Climate Emergency: Home Heating and Cooling

In Vancouver, nearly 60% of our carbon pollution comes from buildings. This is mainly from burning natural gas (which is methane, a fossil fuel), for heating our homes and our hot water.

In B.C., we have very clean, renewable hydro-electricity, which means that natural gas is 16 times more emissions-intensive than our electricity.

Image Source: Metro Vancouver Building Roadmap 2050

To do our part to fight climate change, we need to reduce emissions from buildings by 50% by 2030. That means ambitious and necessary actions to shift away from the use of fossil fuels in favour of equipment that uses clean and renewable energy.

For new buildings, it is more straightforward to design and construct them to produce nearly zero carbon emissions. That’s why we’ve focused our efforts to date on ambitious requirements for new buildings:

• Implemented regular updates to our building code to require highly efficient new homes
  • Energy requirements and resources for homes | City of Vancouver
  • Zero Emissions Buildings | City of Vancouver
• All new City-owned and managed buildings are now being built to the Passive House standard or equivalent and use zero-emissions fuel sources.
• Providing heat pump training for contractors, and developing a more streamlined permit process for heat pumps Heat pumps | City of Vancouver

Now, we’re turning our attention to making changes so that existing buildings, including commercial buildings and detached houses, are zero emissions by 2050.

Detached homes

A typical detached (single family) home in Vancouver emits about 6.3 tonnes CO2 every year. That's about the same as a typical car in B.C.

Conversely, a home using only electricity produces only 0.2 tonnes CO2. That means switching homes to use electricity, especially for space and hot water heating, is so important.

In the City of Vancouver, we have nearly 79,000 detached homes. Collectively, these homes represent about 497,000 tonnes of CO2 emissions per year! That's the equivalent of about 76,000 cars driving for one year.

Detached houses create about 28% of Vancouver's carbon pollution. That's why City staff are developing regulations for detached homes to move toward more energy-efficient equipment for space and water heating and cooling.

We are seeking your feedback on the proposals below, which are the first step we can take to start reducing emissions from existing detached houses.

Proposed update 1: time of hot water replacement

• Require electric hot water replacement equipment in all detached houses when a fossil fuel hot water system reaches its natural end-of-life. Examples of electric systems include electric hot water tanks or heat pump water heaters.
• Renewable gas option: homeowners can alternatively choose to install a new high-efficiency gas hot water system, and opt-in to use 100% renewable gas for the lifetime of that equipment.

Emissions breakdown for typical home (23% water heating, 65% space heating)

Proposed update 2: time of space heating replacement (large homes only)

• Require replacement of fossil fuel heating systems with electric systems (like a heat pump) when the current/existing fossil fuel equipment reaches its natural end of life or needs replacement.
• Renewable gas option: homeowners can alternatively choose to install a new high-efficiency gas space heating system, and opt-in to use 100% renewable gas for the lifetime of that equipment.
• As this switch is more expensive, we propose requiring this for larger homes only (the exact size threshold will be refined with your feedback through this engagement process) as they create the most carbon pollution and have the greatest ability to adapt.

Proposed update 3: air conditioner equipment standards

• Require anyone installing air conditioning for an entire house (vs. a portable unit), to install a two-directional heat pump that also provides heat.
• As opposed to a traditional air conditioner unit that only provides one-way cooling, heat pumps have a ‘reversing valve’ that allows it to work in both directions to provide cooling in the summer and heat in the winter.
• This would only apply to whole house, installed air conditioning and not portable air conditioning units.
• The added cost of getting a heat pump that works in both directions is $200-$600 on systems that cost thousands of dollars.

Proposed update 4: extensive home renovations

• Require homes undergoing extensive renovations to include additional energy efficiency improvements to help meet the 50% reduction goal. For larger renovations there will be a requirement to at least partially electrify.
• Renovations with a stated value of over $250,000 will be required to electrify their existing space heating and/or hot water systems (or perform equivalent emissions-reducing upgrades).

There are two categories to consider when switching to renewable energy:

1. ‘Capital cost’ is the one-time, upfront cost to purchase and install the equipment.
2. ‘Operating cost’ is the ongoing monthly costs. This will factor in the equipment’s efficiency, annual maintenance, and the cost of energy being used (electricity, natural gas, or renewable gas).

The costs of switching to renewable energy will vary widely from house to house. Different building types with varying size, location, age, and efficiency will have a dramatic impact on the cost and feasibility of switching to electric systems.

Therefore averages can only be provided. Cost comparisons were generated with the FortisBC Energy Cost Calculator

Hot water

For a family of four with a mid-efficiency hot water tank using natural gas (non-renewable), switching to an electric hot water system will deliver about 1.1 tonnes of annual carbon emissions reduction for an upgrade cost of $1,700 to $2,900.

