Frequently Asked Questions

PACE stands for Property Assessed Clean Energy. It’s a financial instrument that allows property owners to finance energy efficiency or renewable energy upgrades through their municipal property taxes. CEIP stands for Clean Energy Improvement Program and is Alberta’s version of PACE. The Clean Energy Improvement Program is administered by Alberta Municipalities, as designated under the Clean Energy Improvements Regulation. 

CEIP is voluntary for municipalities. To set up a CEIP program, a municipality must first pass a CEIP bylaw. Once passed, the municipality contracts Alberta Municipalities to deliver the program to property owners. Property owners follow the program process to complete eligible energy efficiency and renewable energy upgrades. Once upgrades are installed and approved, repayment is made through the property owner’s municipal property tax bill. 

Yes. CEIP participants are encouraged to take advantage of all available rebates, provided the eligibility criteria are met for both CEIP and the incentive. Participants can also take advantage of contractor, manufacturer, or retail discounts. 

Once the CEIP project is complete, CEIP project financing is added to the participant’s property tax bill—similar to a local improvement charge. This tax will remain on the property for the financing term. Property owners continue to pay their property tax bills the same way they always have. 

All eligible residential upgrades are listed on the program website under the residential and commercial upgrades pages. Examples include high-efficiency heating and cooling systems, windows, insulation, water heaters, and solar photovoltaic systems. 

Unlike other financial instruments, projects financed through CEIP are tied to the property, not the property owner. Once an energy efficiency or renewable energy upgrade is installed and verified, it is added to the property tax bill for repayment. If the property owner decides to sell the property, the CEIP project financing stays with the property, and the new owner assumes payment and enjoys the benefits associated with the upgrade. Also, as the CEIP project financing can be paid off at any time, property owners can pay off the financing before selling their property. 

Bill 10: An Act to Enable Clean Energy Improvements was passed on June 6, 2018. The Act authorizes municipalities to complete a borrowing to finance projects and recover costs through the municipal property tax system. The attendant regulation (Clean Energy Improvements Regulation) came into force on January 1, 2019.

Under the legislation, incidental costs are costs expended on preparation or upgrading of the property that is incidental to the clean energy improvement but required for successful execution. For example, roof repairs required for the installation of a rooftop solar project could be considered a financeable incidental cost. 

These costs are eligible for financing under CEIP, up to 15 per cent of the total capital cost of the upgrade. Any excess incidental costs above this limit must be paid by the participating property owner out-of-pocket.

Any incidental work, just like any other type of work being financed under the program, must be completed by a Qualified Contractor that is listed on the Contractor Directory before work begins. 

If a CEIP participant wishes to employ a contractor not yet on the list of CEIP Qualified Contractors, they are encouraged to invite their preferred contractor to apply by visiting ceip.abmunis.ca/contractor. 

The six-month project timeline begins when the property owner receives an Installation Authorization Notice from Alberta Municipalities, which is provided once a Project Application has been approved and all program agreements have been signed. 

Delays may occur due to any number of unforeseen circumstances. The decision to grant a project extension will be assessed on a case-by-case basis and will be at the sole discretion of Alberta Municipalities and the participating municipality. 

No. If a property owner is interested in CEIP financing, an eligible project cannot start until a Project Application is submitted and approved by Alberta Municipalities, all program agreements are signed, and the property owner has received an Installation Authorization Notice from Alberta Municipalities.  

Additions, removals, variations, substitutions, delays in CEIP upgrade installation, or price changes to a CEIP project require a request via change order to be submitted by the participant to Alberta Municipalities. Alberta Municipalities will provide the participant with a change order form to complete with the support of the Qualified Contractor. The change order must be approved by Alberta Municipalities before any changes to the project take place. 

Only costs specified in a signed Clean Energy Improvement Agreement (that is, the financing agreement between the property owner and the municipality) are eligible for financing; this can include costs for eligible upgrades, incidental work, and professional services. For more information, please review the municipality’s Program Terms and Conditions found on each municipality’s CEIP webpage on ceip.abmunis.ca. 

