The City of Vancouver, in co-operation with Vancouver City Savings Credit Union (Vancity) and with the support of FortisBC, BC Hydro and Natural Resources Canada has established a pilot program called Greenest City 2020 - Home Energy Loan Program.

The Home Energy Loan Program offers you, the Vancouver homeowner, access to affordable financing and end-to-end support to make select energy efficiency upgrades to your single family home or duplex. In return, you can expect to save money* on your energy bills and enjoy improved home comfort while reducing your home's environmental footprint. Energy savings could offset the majority of the upgrade costs.

Learn more about how you can save money.

*Note that energy savings will vary from home to home depending on upgrades, age/size/construction of your house, lifestyle, climate and number of occupants.

Many Vancouver homeowners like you are interested in improving the energy efficiency of their homes; however, they may lack the resources to do so. The Home Energy Loan Program offers you access to affordable financing and end-to-end support to make select energy efficiency upgrades (304 kb) to your single family home or duplex. In return, you can expect to save money on your energy bills and enjoy improved home comfort while reducing your home's environmental footprint.

Buildings in Vancouver, including homes, contribute an estimated 55 per cent of Vancouver's overall greenhouse gas (GHG) emissions (gases that trap heat in the atmosphere and contribute to climate change). The City of Vancouver has a goal of reducing citywide GHG emissions by one third by 2020. Making energy efficiency upgrades to Vancouver's single-family homes and duplexes alone could save approximately 90,000 tonnes of GHGs by 2020. That would be like permanently removing 2,000 cars from Vancouver's roads. The Home Energy Loan Program is a new tool aimed at helping the City to achieve its GHG reduction goal.

Making energy efficiency upgrades to your home can be time consuming and costly, using typical personal financing. The Home Energy Loan Program simplifies the process of making select home energy efficiency upgrades and has been designed to help you save money on your energy bills. It connects you to experts, financing, and rebates to help you upgrade your home. Guidance and support is available every step of the way.

Energy efficiency upgrades that qualify for Home Energy Loan Program financing include any of the following:

• ENERGY STAR natural gas furnace*
• ENERGY STAR natural gas boiler*
• Air source heat pump*
• Hot water heater (energy factor > .61)
• Increased attic insulation*
• Increased exterior wall insulation*
• Increased basement/crawlspace insulation*
• Weatherization **

*Must meet LiveSmart BC standards

**Weatherization: Must be completed to satisfaction of energy auditor, demonstrating reduction in equivalent leakage area (ELA)

The upgrades that are covered under the Home Energy Loan Program were carefully selected based on research showing the potential for the greatest cost savings on BC Hydro and Fortis BC energy bills for the 'average' Vancouver single family home or duplex.

No, the financing is made available through Vancity and loans are subject to approval by Vancity. The City's role is to oversee the program, including: connecting homeowners to auditors and contractors; providing information on rebates and tips for greening your home; managing program inquiries; and collecting loan payments quarterly on behalf of Vancity.

All Vancouver homeowners with no outstanding tax bills or liens on their property, and who intend to make select energy efficiency upgrades to their single family homes and duplexes can apply for the Home Energy Loan Program. Loans are subject to approval by Vancity. Call 3-1-1 for more information.

Loans ranging from $4,000 to $16,000 are available to finance select* home energy efficiency upgrades. (304 kb) During the 12-month pilot, unsecured loans, administered by Vancity, will be offered at a low fixed interest rate over a 10-year amortization period. This allows you to make affordable, predictable loan payments over the life of the loan.

Loans approved by April 13, 2012, qualify for a fixed interest rate of 4.5%. Loans approved thereafter may be at a different interest rate.

Learn more about Vancity's loans

It might be possible to receive a comparable rate and term through a mortgage backed financial product. However, many of these products lack a fixed rate. Alternatively, homeowners with excellent credit ratings might qualify for about the same rate with a shorter term or at a variable rate, but may not have access to such a specially tailored financing combination of fixed rate over a longer term, which helps make the loan payments affordable and predictable over the life of the loan.

Yes. Following upgrades, your home will be more energy efficient, so all else being equal, your energy bills should be lower.

