Incenting Energy Efficient Retrofits: Risks and Opportunities for Consumers

Organization

Consumers Council of Canada (CCC)

Published

2017

Summary

Energy efficiency retrofit incentive programs are offered in many places throughout Canada. The report’s national omnibus survey indicated that approximately 50% of Canadian homeowners have participated in a past program. With the recent commitment by the governments across the country to fight climate change, these incentive programs are very likely to continue and to potentially increase in number and/or scope in an effort to reduce greenhouse gas emissions by reducing the consumption of natural gas, propane, heating fuel oil, and electricity.

Homeowners who participated in the incentive programs are generally satisfied with their experience as identified by the survey and focus groups, with 78% of survey respondents indicating that they were in favour of the government funding programs for homeowners to upgrade the energy efficiency of their homes. Many of those with lower income levels and lower education levels mentioned that they would not have completed the upgrades without the incentive.

As part of these programs, there are many energy advisors and renovators doing great work to improve houses. Their homeowner customers have better houses as a result of participation in an incentive program, and Canada has moved closer to reaching its climate change goals.

However, the research identified risks for homeowners from participating in these programs. These risks, in many cases identified through key informant interviews, may be limited; nonetheless, they should be reviewed, considered, and mitigated as appropriate as governments and utilities look to increase or expand programs. Participation in these programs should never leave a homeowner worse off than before participation.

We are at an important juncture in time for incentive programs as federal, provincial, and territorial governments have recently made significant commitments to fight climate change. Some may argue it should not be the role of incentive programs to develop standards for the renovation industry. However, incentive programs should not lead to damaged houses or compromised occupant health and safety, or create financial distress. In using rate payer and tax payer money, the incentive programs have a responsibility to ensure good quality work.

The incentive programs focus on a range of energy efficiency upgrades, and vary in terms of the incentive type, structure, requirements, and complexity. They range from switching light bulbs to substantial envelope retrofits that involve changes to key systems of the home, including thermal control and mechanical systems. The similarities and differences among programs are outlined in the literature review.

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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