Energy and clean technology grants can cover a big part of your project costs. But you must calculate eligible costs and savings the way funders require. Many strong projects are delayed or rejected because the numbers do not match program rules. This is especially important for large industrial programs like ÉcoPerformance — Implementation of large industrial projects, where funding can reach $40 million per project.
This guide explains how to calculate eligible costs and energy or GHG savings for energy and clean technology grants in Canada. It focuses on Québec’s large industrial programs.
Most energy and clean technology grants only reimburse incremental, project-specific costs. These are expenses that are directly tied to reducing energy use or greenhouse gas (GHG) emissions.
For large industrial programs like ÉcoPerformance — Implementation of large industrial projects, eligible costs often include:
Equipment and materials
Engineering and professional services
Installation and commissioning
Measurement and verification
ÉcoPerformance can cover up to 75% of eligible costs, with a maximum contribution of $40 million. Projects must involve at least $15 million in total investment.
Across most energy and clean technology grants, including Québec programs, the following are usually excluded:
For R&D-focused programs like INNOV-R SME — PRIMA, eligible costs focus on development activities but are capped at 50% of project costs, up to $450,000.
Savings calculations are just as important as eligible costs. Funders want to see credible, verifiable reductions.
Your baseline is your current energy use or emissions before the project. This usually includes:
For ÉcoPerformance, baseline emissions must match Québec’s SPEDE cap-and-trade system. Applicants must be subject to or voluntarily enrolled in SPEDE.
Next, estimate energy or emissions after you finish the project:
Programs like Bioénergies — Implementation require measurable and lasting reductions from fossil fuel replacement. Funding can reach $5 million with a 50% cost-share cap.
Most programs want net savings, not gross:
Utility programs such as takeCHARGE Business Efficiency Program in Newfoundland and Labrador require projects to achieve at least 85% of projected energy savings to receive full incentives.
Large projects often combine several funding sources. However, stacking limits apply and must be followed.
Tools like GrantHub’s eligibility matcher can help filter programs by province, industry, and stacking rules. This saves time and helps you stay within funding limits.
For more detail, see How to stack grants and loans without violating funding rules.
Using total project cost instead of incremental cost
Only the part that improves efficiency or reduces emissions is eligible.
Overstating savings without third-party validation
Unsupported estimates can lead to audits or rejections.
Ignoring minimum investment thresholds
ÉcoPerformance requires at least $15 million in qualifying investment.
Including costs incurred too early
Expenses before formal approval are usually ineligible.
Q: How much funding can ÉcoPerformance cover for large industrial projects?
ÉcoPerformance can fund up to 75% of eligible costs, with a maximum contribution of $40 million per project.
Q: Do energy savings need to be verified after the project?
Yes. Most programs require post-project measurement and verification to confirm actual energy or GHG reductions.
Q: Are internal labour costs ever eligible?
Sometimes, but only when staff time is directly tied to project delivery and clearly documented. General overhead is usually excluded.
Q: Can I combine Québec energy grants with federal funding?
Often yes, but total public funding limits apply. Each program sets its own stacking rules.
Q: Is ÉcoPerformance funding taxable?
It is generally considered government assistance and may affect taxable income or capital cost calculations.
Calculating eligible costs and savings properly can make or break your energy or clean technology grant application. GrantHub tracks hundreds of active grant programs across Canada and helps you find those that match your project, cost structure, and savings goals—before you apply.
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