By Natalie Appleton
With nearly $16,000 in rebates and the chance to lower your utility bills + reduce carbon emissions by 85%, many are becoming inspired to consider upgrading to clean energy systems. In this guide—written by someone who was once new to the world of retrofits—find out everything to know about upgrading your home.
Homeowner Natalie Appleton on day 1 of her family's retrofit with HomeZero founder Amandeep Singh.
An introduction
“Mom,” says my son, tugging at my wrist and pointing at my phone, “Mom, what’s the app say today?”
The app my son is referring to is the one that shows exactly how much electricity our new solar panels are producing every second—and how much electricity it’s taking to run our new heat pump and hybrid electric hot water tank.
I have to admit, it is exciting to see how much is going out to the grid. It’s almost as much as fun as opening utility bills that show a credit rather than an amount due.
And I love that our sons are proudly starting to understand how these upgrades are taking care of the earth—for them and their children. It wasn't so long ago, none of us knew anything about green renovations.
Retrofitting our 1940 house with clean energy systems was not on the seemingly endless to-do list one has with a home that’s nearly 100 years old. And yet, in the summer of 2023, we learned about the HomeZero Collective. It’s a Vernon non-profit that was about to start a pilot that would test its neighbourhood clean energy model. Eleven homes would go through the process together and HomeZero would coordinate everything as well as guide low-interest lending and rebates—making the process easier and more affordable for everyone.
Our furnace and hot water tank were both ancient and incredibly inefficient. If we had to upgrade soon anyway, would we really want to go with a gas furnace or could we consider a more efficient option that uses renewable energy? What would it mean if we could later tell our children, who hardly remember summers without wildfires or heatwaves, that we got to take action in a big way with our neighbourhood?
We were fortunate to have our home chosen for the pilot and now we get to help share our experience with others considering joining the next 500-home phase for HomeZero. I’ll share more about HomeZero’s approach, successes and vision for Vernon in a moment—but this guide is for anyone new to the world of retrofits and considering upgrading to systems that are highly energy efficient and save money.
With some incredible government rebates out there right now, it’s a great time to invest in your home! So, what do you need to know?
In this guide, we’ll review:
Yes, I’ll show you what the app showed for me and my son that day—almost exactly three months after we started measuring our impact.
1. Why retrofit your home: The top 5 benefits of switching to clean energy
Since becoming a retrofit family, we’ve met and spoken to several others, each with their own unique reason for retrofitting. Among our HomeZero pilot peers, one homeowner wanted to completely eliminate the use of fossil fuels; another saw how the incentives were too good to pass up, and the investment would save money in the long-run as well as increase the value of his home.
Here are some of the key benefits of upgrading your home with clean energy systems:
1. Improve energy efficiency
Traditional furnaces and hot water tanks take a lot of energy to run. Heat pumps and hybrid electric hot water tanks are at least 50 per cent more efficient—and they run on electricity, rather than gas, which can be generated by your own solar panels.
In the FortisBC article 'The Costly Truth About Your Old Furnace,' using an older gas furnace that loses energy is described like this: "It's like buying a bag of 10 apples and then tossing out four—or paying for 10 and only getting six."
Even mid-efficiency furnaces installed between 1990 and 2010 are only about 78-82% efficient. Better, but still "at least two of your 10 good apples (are) tossed into the compost heap."
High efficiency electric heat pumps, on the other hand, report efficiencies as high as 300-400%--or even higher.
Gas furnaces:
rely on a fossil fuel
produce greenhouse gas emissions
create lost energy, especially for furnaces installed before 2010
2. Save money on utilities
With your own solar panels generating electricity to power your new systems, you’ll pay less to heat and cool your home, and run appliances and lights. The average HomeZero participant going for an entire retrofit package sees their utility bills drop to $40/month (or less!)
Four months in, we see credits on our BC Hydro and Fortis Bills, and our monthly payment for the retrofit loan is less than we paid for monthly utilities. More on the cost numbers below!
3. Enhance comfort
There’s something to be said for the even heating and cooling of your home. Yes, it feels different too. Where air-conditioning and gas furnaces can sometimes feel harsh, heat pumps feel gentle, even natural.
