Your Guide to Growing an Energy Efficient Home.
Contents Why choose an eco-renovation?............................................................................................................................... 3
Making a difference is easier than you think . ................................................................................................................3
Make your home more energy efficient ................................................................................................................... 4 Consider resale value............................................................................................................................................... 5 Improve your home’s energy efficiency ................................................................................................................... 6 Do it yourself – after a trip to the hardware store.................................................................................................... 7 Call a professional................................................................................................................................................... 8 Planning an energy efficient home renovation......................................................................................................... 9
Upgrade and save . ...............................................................................................................................................................9
Getting your eco-renovation started...................................................................................................................... 10
Here are some things to think about when budgeting for your home renovation..................................................10 Finding (and keeping) a contractor.................................................................................................................................10
Cover the bases – get it in writing ...................................................................................................................................10
Energy efficient renovations equal big savings ............................................................................................................10 Your eco-renovation worksheet............................................................................................................................. 11
The ecoENERGY Retrofit Program .......................................................................................................................... 12
The Homeowner Residential Rehabilitation Assistance Program (Homeowner RRAP) ......................................12 Financing your renovation .................................................................................................................................... 13
Tips for financing your renovation..................................................................................................................................13
RBC Homeline Plan®..........................................................................................................................................................13
Developed in conjuction with the Canada Mortgage and Housing Corporation.
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RBC® Energy Efficient Renovation Guide
Why choose an eco-renovation?
It’s no surprise that Canadians see the environment as a primary concern. Climate change affects our ecosystems and weather patterns. In fact, one of the main contributors to climate change is our use of fossil fuel energy. Just by doing our everyday activities, like heating a home, cooking dinner or taking a shower, we use energy and emit carbon dioxide into the atmosphere. In 2004, the residential sector alone accounted for 6% of Canada’s overall greenhouse gas emissions.1 Most of us agree that something needs to be done, but it’s hard to know what we personally can do to help. Making a difference is easier than you think Conserving energy does more than help you save on your energy bills. You contribute to environmental and economic sustainability and reduce energy consumption. Energy conservation can be as simple as turning off lights you’re not using, or as in-depth as changing insulation and installing items such as a high-efficiency furnace. The best time to carry out energy-saving home improvements is while you’re planning other renovations.
DID YOU KNOW? > Homes account for 20% of all energy use.
RBC Royal Bank® and the Canada Mortgage and Housing Corporation (CMHC) have partnered to create this guide, which will show you what you can do to reduce your home’s energy use, from something as simple as switching to compact fluorescent light bulbs to upgrading your home’s insulation and getting a high-efficiency furnace. 1
3
Environment Canada, Canadian Environmental Sustainability Indicators, 2006.
RBC® Energy Efficient Renovation Guide
Yearly Home Energy Use
15%
18% 67%
Space Heating Lighting and Appliances Heating Water
Make your home more energy efficient
Increased energy efficiency (and the resulting savings on your utility bills) doesn’t have to come from a complete retrofit of your home. While you’re considering and planning your eco-renovation, you can take smaller, simpler steps to make your home more environmentally friendly. Some simple things you can do:
Add water-saving fixtures: Low-flush or dual-flush toilets, faucet and shower flow restrictors, front-loading clothes washer that reduce water heating loads.
DID YOU KNOW? > Water-efficient toilets use 80% less water than a regular toilet.
> Aerator shower heads reduce water use by more than 60%.
Switch to energy efficient appliances: Replace and recycle older refrigerators, freezers, electric ranges and dishwashers with energy efficient rated models.
DID YOU KNOW? > Energy efficient dishwashers, washers and dryers, refrigerators and freezers can cut energy consumption by at least 15%. Some models can reduce energy use by nearly 50%.
> Microwaves use 75% less energy than a conventional oven.
Change to more energy efficient lighting: The average house has 27 light bulbs in it. On average, lighting in a house consumes 1,800 kWh annually. Try switching to fluorescent, compact fluorescent and task lighting.
DID YOU KNOW? > Compact fluorescent lamps (CFLs) deliver the same light output as incandescent light bulbs but use 75 % less energy … and last longer.
