Incentives & Grants
The following is a list of the key Incentives and Grants for energy efficiency in Ontario, British Columbia and Nationally. A comprehensive list of financial incentives by province can be found on the Natural Resources Canada website.
The Independent Electricity System Operator (IESO)
Reimbursement for the full cost of your pre-approved study, up to $50,000.
Receive half for completing the EFS and the other half if the study recommendations are implemented.
The EFS will determine the base case energy usage of your current system and will propose energy-saving opportunities or technologies you could implement.
Identify any project incentive opportunities that might exist for the system.
Help build a capital investment business case for the process efficiency improvements and support a “Save On Energy “Process & Systems Upgrade (PSU) Project Incentive.
If you have a complex upgrade project at your facility, you can gain up to 70% of costs back or $200 per MWh of annual electricity savings measured and verified over one-year.
Upgrade your equipment and improve your operations. Incentives are based on energy savings over pre-project baselines. All custom track incentives are capped at 50% of project cost.
The Atmospheric Fund
The Atmospheric Fund (TAF) provides grants to charities, not-for-profit organizations, and municipalities in the Greater Toronto and Hamilton Area (GTHA) for projects that have the potential to significantly reduce carbon emissions in the region and/or air pollution in Toronto. Project applications can be single-year or multi-year requests. Since 2010, individual grants have ranged from $10,000 to $300,000.
High-performance Buildings have been one priority stream of grants. TAF prioritizes scalable projects that demonstrate new approaches to increase the energy efficiency of existing buildings, especially multi-unit residential buildings, aiming for 40% energy performance improvements. Also, that demonstrate new approaches to improve the energy efficiency of new construction, striving for near net-zero energy consumption, among other preferences.
TAF offers financing to both non-profit and for-profit organizations in the range of $50,000 to $2,000,000. Financing is structured to fit your business needs and circumstances, always looking for innovative approaches for climate-friendly investment. The first and foremost criterion for any TAF investment is the carbon emission reduction potential. TAF calculates the emission reduction potential over 10 years and discount it back to the present at 5%.
TAF’s loan finances the incremental cost (up to $2,000,000) of making a building at least 25% more energy efficient than the Ontario Building Code requires. The loan is provided to the developer and re-paid by the building owner as they benefit from the reduced utility costs. Eligible projects include condo developments, rental housing, institutional, and commercial construction.
City of Toronto
The High-Rise Retrofit Improvement Support Program (Hi-RIS) program makes low-cost financing available to undertake a variety of building improvements. The City of Toronto Hi-RIS program helps apartment building owners undertake building improvements that reduce energy and water consumption. This program provides financing with up to 20-year terms at competitive fixed rates to residential apartment buildings in Toronto with 3-storeys or more. For 2019, fixed rates range from 3.7% to 4.4% depending on the loan term.
Through its Energy Retrofit Loan program, the City offers low-interest loans to help building owners improve the energy efficiency of their buildings. All buildings located in Toronto are eligible. The City offers financing for up to 100% of project costs, at a rate equal to the City’s cost of borrowing, with repayment terms up to 20 years. Eligible projects include installing the TRAK Smart Energy System technologies among others. All buildings located in Toronto are eligible, including: Commercial, Retail and Industrial, Multi-Family Residential, Condominium buildings (common areas only, not individual units), Hospitals and Long-Term Care, Schools, Colleges and Universities, Not-for-profit, Social Housing, and Hospitality.
Receive 100% funding of the assessment (up to $5,000) if you want to assess the overall efficiency of a single system but need help with funding the cost of the assessment. The targeted system must use more than one gigawatt-hour of electricity per year for a 200 horsepower system, that's about 6,000 hours of operation.
Get an in-depth analysis of energy solutions and the cost/benefit analysis you need to make strategic decisions for increasing energy efficiency at your facility. The targeted system must use more than one gigawatt-hour of electricity per year for a 200 horsepower system, that's about 6,000 hours of operation. Receive up to 100% of the study cost (some limits apply).
Get an in-depth report with analysis of your facility's systems and equipment, including a breakdown of the energy used within your facility and greatest areas for improvement. Also identification of energy efficiency opportunities and areas with the greatest opportunity for savings. This will help you prioritize your next steps for achieving larger, long-term savings. You use more than 2 gigawatt-hours of electricity per year. Receive up to 100% of the study cost.
Get funding and design expertise to design an energy efficient plant or expand an existing one. You expect to increase your energy use by 5% or more and your new facility or planned expansion has electricity savings potential of more than 300 megawatt-hours per year. An energy expert will determine your plant's energy baseline and identify a range of design options available to improve your efficiency. Your study report can be used to apply for project funding with up to 100% of it funded. BC Hydro will provide up to 75% funding of your incremental construction costs (i.e. above standard, inefficient design options).
This program provides incentives for larger, more complex buildings that achieve a higher whole-building energy performance than minimum levels required by the BC Building Code. You’ll know your incentive amount up to $500,000 before construction even starts.
This program helps you develop custom energy-efficiency solutions to help reduce overall energy use and greenhouse gas emissions, improve the performance of your facility, increase occupant comfort and save on operating costs. For natural gas customers, your project must have the potential to save a minimum 1,200 gigajoules of natural gas annually. For FortisBC or municipal electricity customers, your project must have the potential to save 50,000 kWh of electricity annually. The maximum amount of funding available for the energy study is 50% of the cost of the energy study, subject to review and approval, to a maximum of $25,000. This funding is offered as an added bonus if you successfully implement one or more approved energy conservation measures. You are then eligible for implementation bonus funding equal to the preceding energy study funding amount, to a maximum of $25,000.
Assess whether your initiative is technically and financially feasible, as well as its potential environmental, social and economic impact.
Your initiative must reduce fossil fuel or grid electricity use by at least 40% compared to current performance. You must be able to achieve this target within three years of implementation. Grant: Up to 50% of eligible costs to a maximum of $175,000.
Feasibility studies of retrofits that improve energy efficiency in a group of commercial or institutional buildings. Your combination of energy efficient retrofits must have the potential to reduce energy use by at least 10% compared to the current baseline (i.e., fossil fuel use and energy from the grid). Retrofit changes must meet or exceed the national and provincial building codes (NECB 2011 or provincial derivatives). Grant: Up to 50% of eligible costs to a maximum of $175,000.
Feasibility studies of retrofits that improve energy efficiency. Your combination of retrofits must have the potential to reduce a building’s energy use by at least 30%. A minimum of 20% must come from energy efficiency and a maximum of 10% can come from on-site, renewable energy. The 10% maximum does not apply to geothermal exchange systems. Retrofit changes must meet or exceed the national and provincial building codes (NECB 2011 or provincial derivatives). Grant: Up to 50% of eligible costs to a maximum of $175,000.
Feasibility studies of initiatives that target net zero energy performance in new municipal facilities. Net zero means any energy it requires should be generated through on-site, renewable or recovered power sources. Grant: Up to 50% of eligible costs to a maximum of $175,000.
Once your study is completed, funding assistance is available for capital projects.
Regular loans and grants: Receive a low-interest loan of up to $5 million and a grant worth up to 15% of the loan; cover up to 80% of your eligible costs.
High-ranking project loans and grants: These qualify for a low-interest loan of up to $10 million and a grant worth up to 15% of the loan; cover up to 80% of your eligible costs.