Municipal financing makes changes easy and affordable for homeowners
A new study – This Green House – Building Fast Action on Climate Change and Green Jobs by the Columbia Institute – reveals that modest investments in energy conservation in homes can save homeowners thousands of dollars, and dramatically and rapidly reduce greenhouse gas (GHG)emissions in Canada.
The report shows that, at current energy prices, a homeowner can double their return – over $12,000 on an average $6,000 investment in energy efficiency – over 25 years by making simple changes – like upgrading hot water tanks, home heating and cooling systems, and improving weatherization and insulation of homes.
“Our report shows that, with municipal energy efficiency financing, fast action on climate change is within the reach of most communities and homeowners,” said Charley Beresford, Executive Director of the Columbia Institute. “A small investment in one’s home- supported with loans provided at the municipal level – will give homeowners significant energy savings that they can take to the bank.”
The report examines the role Canadian municipalities can play in setting up financing programs for residential energy retrofits. Loans provided to homeowners by municipalities, financial institutions, utilities or other funders can be paid back gradually through small payments on property taxes or utility bills – removing a key financial barrier for many homeowners. Loan payments can be made from energy bills savings, making energy efficiency retrofits affordable for most homeowners.
Other highlights from the study:
* In 2008, heating, cooling and electricity in buildings accounted for 28% of Canada’s GHG emissions from energy use.
* Average energy savings from retrofits: from 26% to 35% per home.
* Energy efficiency retrofits create 20 jobs for each $1 million invested, compared with the oil and gas industry in Canada, which creates only 5.2 jobs for each $1 million invested.
* Retrofits increase local business and jobs for heating-and-cooling and home improvement companies and suppliers.
* No net cost to taxpayers – municipal loans paid back over time by homeowners.
Lesli Boldt, Boldt Communications Inc.