The table below shows:

• switching from a gas hot water system to an electric system (like an electric tank or heat pump) costs less in capital costs, with currently available rebates.
• operating costs for an electric premium tank are higher, but a heat pump, which is about 300% efficient, costs much less to operate per month.

Comparison of gas and electric hot water options

Although natural gas is currently less expensive than electricity, the overall lifecycle costs, which includes the purchase price, operation costs and maintenance costs over a 25-year period, electrical hot water heating systems are comparable to natural gas hot water heating systems if high efficiency electric options are chosen.

Hot water heat pumps may cost a premium but provide very low monthly operating costs, and currently have rebates of $2,000.

Space heating

For a family of four with a mid-efficiency furnace using natural gas (non-renewable), switching to an electric heat pump may deliver 1 - 9.5 tonnes of annual carbon emissions reductions for an average upgrade cost of $18,000 to $25,000 (minus rebates).

The table below shows there is a larger upfront capital cost to install an electric heat pump, which is reduced with the rebates available.

Although natural gas is currently less expensive than electricity, gas furnaces and boilers can only achieve a maximum of 100% efficiency, a heat pump can achieve efficiencies of 300% and higher.

That improved energy efficiency means heat pumps can balance out the low operating cost of natural gas, and provide summer cooling along with winter heating.

You can compare different upgrade options for your home at FortisBC’s energy calculator Home energy calculator (fortisbc.com)

Renewable gas (RG)

The additional cost of RG relative to traditional natural gas varies depending on the blend you choose. Fortis clients can designate between 5% and 100% of their natural gas supply as a blend with renewable gas.

At time of writing (January 2022), 100% RG costs 35% more than traditional natural gas. This does not necessarily mean your gas bills would be 35% higher, as your bill also includes fixed delivery costs.

Learn more about RG on our FAQ about natural gas

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*Cost comparisons were generated with the FortisBC Energy Cost Calculator, and by CityGreen Solutions (2021)

To support homeowners making these changes, there are a number of supports available.

Get an energy evaluation

Working with an Energy Advisor, you’ll gain a better understanding of your home’s energy use with a custom report and EnerGuide rating that helps you make home improvement decisions that fit your needs.

Schedule a visit with an Energy Advisor

Talk to a CleanBC Energy Coach

The CleanBC Energy Coach service is a free, unbiased, expert advisory service for all stages of your energy-saving home improvement project. It explains draft-proofing, insulation, ventilation, heating and cooling systems, water-heating systems, windows and doors, and appliances and lighting.

• Phone: 1-844-881-9790
• Online: betterhomesbc.ca

Hire the right contractor

Hiring the right contractor will help you turn your energy assessment into energy upgrades and savings.

• Find helpful information and tips on hiring the right contractor
• Search the list of CleanBC program registered contractors

Access heat pump rebates

Visit BetterHomesBC to find rebates for a heat pump under the renovating a home section. Be sure to say you live in Vancouver to access a $6,000 CleanBC rebate when you convert from oil, natural gas, or propane to an all-electric heat pump, plus a $6,000 municipal top up from the City of Vancouver when converting from fossil fuel. Access up to an additional $5,000 in federal grants from Canada Greener Homes when you install an eligible system: https://www.canada.ca/greener-homes-grant

In summer 2021, we engaged the public about their homes and about the barriers and opportunities of doing energy efficiency renovations.

Through a series of phone interviews, online workshops and focus groups, the key feedback we heard:

• Top climate-related motivations: improving indoor air quality, protection from wildfire smoke, cooling in hot summers, and reducing emissions
• Major barriers to renovate: the costs to renovate (renovations are a big-ticket life cost), challenges adding electrical loads, and finding trusted and reliable contractors
• Navigating the renovation process: it can be overwhelming. How to find consistent guidance to make informed decisions?
• City processes and permit wait times: getting a permit and navigating city requirements can be complex.
• Impact on homes and renters: will new policies lead to renovictions or home demolitions? At what point does it make more sense to redevelop a home?
• Building inspections: will inspector home visits lead to additional costs, or impact on illegal suites?
• Language and cultural barriers: challenge for a wide diversity of demographics to access information and programs
• Renters: they are reluctant to bring up the idea of undertaking retrofits with their landlord as rental is precarious and they didn’t want to risk losing their housing

This valuable feedback helped us shift the plan’s direction and develop solutions to address concerns. You can learn about our proposed solutions in the comment form.