The CEIP program financing is recorded on the property tax roll but may not be registered on title. Like property taxes, CEIP has primary lien status, which means, in case of default, the CEIP financing is repaid before a first mortgage. Property owners should review the municipality’s Program Terms and Conditions and confirm with Alberta Municipalities should they have questions. 

Provided the minimum capital cost of $3,000 and all other eligibility requirements are met, expansions to existing solar PV systems are eligible to be financed through CEIP.

Please contact us at ceip.abmunis.ca/contact. 

Please visit the Alberta Municipalities Clean Energy Improvement Program page and refer to the section titled Participating Municipalities to learn more about the province’s bylaw development. 

CEIP project financing is attached to the property, not the property owner. So, if the property is sold, the new owner assumes responsibility for repayment while also enjoying the benefits provided by the upgrades. CEIP project financing can be repaid at any time. 

If a property with CEIP financing is offered for sale, the existence and contents of a Clean Energy Improvement Agreement must be disclosed to prospective buyers, and if the owner engages a realtor, to the realtor. If the property is sold, the property owner must ensure the Clean Energy Improvement Agreement is appended to the contract of sale.   

Yes, if you have a mortgage on your property, you must get consent from your mortgage provider to participate in the program.

Credit check requirements may vary by municipality. Other factors may be used to determine the applicant’s eligibility for financing. For example, applicants must be current on their property taxes and any property-secured debt like a mortgage or home equity line of credit. 

CEIP offers competitive financing, but it is not interest-free. Each municipality sets their own interest rate; therefore, it varies by municipality. Interest rate information will be included on participating municipalities’ program webpages at ceip.abmunis.ca as they become available. 

The maximum financing accessible for a single project is limited by two factors: (1) the property owner’s current annual municipal property tax payment, and (2) the program financing limits for residential, commercial and farmland properties. 

The financing limit determined in the CEIP regulation is $50 thousand for residential projects, $1 million for commercial projects, and $300 thousand for farmland projects. The lesser of these two limits is the maximum financing amount available for a project. Municipalities may place a lower financing limit per property type in their CEIP bylaw.   The annual payment for the Clean Energy Improvement tax is determined by taking the final project cost (and the program administration fees if applicable) and dividing it by the term set out in the Clean Energy Improvement (financing) Agreement. The term is determined by the effective useful life (or EUL) of the upgrade. The participant’s annual CEIP repayment cannot exceed the existing annual municipal property tax amount (that is, the amount of tax most recently imposed on the property).

The first step is to get pre-qualified by Alberta Municipalities and the participating municipality by submitting a Pre-Qualification Application Form (found on the participating municipality’s program webpage at ceip.abmunis.ca). Program applicants must own the property on which they want to complete a CEIP project, and the property must be located within a participating municipality. 

We are here to help. Please contact us and we’ll guide you through the entire process.

Municipal participation in the program is entirely voluntary; municipalities can choose to opt in by passing a bylaw that enables CEIP in their community.

Please visit the Alberta Municipalities Clean Energy Improvement Program page and refer to the section titled Participating Municipalities to learn more about the province’s bylaw development. 

Qualified Contractors are paid once Alberta Municipalities receives a complete and accurate Upgrade Completion Form from the participant, along with all required supporting documentation, indicating that the upgrade’s installation has achieved substantial performance. 

Alberta Municipalities will remit payment in accordance with the Prompt Payment Act. As such, 90 per cent will be paid to the Qualified Contractor within 28 calendar days of the participant receiving a proper invoice, provided all information is accurate and complete and no lien is placed against the property. The remaining ten per cent will be held back for 60 days in case a lien is placed against the property. 

Not all municipalities’ programs will advance CEIP funds for deposits or milestone payments. If CEIP funds are not advanced, the property owner will need to pay the deposit or milestone payments out-of-pocket; however, the property owner may request to finance the deposit or milestone payments paid out-of-pocket. If requested prior to project completion, deposit and milestone payment costs will be reimbursed once the project is complete and verified. For more information, review the municipality’s Program Terms and Conditions found on each municipality’s CEIP webpage at ceip.abmunis.ca. 