Keep in mind that the equipment that heats the air and water in our homes has improved dramatically. Today, high-efficiency condensing furnaces, heat pumps well suited to cold climates, and integrated space and water heating systems are commercially available. Fan motors of 100 watts can be 4 to 8 times more efficient than conventional fans.
DID YOU KNOW? > A Heat Recovery Ventilator regulates indoor air quality and the house’s indoor climate. It can recover 70% of the heat from stale indoor air while providing continuous supply of fresh air to the home. It reduces heat and ventilation costs.
Source: CMHC: Renovating for energy savings Case studies: Pre-World War II Houses.
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RBC® Energy Efficient Renovation Guide
Consider resale value
Studies show that beyond any savings you’ll reap from an eco-renovation while you own your house, you can really get a return on investment when it comes time to sell. How much?
> On average, North American homes get
an increase in value of 5 to 10% once energy efficient renovations have been made.1
> For a house with a resale value of around $350,000, these trends translate into a potential increase of $17,000 to $35,000 in value. 2
> Home resale values increased by about $20 for every $1 decrease in annual fuel costs that were realized after improvements recommended in an energy efficiency audit were made. This increase in home value was in addition to the expected benefits of preferential financing and positive cash flow.3
Source: 1. http://www.greensaver.org/pdf/Annex_SB.pdf. 2. http://www.greensaver.org/pdf/Annex_SB.pdf. 3. The Maine Energy Efficiency Building Performance Standards.
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RBCÂŽ Energy Efficient Renovation Guide
Improve your home’s energy efficiency
Eco-renovation tips > Select plants for your garden which require minimal water > Install aerator faucets > Use power bars to switch off your electronics > Install dimmer switches witch to compact fluorescent light bulbs > S > Replace furnace filters regularly > Install outside motion detector switches > Turn lights off when rooms are not in use > Install a programmable thermostat > Improve air tightness through caulking > Spray foam insulation > Weather-stripping of doors and windows > Upgrade windows and doors > Add insulation in attic or basement > Upgrade ventilation system > Upgrade furnace and hot water tank > Add renewable energy systems such as a solar thermal array or photovoltaic panels
Meet your energy saving goals with RBC Royal Bank Whether you use your RBC® Visa Card to pay for new light bulbs or access your Royal Credit Line® or RBC Homeline Plan® to finance an energy efficient furnace, RBC Royal Bank® can help you find the right financial solution for your eco-friendly upgrades.
Before starting any of the bigger projects on this list, consider getting a Home Energy Audit. Your qualified energy advisor will tell you which projects will have the biggest impact on your home.
Sources: CMHC About Your House Series. Keeping the Heat in: NRCan publication.
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RBC® Energy Efficient Renovation Guide
Do it yourself – after a trip to the hardware store
> Seal your home by caulking around all baseboards, windows, doors, electrical and cable outlets. Use silicone caulking for areas with high moisture. dd plastic film over your single-pane windows to >A reduce heat loss by 25 to 50 per cent. The film is applied with a hair dryer to trap air and effectively insulate the window area. eplace cracked or flattened weather-stripping >R around your doors and windows to ensure an air seal is created that keeps cool air out and warm air in during winter.
> The warmth from radiators can be increased by installing radiator foils to the wall behind each unit to deflect heat into a room. Foils are inexpensive to purchase at most hardware stores.
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RBC® Energy Efficient Renovation Guide
> Bundle up your water heater, especially if it’s located in an unheated part of the house.
> Insulate hot water pipes that run through unheated areas of your house and you’ll be able to turn down the temperature on the hot water tank.
> Install a flow-restrictor showerhead and aerators in your faucets to use less water.
> Install ceiling fans, particularly in rooms with high ceilings. By running the fan in reverse, rising warm air will be circulated back down to the living areas of a room. Sources: http://www.greensaver.org. Ontario Ministry of Energy ‘Energy Savings Tips’ brochure: http://www.energy.gov.on.ca/ index.cfm?fuseaction=conservation.tips.
