Many Alberta municipalities are looking for ways to improve energy efficiency and save taxpayer money by reducing energy costs. However, upgrades and improvements are often expensive or otherwise challenging for communities to put in place.
In response, Alberta is offering a new $3-million Municipal Electricity Generation Program to help municipalities lower the costs of powering and heating recreation centres, town halls, libraries and other community buildings. Communities can now apply for rebates to help improve their electricity systems, reduce operational costs and lower emissions.
"Alberta municipalities are often looking for new opportunities to reduce emissions and lower energy costs for residents and businesses. This investment made through the industry-funded TIER program will help communities invest in practical upgrades that will also help save taxpayers money."
Rebecca Schulz, Minister of Environment and Protected Areas
"Smart technology is the future of our electricity system. By helping municipalities invest in modernizing their energy systems, we're ensuring that our rural communities not only save money now, but for years to come."
Nathan Neudorf, Minister of Affordability and Utilities
Starting September 24, municipalities can apply for up to $500,000 in funding for microgeneration systems that can help reduce their electricity costs. Eligible costs include the equipment, materials, labour, installation, and project or construction management costs required to complete the project.
"Our 260 member communities welcome the addition of this forward-looking provincial program that encourages them to install alternative electricity generation technologies in municipal buildings. It's a step in the right direction."
Tyler Gandam, president, Alberta Municipalities
"The Municipal Electricity Generation Program will help rural municipalities install microgeneration systems on their facilities that will reduce their emissions. Programs like this are important to our members and rural communities across Alberta."
Paul McLauchlin, president, Rural Municipalities of Alberta
"We are thrilled to announce the Municipal Electricity Generation Program, an initiative that empowers Alberta municipalities to take control of their energy future. This program demonstrates environmental leadership, reduces operational costs and contributes to a sustainable energy future for Alberta."
Trina Innes, executive director, Municipal Climate Change Action Centre
Applications for the program will close in March 2026 or when funding has been fully allocated, whichever comes first. Municipalities are encouraged to visit the Municipal Climate Change Action Centre's website for more information.
Quick facts:
- Micro-generation is small-scale local electricity production that uses renewable and alternative energy sources like solar or combined heat and power. Combined heat and power is a system that generates electricity and captures the heat that would normally be wasted, using it to heat buildings or provide hot water. This makes energy use more efficient by getting both power and heat from a single fuel source.
- Under the new Municipal Electricity Generation Program, funding will be provided through per- watt incentives, to a maximum of 30 per cent of pre-GST project costs.
- As of September 2024, Municipal Climate Change Action Centre programs have enabled 1,020 clean energy projects with 409 participating organizations and created 1,327 full time jobs. These projects will save an estimated $199 million in energy costs and 915,337 tonnes of greenhouse gas emissions over their lifetime.
- The Municipal Climate Change Action Centre was established in 2009 as a partnership between Alberta Environment and Protected Areas, Alberta Municipal Affairs, Alberta Municipalities and Rural Municipalities of Alberta.
- Through this partnership, Alberta's government invests in programs that provide funding, technical assistance and education to Alberta municipalities and community-related organizations to help lower energy costs and reduce greenhouse gas emissions.
- Alberta's government has provided more than $24 million to the Municipal Climate Change Action Centre since 2019.
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