Mandatory Home Energy Rating and Disclosure for Existing Houses: Opportunities and Risks for Consumers

Organization

Consumers Council of Canada (CCC)

Published

2018

Summary

Home energy ratings can strengthen consumer welfare by providing consumers with valuable information that can help them make important decisions regarding the energy performance of the homes that they are planning to buy, sell, or upgrade. Information provided in home energy ratings can also help consumers manage their home energy costs more effectively as well as provide them with a better understanding of the impact their homes have on the environment. As part of the Green Energy Act, the Government of Ontario is investigating options for the design of a Home Energy Ratings and Disclosure (HER&D) system that they hope will empower citizens with the information they need to make important decisions regarding their homes. This study by the Consumers Council of Canada (CCC) consists of a literature review, a key informant interview, as well as results from a national omnibus survey, and two focus groups made up of homeowners.
The literature review suggested that homeowners who have obtained home energy ratings are also undertaking home efficiency upgrades, but there is little evidence to suggest that they are carrying out more upgrades than people who have not obtained energy ratings. CCC has identified seven key recommendations that they believe will strengthen consumer protection in the housing market. First, consumers should be provided with clear information about home energy ratings, and have access to professional guidance and services. Second, that the complexity, cost, and time needed for a home energy rating be reduced. Third, the highest quality assurance standards should be maintained. Fourth, some exceptions to mandatory HER&D be permitted - such as recently built houses or homes that have recently had energy efficiency improvements. Fifth, it is important to phase-in mandatory HER&D requirements over time, establishing the framework for each phase in consultation with industry stakeholders. Finally, the privacy of home owners should be ensured wherever explicit consent has not been provided.

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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