Figure 2: R-DEER Funding Process

3.1.4 Credit Enhancement

Loan Loss Reserves (LLR) have been successful in other jurisdictions to manage mortgage lender and investor concerns regarding homeowner default on the LIC payment. During the announcement of the FCM Community Eco-Efficiency Acceleration program, the potential to support a municipality to establish an LLR for a retrofit program was noted.

3.1.5 Existing Incentives

The R-DEER Business Case did not include public incentives and/or grants (except for a rebate for thermostats) for two primary reasons:

  1. To demonstrate the viability of the market-based business model; and

  2. These programs are unpredictable

It would make sense for the Entity to promote any available government and utility programs to homeowners and, where appropriate, integrate them into the standardized retrofit package to offer one-stop-shopping for homeowners, as well as a more attractive retrofit price and return on investment.

The Business Case calls on the Entity to address the accessibility of the program for harder to serve segments of the residential sector (e.g. seniors on fixed incomes) as part of the final Program Design. This could include using retained earnings to offer further subsidies to low income/fixed income homeowners.

3.2 Program Scope

3.2.1 Property Eligibility

3.2.1.1 Sector

The R-DEER Business Case assumed the program would be developed for residential properties aligned with the first strategy proposed in the CEP (Strategy 1a). A commercial and institutional offering aligned with second CEP strategy (Strategy 1b) could be contemplated in the future. The PWT recognised this possibility and ensured the Entity structure was capable of expansion.

3.2.1.2 Housing Type

The R-DEER Business Case assumed standardized retrofit packages would be offered to single-detached, semi-detached, townhouses and multi-unit properties, Initially, the program will