Step 1: Reduce your energy use

Heating your home consumes about half of your total household energy. You can save big, while reducing your footprint by:

1. Lowering your thermostat
2. Draft proofing your home
3. Adding insulation and/or replacing your windows
4. Ensuring your heating system is working efficiently

Visit BetterHomes BC to learn about effective ways to lower the energy demands of your house and find out about available cash incentives. Call a home energy coach for free at 1-844-881-9790.

Step 2: Switch to renewable energy

Most homes in Vancouver burn natural gas for a variety of functions such as space heating and hot water for cooking and decorative purposes. This generates considerable carbon pollution.

Switching to electric appliances like heat pumps, or using renewable natural gas, can significantly reduce your home’s carbon footprint.

• What kind of heating equipment is in your home? Visit the FAQ to learn more
• We have the goal of 100% renewable energy use by 2050.
• Learn more about renewable natural gas (RNG)

Electric Heat Pumps

A heat pump is an appliance that moves heat in and out of your home using electricity. A single system can both heat and cool your house year-round and there is a wide range of systems to supplement or fully replace your existing heating or hot water systems.

• Learn more about heat pumps, their benefits, and available rebates
• Watch our video about heat pumps and available incentives
• Watch our webinar to learn more about installing a heat pump

There are four common energy and fuel sources in Vancouver:

Fossil gas

Commonly referred to as “natural gas”, this is a flammable fossil fuel formed millions of years ago, it is primarily comprised of methane. From extraction, combustion and leakage to the atmosphere, fossil gas produces a lot of carbon pollution.

Historically, “Natural gas” was a cleaner energy source to transition off of coal but now we need more urgent action to transition off natural gas. Learn more: http://unece.org/challenge

Renewable gas

Commonly referred to as “renewable natural gas”. It is created when organic matter like manure and compost decompose, creating methane. Capturing methane from sources like landfills, is one source of renewable gas. Renewable gas is low in carbon emissions and provided by FortisBC.

Homeowners can currently upgrade their home heating to 100% renewable gas through FortisBC. The cost for 100% renewable gas is about 25% higher than traditional fossil gas.

Learn more about renewable gas at FortisBC.

How much does Renewable Natural Gas cost (fortisbc.com)

Electricity

People often think of windmills and solar panels when they think of renewable energy, but in BC, electricity from BC Hydro, is generated by harnessing the power of falling water. As a result, 97% of electricity, provided by BC Hydro, is renewable - generated without creating carbon pollution.

Learn more about BCHydro’s renewable hydroelectricity

District Energy

Have you ever noticed the five smoke stacks coming from the building below the Cambie Street Bridge? That building is part of the City-Owned district energy system in False Creek, providing heat to nearby connected buildings.

In the False Creek Neighbourhood Energy Utility (NEU), waste heat is recovered from sewage pipes. This thermal energy is captured and sent back to buildings in the nearby four neighborhoods for space heating and hot water. This recycled energy eliminates more than 60% of the carbon pollution associated with heating buildings. The NEU is the first application of this technology in North America.

Watch this video on the NEU to learn more

Winter heating, summer cooling, filtering air and dehumidifying – an electric air-source heat pump can do it all. Heat pumps are the most energy-efficient and climate-friendly heating and cooling system available today, and home owners in Vancouver can access up to $12,000 in rebates from CleanBC and the City of Vancouver when they install an eligible system.

Space heating is the largest use of energy in our homes and can be a significant contributor to carbon pollution when fossil fuels, such as natural gas, are burned to provide heat. An electric air-source central heat pump is a modern alternative to a natural gas or oil furnace with the following benefits:

• Year-round comfort: Enjoy energy-efficient heating in the winter and cooling in the summer.
• Climate-friendly: Electric heat pumps use 97% renewable energy, a clean energy alternative to natural gas, oil or wood heating that can reduce your space heating carbon footprint by over 90%.
• Maximum efficiency: Heat pumps are the most energy-efficient heating system currently available and are three to four times more efficient than electric furnace or baseboard heating.
• Better indoor air quality: Heat pumps provide air filtration and humidity control that helps rid your home of indoor pollutants, dust, pollen and other allergens.
• Ease of use: Safe, quiet, convenient operation and simple to maintain.

More resources

• FAQs: Learn more about a heat pump in our FAQ section.
• Rebates: Visit https://betterhomesbc.ca/ to find rebates for renovating a home. Be sure to say you live in Vancouver to access a $6,000 CleanBC rebate when you convert from oil, natural gas, or propane to an all-electric heat pump, plus a $6,000 municipal top up from the City of Vancouver when converting from fossil fuel. Access up to an additional $5,000 in federal grants from Canada Greener Homes when you install an eligible system: https://www.canada.ca/greener-homes-grant
• Free Energy coaching: We are also offering virtual home energy check-ups, along with webinars and resources via: https://bringithome4climate.ca/vancouver