Call a professional
Before making any major changes to your home, you should consider scheduling a Home Energy Audit. This audit is similar to a home inspection but will give you a better understanding of your home’s energy use and inefficiencies. Your qualified energy advisor can suggest ways to make your home more energy efficient. These are a few areas to consider before you get started:
> If you’re replacing your furnace, consult a heating and cooling technician. Before recommending a furnace to you, he or she will consider the amount of insulation and sealing that you have in your attic and walls. This may reduce the size of furnace you need. Choosing the right size of furnace will be more effective than buying one that’s too big for the size of your house – and you’ll save money with a smaller unit. Learn more about replacing your furnace.
> Adequate, evenly thick insulation in the attic, walls and ceilings will help to keep the heat in all winter. Ten to twelve inches in the attic would meet today’s Building Code standards. Foam insulation may be easier to apply around wall sockets, windows, vents and other hard-toreach places. Learn more about properly insulating your home.
> Create a healthier home by upgrading your home’s heating, cooling and ventilation systems.
> Consider installing a photovoltaic system to convert sunlight into electricity to power your home. Learn more about converting to solar energy.
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RBC® Energy Efficient Renovation Guide
Planning an energy efficient home renovation
Whether you’re looking to save money, reduce your home’s impact on the environment or just upgrade your home, planning an ecorenovation is a great way to accomplish all three. If your home is more than 25 years old, by completing an energy efficient renovation, you could potentially reduce your energy use by 35%. That number climbs to 38% if your home is more than 50 years old. Saving that much energy will have a positive impact on the environment and your wallet. Take a closer look at some of the major upgrades you could make on your home and how much you could save. Upgrade
Upgrade and save Replacing some of your old appliances could also have an impact on your home’s energy consumption. If your existing appliances are more than ten years old, you could benefit from an upgrade – the chart below demonstrates the drastic increase in energy efficiency of three of the largest energy consumers in your home.
Savings in a year*
Energy efficient furnace
$670.00
2003
Windows and doors
$250.00
Draft proof your home
$290.00
Average annual energy consumption in kWh/yr
* T he cross-effect of multiple upgrades will result in a lower total savings than the amounts shown. All costs are subject to change. Costs depend on materials used and installation practices. Costs may vary depending on house location.
Over the life of a 20 year mortgage, savings through energy efficient upgrades can add up to
$24,200
Dishwasher Standard
524
Energy efficient rated model
452
Washing Machine Standard
708
Energy efficient rated model
296
Clothes Dryer
What could you do with all the money you’ll save on your energy bills? Put it toward your mortgage and own your home sooner. Take a look at the example in the chart: Standard
Eco-Friendly
$220,200.00
$220,200.00
$1,583.34
$1,583.34
Energy Costs
$200.00
$144.00
Property Tax
$200.00
$200.00
$1,983.34
$1,927.34
Mortgage Principal Amount Mortgage (Principal & Interest)
Total Monthly Carrying Costs
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RBC® Energy Efficient Renovation Guide
Energy Cost Savings
$56.00 per month
Standard
914
Energy efficient rated model
398
Sources: Clean Air & Environment Guide, Spring 2007.
kWh: A kilowatt hour is measured as the work performed by one kilowatt of electric power in one hour. It’s also the unit on which the price of electrical energy is based. A 1000-watt light bulb operating for one hour would use one kWh.
Getting your eco-renovation started
Your main concern might be how much this energy efficient renovation will cost. There’s a lot to take into account when planning how much you’re willing to pay for your improvements. Costs depend on the condition of the existing structure, local labour, material costs and the extent of work to be done.
Here are some things to think about when budgeting for your home renovation > E nergy audit and assessment of the existing structure > Permit costs > Basement insulation and air sealing > I nsulation improvement and air sealing of walls and ceiling areas > Window and door repair or replacement > Heating system adjustment or servicing > Ventilation > Painting > Waste disposal
Finding (and keeping) a contractor Your relationship with your contractor will become one of the most important ones in your life over the course of your renovation. It makes sense to find one that you can trust and work well with. That’s a task that can seem easier said than done. The CMHC website has tips for hiring and working with a contractor.
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RBC® Energy Efficient Renovation Guide
Cover the bases – get it in writing Whether your job is large or small, make sure you have a detailed written contract between you and your contractor. Don’t be tempted by a contractor who offers you a discount if you pay cash. This kind of transaction may leave you with no legal recourse if something goes wrong. A written contract not only protects you legally, it can offer you peace of mind.
