The upfront cost is the most common reason Edmonton homeowners hesitate on geothermal. A system that will save $1,500–$2,500 per year and last 25+ years still requires a $30,000–$55,000 investment to install — and unlike a gas furnace replacement, that is not a number most households absorb out of pocket.
The CEIP — Clean Energy Improvement Program — is Edmonton’s answer to this problem. It allows homeowners to finance qualifying energy upgrades, including ground source heat pump systems, through a charge on their property tax bill rather than a personal loan. No upfront cash. No credit check. No lump sum due on approval. Repayment comes from the energy savings the upgrade generates, spread over years on your tax bill.
This guide explains exactly how the CEIP works for Edmonton geothermal buyers, what the process looks like, how to combine it with other available incentives, and whether it is the right financing approach for your situation.
What Is the CEIP and Why Was It Created?
CEIP stands for Clean Energy Improvement Program. It is a Property Assessed Clean Energy (PACE) financing model — a mechanism developed across North America to solve the clean energy adoption problem caused by high upfront costs.
PACE financing works by treating the repayment of a clean energy upgrade as a local improvement charge on the property — the same mechanism used to fund sidewalks, street lighting, and sewer upgrades in Alberta municipalities for over a century. The City of Edmonton administers the CEIP under this authority. The result: the financing obligation belongs to the property, not the owner personally, and repayment is collected through the property tax system.
The program was created specifically to remove the upfront barrier to energy upgrades that have long payback periods. A geothermal system that pays back over 10–12 years is an excellent long-term investment but a challenging personal finance decision. CEIP financing turns the economics into a positive cash flow proposition from day one: your annual energy savings exceed your annual CEIP repayment charge, meaning you are ahead financially every year.
How CEIP Financing Actually Works for Edmonton Homeowners
When you use CEIP to finance a geothermal installation, the City of Edmonton pays your approved contractor directly for the eligible portion of the work. You then repay the City over a term of up to 25 years through an additional annual charge added to your property tax bill.
The interest rate on CEIP financing is tied to the City of Edmonton’s own borrowing cost — a municipal bond rate that is typically competitive with or below prime rate personal loan rates, and well below home equity line rates when markets are volatile. Importantly, this is a fixed rate for the term of the repayment, providing predictable annual costs.
There is no personal credit assessment. Because the financing is secured against the property itself rather than the borrower’s personal creditworthiness, CEIP approval is based on property equity, not income or credit score. Homeowners who would not qualify for a large personal loan or prefer not to draw on a home equity line may find CEIP more accessible.
Repayment stays with the property on sale. If you sell your home before the CEIP term is complete, the remaining balance does not become immediately due — it stays as a charge on the property and is transferred to the new owner. This is a feature, not a risk: it means you do not need to stay in the property for the full payback period to benefit from the financing.
What the CEIP Covers: Eligible Geothermal Upgrades
The CEIP covers a range of energy upgrades including insulation, windows, solar panels, and heat pump systems. For geothermal specifically, eligible items typically include the ground loop field (horizontal or vertical), the heat pump unit, associated piping and refrigerant work, electrical service upgrades required by the installation, and in some cases the backup heating element and domestic hot water integration.
The specific list of eligible expenses is confirmed at the assessment and application stage. Your installer should have current knowledge of what the City of Edmonton will and will not fund under the program, as eligible categories are occasionally updated.
Work must be completed by a contractor who is pre-approved by the CEIP program. Confirm your geothermal installer’s CEIP approval status before proceeding. For a full overview of what a geothermal installation includes and what you should expect from the process, our Edmonton geothermal installation guide is the right reference.
How Much Can You Finance Through CEIP?
The CEIP program maximum for a single property is typically up to $50,000 — a ceiling that accommodates the full cost of most residential geothermal installations, including horizontal loop systems, and the lower end of vertical loop installations. For vertical loop systems at the higher end of the cost range, the CEIP may cover the majority of the project with a smaller gap covered personally or through other financing.
Our full geothermal cost breakdown for Alberta gives the detailed cost ranges that underpin these figures. For most Edmonton homeowners, a horizontal loop system falls comfortably within the CEIP financing ceiling.
Confirm the current maximum directly with the City of Edmonton before planning, as program parameters may be adjusted periodically.
The Application Process: Step by Step
Energy assessment first: CEIP financing requires a pre-upgrade home energy assessment by a certified energy advisor. This assessment establishes a baseline for your home’s current energy performance and is required before the application can proceed. The cost of the assessment is typically eligible for CEIP financing alongside the upgrade itself.
Contractor selection and quotes: you obtain quotes from CEIP-approved contractors for the eligible upgrades. Your installer should confirm their CEIP-approved status and provide a detailed quote that clearly separates eligible and ineligible costs.
