ERA Strategic Energy Management Initiative — Capital Retrofits (SEMI)

Insider Tip

The 2026 scoring model rewards low abatement cost ($/tCO₂e) above almost everything else — the cheapest-to-abate projects rise to the top. If you have a choice of which retrofit to submit, pick the one with the best ratio of CO₂e avoided per dollar of ERA request, even if it's a smaller absolute ask. Also: 'diversity of technologies' is a tiebreaker, so submitting a less-common measure (waste-heat recovery, process heat-pump, VFD on legacy compressors) often beats the tenth LED-lighting application. If you're an Indigenous-owned business or non-profit, ask ERA to confirm you're in the fairness stream BEFORE submission — your score is computed separately.

Success Profile

An Alberta manufacturer, food processor, or industrial facility (50–500 employees) with an existing energy audit showing a defined retrofit opportunity — typically a heat-pump replacement, process-electrification project, or waste-heat recovery install with $200K–$1.5M capital cost and a $/tCO₂e ratio under $200. Engineering support and a realistic 12–18 month install timeline are strong indicators.

Evaluation Criteria

Applications are scored and ranked using a weighted model: (1) Abatement cost — ERA funding requested per tonne CO₂e avoided (primary driver, lowest $/tCO₂e scores highest); (2) Parent-company funding cap enforcement ($1M max); (3) Diversity of technologies — less-funded measure types receive priority over saturated ones; (4) Application quality based on supporting documentation and feasibility; (5) Fairness assessment — Indigenous-led and not-for-profit applicants are evaluated in a separate scoring stream so they are not directly compared against large corporate applicants.

Application Steps

Required Documents 8

Eligible Expenses 7

• Purchase and installation of high-efficiency equipment (heat pumps, motors, VFDs, compressors)
• Process electrification equipment and integration
• Waste-heat recovery systems and heat exchangers
• Building envelope upgrades tied to industrial facility
• Engineering and commissioning directly supporting the retrofit
• Metering, sensors, and controls required for verified savings
• Third-party measurement and verification (M&V)

Ineligible Expenses 6

• Activities completed or invoiced before ERA project approval date
• Routine operating expenses and like-for-like equipment replacement
• Behavioural or training-only programs
• Standalone consulting, audits, or feasibility studies not tied to an approved capital project
• Costs recoverable through utility tariffs or already covered by other ERA programs
• Ongoing maintenance and warranty service contracts

Intake Periods

Fixed competitive intake. 2026 intake: January 7 – March 2, 2026. No new intake is announced for later 2026 as of April 23, 2026. Historically ERA ran rolling first-come-first-served intakes; this has been discontinued in favour of scored competitive rounds.

Deadline Notes

2026 fixed intake ran January 7 – March 2, 2026 at 4 p.m. MST. ERA is currently evaluating applications and expected to communicate decisions by March 31, 2026. As of April 23, 2026 no new intake has been announced for later 2026. Unfunded applications enter a waitlist; if additional funding becomes available, waitlisted projects may be reconsidered. Approved projects must complete installation by March 31, 2027.

Open Application Portal →

Ineligible Organizations

• Businesses operating outside Alberta
• Entities that have already reached the $1M parent-company funding cap in this intake
• Federal government departments and Crown corporations
• Residential property owners (program is ICI — industrial/commercial/institutional only)

Compatible Programs

Clawback Risk

Medium Risk

If installed equipment is removed, sold, or decommissioned before the end of the verification period, or if measured savings fall significantly below the projected threshold, ERA can require partial repayment. Projects that fail to complete by March 31, 2027 risk losing their funding commitment.