Introduction – Canada Needs a Home Energy Action Plan
Canada is about to spend billions on new oil sands projects, pipelines, nuclear and fossil-fuel power stations, hydroelectric dams, solar projects, and wind farms. But as we prepare to generate more energy, we can all agree it makes sense to save energy first.
Energy efficiency provides Canada with a huge opportunity. Investing in energy efficiency will create jobs, generate long-term economic growth, and help Canadian families save energy and reduce pollution, now and in the future.
A five-part Home Energy Action Plan, focused on growing the market for energy-saving home retrofits, is an ideal strategy ready for immediate implementation.
This plan:
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There is widespread stakeholder support for each part of this Home Energy Action Plan. And with much already accomplished, Canadian governments are well-positioned to successfully implement this five-part action plan.
The keys to success are:
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To maintain existing capacity and strengthen industry confidence, we recommend a three-year government commitment to continue home retrofit incentive programs (Part 1).
Part 1. Home retrofit incentives
Three-year continuation of home retrofit incentive programs from 2012 through 2015
The global economy is struggling and Canadian governments want to create jobs and build a foundation for growth. A three-year commitment to continue popular home retrofit incentive programs is an ideal first step, because it:
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There are many advantages to renewing home retrofit incentive programs for an additional three years:
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Part 2. Next generation rating system
Transition to next generation home energy rating system beginning in 2013
The federal government is scheduled to launch a new home energy rating system in December 2012. The new rating system is being developed in collaboration with provincial governments, industry and other stakeholders. Governments plan to use the new rating system to support labelling, incentives and building codes.
By providing improved access to standard tools and data, the next generation rating system will support a growing ecosystem of innovative home energy saving services, including:
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Private sector investment in these new services will make it easier for families to save energy, and in turn grow the market for home retrofits.
We recommend that the next generation rating system be designed and managed to prioritize private sector development of innovative services. This ensures success for Parts 3, 4 and 5.
Part 3. Universal labelling
Universal labelling of new and existing houses at time-of-sale beginning in 2013
Canadians believe consumers should have the information they need to make informed choices. Sometimes the information we need is invisible, or hard to collect, so Canada has developed special labelling programs. For example, the ingredient and nutrition labels found on food packaging help consumers make informed choices.
Energy efficiency is an invisible and poorly understood feature of our homes. Labelling the energy efficiency of new and existing homes at time-of-sale gives consumers access to standardized energy efficiency information when they shop for a home. Universal energy labelling enables consumers to make informed decisions. Businesses can then respond with better energy-saving products and services, and the demand for home retrofits will grow.
Universal labelling of homes at time-of-sale will support private sector investment in innovative home energy saving services in two important ways:
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Universal labelling is critical to the success of Canada’s home energy saving industry. It will accelerate the private sector investment required to create jobs and grow the market for home retrofits without the continued need for ongoing government incentive programs.
We recommend that all provincial governments implement Part 3, universal labelling of new and existing homes at time-of-sale, beginning in 2013, supported by:
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Part 4. Innovative financing
Innovative financing by lenders, municipalities and energy providers
Many families need upfront financing to make their homes more energy-efficient. And many homeowners resist making home retrofits if they plan to move before they have recovered their costs through energy savings, or before they have repaid their retrofit financing.
To make it easier for families to save energy, innovative financing options are emerging, including:
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Innovative financing will go hand in hand with universal labelling of homes at time-of-sale, because universal labelling will:
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Innovative financing will also go hand in hand with the transition to a next generation home energy rating system.
We recommend that Canadian governments support Part 4, innovative financing, by:
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Part 5. Private sector investment
Private sector investment in innovative home energy saving services
Canada’s home energy saving marketplace includes thousands of private sector businesses: renovators, retailers, manufacturers, wholesalers, lenders, energy providers and energy auditors.
To support private sector investment in innovative services, governments must provide the home energy saving industry with consistent, long-term policy support, just as it does for other valued sectors such as the automotive and high-tech industries.
With the right tools and supportive government policies, including a next-generation rating system and universal time-of-sale labelling, the private sector will invest in a growing range of innovative services including:
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Private sector investment in these new services will enable Canada’s home energy saving industry to:
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We recommend Canadian governments support Part 5, private sector investment in innovative home energy saving services, by acting on Parts 1, 2, and 3 — committing to a three-year renewal of home retrofit incentive programs, completing the transition to a next-generation rating system, and implementing universal labelling.
Conclusion – Immediate action required
We strongly recommend that Canadian governments adopt this five-part Home Energy Action Plan to grow the market for home retrofits.
Home retrofits are long-term improvements to Canadian homes that improve the affordability and quality of life for all Canadian families. This, in turn, attracts the world’s top talent and new private sector investment in jobs and growth.
Immediate action is required to make this Home Energy Action Plan happen. Canadian governments need to take the first step by committing, in their upcoming 2012 budgets, to a three-year renewal of home retrofit incentive programs. The rest will follow from there.