The first night after our heat pump was installed, we came home freezing from my son’s baseball game at Peanut Park. We walked in the door and there was such a warmth and richness coming through the vents. There's some peace of mind about knowing you can keep your kiddos warm (and cool) in a way that's kind to the earth.
We are not big a/c users, but we do get heatwaves in the Okanagan and we worried a little when we saw the heat pump installers carting away our a/c unit. To our great delight, the heat pump was absolutely able to keep up with cooling our home, again with a natural softness that always felt pleasant.
4. Increase the value of your home
More and more homebuyers are interested in energy efficient homes. Investing in these systems increases the value of your property, and the upgrades can make it more attractive to buyers.
I happen to love the BBC show 'Escape to the Country.' Over in the UK, heat pumps are quite common and retrofitted listings are promoted as 'eco homes' that appeal to a growing 'eco conscious' market. Many big purchases depreciate in value, but retrofits are one investment that will continue to pay off—in many critical ways—for years to come.
5. Eliminate fossil fuels
By powering your biggest systems (heating and cooling, and hot water tanks) with renewable energy, and generating the electricity with your own solar panels, you get to be a part of a wider movement to reduce our reliance on fossil fuels—and reduce greenhouse gas emissions.
One of our fellow retrofit families in the East Hill wrote an article called 'Home Free of Fossil Fuels.' You can hear the joy in her voice about being able to achieve her goal of living in a home that only uses clean, earth-friendly, energy.
With deep energy retrofits—transitioning to highly efficient electric systems like heat pumps and hot water tanks—you can make a big impact by switching out just a few systems. Most retrofitted homes will reduce emissions by 85-100%.
Our own home in the first year will see:
· Total emissions saved: 6 tons per year
For context, using this super cool greenhouse gas equivalency calculator, saving 22 tons of carbon annually is equivalent to 5 gasoline-powered vehicles driven for a year
2. What kinds of deep energy retrofits can you do? How do they work and which retrofits are right for you?
A. HOT WATER TANKS
Hybrid Electric Hot Water Tank
With our ancient and gas-fueled hot water tank, we’d kind of got used to the gamble of how long the hot water would last through a shower, and what would happen if anyone anywhere in the house turned on a tap mid-shower.
We knew it was old and didn’t do its job that well most of the time—but we hadn’t realized what an enormous energy suck it was. Hybrid electric hot water tanks draw on heat from the ambient air to heat water. These systems can save up to 50% energy compared to traditional hot water tanks.
In the HomeZero program packages, this is what's used as they provide the best efficiency, function and comfort. The model of hybrid tank we have can save up to $491 per year in operating costs.
Here’s what we saw:
Huge improvement in warm water availability
Ability to control settings to further increase efficiencies (ie when we’re away or have company and need more warm water)
Cool ambient air around the system (it feels like a fan at the top as it whirs to extract warm air nearby)
On-demand Hot Water Tank
We have friends who switched to an on-demand tank at about the same time, and we know someone who switched from an on-demand hot water tank to a hybrid electric hot water tank.
Here’s what we’ve heard:
It can take a few seconds of running the water to get it to the right temperature, which can feel like a (small) waste of water to some
At peak times (ie when your whole family and the family visiting all gets back from the lake and wants to shower at the same time), there might not be quite enough supply
It's such a compact unit, great for small spaces
B. ELECTRIC HEAT PUMPS
When you're ready to invest in upgraded systems that are super efficient (keep all the apples you pay for!), here are two options:
1. Cold climate air source heat pumps (above ground system)
2. Geothermal heat pumps (underground system)
Heat pumps move heat from one place to another. Your refrigerator is an example of a heat pump—as is an air conditioner.
Did you know several schools in Vernon are heated and cooled with geothermal systems? It's true! Read on to find out why.
Geothermal Heat Pumps
We chose a geothermal heat pump because it was the most efficient option and one we never could have coordinated (or afforded) on our own. If you are committed to becoming a zero emissions home, here's what to know:
How do geothermal heat pumps work?
The geothermal system makes use of underground temperatures, which are warmer than air in the winter and cooler than air in the summer.
