Property Type Context

Select a property type to see how fees, thresholds, and approval paths vary across each phase.

Commercial (Non-Residential): Max CEIP funding $1,000,000 (exceeding requires Minister + council approval). Application fee: $500. Requires ASHRAE Level 3 energy audit by P.Eng, CET, or CEM. Multi-tenant residential buildings 3+ storeys and 600m²+ footprint included. Professional engineer/architect oversight throughout.
Residential: Max CEIP funding $50,000. Application fee: $100. Includes single/semi-detached houses, row houses, townhomes, small multi-unit buildings (<3 storeys or <600m²). Simplified energy assessment may apply. Dower Act compliance required. Condominium board approval needed for condo common areas (Reg 7.2.c). Mortgagor confirmation required.
Farm: Max CEIP funding $300,000 (exceeding requires Minister + council approval). Application fee: $200. Agricultural properties with potentially specialized improvements (agricultural energy systems, barn/outbuilding retrofits). Seasonal energy baselines may apply for monitoring. Tax exemption considerations under Part 10 of the MGA (Reg 10.2).
Non-Designated Industrial: Max CEIP funding $1,000,000. Application fee: $500. Properties not classed for tax assessment as residential, non-residential, or farm. Follows commercial workflow with industrial-specific eligible improvements. Same professional oversight requirements as commercial.

Complete Program Flow

End-to-end sequence showing all stakeholder interactions across the full CEIP lifecycle. Applies to all property types with property-specific branching at key decision points.

Phase 1: Designation
Phase 2: Application
Phase 3: Loan Approval
Phase 4: Installation
Phase 5: Monitoring
sequenceDiagram
    participant PO as Owners
    participant GoA as Gov AB
    participant MUN as Municipality
    participant QC as Contractors
    participant DRC as DRC

    rect rgb(241, 245, 249)
    Note over GoA,DRC: PHASE 1 — Designation
    GoA->>DRC: 1. Designate as Admin
    DRC->>MUN: 2. Eligible improvements list
    MUN->>PO: 3. Pass Clean Energy Bylaw
    end

    rect rgb(240, 255, 244)
    Note over PO,DRC: PHASE 2 — Application
    PO->>DRC: 4. Apply for improvements
    QC->>DRC: 4a. Register + qualify
    Note over DRC: 4b. Review + verify
    DRC->>PO: 4c. Proposed agreement
    PO->>DRC: 4d. Signed agreement
    DRC->>MUN: 4e. Submit agreement
    end

    rect rgb(235, 248, 255)
    Note over PO,DRC: PHASE 3 — Loan Approval
    Note over DRC: 5a. Compare financing
    DRC->>PO: 5b. Loan agreement
    PO->>DRC: 5c. Signed loan
    DRC->>MUN: 5d. Register savings + costs
    MUN->>QC: 5e. Authorize work
    DRC->>GoA: 5f. SPIN2 registration
    end

    rect rgb(255, 255, 240)
    Note over PO,DRC: PHASE 4 — Installation
    QC->>PO: 6. Install + warranty
    Note over DRC: 7. Monitor progress
    DRC->>MUN: 8. Register completion
    MUN->>QC: 9a. Pay contractor
    QC->>DRC: 9b. Regulated costs
    end

    rect rgb(250, 245, 255)
    Note over PO,DRC: PHASE 5 — Monitoring
    PO->>MUN: 10. Property tax repayment
    Note over DRC: 11. Performance reporting
    DRC->>MUN: 11a. Municipal reports
    DRC->>GoA: 11b. Program report + SPIN2
    end
        
Phase 1

Administrator Designation & Municipal Bylaw

The foundation phase establishes DRC as Program Administrator and works with municipalities to develop CEIP bylaws, eligible improvements lists, and program guidelines for all property types.

Swimlanes: Property Owners | Qualified Contractors | DRC (Program Admin) | Municipality | Capital Financing | Government of Alberta
sequenceDiagram
    participant PO as Owners
    participant QC as Contractors
    participant DRC as DRC
    participant MUN as Municipality
    participant CF as Capital
    participant GoA as Gov AB

    GoA->>DRC: Designate as Program Admin
    GoA->>DRC: Collaborate on program
    Note right of DRC: Develop program, publish policies + improvements list
    DRC->>MUN: Program requirements
    DRC->>MUN: Eligible improvements list
    CF->>MUN: Financing structure
    MUN->>MUN: Pass CEIP Bylaw
    DRC->>PO: App guide online
    DRC->>QC: Registration portal online
    Note right of MUN: Bylaw triggers Phase 2
        
Phase 1 Outputs & Artifacts
  • Maintained application guide available online (per property type)
  • Published & maintained eligible improvements list (categorized by property type)
  • Municipality-specific CEIP program documentation
  • Qualified contractor registration portal live
  • All governance policies published (PADM, MORPT, BOD, EIMP, QCTRS, FINMGT, IRE)
Phase 2

Application Process

Property owners apply for CEIP improvements while contractors register and qualify. DRC reviews applications, verifies eligibility, and manages the agreement process including the 10-day cure period.

