Capital Retrofits

Capital Retrofits

Industrial and manufacturing facilities can receive funding to invest in energy efficiency focused capital retrofits for their facilities if they meet the following criteria: 

• The retrofits must be non-emitting. 
• The retrofits must reduce energy usage and emissions by at least 5% compared to a baseline. 
• The payback period for the retrofits must be greater than one year.
• You have completed a Facility Readiness Assessment (FRA) through the SEMI program.
• New construction is ineligible.

A wide range of cost-effective, high-efficiency systems and onsite energy generation technologies are eligible for incentives:  

• Advanced Refrigeration Systems 
• High-Efficiency Pumping Systems 
• Water Conservation and Wastewater Treatment Systems Optimization 
• High-Efficiency Motors and Variable Frequency Drives (VFDs) 
• LED Retrofits 
• Fan and Ventilation System Optimization 
• Compressed Air System Efficiency Improvements 
• Renewable Energy Integration (e.g., solar, geothermal) 
• Electrification of the Production Process 
• Waste Heat Recovery and Reuse Systems 
• Smart Manufacturing and Automation Technologies 
• Materials Handling and Process Efficiency Improvements 
• Water and Resource Efficiency Measures 
• Building Envelope Upgrades 
• HVAC Systems Retrofits, including Heat Pumps 

Resources

Your Responsibilities for the Capital Retrofits Activity

The Capital Retrofit enrollment process involves the following steps:

1. Register via the SEMI online portal and complete an FRA.
2. On the online portal, submit a Capital Retrofits application including the following supporting documents:
   1. A feasibility study that supports the proposed Capital Retrofit(s).
   2. Minimum of 12 months of energy consumption data for the applicable system(s) in Excel format.
   3. Capital Retrofit cost estimate supported by vendor quotes for major cost items.
   4. Capital Retrofit workplan including important milestones.
3. Select a SEMI approved contractor to carry out the Capital Retrofit workplan including installation of the Capital Retrofits.
   1. To become an approved contractor in SEMI, contractors will first need to register on the online portal.
4. Enter into this Agreement upon receiving a SEMI program pre-approval notification. 
5. Implement and install the Capital Retrofit using good engineering practices in compliance with applicable laws and regulations before March 31, 2027.
6. Notify ERA immediately of any changes to the Capital Retrofit scope, timeline, or budget.
7. Submit Measurement & Verification Reporting (M&VR) document identifying the procedures, requirements, and methods to be used for verification of outcomes of the proposed initiative.
8. Allow site access, as and when required by ERA, to ERA and any ERA contractors, service providers and agents to confirm the Capital Retrofit installation and verify energy and GHG savings.
9. Submit the data and information as specified in the M&VR via the online portal for review by ERA or any service provider retained by ERA for such review purposes.
10. Submit invoices for eligible expenditures via the online portal for review and approval by ERA or any service provider retained by ERA for such review purposes.
11. Submit Your Capital Retrofit incentive invoice via the online portal to receive the incentive payment.
12. Log, maintain, and submit data related to Your Capital Retrofit project until March 31, 2031 in accordance with the M&VR document.
13. Notify ERA of any factors leading to the project underperformance immediately after the Capital Retrofit is in-service and continue to do so until March 31, 2031.

In-Kind Contributions for Capital Retrofits

A portion of your contribution is anticipated to be in kind. In-kind contributions can include facility staff time necessary to complete any aspect of the Capital Retrofits activity and prior energy management activities that contribute value to the Capital Retrofit activity. You are also required to disclose any other government funding you plan to use for the Capital Retrofits activity and other SEMI program activities.

Are you ready to enroll in Capital Retrofits?

Register on the SEMI portal.