Frequently asked questions
- ‘Capital cost’ is the one-time, upfront cost to purchase and install the equipment.
- ‘Operating cost’ is the ongoing cost. This depends on the equipment’s efficiency, and the cost of energy being used (e.g. electricity or natural gas).
- Electric hot water heaters have lower capital costs than typical gas options.
- Heat pumps have similar capital costs to condensing gas options (often called ‘high-efficiency’), and are eligible for rebates.
- Monthly operating costs (for a family of four) range from a $0 - $9 increase with an electric water heater, to a $15 savings with a heat pump ($0 is with future $170/t carbon tax).
What does "at least 100% efficient equipment" mean?
Electric resistance technologies like baseboard and electric water heaters are 100% efficient: they convert all the energy they use into heat. But heat pump technologies exceed 100% efficiency by capturing and moving ambient heat, without having to produce it. (Source: CleanBC Roadmap to 2030)
In this engagement “higher efficiency” means equipment that is at least 100% efficient, which includes electric water heaters, electric heat pump systems, hybrid gas/electric systems, and high-efficiency gas heat pumps. It does not include typical gas water heaters, condensing or on-demand gas water heaters (often called ‘high-efficiency’), as these are all less than 100% efficient.
What is the cost to install and operate hot water equipment?
There are two types of costs to consider when comparing hot water equipment options:
A cost analysis of the proposed changes indicates the capital and operational costs of higher efficiency equipment are comparable to typical equipment today.
The following table summarizes average capital and operating costs of different hot water heaters for a typical home with a family of four, compared to a conventional gas hot water heater with an approximate capital cost of $2,100 and a monthly operating cost of $25/month (assuming 40 Gallon tank size or equivalent):
| Water heater type | Incremental capital cost (installed) relative to conventional gas tank ($2,100) | Monthly operating cost relative to conventional gas tank ($25/month) |
| Condensing gas tank (would not comply) | +$2,500 costs | $8 to $12* savings |
| Condensing gas tankless on-demand (would not comply) | +$1,500 costs | $13 to $18* savings |
| Standard electric tank | -$400 savings | $0* to $9 costs |
| Well-insulated electric tank | +$400 costs | $12* savings to $5 costs |
| Electric heat pump | +$3,000 costs | $15 to $27* savings |
While not shown, we expect hybrid gas/electric water heaters and gas heat pump water heaters to have capital and operating cost outcomes similar to electric heat pumps.
The table above does not include $2,000 in Provincial and Federal rebates available for heat pump water heaters. Capital costs shown are for total installation costs including permits and contractor installation costs. Operating costs with an asterisk (*) indicate what the cost would be with a future $170/tonne carbon tax applied.
(source: RDH Building Science, 2023)
How will renovation projects be affected by these proposed changes?
The proposed changes for equipment efficiency would come into effect for renovations valued at $75,000 or greater. Home efficiency upgrades are currently required for renovations at both the $20,000 and $75,000 threshold, and include completing an EnerGuide Assessment, upgrading the home’s air tightness, and upgrading attic and slope roof insulation.
The new regulations propose removing the requirements for air tightness and insulation, relaxing the threshold for completing an EnerGuide assessment, and adding in new requirements for hot water equipment efficiency. The below table summarizes these changes:
| EnerGuide Assessment | Upgrade airtightness of home | Upgrade attic and sloped roof insulation | Install electric space and hot water heating | |
| Existing requirements | Required for projects valued at $20,000 and greater | Required for projects valued at $75,000 and greater | Required for projects valued at $75,000 and greater | Required electric space and water heating for projects $250,000 and greater |
| Proposed changes | Relax threshold to apply to projects valued at $75,000 or greater | Remove requirement for renovations of any value | Remove requirement for renovations of any value | Require electric or 100% efficient hot water equipment for projects valued at $75,000 or greater No changes proposed to requirements for space heating equipment |
What qualifies as a "detached home"?
For this engagement, we’re using "detached home" to refer to a typical house or duplex, commonly found throughout much of Vancouver. In building code language it is a "residential building containing no more than two principal dwelling units". This means that homes could range from a single house with a secondary suite, to a duplex with two secondary suites.
A detached home in the context of the proposed hot water regulations does not include multiplexes or multi-unit residential buildings.
Why are detached homes a priority for reducing greenhouse gas emissions?
In Vancouver, nearly 60% of our carbon pollution comes from buildings, and 28% of those emissions come from detached homes. The two largest sources of emissions in our homes are burning natural gas (a fossil fuel) for heating and hot water.
The proposed updates to equipment standards for hot water heaters would reduce Vancouver’s emissions by up to 7,300 tonnes per year, every year once fully implemented (up to 22,000 tonnes per year reduction after three years of implementation, which is equivalent to taking 5,400 cars off the road).
What resources are available to help me improve my home’s energy efficiency?
Whether you’re looking to replace a water heater or improve the efficiency of your home, there are many supports available to help:
The Home Energy Navigator provides support and resources to help homeowners learn what energy efficiency means for their home, and how to navigate simple and challenging equipment upgrades. The program is fully-funded by the City of Vancouver, and each Energy Concierge can also help connect homeowners with available rebates.
CleanBC rebates are available to lessen the cost of replacing equipment. The free service is provided by CleanBC and BC Hydro to offer both financial incentives and support to help homeowners make the switch.
Energy Coach phone service: 1-844-881-9790 (open Monday – Friday, 9am – 5pm)
Income-based support programs
The CleanBC Income Qualified Program offers low-interest financing, free energy saving kits and additional rebates for low-income homeowners
Federal incentives are available from the Greener Homes Grant, which offers up to $5,000 in rebates and $40,000 in zero-interest loans
Find the right contractor with the CleanBC Program Registered Contractors list
Renovation Resources and Tips from Canadian Homebuilders Association