Carbon Tax Presents a Strong Case for Accelerating Energy Retrofits

Updated: Sep 22

For Commercial and Multi-Unit Residential building owners and operators, retrofits are a continuous effort. Many retrofits are driven by a need to replace aging equipment or building envelope improvement. Some retrofits are done to improve the building’s energy efficiency, improve cash flow, improve tenant comfort and lower maintenance cost.

Building chimney
New carbon tax will result in increased energy-related costs.

Carbon Tax Case

Today, there is a strong case for retrofitting for decarbonization. Higher carbon tax of $50/ton in 2022 and $170/ton by 2030, poses additional strain on businesses, commercial real estate owners, and investors who are looking forward to a quick economic recovery after a long pandemic-induced slowdown.

To put the impact of the carbon tax increase into perspective, if we consider an average office building of 100,000 sqft and use the NRCAN median energy intensity of 1GJ/m2 (25.81 ekWh/sq.ft) (NRCAN Source: Energy Star Portfolio Manager, 2016)2, where space heating, the main source of CO2 emissions due to the use of Natural gas represents 46% of total energy use (NRCan 2011 Comprehensive Energy Use Database – CI Sector), then the carbon tax due in 2020 is $10,781 and in 2030 will be $36,658. That’s about $213,480 that a building owner of a commercial space that size will need to pay in carbon tax over the next 9 years. What comes after 2030 is still unknown.


While there are numerous options available in the building energy management and building retrofit market that can reduce carbon footprint and reduce the penalty of carbon tax, every building needs to be evaluated carefully to yield the intended results and the highest return on investment.

Working with qualified energy management consultants and energy managers are key to achieving results.

Qualified Energy Consulting and Energy Service Companies can help ensure actualizing the return on investment by using a system approach and examining all the possible energy efficiency measures backed by sound system engineering based evaluation. In addition, they are updated on the latest incentives programs and government policies and regulations.

Stay tuned for our next newsletter as we unfold the 4 stages of the Customer Journey to Retrofit Success.

We have also included below under resources relevant links to energy efficiency and retrofits planning.


Retrofit construction plans
Professional consulting engineering

How We Can Help

Mann Energy Solutions (“MES”) is a professional consulting engineering company that specializes in energy management, including energy audits, mechanical/electrical engineering and implementation. Our firm has hundreds of installed energy management projects and we have been in business since 1983.


Some of our services include:

  • Free site walk-through by our experienced engineers and technicians to provide an initial site assessment

  • Engineering feasibility studies

  • Incentive study and application

  • Engineering, Procurement and Construction (EPC) for a turnkey project

For more information or a complimentary assessment contact us through the main site, info@mannenergysolutions.com, or call (416) 201 9109 x 158.


Resources:

Save on Energy - Programs and Incentives

Efficiency Canada - Canada's Climate Retrofit Mission

Sources:

  1. NRCAN – Major Energy Retrofit Guidelines for commercial and Institutional Buildings PRINCIPLES

  2. NRCAN – Major Energy Retrofit Guidelines for commercial and Institutional Buildings OFFICE BUILDINGS

  3. Mann Energy Solutions - Energy Audits

  4. Enbridge – Union Gas - Cubic meters of gas to kwh conversion

  5. Emissions Factors – Environment and Climate Change Canada (Table A6.1-1 – Pg. 2)

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