PACE Financing Business Case & Program Design for Saskatoon

The City of Saskatoon will perform a feasibility study exploring various program options for a PACE (property-assessed clean energy) residential financing program. The study’s deliverables will include the following: research on best practices in Canada and elsewhere; engagement with local industry and residents; a program feasibility assessment; a recommendation report and budget request to city council; and an education and operations plan.

A 2014 energy study found that 83% of homes in Saskatoon were of the age most likely to benefit from energy efficiency financing. In 2018, approximately 24% of community emissions came from residential buildings. Retrofitting these homes would play a large role in Saskatoon meeting its greenhouse gas (GHG) reduction targets of 15% by 2023 and 80% by 2050. Beyond GHG emission reductions, a successful PACE program would save citizens money on their energy bills, spur economic growth in the community and improve the quality of housing stock in Saskatoon. Depending on program design, retrofits may also help make homes more resilient to climate change impacts.

Key performance indicators for the potential PACE program include total dollars invested in the program, average investment per retrofit, average program participant household income, energy consumption reduction per household and the number of megawatts added to the grid through renewable energy projects. Once fully implemented, the program has the potential to be revenue-neutral, meaning the municipality will not receive any direct financial benefit from the program but nor will it need to subsidize any program costs.

PACE programming will contribute to several of the actions listed in the city’s Low Emissions Community Plan. The terms of the study are also aligned with Saskatoon’s engagement policy and triple bottom line approach to project evaluation.

Innovative aspect(s): Saskatchewan does not currently allow PACE programs. It is anticipated that provincial legislation will be brought forward for approval in 2020 to allow a program to launch in Saskatoon, at which point the program would become the first in the province.

Replicability: The proposed study will result in significant lessons learned for other municipalities looking to implement PACE programs. In particular, other municipalities in Saskatchewan will be able to apply the findings to their own contexts.