SOFIAC was created to overcome the major barriers hindering energy efficiency improvements in the private sector. Officially launched in January 2021 with the support of Quebec’s Ministry of Energy, it stems from a partnership between the energy consulting firm Econoler and the investment fund Fondaction, backed by the Québec government. The launch of SOFIAC aligns with Quebec’s Green Economy 2030 plan and the government’s Energy Transition Master Plan, which advocate for innovative financing mechanisms to drive the fight against climate change. At its inception, SOFIAC received an initial grant to kick-start its operations. This public funding helped lower transaction costs and enabled SOFIAC to offer attractive financial conditions to business participants. It also served as a catalyst to attract substantial private and institutional investments, establishing SOFIAC as one of the largest energy efficiency initiatives in Canada. Founded in 2020, SOFIAC is a pioneering model whose core mission is to help commercial, industrial and multi-residential enterprises improve their profitability and competitiveness through energy efficiency projects. In essence, it was built on the idea that “the cheapest energy is the one you don’t consume,” enabling organizations to save energy – and money – without upfront spending.
In practical terms, SOFIAC offers companies a one-stop, turnkey solution to design, finance and implement large-scale energy efficiency and decarbonization measures. It develops, manages and invests in major carbon-reduction and energy retrofit projects for clients in the commercial, industrial and multi-residential sectors (as well as for municipal entities in Quebec), while assuming 100% of the upfront costs and technical-economic risks for every project. This innovative business model – essentially a form of performance-based financing – removes the usual financial and technical hurdles that companies face when undertaking such projects. Client companies are not required to provide any capital investment: all project expenses are funded by SOFIAC and then reimbursed over time using a portion of the energy savings achieved, via a pre-agreed shared-savings mechanism. Thanks to this approach, businesses enjoy “positive cash flow from day one” of the project and retain part of the savings each year, resulting in an immediate net gain in liquidity and profitability for the participants. SOFIAC primarily targets organizations with high energy usage – typically those with over $1 million in annual energy expenditures – in order to realize substantial cost reductions on the order of 25%–40% per project. Such projects in turn yield significant greenhouse gas cuts (roughly 30%–50% per site) and effectively decarbonize the facilities involved. Over the duration of the financing term, clients benefit from upgraded, more efficient systems; once the investment is repaid, they accrue 100% of the ongoing energy savings, reaping long-term financial and environmental benefits.
As the appointed delivery agent of a governmental financial support program, SOFIAC plays a crucial intermediary role linking public incentive funds, private capital and corporate energy projects. It is entrusted with administering an innovative funding mechanism designed to accelerate investment in energy optimization projects for businesses in Quebec and across Canada. In this capacity, SOFIAC channels government support to eligible private projects and structures partnerships with financial backers to maximize the program’s reach. Through its strategic guidance, SOFIAC assists companies at each step: from identifying energy-saving opportunities and conducting energy audits, to developing action plans and selecting technical partners, and finally to overseeing project implementation, performance tracking and measurement of results. It ensures that all available grants and incentive programs are leveraged to reduce the overall cost of projects for its clients. In parallel, SOFIAC provides direct project financing using the capital it has raised, offering businesses long-term off-balance-sheet funding for their energy upgrades. This innovative financing arrangement substantially lowers the risk and debt burden for participating firms. The programs that SOFIAC administers are therefore geared toward supporting energy optimization, providing technical and strategic accompaniment to businesses, and financing energy performance projects that improve the efficiency and sustainability of their operations. All of these efforts share a common objective: to foster an energy transition in the business community that is both financially profitable and environmentally sound.
By delivering this integrated offering, SOFIAC is effectively reducing energy consumption and GHG emissions in the private sector without requiring companies to make upfront investments. Its projects generate significant energy savings that immediately translate into lower operating costs for client firms, while markedly shrinking their carbon footprint. Furthermore, by modernizing equipment and infrastructure, these initiatives boost the competitiveness of businesses and increase the long-term value of their assets. The SOFIAC model thus exemplifies a new way to align economic performance with energy performance: it gives companies the means to achieve their sustainable development goals while simultaneously strengthening their financial health. In summary, the history and mission of SOFIAC reflect a vision in which fighting climate change and improving business competitiveness go hand in hand, thanks to specialized guidance and smart financing for energy performance projects.
