For energy efficiency (EE): an energy rating for houses

Author

Marc-Olivier Moisan-Plante

Organization

Union des consommateurs

Published

2010

Summary

The purpose of this study was to evaluate the relevance and feasibility of establishing a mandatory energy-rating system for houses in Canada. Accordingly, Union des consommateurs studied the current practices of home rating systems in Europe and the United States. They also surveyed Canadian voluntary energy-rating initiatives, as well as public and private incentives toward good energy performance for new and existing houses. Following the background research, they surveyed the views of various stakeholders interested in home energy ratings.

The main finding is that the Canadian rating system is used only used for granting seals of quality in new construction or for obtaining subsidies following renovation work. This contrasts with European practices, whereby building energy ratings were declared mandatory by Directive 2002/91/EC and established in early 2009. Some American states, such as Oregon, also took this path recently. So this is a major international trend.

In the light of the best practices surveyed abroad and the comments obtained, Union des consommateurs conceived a mandatory energy-rating system for houses that would be applicable in Canada. An environmental component was included in home assessments: one of the primary goals of the rating systems studied is to reduce the polluting emissions of houses in the context of global warming. Suggestions for improvements in home energy-efficiency are also included, and could be updated using a dedicated Web tool. The latter would also enable national or provincial energy-efficiency targets, which we would like to see announced so as to induce homeowners to strive toward them.

For consumers, Union des consommateurs found that the net discounted value of the energy rating project is positive in many respects regarding future energy prices. Assuming that energy prices rise at a rate of 1.5% above inflation, implying a price of $130 per barrel of oil by 2030 – a modest projection, we calculated that the project will yield average discounted earnings of $380 per house, related to lower energy bills and increased comfort. Should energy prices explode to $330 per barrel of oil by 2030, the average value of discounted earnings will rise to $2,100 per house. Considering that there are over 10 million housing units in Canada, the relevance of undertaking such a project appears evident to us.

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OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.

Contact information

Source: Consumer Policy Research Database