February 18, 2020 Financing program makes energy efficiency and renewable energy upgrades accessible
Made-in-Alberta program offers energy efficiency upgrades with no upfront costs
What if you could enable saving energy, while at the same time, stimulate the economy? Sounds like a win-win and one that jurisdictions in Canada and the U.S. are jumping on. Programs like Alberta’s Clean Energy Improvement Program are enabling residential and commercial property owners to implement energy-efficient upgrades and renewable energy projects on their buildings without the upfront costs.
How does it work?
Alberta’s Clean Energy Improvement Program (CEIP) is the made-in-Alberta approach to Property Assessed Clean Energy (PACE) which provides an innovative financing option to residential and commercial property owners for upgrades such as solar panels, high-efficiency windows and high-efficiency heating and cooling systems. CEIP offers convenient repayment through a special assessment added to the property’s regular tax bill. And since the payback is attached to the property not the owner, if the property is sold, the new owner can assume responsibility for repayment.
The program also provides a wide range of benefits for municipalities, including economic development for local businesses involved in these projects, improved value of buildings and support for environmental goals. In fact, PACE projects across North America in 2019 have created 63,000 jobs and an economic impact of more than $10.8 billion.
Leveraging knowledge from successful programs
Legislation to enable a PACE-type program in Alberta came into effect in January 2019. We're now in the process of finalizing program design by leveraging best practices from successful PACE models in jurisdictions across North America. Since first implemented in California in 2008, PACE legislation has been adopted in more than 35 states and more than $5 billion in projects have been financed. In Canada, British Columbia, Ontario, Nova Scotia, Quebec and Alberta have adopted legislation to offer similar programs.
Check out Clean Energy Improvement Program for the latest updates on this exciting new program.
- Alberta’s PACE-enabling legislation: An Act to Enable Clean Energy Improvements
- The U.S. Office of Energy Efficiency & Renewable Energy’s Property Assessed Clean Energy Programs
- American Council for an Energy-Efficient Economy Property Assessed Clean Energy (PACE)
- PACENation is the association that advocates for PACE financing