Thank you so much for having me.
Clean Energy Canada is a think tank based out of Simon Fraser University. We work to accelerate energy transition through research, policy and communications. I lead our work on household electrification, and I'm happy to answer any of your questions today on cost savings, effective policy design and consumer attitudes.
As electrification becomes an increasingly important national priority, we must acknowledge that many key decisions will happen at kitchen tables across the country. According to the IEA, households are already the main investors in energy efficiency worldwide, accounting for 70% of spending in the buildings sector. In Canada, households invested $59 billion in home renovations in 2025. Of course, some of that money would have gone to new kitchen countertops, but a lot of it flows into roofs, windows and new heating systems. We need to make sure that when households are making these spending decisions, the affordable, efficient and clean options are the easy choices.
This year, in response to rising fossil fuel costs, at least 25 countries around the world have accelerated policies to advance electrification. The EU published an electrification action plan, recognizing that electrification is the path to affordability, competitiveness and energy security.
Canadian households should reap the benefits alongside businesses and industries. Making homes more energy-efficient and switching to efficient electric technologies like heat pumps can reduce energy bills every month. Clean Energy Canada published an updated analysis this April that shows savings from electrifying a home, while dependent on the previous heating fuel and varying province by province, can save as much as $285 per month, and that is accounting for upfront as well as operating costs.
Now that oil prices have reached record highs, potential savings have increased dramatically. At the beginning of this year, when we estimated household savings for a single attached home in Nova Scotia, we found that such a household could save $610 in annual heating costs by switching from an oil furnace to a cold climate heat pump. Rerunning that analysis with current furnace oil prices, we find that the same household would save as much as $1,639 per year, an additional $1,000.
Retrofits and electrification also unlock benefits beyond savings. Fixing a drafty home increases everyday comfort. Also, in many parts of Canada, having an AC was not historically necessary, but hot summers have changed that. In B.C., which faced a deadly heat dome in 2021, fewer than half the households have access to cooling. A heat pump can provide that cooling and reduce health risks from overheating.
These are benefits that are not just hypothetical; they already are being experienced by Canadian households that have been able to invest in energy efficiency, including the 8% that currently have a heat pump. This winter, when we surveyed existing heat pump owners across Canada, 91% of them said they would recommend a heat pump to their friend or neighbour. The benefits they mentioned the most were lower bills, improved comfort and improved cooling.
Our research also shows that on top of savings for households, electrified technologies can be used by utilities to store energy or to spread demand away from peaks, offering cost-effective solutions to meet growing electricity demands and lower system costs.
However, as we all know, the biggest barrier for households to making energy efficiency upgrades is still upfront costs. When a furnace or a water heater breaks down, households or building owners often do not have the spare cash to opt for a more energy-efficient option if that option comes at a higher upfront cost, even if it will save money down the road.
The recently announced heat pump rebate is a great step in the right direction. In particular, the promise to process applications within 24 hours and to ensure that households receive that support within their decision window after a furnace breaks is a key improvement.
The government has committed to retrofitting one million homes, and this program will help us get close to installing one million new heat pumps, but the reality is that an estimated 11 million homes will need to be retrofitted across Canada. That includes electrification, but it also includes improving things like insulation and airtightness. To achieve that scale, it is crucial that we complement the rebate program with measures that offer longer-term certainty for the sector, cover a broader set of upgrades, unlock private sector dollars and set households up to make beneficial investments in their own homes.
Alongside other organizations, we recommend that in addition to continued funding of low-income and market development programs, the government adopt a green bank model in which the federal government works with financial institutions, utilities, fintechs and municipalities to provide financing solutions that meet households close to home and when they are making decisions about their next renovation or new heating system or installing central cooling for the first time.
I hope this study will open the discussion on what comes next.