Commercial Deployment Incentive Terms and Conditions (CDI-2008)

This version is effective September 1, 2008. As of this date, only the application form CDI-2008 will be accepted.

These are the Terms and Conditions under which deployment incentives will be provided for qualified solar thermal installations in the industrial, commercial, and institutional sectors.

Please note that construction on your solar project may not begin until a Contribution Agreement is signed by NRCan and the applicant. In the event that work has begun before the Contribution Agreement has been signed by both you and NRCan, the agreement will be void and the incentive will not be paid.

Applicants are encouraged to familiarize themselves with the layout of the required forms and templates and note in particular which sections require the applicant’s signature.

The applicant will be entitled to payment under the ecoENERGY for Renewable Heat program if the applicant has met the terms and conditions outlined in an agreement known as a "Contribution Agreement". Natural Resources Canada (NRCan) will enter into a Contribution Agreement if it is satisfied that program requirements will be met by the applicant, and that funds allocated annually for the program are available.

Projects are funded first-come first-served based on the date of receipt of a completed application and subject to the availability of Program funds.

Information on all projects that have signed Contribution Agreements for eligible systems may be listed on NRCan's ecoENERGY for Renewable Heat program website, or made available to the public. The information may include the name of the recipient, type of system installed, location of installation, projected system output, contribution amount, and the expected or actual date of the commissioning of the system.

Only the signed Contribution Agreements between Natural Resources Canada and the applicant will form the legal basis of the rights and obligations of the parties.

All approved ecoENERGY for Renewable Heat projects are subject to audit after they are completed, as specified in Article 7 of the Contribution Agreement.

Definitions:

"Active Solar Heating System" means a system that uses a fan or pump to circulate a fluid through a collector;

"Completion Date" means the date the project is deemed completed to the satisfaction of the Minister;

"Commissioning Report" means a report template as provided by NRCan, signed by a professional engineer, a certified engineering technologist, or a CanSIA solar installer who has a valid certification in Canada, stipulating that the Project meets the prescribed technical criteria, is found to be fully operational, and has been installed in accordance with the current installation code (CAN/CSA F-383 - if a water heater) and good engineering practices;

"Contribution Agreement" means an legally binding Agreement between HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the federal Minister of Natural Resources Canada and a person, an organization or other level of government to whom a contribution is being made and who is responsible for carrying out the obligations set out in the Contribution Agreement. It is the basis on which Natural Resources Canada will assess your claims for payment.

"Eligible Costs" means costs identified on the application in accordance with the Program's Terms and Conditions;

"Equipment" means the Applicant's solar heating system, including components up to and including the interface with an auxiliary heating system, involved in solar heat collection, transport, transfer, storage, and system control, and associated items required for the operation of the system;

"In-kind contributions" means a non-cash input which can be given a cash value at the current market rate, and that adds measurable value to the project. Inputs may include goods and services, equipment, supplies, or other tangible resources;

"Installed System" means an active solar heating system that has been fully installed by the Proponent under this Project;

"Minister" means the Minister of Natural Resources and includes any duly authorized officers or representatives;

"Payment Request Form" means a completed and signed payment request form stating that the incurred project costs are true and accurate;

"Project" means the project described in the Contribution Agreement;

"Refurbished equipment" means used equipment that has been repaired or upgraded to redeploy;

"Recycled equipment" means used equipment that has been redeployed as is;

"Start Date" means the coming into force of the project when the Contribution Agreement is dually signed;

"Remote Community" means a community not connected to the North American electrical grid or piped natural gas network;

"Warranty of the Authenticity of the Collector" means a warranty signed by the manufacturer named on the Accepted Solar Collectors List under Canada's ecoEnergy for Renewable Heat Program.

 

1. Which organizations are eligible?

To be eligible, the applicant must be from one of the categories below:

1. Businesses and Industries: conducting business, and deploying systems in Canada;
2. Crown Corporations listed in Section 85 and Part I of Schedule III of the Financial Administration Act (FAA);
3. Public Institutions: such as schools, hospitals, municipalities, municipally owned utilities, industry associations
4. Non-profit organizations;
5. Energy Service Companies.

2. What systems qualify?

1. Active solar water and air heating systems that are installed in Canada; with
2. Collectors selected from the NRCan list of Accepted Collectors.

3. What is the incentive level?

1. The incentive is calculated as follows:
   
   Performance Factor x Incentive Rate x collector area = anticipated incentive amount
   
   
   • Performance Factor is the predetermined factor for the collector installed. This factor can be found on the List of Accepted Collectors. The performance factor attributed to the collector that you have selected will be valid as of the date of reception of your CDI-2008 application.
   • Incentive Rate is the incentive per m² for each collector type. Find the collector rate on the Incentive Rate table.
   • Collector Area is the total installed area in square meters. This value can be calculated from the individual areas found on the List of Accepted Collectors.
2. The maximum incentive is $80,000 per solar air installation.
3. The maximum incentive is $400,000 per solar water installation (effective March 1, 2009).
4. The corporate maximum incentive for multiple installations is $2 million.

