TIER Loan Guarantee Program
The TIER Loan Guarantee Program is a credit enhancement program designed to support financial institutions that offer loans for energy efficiency, renewable energy and clean technology projects.
TIER Loan Guarantee Program
Thank you to all Alberta businesses who benefited from and expressed interest in our Loan Guarantee Program, we value your commitment to energy efficiency and clean energy in Alberta. We are no longer accepting applications for this program. If you have questions about your application, please email firstname.lastname@example.org.
The TIER Loan Guarantee Program (TLGP) provides Alberta businesses across industries with access to lower-cost, long-term financing for clean energy projects throughout the province. In the short term, we’ll work with project teams to determine fit for the program, followed by guiding them through the due diligence process. Our ultimate goal is to support the movement toward their green energy transition – including guaranteeing their loan up to 50 per cent. In the long term, we’ll help establish a knowledgeable lending market so all Albertans benefit from and accelerate the clean energy transition. We’re empowering Alberta businesses to secure their greener future.
How does it work?
Financing to support your energy-saving goals
With our TIER Loan Guarantee Program (TLGP), we share the risk with your lender to help you get the financing you need.
Our program allows qualified lenders to recover 50 per cent of the principal and accrued interest on loans supporting clean energy projects in the event of default. This lowers the risk for the lender and can enable lower cost of capital. By reducing a lender’s risk exposure, this program will help improve access to capital for businesses in Alberta looking to make investments in clean technology, renewable energy or energy efficiency.
The TLGP is a credit enhancement program designed to help improve the borrowing terms for energy efficiency, renewable energy or clean technology financing in the private market.
Who uses the TLGP?
Chartered banks, utilities and financing providers that already finance energy efficiency and renewable energy projects in Alberta. This supports their portfolio’s expansion and improves its accessibility.
Individual project teams
Facility owners, property managers and project developers for businesses pursuing qualifying projects. Since the TLGP provides their lender of choice with a 50 per cent loan guarantee, they can secure more favourable financing terms.
Who is eligible?
Details of the guarantee
The program guarantees up to $0.50 for every dollar borrowed to a maximum of $50 million depending on eligibility. The Loan Guarantee is limited to a 10-year term from the date of issue. The maximum guarantee available per loan varies by project size.
For greenfield projects:
Project Annual Emissions Reduction Threshold below shall be based on average annual GHG emissions reductions estimated for the Project over the Guarantee period, as verified by a GHG validation/estimation process.
*Small Projects may be cumulative.
|Class||Project Annual Emissions Reduction Threshold||Maximum Guarantee Amount|
|Small Projects*||Emitting less than 10,000 tonnes of greenhouse gases annually||$10 million|
|Medium Projects||Emitting between 10,001 and 25,000 tonnes of greenhouse gases annually||$25 million|
|Large Projects||Emitting 25,000 tonnes or more of greenhouse gases annually||$50 million|
For existing and emitting facilities including Large Final Emitters (LFE):
|Class||Project Annual Emissions Threshold||Maximum Guarantee Amount|
|Small Emitters||Emitting <10,000 tonnes of greenhouse gases annually||$10 million|
|Medium Emitters||Emitting 10,001 to 100,000 tonnes of greenhouse gases annually||$25 million|
|Large Emitters||Emitting >100,000 tonnes of greenhouse gases annually||$50 million|
The TLGP can be accessed to lower the lending risk for projects that promote the transition to a low-carbon, climate resilient and sustainable economy. A non-exclusive list of eligible projects includes:
Renewable energy development
- Waste biomass
- Clean transportation
- Energy storage
- Collection, treatment, recycling or reuse of emissions
- Commercial energy efficiency retrofits
- Centralized energy control systems
- Industrial efficiency
- Energy-efficient heating and cooling systems
- Energy-efficient lighting and appliances