Retrofitting your building with energy-efficient solutions is a smart investment — but did you know there are numerous government programs available to offset the costs? Clarity Building Controls specializes in helping commercial building owners navigate funding opportunities to maximize ROI.
Here’s a breakdown of key Canadian funding programs that support commercial energy retrofits, empowering businesses to align with the country’s 2050 net-zero target.
Key Funding Programs for Commercial Building Retrofits
#1. Canada Infrastructure Bank (CIB)’s Building Retrofits Initiative (BRI)
Overview: This decarbonization initiative provides financing for energy-efficient retrofits. It aims to modernize and improve existing buildings while reducing investment barriers in both the public and private sector.
Eligibility: Eligible public sector applicants include all levels of government, schools, hospitals and universities. In the private sector, funding is open to all privately-owned commercial, industrial, and multi-unit residential buildings. Eligible assets include real estate investment trusts (REITs), investment trusts, retail chains, and corporations.
How to Apply: Applications are accepted on a rolling basis.
Learn More: Visit the Canada Infrastructure Bank’s Building Retrofits Initiative website for details.
#2. City of Toronto’s Energy Retrofit Loans (ERL) Program
Overview: If your projects are located within Toronto, this program offers fixed, long-term, low-interest financing to support low-carbon, energy-efficient capital improvements.
Eligibility: All buildings in Toronto, including commercial, retail, and industrial. Authorized third-parties can apply on behalf of the building owner, with funds disbursed directly to the owner.
How to Apply: If eligible, you’ll be contacted and asked to complete a detailed application to assess projected energy and carbon savings. The process includes conducting a feasibility study and developing a business case.
Learn More: Visit the City of Toronto’s Energy Retrofit Loans website for details.
3. Clean Technology (CT) Investment Tax Credit (ITC)
Overview: A refundable tax credit meant to encourage businesses to invest in the adoption and operation of green technology — from solar panels to non-road zero-emission vehicles. For eligible property acquired and available for use as of March 28, 2023 until the end of 2033, the credit rate is up to 30%. For the duration of 2034, it goes down to 15%. The credit will be unavailable after 2034.
Eligibility: Taxable Canadian corporations, including partnerships, and REIT mutual fund trusts may qualify if they invest in eligible clean technology property in Canada. The property must be new (not previously used or leased) and the equipment must be situated in and intended for use exclusively in Canada.
How to Apply: Claim the CT ITC on either your corporate tax return or trust tax return. You can generally only claim one clean economy ITC for the same eligible property.
Learn More: Visit the Clean Technology (CT) Investment Tax Credit (ITC) website for details.
Next Steps: How Clarity Building Controls Can Help
Navigating these programs can be complex, but the Clarity team is available to simplify the process and maximize your funding potential. We have a four-step process to help you find the right funding or grant.
#1. Free Consultation: A complimentary consultation can be scheduled to understand your building project, sustainability goals, and eligibility for various funding programs, including government grants. This will help to validate key factors such as energy efficiency improvements, renewable energy integration, and environmental certifications.
#2. Selecting the Right Funding Programs: Thorough research will be conducted to identify relevant federal, provincial, and municipal grants, loans or tax incentives tailored to your project.
#3. Application Assistance: Access to funding expertise provides support in preparing applications, including compiling required documentation, technical data, and financial projections to ensure your submission meets all compliance requirements and stands out for approval.
#4. Implementation Support: After helping to secure the funding, we continue to support the implementation phase by assisting with the integration of our smart building solutions.
Ready to explore cost-saving opportunities for your energy efficiency retrofit?
Contact Clarity Building Controls today to book a free consultation with our lead funding expert.