Calgary city council’s executive committee gave the go ahead to sending a request for $30 million in additional funding for the city’s Clean Energy Improvement Program (CEIP) to a public hearing on April 8.
CEIP, introduced in January 2023, provides financing to Calgary homeowners, covering the upfront costs of increasing homes’ energy efficiencies, including renewable energy upgrades.
According to the city, CEIP finances up to 100% of the cost of upgrades through loans to owners at competitive interest rates (the rate in 2024 was 3.25%) with repayment terms stretching upwards of 20 years, or can be repaid anytime during the term, with no penalty.
Repayment of funds is through property taxes and there is an incentive of up to 10% of total project costs for owners to participate.
The loans are attached to properties, not the owners. If the home is sold before the term of the loan ends, the seller can pay the balance, or transfer it to the buyer.
City administration says the additional $30 million would keep the initiative alive for another two years, with plans by council to expand it to non-residential properties, accounting for $10 million of the $30 million ask. The department says the $20 million balance would cover the energy upgrades in 800 homes, adding without the new funding, the program would be shut down once the initial $15 million of debt financing is committed, sometime this year.
Since its inception, city administration says more than 350 homeowners have taken out loans valued at $9.3 million, with 250 more homeowners expected to take advantage of the program this year. In total, the city expects 1,400 homeowners will participate in the program, adding in a report those homes could see their homes’ energy use decline by 20,000 gigajoules annually, saving the owners in the area of $290,000 in energy costs.
“The program is a key part of supporting affordability through more cost-effective capital financing for increased energy efficiency leading to reduced utility costs as well as the subsequent reduction of greenhouse gas emissions,” adds the report.
CEIP’s financing is designed as a self-supported debt for the city that recovers its annual debt servicing costs, including principal and interest payments, through the participants’ property taxes.
The city’s report says a potential source of funding is the Alberta government’s Loans to Local Authorities Program, which, says the city it says “align well with the anticipated cash flow requirements” of the CEIP between 2025 and 2027.”
