Deep Energy Efficiency Retrofits Versus Direct Electrification For Urgent Emissions Reduction
The Need to Improve Energy Efficiency in Homes to Meet Climate Targets
The area municipalities of Waterloo Region have each declared a climate emergency or crisis and committed to cutting greenhouse gas emissions by 80% below 2010 levels by 2050. Meeting these targets will require significant investment toward improving the energy efficiency of area homes. Nearly half of our homes were built before 1980, when energy efficiency was not the priority that it is today, and the vast majority of these
homes use more fossil fuels than necessary. These homes will eventually need to switch to carbon-free sources of energy if climate targets are to be met.
homes use more fossil fuels than necessary. These homes will eventually need to switch to carbon-free sources of energy if climate targets are to be met.
Retrofitting Homes to Reduce Energy Waste
Retrofits can reduce the energy wasted and the greenhouse gas emissions generated from these homes. An analysis of historical energy efficiency retrofit activity in the area shows that 19% of homes have undergone some form of renovation to reduce energy use, but even these homes have not reached their full potential. Retrofit activity is strongly correlated with the availability of attractive incentives and could rise significantly as governments implement climate action plans that promote the decarbonization of the residential
sector.
sector.
Barriers to Performing Retrofits
A major barrier to performing retrofits is their high upfront costs. Not all homeowners have access to savings or affordable loans from conventional sources. Municipal financing can help some homeowners overcome these barriers. Our conservative projections, based on Toronto’s financing program, have 16 households participating
per year in a local financing program. With careful program planning, supportive incentives, and a streamlined retrofit process, we anticipate an initial participation rate of up to 134 households per year with annual increases. These homes could reasonably match Toronto’s average program outcomes of 30% energy savings and 28% greenhouse gas emissions savings.
per year in a local financing program. With careful program planning, supportive incentives, and a streamlined retrofit process, we anticipate an initial participation rate of up to 134 households per year with annual increases. These homes could reasonably match Toronto’s average program outcomes of 30% energy savings and 28% greenhouse gas emissions savings.
Benefits For Homeowners and Community
The benefits for homeowners and the community are many and substantial: community emissions reduction, reduced fuel poverty, improved health and comfort for the occupants, greater climate resilience, employment creation, local economic stimulus, lower utility bills, greater resilience to fluctuating fuel prices, and improved housing stock.
Despite these advantages, participation in residential retrofit programs has historically been low. However, Waterloo Region is well-positioned to address the many barriers to performing retrofits through careful design of a financing program and supporting measures.
This report also demonstrates how the Waterloo Region has the interest and possible capacity to offer a financing program through three different mechanisms: local improvement charge financing, utility on-bill financing, or third-party financing.
Despite these advantages, participation in residential retrofit programs has historically been low. However, Waterloo Region is well-positioned to address the many barriers to performing retrofits through careful design of a financing program and supporting measures.
This report also demonstrates how the Waterloo Region has the interest and possible capacity to offer a financing program through three different mechanisms: local improvement charge financing, utility on-bill financing, or third-party financing.