Financial assistance for energy management systems projects

Financial assistance is available to help fund your energy management system (EnMS) implementation project. Natural Resources Canada (NRCan) will provide financial assistance of up to 50 percent of eligible costs, to a maximum of $40,000. When the financial assistance is combined with other sources of funding, NRCan may adjust its level of funding so that the combined level of financial assistance from all public sources (including provincial-territorial-municipal governments and Crown-owned utilities) does not exceed 75 percent of total eligible project costs.

Project proposals need to explain how evidence of system implementation will be provided, e.g. via an internal audit performed by a qualified individual or a copy of certification.

Elements of your project may include, but are not limited to

  • developing and disseminating tools and information related to energy efficiency
  • developing, organizing and delivering training
  • doing assessments, evaluations and benchmarking studies
  • developing technical guides and reports, implementation roadmaps and best-practices studies

Facilities located in British Columbia may be eligible for additional cost-shared financial assistance from the British Columbia Ministry of Energy and Mines.

ISO 50001 Energy Management Systems Standard projects

Cost-shared assistance is available to help you implement the voluntary ISO 50001 Energy Management Systems Standard in your industrial facility. Companies that participate in ISO 50001 projects improve their energy performance by implementing this standard. All types and sizes of industrial organizations that qualify as CIPEC Leaders are invited to participate.

Read more about the ISO 50001 Energy Management Systems Standard.

If your organization is considering a CAN/CSA-ISO 50001 implementation and your ISO registrar is not accredited to certify organizations in their implementation of the international standard, ISO 50001 – Energy Management Systems, the Standards Council of Canada offers a program to upgrade their accreditation.

Email us for details.

Eligibility for energy management and ISO 50001 projects

To be eligible for financial assistance, your industrial facility must be registered with Natural Resources Canada (NRCan) as a CIPEC Leader. You must also have your proposal approved by NRCan before any work begins.

To be eligible as an energy management project, a project should

  • be intended to improve industrial energy performance and reduce GHG emissions
  • demonstrate potential for learning and/or replication
  • have results that can be disseminated to promote energy management best practices
  • have potential to recommend technical projects and practices that represent energy savings

To be eligible for financial assistance for an ISO 50001 implementation project, a company must have

  • senior management support and commitment
  • participation of employees/consultants with experience in energy management standards (ISO, ANSI or others)
  • commitment to monitor and report on results for a specific period of time

The following costs are eligible for assistance

  • development of an energy baseline
  • energy use assessment
  • energy performance monitoring and reporting
  • professional fees
  • training
  • salaries of internal employees for work related to the implementation of the ISO 50001 or energy management projects

The following costs are not eligible for assistance

  • equipment purchases
  • capital projects

A four-step funding process

To be eligible for financial assistance, a company must follow this process:

1. Become a member of CIPEC

A facility must be registered as a CIPEC Leader

2. Write and submit a proposal before you begin

If you don't have an engineering firm of record that is qualified to write your proposal, send NRCan an email asking for help. For a contracting firm to be considered qualified, it must be either an engineering consulting firm or a team of individuals experienced with energy management.

NRCan will review the proposal. If we accept it, we will contact you to establish a Contribution Agreement to help fund the project.

For more information, see how to prepare your proposal for financial assistance.

3. Implement your energy-management plan

  • Arrange for your contractor or team to perform the project.
  • Pay all related costs/expenses when the work has been completed to your satisfaction.

4. Get reimbursed

  • Submit a claim with supporting documents to NRCan within three months of the project end date.
  • NRCan will review and approve the claim and final report.
  • You will receive a reimbursement cheque at the end of the project after the final report and claim has been accepted by NRCan.

How to prepare your proposal for financial assistance

To apply for financial assistance for an ISO 50001 or an energy management project, your organization must first submit a written proposal. It must include the project's goals and objectives, scope and cost. You must submit your proposal on company letterhead and have it signed by an authorized company officer.

Request a proposal template.

The proposal should include the following details:

  1. Background and objective – A brief statement about the background and measurable objectives for the project. The final outcome must be a continuous energy management system in accordance with the criteria of the standard.
  2. Statement of work – A description of the project tasks and activities (energy review, energy baseline, energy performance indicators, energy measurement plan, energy action plans, energy training plan, energy policy, etc.).
  3. Deliverables – An outline of what NRCan will receive from the organization. The deliverables for an ISO 50001 implementation project should include:
    • Status reports – These explain briefly what stage of implementation your organization has achieved and if the work is on schedule or delayed.
    • Planning Report (work plan) – This may include and energy review, energy baseline, energy performance indicators, objectives, targets action plans, training, awareness and communication plan.
    • Final report – This includes a report of energy performance improvement and implementation of the energy management system.
  4. Work schedule – This includes the start date and measurable milestones/phases of the project, and who will be undertaking each work component.
  5. Project costing
    • This must include a breakdown of the estimated project costs by task in accordance with eligible expenses (see the proposal template).
    • All expenses and claims submitted by an association or company under the Energy Efficiency for Industry financial assistance program must be accompanied by a receipt or proof of cost incurred.
    • For salaries paid by the company, submit a summary including the number of employees, rate of pay and estimated hours.
  6. Terms of payment – The planned payment schedule for the project (e.g., by phase, quarterly, etc.). This must also identify all sources of funding (e.g., multiple incentive programs, etc.).
  7. Declarations – The proposal on company letterhead, signed by an authorized company officer to declare that by signing the proposal all the following conditions have been met:
    1. Your organization is a CIPEC Leader.
    2. Your organization has the management, financial and technical resources to fulfill the undertaking.
    3. Your organization will develop and implement a sustainable energy management system in accordance with the ISO 50001 standard (for ISO 50001 implementation projects only).
    4. No former public servants to whom the Conflict of Interest and Post-Employment Code for Public Office Holders or the Values and Ethics Code for the Public Service apply are involved in the project.
    5. Your organization will submit reports during and at the end of the project, but also commit to monitor and report on results on an annual basis for the next three years (or as agreed) following the end of the project.
    6. Your organization will wait for a written confirmation of the approval of NRCan before undertaking this service to remain eligible for the funding.