Application submission: the application goes to the City of Edmonton with your energy assessment, contractor quotes, and property ownership confirmation. The City reviews and approves the financing amount.
Work completion and payment: your contractor completes the installation and invoices the City directly for the approved eligible costs. You do not see the money — it flows directly to the contractor.
Post-upgrade energy assessment: a follow-up assessment confirms the upgrade meets the expected performance standard. This is required for CEIP completion.
Annual repayment begins: starting the following tax year, your CEIP repayment charge appears on your property tax bill. Payments continue over the agreed term — typically 10 to 25 years depending on the amount financed.
Combining CEIP with Other 2026 Incentives
CEIP financing can be stacked with other available incentives for maximum benefit.
For new builds with NHA-insured mortgages, CMHC Eco Plus provides a 25% refund on mortgage insurance premiums for homes meeting qualifying energy performance standards. A CEIP-financed geothermal system in a new build directly supports this qualification.
For commercial and rental properties, the 30% federal Clean Technology Investment Tax Credit can be applied to eligible geothermal equipment costs — and CEIP-financed projects are not excluded from federal tax credits, provided the credit is calculated on the eligible capital cost.
Our full guide to Alberta geothermal rebates and incentives covers the complete landscape of programs available alongside CEIP.
What CEIP Means When You Sell Your Home
The most common question about CEIP financing is what happens at sale. The short answer: the remaining CEIP balance stays on the property as a local improvement charge and transfers to the buyer. You are not required to pay it out in full at closing (though you can choose to).
In practice, this means the buyer takes on the remaining repayment obligation. A buyer who understands that the CEIP charge funds a geothermal system — eliminating their gas bill and providing central heating and cooling — typically views this as a net positive, not a liability. The energy savings the buyer receives each year will exceed the CEIP annual charge for most of the remaining term.
Real estate markets in Alberta are increasingly sophisticated about energy performance. A geothermal home that has eliminated its gas connection, provides both heating and cooling, and comes with a low-interest property tax repayment rather than a balloon payoff is a compelling asset. The CEIP structure supports, rather than complicates, the sale of an energy-upgraded home.
Who CEIP Is Best Suited For
The CEIP is an excellent fit for Edmonton homeowners who plan to stay in their property for at least 3–5 years (long enough to establish a track record of savings before any eventual sale), prefer not to tie up home equity or take on personal debt for the geothermal project, are not eligible for or do not want to use home equity financing, and want a clear, fixed annual repayment that they know will be covered by their energy savings.
CEIP is a less natural fit for homeowners planning to sell within 1–2 years (where the property-transfer aspect of the financing may require explanation to buyers), for those who have low-cost access to capital that beats the CEIP interest rate, or for projects that exceed the CEIP funding ceiling and require significant personal financing alongside the program.
For a complete picture of the residential geothermal proposition — including the full cost structure that CEIP can finance — our residential geothermal systems page and our Edmonton installation guide are the right starting points.
Frequently Asked Questions
Does the CEIP cover the full cost of a geothermal installation?
For most horizontal loop systems in Edmonton, yes — the typical installed cost of $28,000–$40,000 falls within the CEIP maximum. For higher-cost vertical loop installations ($38,000–$55,000), CEIP may cover the majority of the project with the remainder paid personally or through complementary financing.
How long does CEIP approval take?
Timelines vary. Typically allow 3–6 weeks from application submission to approval, plus the time required for the initial energy assessment (usually 1–2 weeks to schedule) and contractor quote preparation. Build this into your project timeline — CEIP approval must precede installation, so starting the process early is important.
Can I combine CEIP with a personal loan for the balance above the program maximum?
Yes. CEIP financing does not prevent you from using other financing sources for costs not covered by the program. Some homeowners use CEIP for the eligible project costs and a short-term personal loan or HELOC for any gap above the CEIP ceiling or for ineligible project components.
If I sell my home, does the buyer have to pay off the CEIP balance?
No. The CEIP balance transfers to the new owner as a local improvement charge on the property — the same way a property tax account transfers on sale. The buyer takes on the remaining annual repayments rather than a lump sum. Disclosure is required in the real estate transaction documents, and buyers should be informed of the annual CEIP charge, which for most geothermal projects is well below the annual energy savings they will benefit from.
Start Your CEIP-Financed Geothermal Project
Envirotech Geothermal has helped Edmonton homeowners navigate CEIP financing alongside geothermal installations since the program’s inception. The team is familiar with the application process, knows what the City of Edmonton requires at each stage, and can guide you from initial energy assessment through to approved project start.
The first step is a site assessment — which also establishes the data for your energy advisor’s baseline assessment. Contact the team to start the process.
— Envirotech Geothermal | Edmonton’s geothermal specialists — helping homeowners access every available financing option to make ground source heat pumps achievable since 2006