Energy Efficiency Standards in Alberta, Canada

A study commissioned by NAIMA Canada and the Consumer Council of Canada (CCC) has found that the more energy efficient a house is, the more affordable it is.

The costing analysis for upgrades of EnerGuide 80 homes in Alberta concluded that the total incremental renovation cost was approximately $6,000. When compared to a standard home, built to minimum energy efficiency requirements, the EnerGuide 80 homes boasted a positive net value between $6,600 and $11,000.

The Impact of Higher Energy Efficiency Standards on Housing Affordability in Alberta
BACKGROUND

• The report presents results of a costing analysis completed for upgrades of EnerGuide 80 levels of energy efficiency in Alberta homes. Calgary and Edmonton were considered in the analysis.

• When graphed, land value remained as the primary reason for the rising price of homes in Calgary and Edmonton.

• For a standard two-storey detached house, the total incremental cost to upgrade from the 2006 ABC to EnerGuide 80 levels of energy efficiency is approximately $ 6,000.

• Calgary homes built to EnerGuide 80 energy efficiency standards realized a positive net present value of approximately $ 6,600 (energy savings minus initial capital cost) over the study period. The same upgrades in Edmonton homes resulted in a positive net present value of approximately $ 11,000.

• This means that an investment of $35 a month as part of a mortgage to purchase the package of energy efficiency upgrades returned a monthly energy savings of about $70 in Calgary and $100 in Edmonton.