Leveraging government incentives for energy-efficient restorations

Leveraging government incentives for energy-efficient restorations can help offset the initial costs while providing a smart investment for long-term operational savings. Here’s a quick overview of the incentives available in Toronto.

Energy Retrofit Loans (ERL)

The City’s ERL program finances up to 100% of the costs at the start of low-carbon, energy-efficient capital improvements, including building envelope renovations.

Terms overview:

• Rate equal to the City’s cost of borrowing
• Repayment terms up to 30 years
• Up to one-year interest and payment free

Application requirements:

• Two years of audited financial statements
• Detailed project summary
• Feasibility study by a qualified Professional Engineer (P.Eng), Certified Energy Manager (CEM), or equivalent
• Description of each proposed individual retrofit measure
• Estimated energy and utility cost savings and greenhouse gas (GHG) emissions reduction
• A decarbonization plan demonstrating a minimum of 60% GHG emissions reduction by 2040

High-Rise Retrofit Improvement Support Program (Hi-RIS)

Hi-RIS offers multi-unit residential (MUR) owners financing to increase energy efficiency, reduce GHGs, and improve tenant comfort. Qualifying buildings must be three storeys or more and built before 1990. Projects include building envelope improvements for window/balcony door replacements, window/door caulking, exterior wall cladding, insulated roofing, and more.

Terms overview:

• Financing maximums are $2.5 million and cannot exceed 10% of the property’s Current Value Assessment
• Financing with up to 20-year terms at competitive fixed rates
• Administrative charge of 0.8% is calculated on the final funding amount and billed over the term
• Repaid in 11 monthly installments per year on the property tax bill
• A one-time full balance payment is allowed 

Application requirements:

• Submit an Expression of Interest to determine eligibility
• Complete an energy assessment report
• Submit the assessment with the Funding Request along with intended improvements, cost estimates, etc.
• A Pre-Authorized Property Tax Payment Program Application Form must be sent to Revenue Services  

Taking Action on Tower Renewal Program (TATR)

TATR provides a combination of loans and grants of up to 10% of the total project cost for retrofits that achieve the same results as Hi-RIS projects. The same application process is followed, and eligible projects include building envelope improvements such as energy-efficient windows and doors.

Terms overview:

• Project must reduce energy use and emissions by at least 15%
• Interest rates are annual and remain fixed for the duration of the term
• Terms of five to 20 years are available and must not extend beyond the useful life of the qualifying improvements
• Repaid in 11 monthly installments per year on the property tax bill
• A one-time full balance payment is allowed 

How to qualify for energy efficiency programs

There are two effective ways to help building owners qualify for energy efficiency programs:

1. STEP

Sustainable Towers Engaging People is a free program for MUR owners and managers to help reduce operating costs and improve occupant life through improved energy and water consumption, operations, and safety.

Benefits include:

• No-cost benchmarking to support your applications 
• Targets to improve utility performance
• Reports to help lower costs and increase tenant satisfaction 
• Financing opportunities
• Ongoing education
• Case studies  

2. Building envelope inspections

Consultant-led building envelope inspections find opportunities to improve energy efficiency and occupant comfort levels across all components of the building’s exterior. Benefits include:

• Professional reports and records to keep your maintenance on track
• Work required, recommended timing, and costs for submission during the application process
• Description of each proposed individual retrofit measure

Building envelope inspections are an essential step when planning restoration projects. The information collected helps building owners qualify for energy efficiency programs. Effective building restoration protects your assets and realizes long-term savings through improved building performance and energy efficiency. 

If you would like more information about building envelope inspections to help you leverage government incentives, speak to the experts at WellDone Inc. Our building restoration company specializes in building improvements for commercial and multi-unit residential buildings throughout the GTA.