Paying for a Furnace, Heat Pump or AC Through Your Calgary Property Tax: CEIP Explained
The Clean Energy Improvement Program (CEIP) lets a Calgary homeowner finance up to 100% of qualifying energy upgrades — furnaces, heat pumps, air conditioning, insulation, windows, solar — to a maximum of $50,000, repaid over up to 20 years on the property tax bill. It is financing, not a rebate: the full amount plus interest is repaid, at a rate fixed when you sign (estimated 5.66–5.80% for the current intake). Applications open in intake windows, so the dates matter.
The federal Greener Homes grant closed in 2024 and its interest-free loan stopped taking applications in October 2025, and Alberta runs no provincial rebate for furnaces or heat pumps. That leaves one public programme in Calgary that actually helps pay for heating and cooling equipment, and it is not a rebate at all — it is a loan attached to the house rather than to you, collected with the property taxes. It suits some households very well and others not at all, and the difference is worth understanding before a contractor mentions it at the kitchen table.
hvaclines.ca sells and installs nothing and arranges no finance. This page sets out how CEIP works, what it does and does not cover, how it compares with dealer financing and a bank loan, and the questions to settle before applying. Every figure is the City's own and is dated at the foot.
How the programme works
You apply to the City for pre-qualification during an intake window, get approved for a maximum amount, have the work done by a qualified contractor, and the City pays the contractor. The amount is then added to your property tax bill as a clean energy improvement charge and repaid over the term — up to twenty years, or the expected useful life of the upgrade if that is shorter. There is no penalty for paying it off early.
The charge stays with the property. Sell the house and either the buyer takes it on as part of the taxes, or you clear it at closing; the City's material is explicit that it is transferable. That is the feature that makes CEIP different from a bank loan, and it is also the clause a buyer's lawyer will ask about.
| Term | What the City publishes | What it means for you |
|---|---|---|
| Amount | Up to 100% of eligible costs, to a maximum of $50,000 | A furnace, a heat pump and the electrical work can all go on one application |
| Minimum project | Eligible upgrades totalling at least $3,000 | A furnace alone qualifies; a thermostat alone does not |
| Term | Up to 20 years, or the upgrade's useful life if shorter | A furnace is typically financed over its 15–20 year life |
| Rate | Estimated 5.66–5.80% for the current intake, fixed at signing | Pre-2024 applicants locked in 2.95–3.25%; the rate moves with the market |
| Repayment | On the property tax bill; no fee to pay off early | Budget it as part of the taxes, not a separate loan payment |
| On sale | The charge transfers with the property or is paid out at closing | Tell your realtor and your lawyer before listing |
| Applications | Intake windows; the next opens 22 September | Missed the window, wait for the next — do not sign with a contractor first |
What qualifies, for heating and cooling
The eligible list is maintained by the programme administrator and includes the heating and cooling equipment this site's pages cover: high-efficiency furnaces, air-source and cold-climate heat pumps, central air conditioning, along with insulation, windows and doors, water heaters and solar. Equipment generally has to meet the programme's efficiency thresholds — a 96%+ furnace will, a builder-grade one may not — and the contractor must be one the programme accepts. Check the current list before you choose equipment, not after.
Two things it is not for. It does not fund emergency replacement at 2 a.m.: applications are pre-qualified before the work, so a furnace that has already died in a cold snap is a dealer-financing or bank-loan problem unless the window is open and the approval is fast. And it is not a rebate — nothing is forgiven.
Want a second opinion from an independent HVAC technician before you sign anything? (825) 395-7447 — the line is answered around the clock and costs you nothing.
CEIP against the alternatives
Against dealer financing: CEIP's rate is a true rate with nothing deferred and nothing backdated, which puts it well below the 22–29.99% that a missed “0% promotion” turns into. Against a bank loan or line of credit: similar rates, but CEIP needs no credit facility of your own and the debt goes with the house rather than following you. Against a HELOC: a HELOC is often cheaper but secures the debt against the house on your name; CEIP secures it on the property's taxes.
The honest summary: for a planned replacement, a heat pump or a first air conditioner in a house you expect to keep for a while, CEIP is often the cheapest and simplest money in Calgary. For a furnace that died last night, or a house you are about to sell, it is the wrong tool.
Before you apply
Five things to settle before the window opens. When you are ready to talk to an installer, one call to (825) 395-7447 puts you through live to an independent technician from our network who quotes the work directly — ask them on that call whether they have done CEIP jobs before.
- Confirm the next intake date and whether pre-qualification is required before the contractor is engaged — it usually is.
- Ask the contractor whether they are accepted by the programme and whether the equipment they are quoting meets its efficiency thresholds.
- Decide whether you might sell within the term; if so, understand the transfer at closing and tell your realtor.
- Compare the total repaid over the term against a bank quote, not the monthly figure.
- Keep the pre-approval, the contractor's quote and the completion paperwork together; the City pays the contractor, and the paperwork is what triggers it.
Common questions
Is CEIP a rebate?
No. The City says so plainly: it is financing, and the full amount plus interest is repaid over the term on your property tax bill. What it offers is a fixed, true interest rate, up to twenty years, no early-payment penalty, and a debt that transfers with the house. There is no provincial rebate in Alberta to stack with it.
Can I use CEIP for a furnace that just died?
Only if an intake window is open and the pre-qualification comes through before the work — the programme approves the project first and pays the contractor after. In a January cold snap that timing rarely works, and a dead furnace usually ends up on dealer financing or a bank loan. CEIP suits planned replacements.
What happens to the CEIP charge when I sell?
It is attached to the property, not to you. The buyer can take it on as part of the property taxes, or you pay the balance out at closing; the City's material describes both. Either way it appears in the sale, so tell your realtor and lawyer early rather than at the offer stage.
How does the CEIP rate compare with dealer financing?
It is a true fixed rate — estimated 5.66–5.80% for the current intake — with nothing deferred. A dealer's “0% for six months” is usually deferred interest that becomes 22–29.99% backdated on the full amount if any balance remains. Over a $10,000 furnace and heat pump the difference can run to thousands.
Sources
Figures on this page are published market data, not our own quotes. Programmes and prices change — check each before relying on it.