Energy Savings for Business Program Extended and Incentive Limits Increased for Alberta Companies Investing in Clean Technology

October 6, 2021

On Energy Efficiency Day 2021, Emissions Reduction Alberta (ERA) announced it has extended the completion date for projects funded through its Energy Savings for Business (ESB) program until March 31, 2023. To further support participation, the incentive limit for parent companies has been doubled, from $500,000 to $1 million.

ESB offers incentives to eligible Alberta businesses and non-profits to choose commercially available high-efficiency products and onsite energy generation technologies. In its eight months in the market, the program has helped decrease operating costs for Alberta businesses while diversifying the economy and helping to meet long-term sustainability goals. It was designed as a one-time, short-term stimulus offering in the Alberta marketplace with $55 million in total funding.

Since launched in February 2021, the program has created skilled jobs and cut greenhouse gas (GHG) emissions in Alberta’s small- and medium-sized industrial and commercial facilities. It has supported over 800 projects, reduced lifetime GHG emissions by over 670,000 tonnes, and created in excess of 600 total job years. Over 900 contractors and almost 1500 participants are currently registered. The extension recognizes the challenges in the market, economics, supply chain, and other factors caused by COVID-19 and will enable more time for companies and contractors to participate in the program.

“Alberta businesses now have even more opportunity to invest in energy- and cost-saving technologies that will improve their operational efficiency and reduce their emissions. These investments are helping small- and medium-sized organizations create jobs and boost economic development in the province.”

Steve MacDonald, CEO, ERA

Up to $250,000 is available for each project with a new maximum total of $1 million per parent company. ESB also supports small projects with incentives as low as $500. Funding is awarded on a first-come, first-served basis until fully committed. All projects must be constructed by the new deadline of March 31, 2023. Visit the ESB website for other important dates.

ESB supports local skilled trades, contractors, and suppliers such as HVAC businesses, insulation companies, lighting systems installers, and electricians. All participating contractors must register to be eligible to participate in the program. A wide range of technologies are eligible: compressed air, steam traps, variable frequency drives for industrial use, lighting, and more than 50 other technologies.

The program is designed to support the more than 160,000 small- and medium-scale enterprises in Alberta. Projects must occur at facilities located within the province. The program is open to all industries and business types except new construction, federal and provincially owned buildings, the institutional sector (municipalities, universities, schools and hospitals), and large emitters as defined under the TIER Regulation (note: head office buildings for TIER regulated businesses may be eligible).

“From a sustainability standpoint, the reduction of greenhouse gases is a priority for us, but this also helps to reduce our utility costs and makes us a more efficient business. Having support from this program has helped get these projects across the finish line.”

William Gowdy, Environment and Public Affairs Manager, Lafarge Northern Alberta

“When you have a 37,000 square foot building like we have, you can have a significant impact on water and power consumption. Obtaining some financial assistance through this program not only allowed us to spend the right amount of capital to become net-zero, but it also allowed us look at what else we can do to further reduce our impact on the environment.”

Sylvian Blouin, President and Founder, Rock-N-Wash

“The Energy Savings for Business program gave us the confidence to make the investment. As a small business, when you are analyzing your upfront cost, it is important to consider your return on investment. With the help of funding from this program, we were able to accept the project and quantify the value for the long term.”

Jessica Rogiani, Finance Manager, Ice Cream Depot

“Sense Engineering has submitted multiple applications to the ESB program, and our customers are keen to take advantage of the incentives. The ESB support team has been quick to respond and helpful in managing our various applications, regardless of the complexity.”

Mack Grigg, Project Associate, Sense Engineering

The Government of Alberta is funding up to $30 million for the Energy Savings for Business program through the Technology Innovation and Emissions Reduction (TIER) fund. Up to $25 million in additional funds will also be available from the Government of Canada’s Low Carbon Economy Leadership Fund. This support will be leveraged with private funding.

The program is anticipated to account for lifetime greenhouse gas (GHG) reductions of 1.1 million tonnes of CO₂, create about 1,400 (direct and indirect) jobs and drive $300 million in economic activity—providing a positive five times benefit to Alberta’s GDP.

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