Clean Energy Improvement Program FAQ

Clean Energy Improvement Program FAQ

What is The Clean Energy Improvement Program? Toggle content

The Clean Energy Improvement Program allows residents of participating Alberta municipalities to make affordable energy efficiency or renewable energy upgrades to private property with no money down. The program is also known as PACE, which stands for Property Assessed Clean Energy.

How does The Clean Energy Improvement Program work? Toggle content

The Clean Energy Improvement Program is voluntary for municipalities. To set up the program, a municipality must pass a bylaw and then work with Energy Efficiency Alberta to deliver the program to residents. Repaying the costs of the upgrades is facilitated through the municipal property tax system.

Is this a new program? Toggle content

While new to Alberta, PACE is well established in many jurisdictions. First implemented in California in 2008, PACE programs have expanded to approximately 30 U.S. states generating nearly $6 billion in economic activity. Canadian provinces including Ontario and Nova Scotia have also adopted PACE legislation.

When did Alberta adopt The Clean Energy Improvement Program? Toggle content

The Government of Alberta passed PACE legislation in June of 2018, now known as The Clean Energy Improvement Program. Municipalities across Alberta can now opt-in to the program at the local level by passing a clean energy improvement bylaw

Will The Clean Energy Improvement Program be successful in Alberta? Toggle content

There is strong interest from several municipalities, urban and rural, to participate. Even though the program is still in its infancy, the general public has expressed a strong desire for more information.

What is the biggest benefit of this program? Toggle content

This program will make energy efficiency and renewable energy upgrades more affordable and accessible to property owners by providing 100% of the upfront costs associated with the project. Because the repayment mechanism is supported by the property tax system, program costs are kept low for participants, and the obligation to repay stays with the property itself, meaning it is transferable upon the sale of the property. People typically experience greater savings on their utility bill than they pay out in annual assessment charges, leaving them better off financially.

What is the term of the loan? Toggle content

The term cannot exceed the probable useful life of the eligible product/improvement. If multiple upgrades are completed, the weighted average of the probable lifetimes of each upgrade will be used.

Are water conservation measures eligible? Toggle content

No. Only energy efficiency and renewable energy measures qualify for CEIP in Alberta

What happens if a homeowner defaults on the Clean Energy Improvement repayment? Toggle content

Tax recovery methods already available to a municipality through the Municipal Government Act will be used to collected defaulted tax payments.

Can property owners choose to repay the Clean Energy Improvement loan early? Toggle content

Yes, penalty-free.

Can you take advantage of both PACE and Energy Efficiency Alberta’s current incentive programs? Toggle content

Yes.