Through trial and error, British Columbia is slowly filling the gaps in financial assistance for homeowners seeking to make their homes more energy efficient.
Back in November 2014, a pilot project was launched in the city of Colwood and the district of Okanagan-Similkameen. The idea was to allow people to apply for home renovation loans and then pay them off gradually on their utility bills.
According to an Access to Information request, there were plans to expand the project to Vancouver Island in January 2014, but it never made it off the ground. Between BC Hydro and Fortis BC, the two main utility companies in British Columbia, there was a consensus that the project was not worth the effort.
“There was very, very small participation — the cost of setting it up and marketing it — well it was just a very expensive program,” said Carol Suhan, manager of the Power Sense services for Fortis BC Inc.
The program was shut down when the lack of interest could no longer justify the funding for it. In all of Colwood only two loans were given out. In Okanagan they gave out six.
“We’ve seen examples in other jurisdictions where it’s worked out, such as in the United States, and that’s where the idea came from,” said Les MacLaren, assistant deputy minister of the electricity and alternative energy division for the government of British Columbia.
He explained that part of the problem was that in British Columbia energy costs are very low.
“Most folks who make retro-fit improvements to their homes, from the demographic research, tend to be middle aged and in the middle to upper level of income,” explained Suhan.
She also said that most of the people who choose to do retro-fitting for their homes do not need the project’s financial help. The terms of the loans had an interest rate of 4 to 4.5 per cent over 5 to 10 years.
“For those folks it just wasn’t an attractive rate,” said Suhan.
With interest rates dropping, most people turned to their banks for better interest loans. Utility companies still needed to provide an incentive for them to seek out retrofitting.
“Fortis BC Power Sense has been very progressive in letting people know what options they have,” said Jim Damberger, owner of the company Canadian Aerothermal.
To encourage energy efficiency in British Columbia households, BC Hydro and Fortis BC have been promoting the Home Energy Rebate Offer program.
“People have electric heating in their homes which is a very expensive type of heating,” said Damberger.
He said that in rural areas of British Columbia most old houses didn’t have other options. With new available technologies, people need to be made aware of the benefits in retrofitting their homes.
Damberger’s company installs aero-thermal heating to heat and cool a home with heat pumps. As one of the contractors involved with the pilot project he says that retro-fitting homes to be more energy efficient is a long-term investment.
“Aero-thermal heating would generally cut 60 to 70 per cent of the cost to heat a home,” said Damberger.
The pilot project was a learning experience for those involved. There are now more options for homeowners in British Columbia, both for lower and middle income ranges.
The Energy Conservation Assistance Program, also known as ECAP, has been around for 7 years. Up until 2014 the elegibility for ECAP had been very strict but utility companies advocated the Ministry of Energy and Mines to have the eligibility definitions expanded. They now include aboriginals and people receiving social assistance.
“I’m sure there are still many households that would have financial difficulty to retro-fit their homes, but that number has diminished significantly,” said Suhan.
Documents from ATIP Request Page 1, Page 2, Page 3
What is the information?
This is background information about the On-Bill Financing pilot program that was cancelled for January 2014.
From which department and level of government did you obtain these pages?
This is from the provincial government of British Columbia for the Ministry of Energy and Mines.
Why was this information helpful?
There was a briefing note provided to the Minister Bill Bennett which clearly outlined the issues with the project and the suggestions for how to move forward with its shutdown.
Formal Requests: