Friday, 5 February 2016

Provincial government introduces incentive plan to replace old furnaces

New water heaters and improving home's insulation also to be part of Queen's Park plan

Complete details of rebate program to be announced later

By Mark Schadenberg
Clare-Hecla and other old furnace brand names can still be seen by full-time Realtors.
In fact, here I include a picture of a Preston furnace – about 40 years old and its been serviced a few times to continue churning out heat. This photo was taken in Woodstock within the past two months. I won’t say which house it was in as there are still dozens of antiquated heating systems in this city and naturally hundreds of these natural gas dinosaurs in existence around the province.
This may soon change however.


A $100 million rebate program has been announced by Kathleen Wynne’s provincial government. You could say this announcement will stimulate the economy, especially among the HVAC trades, but will also great increase the heating efficiencies of homes from James Bay to Lake St Clair and west to Kenora.
As a Realtor, I feel these incentives are obviously a great idea, so are many programs available in the past that urged Ontario home owners to update their windows as air leakage through windows could create more heating costs than an ancient furnace. However, also as a Realtor I frowned upon the suggestion that all homes should be required to do an energy audit before listing.
Not only are water heaters also captured in this new incentive / rebate announcement, but also is insulation.
In a story circulated by Canadian Press, Environment and Climate Change Minister Glen Murray said: "This investment will help homeowners upgrade their homes and save money, while keeping Ontario on the path toward a low carbon future.
“These are kick-start programs that will get money out the door to families, support retailers, build investment in our communities and help people manage the change to a more affordable, low carbon future," said Murray.
In the Toronto Star, Murray added: “Improving energy efficiency in the home is one of the most important actions we can take in the fight against climate change,” he said in a statement, noting the fund is expected to reduce greenhouse gases by 1.6 million tonnes.
However, and it’s an important sidebar to this story, the provincial Liberals announced there would be a $100 million incentive system unveiled this spring, but added very little to the parameters and framework on how home owners could put their hands into the Queen’s Park piggy bank. The exact timetable was also not put on the table.


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More from Canadian Press story:
Sixty-two per cent of Ontario homes use natural gas for heating, compared with 28 per cent for electricity and just three per cent for oil.
Union Gas and Enbridge Gas already offer rebates for energy audits, heating system replacement, Energy-Star windows, air sealing and insulation of $500 to $2,000, depending on the amount of natural gas savings.
There are over four million homes in Ontario, and offering financial incentives to only 37,000 seems like a very small plan, added NDP energy critic Peter Tabuns.

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 Union Gas program from their website



The key to current rebate programs available through Union Gas or the ‘fly in the ointment’ is that a home owner must conduct an energy audit before and after the renovation has been made.
I must say, however, as a full-time Realtor a house with a newer high efficiency furnace is so much easier to sell, especially considering many buyers have difficulty saving the 5% down payment, and then would have to increase their mortgage amount through immediate improvements, thus making house hunting an even more difficult chore. In other words, you buy a 40-year-old home with an original furnace and windows for $200,000 and you begin your home ownership with a $200,000 mortgage after the “Purchase Plus Improvements” have taken place.
The next announcement should be to create a system that will entice owners of homes with baseboard electric heat on possible funding for their upgrades and improvements. There are, for example, home built in the early 70’s which continue to have electric radiant heat from the ceiling. 
As a home owner myself of a house built in 2013 – I receive no personal benefits from any provincial government stimulus such as this one soon to be on the books, but as a Realtor it’s good news from Queens Park.


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Mark Schadenberg, Sales Representative
Senior Real Estate Specialist (SRES designation)
Royal LePage Triland Realty Brokerage

757 Dundas St, Woodstock
(519) 537-1553, cell or text
Email: mschadenberg@rogers.com
Twitter: markroyallepage
Facebook: Mark Schadenberg, Royal LePage Triland

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