CEF - PP - (HomeZero) Neighbourhood Factory Retrofit Model Pilot Project
Description
The non-profit HomeZero Collective Society (HomeZero), will pursue a pilot project to retrofit 10-15 homes in the City of Vernon’s Foothills neighbourhood. The initiative builds upon a home energy retrofit financing program feasibility study using a Neighbourhood Factory Retrofit Model (NFRM). This retrofit approach uses bulk purchasing power and streamlines installation and business processes to upgrade homes at a neighbourhood scale.
The results of the study (GMF17568) indicated that the NFRM may reduce costs by 45-50% compared to traditional one-off retrofits, resulting in a cost-neutral outcome for the homeowner. The pilot will have the following objectives:
Demonstrate the technical viability of the proposed aggregated retrofit model, as well as review triple bottom line benefits;
Validate labor cost estimates presented in the feasibility study and allow for adjustments to the financial model;
Continue engagement of stakeholders such as Vernon homeowners, city council, the provincial and federal government, BC Hydro, and financial institutions to build support for a potential capital program.
Retrofit measures for piloted homes may include replacement of fossil-fuel sources with technologies such as geothermal or air source heat pumps, high-efficiency hybrid electric hot water systems, solar photovoltaic (PV) arrays and electric vehicle (EV) chargers, and upgrades to electrical services, as needed. Pilot homes will also have performance monitoring systems installed to show energy and emissions reductions. HomeZero will subsidize the cost of installations (up to 50%) so that participants may receive the same cost-neutral pricing as envisioned upon full-scale operation. The matching 50% of the retrofit costs will come from the participants, who are expected to obtain their own financing through personal funds, government rebates, and loans through the bank and/or other loan programs.
If successful, the pilot will scale to a detailed program design study to support a third-party direct lending capital program to retrofit 600 homes over a two-year period. The program design study will develop the financing mechanism and business processes for all aspects of running the operations, as well as strategy development for community engagement, procurement, and human resources. The pilot project and intended capital program are strongly linked to the energy goals presented in the City of Vernon’s 2013 Official Community Plan and 2021 Climate Action Plan.
Replicability
The NFRM’s design serves as a roadmap for retrofitting entire communities. Upon demonstration of successful implementation in Vernon, HomeZero will expand the NFRM in additional municipalities in BC and across Canada. The planning and installation stages will be captured in an online content management system, optimized, and turned into a repeatable process that can be replicated in new neighbourhoods.
Environmental benefits
Assuming 13 participating homes, the pilot project may reduce greenhouse gas (GHG) emissions by 24 tonnes (CO2e/yr) and total energy consumption by 703 GJ/yr.
Economic benefits
Pilot participants will see a large reduction in their utility bills.
If participants access loan products, they will have reliable monthly loan payments instead of facing ongoing utility cost increases. After loan repayment, pilot participants could see annual savings of more than $3500.
With energy performance monitoring systems, participants may see the direct relationship between setpoint temperature and energy use intensity, potentially leading to adjustments that result in further energy savings.
Social benefits
Pilot participants who choose geothermal heating and cooling systems will experience reduced noise outside their home relative to air conditioning units.
This application is eligible because it aims to achieve or exceed the following objectives: The applicant seeks to develop or improve a financing program for home energy upgrades. The program will primarily target energy-efficiency improvements or renewable energy installations in existing low-rise residential buildings.