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SMEs eligible for energy-efficiency funding


OTTAWA – Small- and medium-sized businesses in the four provinces where the federal government carbon-pollution pricing currently applies can now apply to the SME Project stream of the Climate Action Incentive Fund.

Small and medium-sized businesses (fewer than 500 employees) in Saskatchewan, Ontario, Manitoba and New Brunswick will be eligible to receive funding of up to 25 percent of the cost of projects that will make their businesses more productive and competitive as they reduce energy use, save money, and cut greenhouse gas pollution.

Estimated funding for 2019 breaks down as follows:

  • Saskatchewan: $21,300,000
  • Ontario: $72,400,000
  • Manitoba: $9,300,000
  • New Brunswick: $3,700,000

A wide range of projects are eligible, including building retrofits, improved industrial processes, fuel switching, and the production of renewable energy for the use of applicants. These include:

  • Retrofitting and upgrading of existing equipment used for industrial processes
  • Fuel switching to lower emitting energy sources
  • Process changes
  • Waste-heat recovery
  • Heavy-duty vehicle retrofits, including energy efficiency and/or fuel switching to lower emitting sources
  • Marine vehicle retrofits, including energy efficiency and/or fuel switching to lower emitting sources
  • Energy efficiency measures in waste management

Over the next five years, small and medium-sized businesses in these provinces will have access to $1.45 billion to support actions such as increasing the energy efficiency of their operations.

This funding comes from a portion of the fuel-charge revenue from the four provinces where the federal price on carbon pollution is in effect.

The application period will be open until funding is exhausted or for a maximum of 90 days, starting July 17.

Proposals will be selected on a first-come, first-served basis, and regional considerations and prioritization for the most impacted small- and medium sized businesses will be taken into account.

Applicants can consult the applicant guide to prepare their proposal and submit it through the online application tool. Applicants will be notified of the decision after approximately 25 business days upon receipt of their application.

Businesses could be eligible to receive funding of up to 25 percent of eligible costs for energy-efficient retrofits and other projects to improve energy efficiency, reduce their energy use, and save money—to a maximum of $250,000 per applicant per eligible province. The minimum amount of federal funding per application is $20,000.

The Government of Canada implemented changes to accelerated capital costs that allow businesses to immediately write off the full cost of machinery and equipment used for the manufacturing and processing of goods or immediately write off the full cost of specified clean-energy equipment. Investments eligible for Climate Action Incentive Fund may also be eligible for the accelerated capital cost allowance.


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