Property-type variations: Application fee: $500. Full ASHRAE Level 3 audit required. Professional engineer/architect endorsement. Represented by legal counsel or REIT.
sequenceDiagram
    participant PO as Owners
    participant QC as Contractors
    participant DRC as DRC
    participant MUN as Municipality
    participant CF as Capital
    participant GoA as Gov AB

    QC->>DRC: Register + credentials
    DRC->>QC: Confirm registration

    PO->>QC: Commission ASHRAE L3 audit
    QC->>PO: Audit report + quote
    PO->>DRC: Submit application
    DRC->>PO: Application number
    DRC->>GoA: SPIN2 title search
    Note right of DRC: Review: ownership, tax, insurance, improvements

    alt Approved
        DRC->>PO: Costs + payment schedule
        PO->>DRC: Sign agreement
        Note right of DRC: 10-day cure period
        DRC->>MUN: Submit agreement
        MUN->>DRC: Confirm receipt
        Note right of MUN: Triggers Phase 3
    else Not Approved
        DRC->>PO: Rejection + guidance
    else Rejected by Owner
        PO->>DRC: Decline agreement
    end
        
Phase 2 Key Decision Points
  • Contractor Qualification: Must hold APEGA or AAA license, $5M liability, $2M E&O, current WCB, completed 3hr training
  • Application Review: Ownership verification, tax good standing (5 years), insurance confirmation, eligible improvement validation
  • Agreement Cure Period: 10 business days — configurable per municipality agreement
  • Property Ineligibility: Existing CEI agreement unpaid, foreclosure, development compliance issues, ongoing litigation
Phase 3

CEIP-Loan Approval Process

DRC facilitates the loan approval by comparing financing options, drafting the formal CEIP-Loan agreement, and registering everything on SPIN2. The municipality and capital financiers are brought into alignment.

Property-type variations: Max funding: $1,000,000. Projects exceeding $1M require Minister + council resolution. Cost formula: (A+B+C)/D applied per eligible improvement proportionally.
sequenceDiagram
    participant PO as Owners
    participant QC as Contractors
    participant DRC as DRC
    participant MUN as Municipality
    participant CF as Capital
    participant GoA as Gov AB

    DRC->>PO: Application approved
    DRC->>QC: Application approved
    CF->>DRC: Provide financing terms
    Note right of DRC: Compare options

    alt Approved
        DRC->>PO: Loan agreement for signing
        PO->>DRC: Signed CEIP-Loan
        DRC->>MUN: Registered CEIP Loan
        DRC->>GoA: SPIN2 registration on title
        Note right of DRC: Triggers Phase 4
    else Rejected
        DRC->>CF: Request revised terms
    end
        
Phase 3 Financial Formula

Annual Payment Calculation (Reg 10.1.c):

Annual Payment = (A + B + C) / D

  • A = Capital cost of the clean energy improvement
  • B = Total cost of professional services
  • C = Total incidental costs (max 15% of total capital)
  • D = Probable lifetime in years of the improvement

Multiple improvements per agreement are calculated individually and proportionally based on their probable lifetime and cost contribution.

Phase 4

Eligible Improvement Installation

The authorized improvements are installed by qualified contractors under professional oversight. DRC tracks progress, validates completion, registers the project, and establishes the performance monitoring plan.

sequenceDiagram
    participant PO as Owners
    participant QC as Contractors
    participant DRC as DRC
    participant MUN as Municipality
    participant CF as Capital
    participant GoA as Gov AB

    DRC->>PO: Authorize installation
    DRC->>QC: Authorize + project scope
    QC->>MUN: Deposit request
    MUN->>QC: Deposit payment
    QC->>QC: Perform scope of work
    DRC->>PO: Progress updates
    QC->>DRC: Proof of completion
    Note right of DRC: Verify completion
    MUN->>QC: Balance payment
    Note right of DRC: Register completion + monitoring plan
    DRC->>CF: Monitoring notice
    DRC->>GoA: SPIN2 completion registration
    DRC->>PO: Completion accepted
    Note right of DRC: Triggers Phase 5
        
Phase 4 Payment Structure
  • Deposit Payment: Issued by municipality to contractor upon authorization to proceed
  • Balance Payment: Released upon DRC-validated completion and municipality processing
  • Performance Bond: ~$100K per $100M aggregation ensures long-term monitoring capability
  • Post-Completion Audit: ASHRAE Level 2 audit required 1 year after completion
Phase 5

Program Monitoring & Reporting

Ongoing performance monitoring tracks energy savings, GHG reductions, and ROI. Annual reports are published publicly and distributed to municipalities and the Government of Alberta. The monitoring period spans the lifetime of each improvement (7-60 years).

sequenceDiagram
    participant PO as Owners
    participant QC as Contractors
    participant DRC as DRC
    participant MUN as Municipality
    participant CF as Capital
    participant GoA as Gov AB

    PO->>DRC: Support monitoring
    QC->>DRC: Support monitoring
    Note right of DRC: Manage monitoring system

    DRC->>MUN: Annual program report
    DRC->>MUN: Municipal-specific report
    DRC->>CF: Performance report
    DRC->>GoA: Annual program report
    DRC->>GoA: SPIN2 document updates
    DRC->>PO: Public performance report
    Note right of DRC: Feedback informs Phase 1
        
Phase 5 KPIs & Monitoring Metrics
Energy Savings

Electricity (kWh), Natural Gas (GJ), Water usage — measured against pre-project ASHRAE Level 3 baseline

GHG Reductions

Tonnes of CO2 equivalent (tCO2e) — annual and lifetime tracking per improvement

Financial Performance

ROI, NPV, cost savings vs. projections, actual vs. estimated payback period

Contractor KPIs

OTIF >98%, Energy Improvement Achievement >95%, Customer Satisfaction >90%