It's important to keep in mind that savings will vary from home to home. Everyone's home is different in terms of energy efficiency and the impact that upgrades will make. How much money you save depends on the type and number of upgrades you choose to make as part of the Home Energy Loan Program, how warm or cold the winter is, if you increase the number of occupants in your home and your energy consumption habits.

In addition to improved home comfort following upgrades, the average single family or duplex home in Vancouver could save up to 40 per cent per year on electricity and natural gas bills.

With the unsecured low fixed interest rate loan and 10 year amortization period, for the average home, the money you save on your energy bills could significantly offset your loan payments. Once the loan has been paid off in full, you could continue to enjoy savings of up to 40 per cent annually on energy bills (the equivalent of up to $1,100 per year for an average home).

The upgrades that are covered under the Home Energy Loan Program were carefully selected based on research showing the potential for the greatest cost savings on BC Hydro and Fortis BC energy bills for the 'average' Vancouver single family home or duplex. Energy savings are estimated based on third-party analysis that aggregated ecoENERGY energy use data collected from 3,000 Vancouver homes in 2008 and 2009.

1. Home energy audit
2. Loan application and approval
3. Contractor quotes and selection (depending on which option you choose)
4. Home improvement upgrades
5. Post-upgrade energy audit
6. Loan repayment and cost savings*

* When you begin to repay your loan depends on whether you choose the Direct Install option or the Self Serve option, described in this infographic.

Learn more about Vancity's loans

If you have previously had an ecoENERGY audit on your home, you could still eligible for a Home Energy Loan Program loan (your auditor will let you know if you are eligible for provincial or federal rebates). If your ecoENERGY audit was done more than three years ago, you will be required to redo it.

The Direct Install option removes the inconvenience of having to work with several different contractors to get quotes and do the work. This option connects you through a single phone call to a Better Business Bureau accredited contractor with a minimum 10-year track record of conducting home energy efficiency upgrades. Upon loan approval, the contractor will do all of the required upgrade work to your home and, once you have signed your loan documentation, Vancity will pay the contractor directly on your behalf. You simply approve the work and payment to the contractor, and begin to repay the loan.

Note: The City of Vancouver is not responsible for the workmanship of the upgrades.

Learn more about the Direct Install option (840 kb)

If you prefer to select your own contractor or if you have the ability to do some of the work yourself, the program offers a Self Serve option. The process follows many of the same steps as the Direct Install option for pre- and post-upgrade energy audits and application to Vancity for loan funding. The major differences with the Self Serve option include:

1) the loan is paid directly to you before the upgrades are done,

2) you need to research and hire your own contractor(s), and

3) upon receiving loan funding, you pay the contractor directly. This option is here for people who are either more handy or wish to be more hands in the process of doing the upgrade work.

Learn more about the Self Serve option. (840 kb)

The Home Energy Loan Program loan must be paid back within ten years or less, in quarterly payments made to the City of Vancouver. You will receive a separate bill in the mail from the City every quarter. The City will forward your loan payments to Vancity to pay down your loan.

If you sell your home during the 10-year loan payment term, you will be required to pay the balance of the loan at the time of the sale.

Yes. Beginning October 21, 2011, the 12-month pilot will target signing up 500 homes. The purpose of the pilot is to test the best approach to offering energy efficiency upgrade incentives on a larger scale to all Vancouver single family/duplex homeowners in the future. Following the pilot, the City of Vancouver will evaluate the program, including assessing market demand as well as energy savings and financing benefits to homeowners in hopes of offering the program on a permanent basis. Pilot participants will remain enrolled in the Home Energy Loan Program.

If you have questions, please call 3-1-1. The Home Energy Loan Program has resources to provide you with guidance and support at every step along the way.

See "How to Apply" or call 3-1-1 if you have questions.

Your energy auditor will help you identify which rebates you will be eligible to receive based on which upgrades you choose to do, as well as help you apply to receive them.

All Home Energy Loan Program participants are eligible to receive a $150 FortisBC grant towards covering your post-upgrade home energy audit.

If you qualify for federal ecoENERGY incentives, they are yours to keep—the cheque will be mailed directly to you.

If you are eligible to receive LiveSmart rebates, your auditor will help you ensure that these rebates are directed to the City of Vancouver to help pay down your Home Energy Loan balance. This ensures that your loan is paid down as quickly as possible.