Not sure what to include in your contract? Take a look at the sample contract on the CMHC website.
Energy efficient renovations equal big savings Renovating your home to be more energy efficient will help reduce global warming and help you save on your energy bills. How? By improving indoor air quality, humidity levels and comfort level all while reducing energy use, drafts, summer overheating, moisture and condensation problems, outside noise and greenhouse gas emissions.
Get tips on how to renovate your home to get the greatest energy savings in these housing type-specific guides from the Canada Mortgage and Housing Corporation.
Your eco-renovation worksheet
There are a number of things you should take into account when preparing for your energy efficient home improvement. Take a walk around your home and note the conditions. It will give you (and your energy advisor – find one online) a good idea of what improvements need to be made, or where to start the energy evaluation. This worksheet will help you get started.
Eco-Renovation Worksheet Present Condition / Problems
Proposed Changes
Basement walls and floor > Insulation and air sealing
Walls and ceilings > Insulation and air sealing
Exposed floors (over unheated space) > Insulation and air sealing Windows
Doors
Heating, Ventilating and Air Conditioning Other
Your home has unique needs when it comes to renovating for energy improvements. Visit the Canada Mortgage and Housing Corporation (CMHC) website, to find a case study tailored to the improvements best suited for the type of home you own. You’ll even get an idea of how much you can potentially save on your energy bills once your renovations are complete.
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RBC® Energy Efficient Renovation Guide
Cost
The ecoENERGY Retrofit Program
The ecoENERGY Retrofit Program Get the most out of your renovation dollars while reducing greenhouse gas emissions – take advantage of the federal government’s ecoENERGY Retrofit Program. This program offers grants of up to $5,000 for energy efficiency improvements in homes.
To qualify for the ecoENERGY Retrofit Program, follow these five simple steps:
1
Hire a qualified energy advisor to perform an energy evaluation of your home and provide you with your home’s energy rating.
2
Select the improvements from your home energy action checklist.
3
Implement the recommended energy upgrades within 18 months.
4
Call your energy advisor to perform your post-retrofit evaluation, to confirm your new energy rating and to submit your application on your behalf.
5
Wait for up to 90 days to receive your cheque based on the eligible upgrades performed.
DID YOU KNOW? > If you’re an Ontario resident, you might qualify for even more funding. The Ontario Home Energy Retrofit Program complements the ecoENERGY Program and offers homeowners up to $5,000 to cover the costs of energy-saving renovations. To qualify, you must complete a pre- and post-renovation energy audit.
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RBC® Energy Efficient Renovation Guide
The Homeowner Residential Rehabilitation Assistance Program (Homeowner RRAP) The CMHC offers financial assistance in the form of a forgivable loan for low-income households who own and occupy substandard housing. Allows residents to repair their homes to a minimum level of health and safety, including improving energy efficiency. More information on this and other programs are available on the CMHC website.
Financing your renovation
Not only is a renovation a huge undertaking for your lifestyle, it can affect your cash flow, too. There are ways to improve your home (and the environment) without breaking the bank.
Tips for financing your renovation: Use an RBC Visa Card to pay for smaller items and access a Royal Credit Line or RBC Homeline Plan to use toward the bulk of your renovation. > Talk to an RBC Credit Specialist about the financing options suitable for your renovation.
RBC Homeline Plan If you have 20% equity in your home, the RBC Homeline Plan is a flexible, easy and cost effective way to manage your mortgage costs and all your home improvement needs, even if your mortgage is paid off. Get an overall credit limit of up to 80% of your home’s value*. Learn more about the RBC Homeline Plan. * T he lesser of the appraised value or purchase price of your home at the time of application.
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RBCÂŽ Energy Efficient Renovation Guide
To find out more about home renovation financing solutions: > Visit www.rbcroyalbank.com/mortgages > Call 1-800 ROYAL速 1-1 (1-800-769-2511) > Visit your local branch
For more information on what RBC is doing for the environment, visit: www.rbc.com/environmentandyou
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