Property-tax-backed financing for building energy upgrades, established under Bill 10 (SA 2018, c 6)
The Clean Energy Improvement Program (CEIP) is Alberta's property-assessed clean energy financing mechanism, established under the Municipal Government Act, Division 6.1. It is analogous to Property Assessed Clean Energy (PACE) programs found in other jurisdictions -- a proven financing model used across North America.
Under CEIP, property owners can finance energy efficiency and renewable energy improvements through their municipality, with repayment collected as a special energy improvement tax on the property. The financing attaches to the property itself, not to the individual owner -- just like municipal infrastructure charges for sidewalks, roads, or water and sewer lines.
Deep Retrofit Capital is Alberta's ministerially-designated CEIP Program Administrator (Ministerial Order 16/2025, signed October 23, 2025), operating a 100% private-capital model with zero public funds. DRC serves all property types -- residential, commercial, farm, and non-designated industrial -- across all Alberta jurisdictions.
DRC partners with municipalities to establish the program. The municipality passes a CEIP bylaw under MGA Division 6.1, enters an administration agreement with DRC, publishes the eligible improvements list, and opens contractor registration.
Property owners submit applications including proof of ownership, insurance documentation, energy audit results per DRC policy, and a property tax sworn statement. DRC reviews each application against eligibility criteria and approves qualifying projects.
Financial terms are solidified and the CEIP agreement is signed by all property owners. The agreement is registered on SPIN2 land titles, and the municipality imposes the energy improvement tax on the property.
A DRC Qualified Contractor executes the work under professional engineer or architect supervision. DRC verifies completion against the approved scope. Upon verified completion, the balance payment is released to the contractor.
DRC tracks key performance indicators including energy savings (kWh, GJ), greenhouse gas reductions (tCO2e), return on investment, and property owner satisfaction. Annual public reports are published by September 1. A post-project ASHRAE Level 2 audit is conducted one year after completion.
CEIP financing is repaid through a special energy improvement tax added to the property's municipal tax assessment. This structure offers unique advantages over conventional financing for building energy upgrades.
If the property is sold, the remaining balance transfers to the new owner. This is analogous to how local improvement charges work for other municipal infrastructure -- the obligation follows the property, not the person.
Property owners have a 10 business days rescission period after signing a CEIP agreement, during which they can cancel without penalty. This consumer protection ensures adequate time to review terms.
Administration fees are capped at 5% of total capital cost. Incidental costs (audits, inspections, legal) are capped at 15% of total capital cost. These limits are set by regulation to protect property owners.
Every CEIP agreement is registered on the property's land title through Alberta's SPIN2 system. This provides full transparency for current and future property owners, lenders, and other stakeholders.
DRC requires energy audits for all CEIP projects as a private-capital de-risking policy. Alberta Regulation 212/2018, Section 7.3 permits the program administrator to define the scope of assessment requirements. DRC's audit requirements protect investor capital and ensure measurable energy performance outcomes.
| Stage | Commercial / Industrial | Residential |
|---|---|---|
| Pre-Project | ASHRAE Level 3 energy audit | Simplified energy assessment |
| Post-Project | ASHRAE Level 2 audit, 1 year after completion | ASHRAE Level 2 audit, 1 year after completion |
Energy audit requirements are a DRC policy choice for private-capital de-risking, not a regulatory mandate. Alberta Regulation 212/2018, Section 7.3 permits the program administrator to define the scope of assessment requirements.
CEIP operates within a robust legislative and regulatory framework established by the Government of Alberta.
| Regulation | Citation | Description |
|---|---|---|
| Bill 10 | SA 2018, c 6 | The foundational enabling legislation (assented June 11, 2018) that amended the Municipal Government Act to create Division 6.1, authorizing municipalities to establish clean energy improvement programs, impose energy improvement taxes, and designate program administrators. Municipal borrowing for CEIP does not count against municipal debt limits. |
| CEIP Regulation | Alta Reg 212/2018 | Core CEIP regulation establishing the program framework, eligible improvements, contractor requirements, application process, agreement terms, and monitoring obligations. Came into force January 1, 2019. |
| CEIP Amendment | Alta Reg 153/2020 | Updates and amendments to the original regulation, expanding scope and clarifying procedures. |
| MGA Div 6.1 | RSA 2000, c.M-26 | The sections of the MGA added by Bill 10, providing municipalities authority to establish CEIP programs, impose energy improvement taxes, and enter agreements with program administrators. |
| EMCRA | SA 2003, c.E-7.8 | Provides the Minister with authority to designate program administrators and establish climate-related programs. |
| FOIP Act | RSA 2000, c.F-25 | Governs data collection, use, disclosure, and protection requirements for all program participant information. |
Find out if your property is eligible for CEIP financing and register your interest to be notified when the program launches in your municipality.
Check Your Eligibility