With the earth as the heat source, a series of pipes underground are connected to the heat pump in your home (it looks a lot like a furnace)—and the loop efficiently exchanges air to heat a home in the winter and cool a home in the summer.
photo source: energy.gov
From left: The first day of drilling at our house, the new electric heat pump all connected, another homeowner Josh Langner changing heat pump filter.
What to know:
· Geothermal heat pumps are more expensive than cold climate air source heat pumps (though for as HomeZero pilot participant, it came with higher incentives to offset the cost and a no-interest loan)
· This involves drilling underground holes for a few days and a messy yard for a few weeks, and within a month it looked just as it had before (maybe better with new grass seed!)
· The heat pump uses your existing ducts just like the furnace
· Electrical upgrades may be needed to accommodate the heat pump
· Combined with installing solar panels, you create the renewable energy to power your heating and cooling (and everything in your home!)
· You can control temperatures with a similar thermostat to what you have for your furnace, and it can be connected to an app for 'smart' anywhere access—but instead of wild swings in temperatures as you might see with a furnace and a/c, the idea is to choose a comfortable temperature schedule for the season and enjoy a steady warmth or coolness
· It will absolutely keep up with even the hottest summer days in the Okanagan and our coolest in the winter
What we love about our geothermal heat pump system:
The gentleness and richness of the natural air in our home
The evenness of the heating and cooling throughout our home
Getting gas bills with a credit instead of a $180 payment!
We're helping, not contributing to, global warming by not using an A/C unit that uses excessive energy and refrigerants that are potent greenhouse gases
No emissions! Instead of emitting carbon, we are now using and creating energy that's kind to the earth and helping to create a sustainable planet for the next generation
If you're interested in learning more about geothermal heat pumps, this Energy.gov page is a great resource.
Cold Climate Air Source Heat Pump
For the ease of installation and the lower cost, most of the participants in the HomeZero pilot phase chose a cold climate air source heat pump. In the next phase that aims to retrofit 500 Vernon homes—the retrofit package will focus solely on this type of highly efficient, easy-to-transition heat pump.
From left: Air source heat pump being installed, pilot homeowners Gladys and Leith Skinner, and Rebecca Langner using the thermostat connected to her air source heat pump.
How do cold climate air source heat pumps work?
Instead of burning fuel, heat pumps absorb heat from air outside your home and then transfer it inside your home. They look and function a lot like air conditioners, but they perform heating and cooling. With proper installation and using a cold-climate air source heat pump, you can effectively keep your home both warm in the winter and cool in the summer.
What to know:
These heat pumps are paired with a backup supplement system on exceptionally cold days. These can be gas-powered or electric.
Installation takes about two days
Existing ducts are used
You can control temperatures for your home using a 'smart' wi-fi connected thermostat that connects to an app
What people love about air source heat pumps:
One pilot participant said it was "whisper quiet" and kept his Foothills home cool on even the hottest summer days
Saving energy and lowering utility bills with a system that's much more efficient (keeping all your apples!)
Reducing emissions. These heat pumps, paired with the electric water tank and solar panels, can reduce your home's emissions by 85%
Not running an a/c unit that can be loud, create higher ambient temperatures and emit greenhouse gases
Even and consistent heating and cooling through the home
C. INSULATION
We live in an old house that was not doing a great job of preventing heat loss. Our EnerGuide assessment indicated topping up insulation in the foundation, attic and main walls could really improve the energy efficiency of our home—further reducing our energy use and utility bills.
Depending on the type of space—an attic or a main wall—different types of insulation may be possible.
Types of insulation
· Spray foam insulation, effective for less accessible spaces with nooks and crannies, more expensive and requires staying out of the home for a few days
· Batts and roll insulation that fits between studs, effective for accessible, even spaces and relatively inexpensive
What we're seeing
We've embarked on a two-phase insulation project. For the areas we've already done, the difference is significant. In the summer, we're seeing the areas stay cool; and now that's late fall, these areas are keeping the warm air in. These are the renos that are less glitzy and fun, but they make all the difference in improving everyday comfort.
D. SOLAR PANELS
Our home before solar panels and as the installation began.
This was probably the most fun part of the retrofit process! It seemed a beautiful thing to be able to put the sun to work. Every time we look up at the roof and see the sun dazzling on the panels, we know we're creating our very own energy to heat our home and water, and power appliances.
