:

  • Construction projects that install high-efficiency equipment from the program’s Funding List
  • Retrofit projects that improve the operation’s energy usage per unit of production
  • Installation of submeters to monitor on-farm electricity and/or natural gas usage

For most items the program covers up to 70% of eligible costs, to a maximum of $750,000.  This is a significant increase from the previous amount of 35% of eligible costs up to $50,000. The program also covers 100% of the cost for each applicant’s first three submeters.

Municipal Grants and Funding

Municipal Sustainability Initiative – Capital 

Since this program was announced in 2007, municipalities have been allocated almost $7.6 billion in Municipal Sustainability Initiative (MSI) Capital funding to meet the demands of growth, address local infrastructure needs, and enhance municipal sustainability.

In 2015, the Town of Devon received $117,700 for their solar installation on their community center.

All municipalities in Alberta (cities, towns, villages, specialized municipalities, municipal districts, improvement districts, special areas, Metis Settlemenst, and the Townsite of Redwood Meadows Administration Society) are eligible to receive MSI Capital funding based on their long-term funding agreement.

The 2016 - 2017 Budget is $1.18 billion

Emissions Reduction Alberta (ERA)

Climate Change and Emissions Management Corporation (CCEMC) has rebranded as Emissions Reduction Alberta (ERA). Along with this rebrand comes the goal to develope innovative technologies that reduce greenhouse gas emissions and secure Alberta’s success in a lower carbon economy. The organization funds two major projects:

$40 Million ERA Challenge

ERA has a $40-million funding opportunity for innovators who are seeking funding to advance technologies that reduce methane emissions in Alberta.

ERA and SDTC Funding For Canadian SMES

ERA, formerly the CCEMC, in partnership with SDTC offered a unique joint funding opportunity to Canadian clean technology innovators and entrepreneurs. Together they offered up to $40 million in funding, with a maximum of $10 million per project, to individual GHG reducing technologies from Canadian Small and Medium-Sized Enterprises that are deployable in Alberta. 

The Municipal Climate Change Action Centre (MCCAC) 

The Municipal Climate Change Action Centre (MCCAC) provides funding, technical assistance, and education to support Alberta municipalities in addressing climate change. It is a partnership between the Government of Alberta, the Alberta Association of Municipal Districts and Counties (AAMDC), and the Alberta Urban Municipalities Association (AUMA). Currently, it funds three different programs: Alberta Municipal Solar Program (AMSP), Taking Action to Manage Energy (TAME+), and Climate Resilience Express. 

Alberta Municipal Solar Program from MCCAC

The Alberta Municipal Solar Program (AMSP) provides financial rebates to Alberta municipalities who install solar photovoltaics (PV) on municipal facilities or land and complete public engagement for the project.

The rebates amount will be determined by watt of total installed capacity (see below).  The MCCAC will provide a $0.15/watt bonus to all participants who have completed a successful application (signed Funding Agreement) prior to February 1, 2017 as an extra incentive. 

Solar Capacity Rebate

<10 kilowatts $0.75/Watt

10 kilowatts to <150 kilowatts $0.60/Watt

150 kilowatts to 1 Megawatt $0.45/Watt


The Taking Action to Manage Energy (TAME+) program provides tools and funding to help municipalities understand how energy is used in their buildings, identify key savings opportunities, and implement retrofit projects.

Participants are eligible to receive an Energy Audit Incentive to offset the costs of required detailed energy audits and an Implementation Incentive to offset the costs of municipal building retrofits. The amount of funding provided is based on the total area of the buildings being retrofitted by the municipality. 

Energy audit incentive:

Building Area Incentive Maximum
Under 2,000 m2 50% of audit cost up to $500
2,000 to 5,000 m2 50% of audit cost up to $1,000
5,000 to 10,000 m2 50% of audit cost up to $1,500
10,000 mor greater 50% of audit cost up to $2,000

Implementation incentive:

Building Area Incentive Maximum
Under 2,000 m2 50% of capital costs up to $25,000
2,000 to 5,000 m2 50% of capital costs up to $50,000
5,000 to 10,000 m2 50% of capital costs up to $75,000
10,000 mor greater 50% of capital costs up to $100,000

Projects must also meet a minimum greenhouse gas reduction performance requirement of $40 per tonne, measured by dividing the total MCCAC implementation funding by a project’s lifetime greenhouse gas reductions.

Green Municipal Fund (GMF) from Federation of Canadian Municipalities (FCM) 

The Green Municipal Fund from the Federation of Canadian Municipalities supports initiatives that demonstrate an innovative solution or approach to a municipal environmental issue, and that can generate new lessons and models for municipalities of all sizes and types in all regions of Canada. They fund three types of initiavtives (plans, studies and projects) in five different areas of municipal activity (brownfields, energy, transportation, waste and water)

More than $10,000,000 worth of funds are available to municipalities through this initiative.