target single family homes that are 20 years or older. Marketing to semi-detached, townhouses and multi-unit homeowners would be introduced after the second year of operation, again primarily targeting homes 20 years or older.

The rationale for this “go-to-market” strategy includes:

• optimizing achieving the CEP goals for energy and emissions reduction in this sector;

• 55% of Windsor’s residential sector are single-detached homes, approximately 30,770 homes;

• single-detached homes over 20 years old account for 78% of the sector’s energy costs, emissions and use;

• this market segment is half as energy efficient than global best practice and below the provincial average, so it has the greatest potential for cost-effective and environmentally impactful energy efficiency retrofits;

• each year, an additional portion of the current housing stock reaches an age (i.e., 20 years) where reinvestments are required to maintain or improve serviceability. Such renewal work provides an excellent opportunity to cost-effectively build in energy efficiency improvement in the work undertaken; and

• the retrofit of multi-unit buildings is more complex and better tackled once the Entity’s business systems are functioning smoothly.

However, even though a potential customer may not fall under the scheduled market penetration, the Entity would not be expected to refuse to accept an order, if it can be effectively fulfilled.

3.2.2 Homeowner Eligibility

Participation will be voluntary, and owner initiated. All registered owners of the property would have to consent to participate. Prudent homeowner eligibility requirements would be established by the Program Administrator during final program design to balance risk with accessibility. Provision of utility data to support measurement, evaluation and ongoing verification would also be required (see Section 3.3.2).

3.2.2.1 CMHC-Insured Mortgages

Currently, mortgages insured by the Canadian Mortgage and Housing Corporation (CMHC) would not be eligible for LIC financing, regardless of the strength of the business case to reduce the operating costs of the home. In the 2019 Final Report of the Expert Panel on Sustainable Finance it is recommended that in the case of municipality-sponsored PACE programs, CMHC could provide guarantees for Local Improvement Charge (LIC) financing programming.4 It should be noted the number of homeowners with CMHC mortgage insurance in Windsor is low and only represents 7% of mortgages in Ontario. More detail on this matter is found in Appendix G – Municipal LIC Risk Assessment.

3.2.3 Project Eligibility

3.2.3.1 Standardized Deep Retrofits

Standardized retrofit packages will be designed by the Entity to deliver annual energy savings of 30 to 50%, and 20% water saving to homeowners. Modelling for the R-DEER Business Case demonstrated these savings will be achieved with existing technologies. The package cost would be dependent on home size, age and type. Using pricing based on a fixed index per

4 Source: https://www.canada.ca/en/environment-climate-change/services/climate-change/expert-panel-sustainable-finance.html