ecoENERGY Retrofit Incentive for Industry: Program Details

Organization Eligibility Criteria

A facility can apply for a retrofit incentive once over a 12 month period. To be eligible for assistance, an industrial facility must:

• have fewer than 500 employees
• not be in a sector targeted for GHG emission regulations per the Regulatory Framework for Air Emissions. Targeted sectors include: Aluminum, Cement, Chemicals, Lime, Pulp & Paper, Wood Products, Steel smelting, Base Metal Smelting, Electricity Generation (from combustion), Upstream Oils and Gas, Petroleum Refining, Oil Sands, Natural Gas Pipelines.
• be in operation for 12 months or more
• be registered with Natural Resources Canada's
  (NRCan's)CIPEC leadership network.

Project Eligibility Criteria

To be eligible for an incentive, companies must not have started or incurred any costs before their application is approved and a Contribution Agreement between NRCan and the company is signed by both parties.

To be eligible for funding, a retrofit project must:

• involve capital expenditures that modifies or upgrades an existing building, equipment/systems or process.
• result in a measurable and verifiable reduction of energy use
• have a net simple payback period of more than one year

All energy figures must be provided in gigajoules. To convert various sources of energy, such as kilowatt hours of electricity or cubic meters of natural gas, you can use NRCan's Gigajoule and Energy Conversion Calculator.

Facilities that are eligible for retrofit assistance must demonstrate the technical and financial feasibility of their projects in their applications.

To help companies determine the eligibility of their project(s), NRCan provides a sample list of eligible and ineligible projects.

Value of Incentive

The maximum incentive per application is 25 percent of project costs or $50,000, whichever is less. The incentive will be calculated on a project basis after taking into account funding from other sources and will be the lowest of the following amounts:

• $10 per gigajoule (GJ) of energy estimated to be saved by a retrofit project per year
  = estimated annual GJ of energy saved × $10
• 25 percent of the total eligible project costs (including GST, HST and PST net of tax rebate and other incentives)
  = 25% × [total project cost – other incentives]
• the amount required to reduce the net simple payback period for each project to no less than one year
  = dollars of annual energy savings × (net payback period in years – 1 year)

The following example illustrates how the incentive will be calculated when there is more than one project in an application.

Selecting a Qualified Retrofit Contractor

The estimated energy savings from a retrofit project MUST be certified by either a Professional Engineer or a Certified Engineering Technologist. Companies may use their in-house expertise or may select an external consultant of their choice to certify and/or complete the application. Typically, an external consultant should be with an engineering firm that has experience conducting industrial process improvements.

To help companies locate a contractor, NRCan has developed the Energy Management Services Directory. When selecting a contractor, companies should ensure that the contractor has the following qualifications:

• relevant educational and professional experience
• a track record of responding to clients' needs
• the ability to provide objective advice and has declared any financial relationships with equipment vendors or service companies
• has staff who are qualified to conduct the retrofit

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