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Buyers warm up to green living

Posted in June's Kelowna Real Estate Blog on April 2, 2008

Given the ever-present threat of climate change, homebuyers are warming up to the idea of energy-efficient housing.

It's not only beneficial to the environment, but it can help lower the aggravation in paying the monthly utility bills.

A new federal housing initiative now aims to prove those bills can be brought down to virtually nothing by building homes that can produce as much energy during a year as they consume. It's enough to have any homeowner turn green with envy.

A recent Investors Group survey showed an overwhelming 82 per cent of Canadians plan to change their behaviour and adopt green practices. That's especially true if "going green" will save them money, with 63 per cent willing to spend up to $10,000 in changes to their homes to reduce annual energy costs by 25 per cent.

Meanwhile, research by J.D. Power & Associates found that 84 per cent of homebuyers say energy efficiency is extremely or somewhat important to their purchase decision.

For the new homebuyer, spending more now on a new energy-efficient home will save a lot of time and money in doing future upgrades, and it's clear more Canadians are going that route. The Energy Star energy-efficient home program, for instance, recently had its 10,000th house enrolled in Ontario.

Energy Star, used in both Ontario and Saskatchewan, is just one of several federal or provincial programs that target green housing.

It all started with Natural Resources Canada's R-2000 program more than 20 years ago, the first to devise stringent requirements for air tightness, increased insulation and ventilation. It never became a huge commercial success and remains voluntary, despite being responsible for the construction of over 10,000 energy-efficient homes across Canada and setting industry standards.

While still in its infancy, Canada Mortgage and Housing Corp.'s EQuilibrium project could be the country's most ambitious energy-efficient housing program to date.

Its goal is to demonstrate homes can be built having net zero energy consumption, by integrating solar technology and on-site renewable energy systems, such as solar water heating and ground-source heat. Like other energy-efficient homes, they will feature extra thick insulation and triple- or even quadruple-pane windows. During certain times of the year when energy demands are low, the homes should produce excess electricity that will go into a reservoir that can be consumed when power demands are greater.

Twelve homebuilding teams have been selected to build EQuilibrium demonstration projects across Canada. Three are planned for Quebec (Montreal, Eastman, and Hudson), four in Alberta (Calgary, Edmonton and two in Red Deer), three in Ontario (Ottawa and two in Toronto), and one each in Manitoba (Winnipeg) and Saskatchewan (Prince Alberta). Some should be open for public tours later this year.

"It's hoped that success of this stage will prompt wider, more community-scaled developments within a couple years," explains Don Fugler, senior researcher with CMHC.

While the initial hope was to have "thousands of these things kicking around" by 2010, Fugler concedes that goal might not be met.

"We may have been a little optimistic in that, because it takes a while to build these houses and then it takes at least a year of operation to show how successful they are." Some builders also suffered delays in firming up financing, he added.

Of course, homeowners will have to pay a premium to own one, though just how much has not been determined. One of the most expensive features is the use of photovoltaics -- devices used to convert sunlight into electricity. They can cost $20,000 to $60,000 to install, and are not eligible for government subsidies in this country, says Fugler.

It's believed though that over time, savings in utility bills should offset the higher purchase price. The payback time for any energy-efficient home can vary greatly, depending on location and climate, the degree of energy efficiency, and what technology is used, among other factors.

Fugler points out that, as discovered under the R-2000 program, it isn't just dollars and cents that lead to a homeowners' satisfaction.

"The incremental cost was $5,000 to $10,000 a house, and people would wonder what the payback was. In the end most of the homeowners didn't care," says Fugler. "Eventually they maybe had a 20-year payback on the thing, but what they found was they love R-2000 houses. They were clean, they were quiet, and were very comfortable."

That combination of energy efficiency and comfort is what attracted Michael Marentette and his wife Hilary to green housing. The couple's energy efficient home, which uses passive solar heating and overlooks Halifax harbour, was constructed three years ago under the guidance of Nova Scotia solar designer and builder Don Roscoe. They've been in love with it ever since.

"We're very energy conscious and we're really big into recycling and composting and that sort of stuff," says Michael Marentette. "We're retired, and we wanted something really simple to operate and not expensive to operate as we get along in years. We also didn't want a big annual outlay in energy expenses."

The home's airtightness and insulation levels can ultimately be traced back to the guidance provided under the R-2000 program, notes Roscoe. In addition to using strategic window positioning and air recycling, the home uses a wood stove for heating. That's been especially appealing given most other homes in the region use heating oil.

"With the price of oil going up as it has, that's going to be paying for itself in no time," Marentette, 66, says. The couple hasn't determined how much money they're saving, but estimate they only pay about $2,500 a year in total for utilities and firewood.

(prepared by Darcy Keith/Vancouver Sun)


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