Canadian Building Energy Efficiency Regulations Offer Opportunities to Upgrade Older Homes
Our Federal Government created a 2030 emissions plan as part of its contribution to counter global warming. And so it should, given we are the world’s 10th largest greenhouse gas emitter, and our average land temperature increased by 1.5 degrees Celsius since 1948.
We’ve heard some firms in our industry are using the Canadian building energy efficiency regulations as an opportunity for a general price rise. But we for our part will do everything we can to hold our prices steady. Although we promise this will not be at the cost of quality.
Thrust of Canadian Building Energy Efficiency Regulations
Our Federal government has the stated goal of achieving the following objectives by 2030, compared to 2019 levels according to Fraser Institute:
- Achieve a 65% reduction in energy consumption for new residential buildings.
- Achieve a 59% reduction in energy consumption for new commercial buildings.
However, it’s essential to note that the initial guidelines are mild, but ramp up sharply by the middle of the decade. And that this will increase home construction costs by 8.3% at that point, again according to Fraser Institute. Although the dollar effect of improving Canadian building energy efficiency will vary by province, for example:
- New home prices will ramp up by an average $78,093 in British Columbia.
- Whereas New Brunswick prices will only increase by an average $22,144.
- The national average of new homes should be in the region of $55,000.
It stands to reason that the costs of improving existing homes will also increase, depending on the extent of the modifications.
The Regulations Will Affect Gross Domestic Product GDP
Fraser Institute expects Canada’s overall GDP to fall by about 2% below the base case, and maintain much of that gap through to 2050. Once again this impact will vary between provinces per the following examples:
- Prince Edward Island GDP will only shrink by 0.9% because of other factors.
- Whereas British Columbia and Ontario will take a 2.5% knock on their GDP.
But the Practical Impact Will Be Disproportional
New home owners will feel the full force of the Canadian building energy efficiency program. Whereas owners and purchasers of current homes could get away with far less. This represents an excellent opportunity to improve an existing structure in good overall condition.
This could be a great opportunity to upgrade an older home with new shingles, eavestroughs, soffits, or siding. Especially as the price of new homes should rise at a faster rate. We won’t charge to quote for these improvements anywhere in Calgary. Call us on (403)829-1661 now.
It Costs Less to Upgrade an Existing Home (Copyright – Use With Written Permission)