Home-reno plan remains in the works: minister

A plan to allow homeowners to finance energy efficiency upgrades through a property tax lien is still on the table, despite its absence from the new Municipal Government Act, Alberta’s municipal affairs minister said.

It’s a plan that could allow homeowners to buy high-efficiency furnaces and windows, solar panels or better insulation for little to no upfront cost, paying the cost through a property-specific local improvement fee on their taxes.

“It’s a really interesting program,” Municipal Affairs Minister Shaye Anderson said last week, adding that his team has started meeting with municipalities, industry partners and the Alberta Climate Change Office to explore the option.

“It’s a really good way for local cities, towns and villages to empower their citizens, to invest in energy efficiency and look at ways to combat climate change.”

The system, called PACE Financing (Property Assessed Clean Energy), is already used in many jurisdictions throughout the United States and Canada to allow private capital to fund energy upgrades.

It’s different than the existing grants because it requires no provincial or municipal financing, just an approval mechanism for a pension fund or other investor to make the loan through the PACE agency to the property.

It stays with the property when the home is sold.

Long-term investors looking for lower but secure returns are interested because the loan for the energy upgrade is backed by the city’s tax system, said Brian Scott, a project manager in the industry and founding member of the new not-for-profit PACE Alberta.

“If we’re going to address climate change, we have to do it in a way that doesn’t pit a building owner against his pocket book,” said Scott, who was hoping for the initiative to be included in the recent Municipal Government Act change or the city charters.

Edmonton and Red Deer are among several municipalities that have been lobbying for it.

Alberta currently has grants available to help homeowners change light bulbs, replace windows and do other upgrades. But Scott estimates the average home needs roughly $20,000 in efficiency upgrades if the government hopes to meet its climate change targets.

That’s $90 billion to upgrade all the existing buildings in Alberta.

“No government has access to that kind of money,” he said.