The journey of homeownership extends far beyond the closing handshake. Astute real estate agents understand that building a long-term relationship with their clients goes beyond the sale. By staying informed about and actively promoting energy-efficiency programs, agents can position themselves as valuable resources, helping clients save money on energy bills – a major expense for Canadian homeowners – while contributing to a greener future. This article explores the various national and provincial programs available to leverage this knowledge and create win-win situations for themselves and their clients.
The Looming Cost of Energy
According to Statistics Canada, in 2021, the average Canadian household spent $1,742 on electricity and natural gas (source). With energy costs projected to rise, this number is likely to climb. Fortunately, Canadian programs exists to incentivize energy efficiency, empowering homeowners to save money and shrink their environmental footprint. Understanding these programs requires examining them through various dimensions:
National Programs
Canada Greener Homes Loan
Who Can Apply: This program is open to all Canadian homeowners, regardless of province of residence.
What It Offers: An interest-free loan of up to $40,000 to finance energy-efficient retrofits on existing homes.
Eligible Upgrades: The program supports a wide range of upgrades, including:
- Insulation improvements (attic, basement, foundation walls)
- High-efficiency windows and doors
- Efficient heating and cooling systems (furnaces, air conditioners, heat pumps)
- Renewable energy installations (solar panels)
- Smart thermostats
- Sealing air leaks
Eligibility Requirements:
- Homeowners must complete a pre-retrofit EnerGuide evaluation by a qualified energy advisor.
- The EnerGuide report will identify recommended upgrades and estimated energy savings.
- Only upgrades listed on the report are eligible for financing through the Canada Greener Homes Loan.
Oil to Heat Pump Affordability Program
Who Can Apply: This program specifically targets homeowners who currently rely on oil heating for their primary residence.
What It Offers: A financial incentive of up to $10,000 to switch from an oil-based heating system to a more environmentally friendly and energy-efficient electric heat pump system.
Eligibility Requirements:
- Homeowners must demonstrate they currently use oil as their primary heating source.
- The new electric heat pump system must be installed by a licensed contractor.
- Rebates vary depending on the province and the capacity of the new heat pump system.
CMHC Programs
The Canada Mortgage and Housing Corporation (CMHC) offers these programs to incentivize energy efficiency in new and existing homes. Here's a breakdown:
CMHC Eco Plus
Who Can Apply: Homeowners with CMHC-insured mortgages who are purchasing or building a new energy-efficient home.
What It Offers: A 25% partial refund on the CMHC mortgage loan insurance premium.
Eligibility Requirements:
- The new home must meet the latest energy efficiency standards as defined by Natural Resources Canada's EnerGuide rating system.
- The specific criteria for eligibility evolve as building codes progress towards net-zero ready standards and energy efficiency targets.
- Homeowners can confirm eligibility by checking the list of recognized certifications or meeting specific energy consumption and greenhouse gas emission targets.
Limits: The maximum insurable mortgage amount under the CMHC Eco Plus program is currently $800,000. The rebate amount is capped at 25% of the CMHC mortgage loan insurance premium.
CMHC Eco Improvement
Who Can Apply: Homeowners with CMHC-insured mortgages who are investing in energy-efficient upgrades to their recently purchased home (within the past two years).
What It Offers: A 25% partial refund on the CMHC mortgage loan insurance premium.
Eligibility Requirements:
- Homeowners must invest a minimum of $20,000 in energy-efficient upgrades that fall within one of three categories:
- Building envelope (insulation, windows, doors, roof, attic, air tightness and foundation)
- Mechanical systems (HVAC - Heating, Ventilation and Air Conditioning, heat pump systems)
- Renewable energy systems (solar, wind, geothermal)
- Upgrades must be completed by licensed contractors and documented with invoices and, if available, an EnerGuide Renovation Upgrade Report.
Limits: Similar to the Eco Plus program, the maximum insurable mortgage amount under Eco Improvement is $800,000, and the rebate is capped at 25% of the CMHC mortgage loan insurance premium.
British Columbia Program
CleanBC Better Homes and Better Buildings – Renovation and New Construction Program
This B.C.-specific program offers a variety of rebates, grants, and access to qualified energy advisors to assist homeowners and businesses in undertaking energy-efficient renovations and new construction projects.
Eligibility
The eligibility requirements can vary depending on the specific rebate or program offered under the CleanBC Better Homes and Better Buildings umbrella. Generally, homeowners in British Columbia are eligible. However, some programs may have additional criteria, such as:
- Minimum project cost thresholds: Rebates typically apply to projects with a minimum total cost of improvements. For instance, the Insulation Rebate Program requires a minimum project cost of $1,000 before rebates (excluding HST).
- Property type (single-family home, multi-unit residential building, etc.): Certain rebates are exclusive to single-family homes, while others may be applicable to multi-unit buildings or commercial properties.
- Existing energy performance of the home: Some programs target specific improvements based on the pre-retrofit energy efficiency of the dwelling.
- Proof of income (for income-qualified rebates): Income-qualified rebates provide additional financial incentives for low-income households undertaking energy-efficient upgrades.
Rebates and Incentives
CleanBC Better Homes and Better Buildings offers a wide range of rebates and incentives for various energy-efficient upgrades. Some examples include:
- Insulation upgrades (attic, basement, foundation walls): Rebates typically range between $0.25 and $1.00 per square foot, with maximum rebate amounts varying depending on the program. For instance, the Insulation Rebate Program offers a maximum rebate of $1,600.
- High-efficiency windows and doors: Rebates are offered for ENERGY STAR® certified windows and doors, with maximum rebate amounts per window/door unit. For example, the Window and Door Rebate Program provides a maximum rebate of $175 per ENERGY STAR® certified triple-glazed window.
- Efficient heating and cooling systems (furnaces, air conditioners, heat pumps): Rebates are available for high-efficiency natural gas furnaces, air conditioners, and heat pumps. The rebate amount depends on the specific model and efficiency rating of the equipment. The Furnace and Air Conditioner Replacement Rebates program offers rebates up to $1,600 for high-efficiency natural gas furnaces and $4,000 for eligible air conditioners and heat pumps.
- Renewable energy installations (solar panels): The Solar Photovoltaic Rebate Program offers a performance-based rebate based on the electricity generated by the solar PV system over a ten-year period. The maximum rebate amount is currently $3,000 per kW of installed capacity.
- Smart thermostats: Rebates are available for ENERGY STAR® certified smart thermostats, with a typical rebate of $50 per thermostat.
- Air sealing measures: Rebates are available to help offset the cost of air sealing a home, with a typical maximum rebate of $500.
- New construction projects meeting specific energy efficiency standards: Builders of new homes can qualify for rebates through programs like the New Construction Rebate which offers incentives for surpassing provincial building code requirements for energy efficiency.
Conclusion
By staying informed about and actively promoting energy-efficiency programs, real estate agents can empower their clients to save money, make environmentally responsible choices, and live in more comfortable and sustainable homes. This value-added service fosters trust and strengthens client relationships, making agents true partners in their clients' homeownership journey.
The content of this article is for informational purposes only and should not be considered as financial, legal, or professional advice. Coldwell Banker Horizon Realty makes no representations as to the accuracy, completeness, or suitability of the information provided. Readers are encouraged to consult with qualified professionals regarding their specific real estate, financial, and legal circumstances. The views expressed in this article may not necessarily reflect the views of Coldwell Banker Horizon Realty or its agents. Real estate market conditions and government policies may change, and readers should verify the latest updates with appropriate professionals.
