Alberta's Homegrown PACE Program
Born in the USA as the PACE program (Property Assessed Clean Energy), this initiative was designed to address some of the major difficulties facing access to clean and renewable energies and retrofits to homes and commercial buildings. Many of those were surrounding cost; the answer was competitive financing.
With its success in many states and municipalities of our southern neighbors, PACE gained its foothold in Alberta in 2018 with enacted legislation that would allow for a soft launch of a pilot program in late-2019.
Edmonton has become one of the municipalities looking to launch Alberta’s own homegrown PACE program, better known as CEIP; Clean Energy Improvement Program.
But beyond the politics and legalese of enacting legislation and launching CEIP, what does this program mean for you, the average homeowner?
Clean Energy Improvement Program: An Overview
The Clean Energy Improvement Program, or CEIP, exists as a financing tool for building owners and developers to use to upgrade energy performance, install renewable energy system, and reduce their overall energy consumption. The incentive CEIP provides is no money down, 100% financing, easily-structured payback plan via your property tax bill.
Beyond the money and numbers, however, CEIP abides by its overall mission statement; to create a sustainable future by making energy efficiency and renewable energy upgrade measures affordable to all Albertans and Canadians. And who they are reflects this statement in their dedication to the success of CEIP in Alberta and Canada as a whole through their not-for-profit education and advocacy.
But what are the benefits to you? Why should you invest your hard-earned cash towards financing energy upgrades?
The answer is simple, and comes in many forms. First, and often foremost, are the lowered bills meaning more cash in your pocket. CEIP upgrades can, and will, lower your electric, gas and water bills, reduce your overall resource use and consumption, and result in more comfortable buildings with improved indoor air quality.
As an owner, you also benefit from the increase in property value, marketability, and economic activity, and you don’t have to worry if you sell your home; the upgrade cost and payments can be easily transferred to the new buyer!
The CEIP Vision:
CEIP is voluntary for all parties involved, and with financing cover 100% of your hard and soft costs, the possibilities seem endless.
Financing for residential homeowners like yourself cap off at $50,000 in upgrades, with repayment being done worry free through your property tax bill; a simple line item will be added after the upgrades on your next tax bill!
To qualify, your upgrades must be done in an effort to reduce energy and/or resource consumption, generate renewable energy, or reduce your waste and overall carbon footprint. Financing is available to nearly every building type; from single-detached houses to multi-family residential, just make sure that the financed project is permanently affixed to the property!
Key Concepts Homeowners Need to Know:
1) There is no upfront cost; with 100% financing, CEIP does not expect you to front any down payment
2) Your eligibility is based, in part, on your homes equity, with most requiring an equity of about 10% to 15% in order to qualify
3) Lending periods for which a homeowner may qualify can go up to 30 years, meaning you are locked in at a competitive and affordable tax rate for that entire time
4) Your home must be in good financial standing, meaning you are current on your mortgage payments and your property tax payments; the latter must have no arrears in the past 3 years
The drive of CEIP is to make it easier and more affordable than ever for homeowners to access renewable and green resources, retrofit their home, and receive a return-on-investments that has been missing in the green energy industry for much too long.