Switching for the environment

Stratford, Charlottetown offering energy efficiency loans to residents

STRATFORD, P.E.I. — Stratford has officially joined Charlottetown and Wolfville, N.S., to enter into an agreement that offers residents interest-free loans to make their homes more energy efficient and reduce community greenhouse gas emissions.

“If you have a home that’s not energy efficient, if you’re spending a significant amount (of) income to maintain energy costs, this concept is you get an interest-free loan. You introduce this equipment to your home to make it more energy efficient, and you’re saving every month. That goes back to pay for the product, but you’re not out of pocket at the end of the month, if that makes sense,” said Coun. Darren MacDougall, chair of the Town of Stratford’s sustainability committee, at the July 14 town council meeting.

Stratford and Charlottetown are planning to jointly host a virtual information session about the Switch program

on July 26, 6:30 p.m.

The Federation of Canadian Municipalities (FCM) is providing $14.1 million for the PACE (Property Assessed Clean Energy) program. The $14.1 million breaks down into $10 million in loans and $4.1 million in grants, said an FCM press release. The PACE Atlantic Community Interest Corporation in Nova Scotia – described by the FCM as a private corporation with a public benefit mandate – has been created to administer the program. So far, Stratford, Charlottetown and Wolfville are the only three Maritime municipalities participating.

The program offers a loan of 15 per cent of a home’s assessed value or $40,000, whichever is less, to finance efficiency and renewable energy products. As well, borrowers have up to 15 years to repay the loan interest free. Residents using the program are required to pay a five-percent administration fee. The town is responsible for collecting loan payments from residents and, in turn, uses the payments to repay FCM. A lien is placed on a resident’s property until the loan is paid off. MacDougall said residents can use the loan program as well as other provincial grant programs to improve their home’s energy efficiency.

Some of the products than can be purchased and installed on a resident’s home include solar panels, heat pumps, insulation and air sealing, exterior windows and doors and smart thermostats.

Stratford council voted to approve the Switch program as well as to enter into legal agreements with the FCM to fund the program for the lesser amount of $1.94 million (with interest) or 56.8 per cent of eligible costs and net costs incurred for qualifying homes’ energy upgrades. PACE Atlantic Community Interest Corporation is to administer the program. Charlottetown city council approved its Switch program two days earlier on July 12.

Coun. Gail MacDonald voted against the motion to enter into agreements with the FCM and PACE Atlantic CIC. She raised concerns about the program, including extra work on town staff and adding to the town’s debt. She also wondered why other municipalities beyond the three in the Maritimes weren’t getting involved. Other councillors and town staff said debt room needed to be created to accommodate the $1.94 million in funding from the FCM, but in terms of it being additional debt, that would be repaid over time as residents accessing the program repaid their loans.

Even so, MacDonald didn’t seem satisfied with the town’s participation in the program. She said she was glad the town has an opt-out clause in case things don’t work out.

“If you have a home that’s not energy efficient, if you’re spending a significant amount (of) income to maintain energy costs, this concept is you get an interest-free loan.”

Coun. Darren MacDougall