Factsheet: Making the case for energy efficiency to your board and funders
Why make the case for energy efficiency in affordable housing?
SUSTAINABLE AFFORDABLE HOUSING
New construction of sustainable affordable housing
Retrofit of sustainable afforable housing
Energy efficiency isn’t just a technical upgrade, it’s a strategic investment in long-term affordability, resident well-being and climate resilience. For affordable housing providers, integrating energy-efficient measures into new builds or retrofit projects can raise questions about upfront costs and planning complexity. But the benefits are clear: lower operating costs, healthier indoor environments and improved comfort for residents.
If you represent a not-for-profit organization, housing co-operative or municipal authority engaged in affordable housing, this factsheet can help you build a compelling case for energy efficiency that resonates with your board and funders. By highlighting the financial, social and environmental returns early in the planning phase, you can strengthen support for including energy efficiency measures in your capital projects and ensure your housing investments deliver lasting value.
Review the information below to learn how to make the case to your board and funders and explore next steps for integrating energy efficiency into your buildings.
Be informed
- Efficient buildings lower operating costs
- Make it clear that a more efficient building will have lower ongoing operating costs for heating fuel and electricity.
- Implementing energy conservation measures (ECM) that reduce electricity and fuel usage will save you money on your energy bills. ECMs such as tuning up old equipment, purchasing higher-quality equipment and lowering equipment usage will help lower maintenance costs.
- Explore GMF's Understanding energy efficiency guide for a comprehensive look into energy conservation measures to boost energy efficiency.
- Explore GMF's Understanding energy efficiency guide for a comprehensive look into energy conservation measures to boost energy efficiency.
- Lower energy consumption also makes your ongoing expenses more predictable, as you will be less affected by energy cost increases and sudden price shocks. This stabilizes your budget and the rent you charge to residents. As prices increase, a more efficient building will be more competitive in the market. Run your business case by inputting several different values for annual fuel escalation costs to evaluate this risk.
- Explore real-world examples:
Case study: Pine Tree Park
The Pine Tree Park retrofit in Cape Breton, NS, demonstrates how deep energy upgrades and solar installations can significantly reduce operating costs. After replacing oil furnaces with high-efficiency heat pumps and installing a 700kW solar array, residents saw their monthly utility bills drop by approximately $200, translating to an annual savings of about $2,500 per household.
Case study: Heartland Housing Foundation
The Heartland Housing Foundation’s new net-zero affordable housing complex in Fort Saskatchewan, AB, showcases how smart design can drastically reduce operating costs. This 83-unit new build uses solar panels, electric HVAC systems, and a high-performance building envelope so that the housing units achieve net-zero energy by generating as much energy as they consume.
Case study: Sundance Housing Co-operative
The Sundance Housing Co-operative in Edmonton, AB, completed Canada’s largest panelized deep energy retrofit to eliminate natural gas use in its 59-unit townhouse complex. By installing prefabricated wall panels, upgrading insulation, replacing windows and doors, and adding electric heat pumps and rooftop solar panels, the co-op reduced energy consumption by up to 84 percent. Thanks to the reduction in externally supplied energy the co-op hopes to save members up to $100,000 cumulatively each year. Residents now enjoy quieter, more comfortable homes while preventing 330 tonnes of greenhouse gas emissions each year.
To explore projects in your region, consult GMF's project database.
- For more specific numbers, have an energy modeler and cost consultant on your design team run an analysis that’s specific to your building, location, and construction/utility costs. If there are other efficient or net-zero buildings in your area, you can talk to their operators to see how their costs have compared to a more conventional building.
- Make it clear that a more efficient building will have lower ongoing operating costs for heating fuel and electricity.
- Efficient buildings cut emissions and risk
- The building and equipment choices you make today can either lock in future risk or build long-term resilience and affordability.
- Buildings that rely on fossil fuels are more likely to face rising costs and uncertainty in the future due to evolving regulations and market pressure. By improving energy efficiency and/or switching to technologies like heat pumps, housing providers can reduce these risks and make their buildings more stable and affordable over time.
- Emitting greenhouse gases is likely to become less politically and publicly acceptable over time as the effects of climate change become more severe. Building efficiently now is cheaper than retrofitting later.
- The building and equipment choices you make today can either lock in future risk or build long-term resilience and affordability.
- Higher building performance unlocks funding opportunities
- Improved energy efficiency and reduced greenhouse gas emissions is a condition of obtaining approval for some funding or loan programs. In some cases, exceeding the minimum requirements makes it more likely that your project will be approved quickly.
- Learn about additional funding sources to support your affordable housing project through GMF's funders list for sustainable affordable housing.
- Improved energy efficiency and reduced greenhouse gas emissions is a condition of obtaining approval for some funding or loan programs. In some cases, exceeding the minimum requirements makes it more likely that your project will be approved quickly.
- Use energy efficiency to engage and empower residents
- By minimizing the energy use under your control as a building operator (e.g. heating, cooling, ventilation, common area lighting) you set a good example for your residents. This can encourage them to minimize the energy use within their control (e.g. lighting, plug-in appliances, hot water).
- If you have a building energy monitoring system (BEMS) you can even install a display in the lobby that encourages efficient behaviours by showing current and historical energy use. If you don’t have a BEMS, consider including it in your design.
- Learn more about how a building energy monitoring system can lower costs and emissions through this GMF factsheet: Get started on energy monitoring.
- By minimizing the energy use under your control as a building operator (e.g. heating, cooling, ventilation, common area lighting) you set a good example for your residents. This can encourage them to minimize the energy use within their control (e.g. lighting, plug-in appliances, hot water).
- Design choices build community trust
- Improving energy efficiency shows you care about your surroundings and may make your project more acceptable to neighbours, reducing public opposition and making project approval from local authorities more likely.
- Energy-efficient new builds and deeply retrofitted homes help communities create dignified, comfortable living spaces that residents feel proud to call their own.
- In addition to the benefits of energy savings, these design choices foster a sense of belonging and pride among residents, as one resident shared as part of GMF’s resident stories article series: “This place is my favourite out of everywhere I’ve lived. It’s safe, it’s beautiful, and it feels like home.” (Rossland Yards: Building stability and a sense of home)
- Improving energy efficiency shows you care about your surroundings and may make your project more acceptable to neighbours, reducing public opposition and making project approval from local authorities more likely.
- Efficient buildings support climate resilience and occupants’ well-being
- More efficient buildings also have features that can improve occupants’ well-being, such as better thermal comfort, indoor air quality and access to natural lighting.
- Efficient buildings tend to be more resilient to extreme weather events and other effects of climate change. For example, a well-insulated building will keep occupants warm in a winter power outage for much longer. A building with good passive solar shading will keep its occupants’ cooler in case of a summer outage.
- More efficient buildings also have features that can improve occupants’ well-being, such as better thermal comfort, indoor air quality and access to natural lighting.
- Local sourcing strengthens regional economies
- Local sourcing helps regional economies by keeping money within the community, supporting local fuel harvesting and processing jobs and reducing dependence on imported conventional fuels, when these resources are used sustainably and are locally available.
Make your case
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