The energy rebate debate

Mark Czubak has made plans to upgrade the energy efficiency of his drafty 1867 Victorian-style home, and he's going ahead despite the federal government's newly revised rebate plan that doesn't kick in until April 1.

"I'm not going to wait," says the Perth, Ont., homeowner, who has made an appointment for Feb. 6 with an energy auditor to test his house. "I really need to get this ball rolling. Although the house has a lot of character, it has a lot of leaks."

Details of the program, announced Jan. 21 by Natural Resources Minister Gary Lunn, are still being worked out. It's not yet clear if homeowners like Mr. Czubak, who have had energy audits or energy-efficient renovations since last spring, will be eligible for the rebate.

"That's still waiting to be clarified," says Barbara Mullally Pauly, senior chief of housing programs at Natural Resources Canada. But for those still at the thinking-about-it stage, "You're probably better to hold off."

Homeowners who had an energy audit under the former Ener Guide for Houses program before the Tory government cancelled it in May, 2006, still have until March 31 to complete their renovations and apply for the grant.

The Tories cut the popular Ener Guide program, which has distributed $66- million in grants since 2003, because of inefficiencies and promised a replacement by fall. Mr. Lunn promised $220- million over the next four years -- $55- million per year -- for the Eco Energy Retrofit program for homeowners, plus small businesses and organizations. Rebates will likely average about $1,000 each, but could go up to $5,000 for extensive renovations.

The program has received mixed reactions.

"It may be an improvement over the old one," says energy auditor Ross Elliott, of Homestead Building Solutions, who has been honoured for his participation in energy-efficiency initiatives, but he added that the proof will come in the details. "The grants aren't huge, but it's enough to motivate you."

However, Clifford Maynes, executive director of Green Communities Canada, a group of environmental service organizations, questions whether the rebates are incentive enough when homeowners themselves must pay for mandatory energy audits.

There are some key improvements over the old Ener Guide program, Ms. Mullally Pauly says. Not only will efficient heating equipment be on the checklist provided by the auditor, but also cooling equipment, water-saving devices and renewable energy will be included. The checklist itself, plus knowing ahead of time how much of a rebate you will get, are other consumer-friendly features.

"I think people will like that because there won't be any surprises," she says. "The intent of this program is to provide a more generous grant."

Under the old program, the government subsidized audits. And although some energy auditors didn't like that cumbersome, administration-heavy system, it made audits more affordable -- usually about $225.

Now, individuals will have to pay the full shot, which could be up to $600, including the return visit, says Mr. Elliott.

That could discourage people from getting an audit done, says Mr. Maynes, whose group represents the Enviro-Centre in Ottawa that does energy audits. He adds that several provinces --New Brunswick, Nova Scotia, Quebec, Manitoba and Saskatchewan -- subsidize energy audits, but Ontario does not.

Having people pay the full audit cost ensures they will carry on with the renovations, Ms. Mullally Pauly says. "This is because we want people who are really committed to change to participate."

Critics point out that although rental properties are eligible for the program, renters typically pay their own utilities so there's no incentive for landlords to make upgrades.

Also, the program makes no provision for low-income families, who often live in highly inefficient housing but can't afford the compulsory audit. The Tories cut the previous Ener Guide for Low-Income Households program, but have not yet produced a replacement.

"It's a national disgrace," says Mr. Maynes.

He is also concerned contractors who do renovations will be able to perform energy audits as well, which could be a conflict of interest.

"If they go this route, the government needs to tell us how to prevent fraud," Mr. Maynes says.

While waiting for April 1, homeowners can research which renovations they would like to do, figure out how much money they have to spend and go to home shows to ask questions, Ms. Mullally Pauly says. "Then when the auditor comes, you're in a much better position to get full benefit from the visit."

Mr. Czubak won't turn down a rebate if he's eligible, but he's not waiting to find out first.

For additional information, visit gca.ca, nrcan.gc.ca, homesol.ca or envirocentre.ca.

REBATE TIPS:

Here's what homeowners must do to get a rebate under the Eco Energy Retrofit program:

- Book a professional energy evaluation of your home with a government- approved energy auditor. Natural Resources Canada will post a list on its Web site, nrcan.gc.ca, once it's available, or call 1-800-387-2000.

- The auditor will test your home, including a blower-door test for air tightness, and provide a detailed and prioritized list of upgrades, including which changes would be the most effective at reducing energy use. The list will also indicate how much of a rebate owners could get for each change. (That list and the rebate amounts are still being worked out.) "The amount per task is not based on how much the job costs, but how effective that job is at reducing energy use," explains Ms. Barbara Mullally Pauly, senior chief of housing programs at Natural Resources Canada. If, for example, you install an$8,000 highly energy-efficient furnace, you won't get $8,000 back. "But you're going to get a good grant compared to something that wouldn't save as much energy, because you'd be doing a task that was substantial."

- Do the upgrade work yourself or a professional. Keep your receipts.

- Call in the auditor again. He or she will ensure the work was done properly and help you fill out and submit the paperwork.

(National Post: Kathryn Young, CanWest News Service)