It was quite a thing to witness the installation in a span of just two days. The guys were like rock climbers, but on our roof, systemically shifting these panels and themselves to brace them. There was such a positive vibe in the air—realizing what would be accomplished together. I thought what rewarding work this must be, especially for someone who enjoys hands-on work in the outdoors.
Our home during and after solar array installation.
Enough gushing, here are the details of our solar panel installation:
24 solar photovoltaic panels (10 on an outbuilding with great south sun; 14 on our home)
12,552 kWh – total annual solar power generation
All of this is also connected to an app. I mentioned at the beginning of the article that my sons loved checking the app to see how much energy we were making. So far, we’re consistently using only about a third of the electricity we’re generating.
Here's what we saw in a few snapshots:
(mid-July – Sept. 5, 2024) (mid-July – Oct. 19, 2024)
What to know about installing solar panels:
Some homes may need adjustments to electrical panels
To make the most of this investment, your roof should be in good condition, ideally with a roof that's five years old or less
The amount of sun that hits your roof will determine if solar panel installation makes sense (we live in East Hill where some homes have enormous American elms that block the sun and provide terrific natural air conditioning)
As the panels are connected to your system, you'll need to have your home without power for a few hours
3. HOW MUCH DO RETROFITS COST AND HOW CAN YOU MAKE IT MORE AFFORDABLE?
When we're talking with friends and neighbours about our clean energy retrofits, the first question they always ask is: How much does it cost? That question is pretty quickly followed by, when does making the switch pay off?
I always find the 'pay off' question interesting, because I don't know if that's asked when we buy a new vehicle (which can cost much more than retrofits and depreciates in value) or a new boat (we know fun will be had and the value of making family memories).
My short answer is this: Our monthly retrofit loan payment is only $13 more than what we were paying for natural gas and electricity most months before, except now we're generating and using renewable energy that's kind to the earth and we're increasing the value of our home.
My long answer is this: Retrofit costs will vary depending on a whole bunch of factors—the type of heat pump you choose, how many solar panels can fit on your roof, and if you're able to get an even more affordable package (plus all the coordination!) as a HomeZero participant. That said, let's just take a look at some examples:
A. Doing retrofits with HomeZero
HomeZero Collective's model of doing retrofits as a group means it can buy more equipment in bulk, reducing the price of equipment; and move from one nearby home to another, creating efficiencies that reduce the cost of installation. Plus, HomeZero offers additional subsidies. So, doing it with HomeZero will cost less than going it alone.
· Current bill using natural gas for space and water heating, plus electricity: $325/month
· HomeZero subsidy ($5,000 for first 100 sign-ups) + $16,000 in government rebates: $21,000
· Low-interest loans from a lending partner, details coming soon for current phase
· Switching to clean energy systems (electric heat pump & hot water tank, solar panels, EV charger) means utility drops to $40/month
= $285 in savings used to pay off your loan—and for many (like us) utility savings are similar to the loan payment
B. Doing retrofits on your own
Cost of retrofitting your home with solar panels, cold climate air source heat pump, hot water tank $35,000-60,000 (a wide range among averages as of fall 2024)
Government rebates: $16,000-20,000
Federal and provincial rebate amounts can change year to year, but right now (fall 2024), there are some significant government incentives totaling $16,000 (and income-qualified homeowners are eligible for up to $6,500 for the heat pump and hot water tank):
CleanBC rebates:
Heat pumps: Up to $2,000
Electric hot water tanks: Up to $1,000
Insulation: Up to $5,500
= up to $8,500 in rebates
Learn more about CleanBC retrofit rebates
FortisBC rebates
$10,000 in dual fuel (electric + back-up gas system) heat pumps
Learn more about this FortisBC rebate
After $16,000 in rebates, your total could be $19,000-$44,000.
Ways some people are financing retrofits:
· Low-interest loan (as HomeZero participant)
· Home equity line of credit
· Reverse mortgage
Other costs, values & questions to consider:
· What's the cost to the environment and future generations if we don't act?
· What's the value of peace of mind, knowing you're being as efficient with energy as possible, reducing emissions and keeping your family warm and cool in an earth-friendly way?
· What's the value of greater comfort, spending time in your home at comfortable temperatures without heat loss?
· If you're considering participating in the HomeZero program, another question is, what's the value of having all the coordinating taken care of? (For a busy young family like ours, this was huge! We just never would have had the time to manage this project, never mind so effectively and with such reputable installation and evaluation contractors).
Another East Hill HomeZero pilot family -- the Langners -- outside their recently retrofitted home in Vernon, BC.
4. WHAT RESULTS CAN YOU EXPECT?
I've shared some results throughout this article, but if you're just starting to read here, this is a summary of our results:
Total emissions reduced: 6 tons per year
Total annual solar power generation: 12,552 kWh
Total hot water tank efficiency improvement: 50%
Total saved per year in hot water heating: $491 (approx. and estimated)
Overall, our pre-retrofit evaluation showed our home's energy performance was 201 gigajoules/year—yes, just about the lowest possible rating for using the most energy.
In addition to these 'deep' retrofits, we're also now about half-way through a two-phase insulation, window and door upgrades project. So, we still have a way to go, but by switching to these clean energy systems, we’ve reached our projected potential and we’re even more efficient than a typical new house. We’re nearly a net zero house!
5. HOMEZERO: THE PILOT AND PLANS TO SCALE UP TO RETROFIT 500 VERNON HOMES
HomeZero Collective recently announced that after successfully retrofitting 11 pilot homes in Vernon, it’s scaling up to help 500 homeowners switch to clean energy systems across the city in the next three years. Together, that could mean the city would reduce its carbon emissions by 2,000 tons a year!
In the next phase, retrofit packages will include:
Hybrid electric hot water tanks
Cold climate air source heat pumps
Solar panels
Insulation
EV chargers
By going through the retrofits as a group—and with HomeZero taking care of all the coordinating—this unique neighbourhood model makes the retrofit process:
Easier with HomeZero planning every step of delivery
More affordable with additional subsidies, lower equipment/installation costs and a lending partner
Marked with quality assurance as trusted partners perform installations and total project oversight at every stage (from design and pre-retrofit assessments to installation and post-retrofit assessments)
Our experience as a HomeZero pilot participant
I can’t imagine going through the retrofit process on my own. We’re an active family almost always on our way to one activity or another. I would never have had the capacity to coordinate all of this on my own, and this model makes it so much more doable for average families.
At every stage, we received superb communication and the teams that installed our systems were experts that showed professionalism and efficiency. As our heat pump was being installed, the work on the roof with solar panels dovetailed so that the bulk of the project took place over the span of five days.
One week we had an aging furnace and hot water tank that lost a lot of energy and emitted a lot of carbon; the next week we were creating our own electricity from the sun and heating our home and water with the most efficient systems out there. It was absolutely the right thing to do—and the easiest and most economical way to do it.
Instead of feeling defeated by climate change, our kids know we’ve done something big here to help take care of the earth. They’ve become very mindful about the ways many of their choices affect the environment and I think it’s contributed to that feeling of being ‘good stewards.’
Last, we think it’s so exciting that this Vernon project will help inspire homeowners and communities across Canada. What an impact!
6. THE CITY OF VERNON'S VISION FOR CLIMATE ACTION
The City of Vernon adopted the Climate Action Plan (CAP) in April 2021. The CAP is everyone’s guide to strengthening and enhancing our community to be more walkable and bikeable, to build low-carbon infrastructure that will last, to prepare community members to respond successfully to climate emergencies, and to value and work with natural systems.
The CAP presents the three main sources of GHG emissions in Vernon: transportation, buildings, and organic waste. Heating and cooling buildings contribute 30% of annual GHG emissions in Vernon and therefore it’s critical that building owners look for opportunities to enhance building efficiencies and performance.
The plan sets a target for the entire community to work together to reduce GHG emissions by 100% by 2050 (based on 2017 baseline emissions).
Over the years, as the plan is implemented, we will co-create a future where residents experience the benefit of a connected, healthy, and economically prosperous city, all while taking action on climate change and adapting to climate impacts.
For more information on the Vernon’s Climate Action Plan visit: Climate Action | City of Vernon.
Writing this guide to retrofits was funded through a City of Vernon Sustainability Grant
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