Capital Retrofits

• Feasibility study supporting the proposed capital retrofit(s)
• At least 12 months of energy consumption data (Excel format) for the applicable system(s)
• Detailed project budget/cost estimate supported by vendor quotes for major cost items
• Retrofit workplan/implementation schedule with key milestones
• Measurement & Verification Reporting (M&VR) document (plan/methods for verifying results)

Who is eligible?

• Industrial facilities located in Alberta
• Manufacturing facilities located in Alberta
• Agriculture, forestry, fishing and hunting operations (including related support activities)
• Mining, quarrying, and oil and gas extraction businesses (including related support activities)
• Utilities, transportation, construction, and eligible waste management/remediation service operations

Who is not eligible

• Businesses whose project consists of a new construction (this type of project is indicated as ineligible).
• Businesses with renovation projects focused on fossil fuel equipment (e.g., replacing a boiler with a more efficient boiler), where the project’s sole aim is to improve the efficiency of equipment powered by fossil fuels.
• Businesses whose main activity falls under the Administrative and Support Services sector (NAICS 56 – administrative and support component), since this subsector is specified as ineligible (note: waste management and remediation remain eligible).
• Businesses in a state of bankruptcy or insolvency (or subject to bankruptcy/receivership proceedings, etc.), as this status is explicitly excluded.

Eligible expenses

• Capital costs to purchase and install retrofit equipment.
• Professional and contracted services directly tied to the retrofit (e.g., engineering, project management, construction, technical/management services, training, logistics, maintenance, contracting).
• Data collection and data management services (including processing and analysis) related to the retrofit.
• Meters and related costs for measurement and verification (purchase, design, installation, configuration).
• Travel costs required for the retrofit work (meals and accommodation) in line with National Joint Council rates.
• Licence fees, data purchases, certification costs, regulatory compliance costs, inspection costs, construction insurance, and permits.
• Environmental assessment costs.

Ineligible Costs and Activities

• Costs not directly required to purchase or install the capital retrofit.
• Costs incurred before October 16, 2024 or after March 31, 2027.
• Costs to expand the facility (e.g., new construction, new processes, or capacity increases beyond the allowable threshold).
• Costs that have already received incentives, subsidies, grants, or other funding from any Canadian government source (federal, provincial, territorial, or municipal).
• Operating and maintenance costs (including upkeep), as well as overhead/administrative costs not directly related to the retrofit.

Eligible geographic areas

• Alberta, Canada

• Abatement cost (ERA funding requested per tCO₂e of lifetime GHG reductions) — projects with lower abatement costs score higher.
• Parent company funding cap — maximum $1 million per parent company; applications exceeding the cap may not be evaluated and may be placed on the waitlist.
• Diversity of technologies supported — technologies that have received less funding to date are prioritized.
• Application quality — assessed based on the quality of the supporting documentation submitted.
• Fairness assessment for Indigenous and not-for-profit applicants — Indigenous and not-for-profit applications are scored separately from for-profit applications.

• ERA’s service provider reviews complete applications submitted during the intake window and scores/ranks them using ERA’s evaluation criteria.
• During the fixed intake period, applications are not assessed on a first-come, first-served basis; incomplete files must be revised by the deadline to remain eligible for evaluation.
• Funding is allocated to the highest-ranked applications until the available budget is fully committed; eligible but unfunded projects may be placed on a waitlist and contacted if funds become available.
• Applicants are notified of the funding decision (target: by March 31, 2026 for fixed intake submissions), and approved projects receive an ERA-executed Capital Retrofits Terms & Conditions agreement.
• After installation and verification of results (per the Measurement & Verification requirements) and after invoices are reviewed/approved, the incentive payment is issued by electronic funds transfer.

• Capital Retrofits has a new fixed intake model effective January 7, 2026 (replacing first-come, first-served for new/unsigned applications).
• For the fixed intake round, complete pre-applications must be received by March 2, 2026 at 4 p.m. MST, with funding decisions targeted by March 31, 2026.
• Projects may begin implementation before a funding decision, but this is at the applicant’s own risk since funding is not reserved until ERA executes the Terms and Conditions.
• Incentive payments are issued after the retrofit is completed and verified, and participants must maintain and submit project data until March 31, 2031.