Only one contractor staff member who will be involved in CEIP projects must pass the onboarding quiz for the company to be listed on the Contractor Directory as a Qualified Contractor. However, the Qualified Contractor must ensure that all personnel adheres to the CEIP Qualified Contractor Terms and Conditions. “Personnel” means anyone involved in the development or provision of CEIP services or CEIP deliverables by a Qualified Contractor, whether they are employees, subcontractors or other agents of the Qualified Contractor engaged in CEIP-eligible services. 

Under the legislation, incidental costs are costs expended on preparation or upgrading of the property that is incidental to the clean energy improvement but required for successful execution. For example, roof repairs required for the installation of a rooftop solar project could be considered a financeable incidental cost. 

These costs are eligible for financing under CEIP, up to 15 per cent of the total capital cost of the upgrade. Any excess incidental costs above this limit must be paid by the participating property owner out-of-pocket.

Any incidental work, just like any other type of work being financed under the program, must be completed by a Qualified Contractor that is listed on the Contractor Directory before work begins. 

If a CEIP participant wishes to employ a contractor not yet on the list of CEIP Qualified Contractors, they are encouraged to invite their preferred contractor to apply by visiting ceip.abmunis.ca/contractor. 

Every subcontractor that installs or otherwise provides a service related to an eligible upgrade must be a Qualified Contractor and be listed in the Contractor Directory. Read more about subcontractor responsibilities in the CEIP Qualified Contractor Terms and Conditions. 

Yes. Only eligible costs (upgrade, incidental, and professional service costs) listed in the Clean Energy Improvement Agreement are approved for financing. There may be portions of the project that would not be eligible for CEIP financing. For more information, review the municipality’s Program Terms and Conditions found on each municipality’s CEIP webpage at ceip.abmunis.ca. 

The six-month project timeline begins when the property owner receives an Installation Authorization Notice from Alberta Municipalities, which is provided once a Project Application has been approved and all program agreements have been signed. 

Delays may occur due to any number of unforeseen circumstances. The decision to grant a project extension will be assessed on a case-by-case basis and will be at the sole discretion of Alberta Municipalities and the participating municipality. 

The Project Agreement is the agreement between Alberta Municipalities, a Qualified Contractor leading the installation of the upgrade(s), professional services, or incidental work (the “Primary Qualified Contractor”) and the property owner. The Project Agreement defines the project’s scope and sets out the terms relating to the Qualified Contractor’s installation of the upgrades, professional services, or incidental work. 

In accordance with CEIP regulation, a Qualified Contractor cannot enter into an agreement for the provision of services relating to the installation of an upgrade other than the Project Agreement. 

Invoices should be in the form set out on the residential and commercial upgrades lists, only contain costs relevant to an upgrade that meets the Upgrade Eligibility Requirements, and be provided at the time of submission of the Upgrade Completion Form. 

No. If a property owner is interested in CEIP financing, an eligible project cannot start until a Project Application is submitted and approved by Alberta Municipalities, all program agreements are signed, and the property owner has received an Installation Authorization Notice from Alberta Municipalities.  

Additions, removals, variations, substitutions, delays in CEIP upgrade installation, or price changes to a CEIP project require a request via change order to be submitted by the participant to Alberta Municipalities. Alberta Municipalities will provide the participant with a change order form to complete with the support of the Qualified Contractor. The change order must be approved by Alberta Municipalities before any changes to the project take place. 

Only costs specified in a signed Clean Energy Improvement Agreement (that is, the financing agreement between the property owner and the municipality) are eligible for financing; this can include costs for eligible upgrades, incidental work, and professional services. For more information, please review the municipality’s Program Terms and Conditions found on each municipality’s CEIP webpage on ceip.abmunis.ca.