4. Stacking Limits

The Treasury Board Policy on Transfer Payments requires potential recipients to provide a statement about other sources of funding for a project prior to approving a contribution to the total capital costs of the project. Programs are expected to take into account other sources of funds, which includes private sector contributions, including the expectation that the recipient must contribute its own funds towards eligible cost of the project. The Policy on Transfer Payments also requires that specific limits be set when considering total government assistance. Thus, if a proponent has secured significant support for the Qualifying Project from other government sources, including federal, provincial and/or municipal, the proposed Qualifying Project may be disqualified from receiving the ecoENERGY RH incentive, or its maximum eligible contribution may be reduced.

On the application, under Section C2. Additional Financial Contributions, proponents are required to declare other sources of government funding for their projects, whether it is a capital grant or an in-kind contribution.

To ensure compliance with the Policy on Transfer Payments, the total assistance from all government sources will not exceed 100 percent of the total capital costs of the project. If a project receives or will receive a capital grant or contribution from other levels of government, including where another federal agency provides a capital grant or contribution, the net present value of the ecoENERGY RH contribution will be calculated so that the total government contribution does not exceed 100 percent of capital costs.

5. What buildings qualify?

1. Commercial, industrial, and institutional buildings; and
2. Multi-unit residential buildings which have a common entrance and have either at least four above-ground storeys or a building footprint of at least 600 m²;
3. Residential buildings located in Remote Communities in which at least 50% of the floor area of the building is used for commercial, industrial, or institutional purposes.

6. Will an environmental assessment be required?

Program administrators will review each application to determine whether or not an environmental assessment pursuant to the Canadian Environmental Assessment Act is required. If an environmental assessment is deemed necessary, the cost of the assessment will be the responsibility of the applicant.

7. How will the incentive project application be processed?

When the application is received program officers will determine:

• if the project is eligible;
• if an environmental assessment will be required;
• if all data provided is complete; and
• if the application has been signed.

Should NRCan need clarification on the data provided, you will be notified by e-mail or by telephone. While we await your response, your file will be set aside. You will have 30 days to remit the required data before your file is closed.
When the application is accepted, NRCan will send two original copies of the Contribution Agreement to the applicant for signature.  The Contribution Agreement will outline your planned project as well as our program requirements.

The applicant must sign and return both copies to NRCan within 30 days.  If the signed original Contribution Agreements are not received by NRCan within 30 days of issue, the agreement will become invalid.

When NRCan receives the two signed copies, the agreement will be considered in force and the applicant will be advised by e-mail or telephone to start the project.  Construction can not start on the project until the applicant has been advised that the Contribution Agreement has been signed by NRCan.

8. How long will I have to complete my project?

Eligible projects must be completed and commissioned within the dates indicated in the contribution agreement with NRCan.

9. How will I receive the incentive after I submit my final reports?

Once the project is completed and commissioned, the applicant must submit a payment request using the Payment Request form (Solar Air; Solar Water) provided by NRCan.  The applicant must submit this payment request along with the Commissioning Report (a template is provided by NRCan) and for solar air systems, the manufacturer’s warranty attesting to the authenticity of the collector.

The applicant must submit these documents within 30 days of the commissioning date. Documents received following the 30 day limit will be wait-listed for processing.

When these documents are received, reviewed, and approved by NRCan to the satisfaction of the Minister, payment of the incentive will be made.

10. Will the incentive have to be repaid?

The incentive will become repayable if all of the following apply:

1. The funding recipient is a for-profit business; and
2. The NRCan-supported solar installation is leased or rented, or it produces heat that is sold; and
3. Resulting revenues in the first five years exceed 150 percent of the total project cost.

Applicants that will receive revenues from the rental, lease or the sale of heat from equipment for which an incentive was received, must:

• Submit invoices in eligible costs to NRCan along with their Payment Request;
• report annually to NRCan all resulting gross revenues received, for 5 years following the project completion date;
• repay to NRCan any revenues in excess of 150 percent of the total project cost, up to the total amount of the NRCan contribution to the project
• make such payments within 90 days of the submission of the annual reports

As indicated in the Contribution Agreement, the applicant must keep proper accounts and records of the revenues and expenditures incurred and paid, including all original invoices, receipts and vouchers relating to the solar installation, for a period of five years from the completion of the agreement.

11. How do I apply?

An ecoENERGY for Renewable Heat program application form must be completed, signed and sent to the program at the address below. If the application is completed by someone other than the applicant, this person must also sign the applicant form.

Only completed applications will be processed. In the event that NRCan requires clarification about the data presented in this application, the Applicant will have 30 days to respond. If the data is not remitted within 30 days the file will be closed.

12. Whom should I contact?

ecoENERGY for Renewable Heat
Renewable and Electrical Energy Division
Natural Resources Canada
615 Booth Street, Room 150
Ottawa ON K1A 0E9
Fax: 613-943-6517
E-mail: ecoenergyrhp@nrcan.gc.ca
Web site: http://www.ecoaction.gc.ca/ecoenergy-ecoenergie/