Canadians who improve the energy efficiency of their homes could get as much as $1,000 from the federal government, under a new program announced Tuesday by Prime Minister Jean Chretien. "Canada's approach to reducing greenhouse gas emissions is to think long-term and act short-term," says Chretien. The money is part of Canada's plan to reduce greenhouse gas emissions to an average of six per cent below 1990 levels during the period 2008-2112.

Money allocated for "individual Canadians" to encourage them to make their homes more energy efficient is pegged at $1.34 million. The grant program will be administered by the Office of Energy Efficiency, a subsidiary of Natural Resources Canada (NRCan). An official launch date has yet to be announced, but it's expected this fall.

To be eligible for the grant, you must own and live in the house being retrofitted. Before any work is done, the home must be assessed and rated by a licensed EnerGuide for Houses advisor. The advisor creates a report that recommends energy upgrades, and the house is given an EnerGuide rating. This rating is like the energy ratings given to new appliances. The cost of the assessment ranges from $225 to $325, but the government subsidizes this cost by $150 per house.

After the renovations have been completed, the energy advisor comes back and analyses the house again, giving it a new energy rating. The difference between the first and second ratings determines how much grant money is provided. NRCan says, "The average Canadian home rates a 62 on the EnerGuide for Houses scale and has the potential to improve to a rating of 73. As an example, improving the house's energy efficiency by this amount could result in a grant of approximately $619.

NRCan says that not all upgrades generate the same energy savings. For example, it says replacing an old furnace with a new energy-efficient unit will save more energy than replacing the home's windows. But any retrofits that improve the overall rating of the home will qualify for the grant.

For homeowners, the biggest benefits of the program are that they'll save on home heating costs and improve home comfort, and that they will receive "unbiased expert advice about energy efficiency retrofits as part of the retrofit-planning process," says NRCan.

But not everyone thinks the program is a good idea. Tony Woods, president of Canam Building Envelope Specialists in Mississauga, Ont., says past government subsidy programs have had some serious shortcomings. "It may seem impossible, but you can actually spend $1,000 making your home more energy-efficient and end up with a rotten roof, serious health problems associated with mould and mildew, and even higher energy bills," Wood says.

"Heat, air and moisture travel in, through, and out of the house in so many different ways. Understanding how these factors relate with each other and knowing how to integrate measures to reduce their negative effects is all part of the house-as-a-system approach."

He says previous homeowner energy efficiency subsidies were created with good intentions, but failed because of a lack of technical expertise. "The program must ensure that only accredited contractors can do the subsidized work, and it must set standards for materials to be used," he says.

Although there are no regulations governing who must do the renovation work or what specific building materials are to be used, NRCan says its energy advisors have the authority to refuse to rate the house if the advisor "sees factors that in his or her opinion suggest the structure of the house may be unsafe, or that may affect the health of occupants."

Applications for grants must be made through local EnerGuide for Houses delivery agents. A list of eligible agents is available on the website or by calling toll-free 1-800-387-2000.

Published: August 14, 2003

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Jim Adair is editor of REM: Canada's Real Estate Magazine, a business publication for real estate agents and brokers. He is also consulting editor of Homes & Cottages, Canada's largest building and renovation magazine. Email jimhc@pathcom.com.