
Sofiac — Risk-free energy transition
Last Update: September 10, 2025
Canada
Supports business energy transition projects with risk-free investment
At a glance
Eligible Funding
- No Condition
Timeline
- Unspecified
Financing Type
Other Support
Loans and Capital investments
Eligible Industries
- Real estate and rental and leasing
- Accommodation and food services
- Other services (except public administration)
- Public administration
Funds Providers
Program status
Open
Overview
The SOFIAC Risk-free Energy Transition program enables Canadian commercial, industrial, and multi-residential businesses with annual energy costs over $750,000 to implement energy efficiency and decarbonization projects with no upfront financial contribution. All project costs are reimbursed via a portion of generated savings, supporting ESG objectives and reducing GHG emissions through measures such as equipment upgrades and improved energy management.
Financing terms and conditions
- No upfront financial contribution required from the client; all project costs are covered initially.
- Project costs are reimbursed exclusively through a portion of the energy savings generated after project implementation.
- The client benefits from positive cash flow as of project start and retains a portion of demonstrated savings.
- Full asset ownership is transferred to the client on day one, allowing for fiscal amortization throughout the asset's lifetime.
Activities funded
- Development and implementation of energy efficiency projects.
- Execution of decarbonization initiatives in commercial, industrial, and multi-residential buildings.
- Upgrading or replacing aging infrastructure to achieve energy savings and reduce greenhouse gas emissions.
Examples of admissible projects:
$ 670,000
Optimizing HVAC and integrating controls in large office building complex
$ 360,000
LED lighting conversion and controls in national retail chain flagship
$ 750,000
Retrofitting refrigeration systems in large grocery distribution center
$ 600,000
Replacing boilers with high-efficiency heat pumps in multi-residential tower
$ 570,000
Comprehensive decarbonization in cold storage warehouse with heat recovery
$ 610,000
Envelope insulation and triple-glazed windows at hotel and conference centre
Eligibility
- The applicant must be a business operating in the commercial, industrial, or multi-residential sector.
- The business must be located in Canada.
- The total annual energy costs for the business (for a portfolio of buildings) must exceed $750,000.
Who is eligible?
- Commercial sector businesses in Canada
- Industrial sector businesses in Canada
- Multi-residential sector businesses in Canada
Eligible expenses
- Costs related to project preparation, including financial and technical feasibility studies.
- Detailed engineering and design services for approved energy transition and decarbonization initiatives.
- Procurement, installation, and commissioning of equipment dedicated to energy efficiency or GHG reduction.
- Consulting fees from mandated energy service companies (ESCO) for project development and implementation.
- Measurement and verification of achieved energy savings as per project agreement.
Eligible geographic areas
- Canada
Selection criteria
- Confirmation that the project meets SOFIAC's investment criteria.
- Agreement on all the criteria that will allow the development of the project's financial model.
How to apply
1
Prepare project and sign contract
- Confirm project eligibility based on SOFIAC investment criteria
- Agree on key criteria to develop the financial model
- Sign contract with SOFIAC
- Select an energy service company (ESCO) for the project
2
Implement project and commission
- The ESCO conducts a detailed study to define technical solutions
- Execute detailed engineering
- Structure the savings measurement and verification plan
- Implement the project and commission equipment
3
Monitor performance and savings
- Continuously validate proper performance of solutions implemented
- Apply measurement and verification plan to the achieved savings
- Invoice shared savings according to agreement
Additional information
- SOFIAC manages all phases of the project, assuming full financial and technical risks.
- Asset ownership is transferred to the client from the first day, enabling fiscal amortization throughout asset lifetime.
- SOFIAC optimizes available subsidies to reduce the total amount to be reimbursed by the client.
- The arrangement is structured to preserve the client’s borrowing capacity and financial profile.
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Frequently Asked Questions about the Sofiac — Risk-free energy transition Program
Here are answers to the most common questions about the Sofiac — Risk-free energy transition. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
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