For strata councils and property managers in BC, a new priority has emerged for councils, it’s sustainability. The best part, this is not just about environmental responsibility; it’s a strategic move that offers huge financial and social returns for all parties, especially owners.
This guide is designed for strata councils, unit owners, and property managers to learn how sustainability initiatives can lead to long-term cost savings, increase property values, and happier owners. Let’s begin.
How Can Stratas Be More Sustainable?
The push for sustainability in residential buildings is more than a passing trend; it is a fundamental shift in how we build, manage, and live in our communities.
In British Columbia, this shift is supported by a growing framework of regulations aimed at reducing greenhouse gas (GHG) emissions.
For instance, the City of Vancouver now requires many residential buildings to report their energy use and GHG emissions annually, with penalties for non-compliance. It is expected that similar requirements will expand to other municipalities.
For strata corporations, embracing sustainability offers a triple-bottom-line benefit and here’s how.
Economic Benefits
Energy efficiency directly translates to lower utility bills, which can ease the financial burden on owners and reduce pressure on the strata’s operating budget and reserve fund. We’ll go through an example of this later on.
Social Benefits
Sustainable buildings are often more comfortable, quieter, and healthier places to live. These improvements enhance resident satisfaction and can make the property more attractive to potential buyers and renters. The role of nature, green spaces, and a blending of environments is proven to offer health benefits.
Environmental Benefits
By reducing energy consumption, stratas play a crucial role in helping BC meet its climate targets. It is a collective effort where every building’s contribution matters.
Adopting sustainable practices is no longer a niche interest but a core component of responsible and effective strata management. It positions a building as forward-thinking and resilient in the face of a changing climate and regulatory landscape.
Recommended Resource: Capital Planning for Long-Term Building Health
The Business Case for Energy Retrofits
Investing in energy retrofits is one of the most effective ways for a strata corporation to achieve its sustainability goals. While the upfront cost can seem daunting, the long-term returns are compelling and extend far beyond simple utility savings. A strong business case helps strata councils justify these projects to owners by highlighting tangible, multi-faceted benefits.
Financial Returns
The most direct benefit is a significant reduction in operational costs. Comprehensive energy retrofits can lead to 15-40% savings on energy costs. These savings directly impact condo and strata fees, making the property more affordable for current owners and more attractive to prospective buyers. Over time, these savings compound, freeing up funds that can be allocated to other capital projects or used to bolster the Contingency Reserve Fund (CRF).
Increased Property Value
A green, energy-efficient building is a valuable asset. Properties with proven low energy costs and modern systems often command higher resale values.
Market analysis suggests that energy-efficient upgrades can increase a property’s value by 3-5%. This asset appreciation is a powerful motivator for owners, as it represents a direct return on their investment when they decide to sell.
Regulatory Compliance and Risk Mitigation
Proactive retrofitting helps stratas stay ahead of tightening regulations. As governments at all levels introduce more stringent building performance standards, buildings that fail to comply may face fines, mandatory upgrade orders, or higher carbon taxes.
By investing in efficiency now, stratas can avoid the future costs and pressures of forced compliance.
Making a Choice
Presenting a business case that quantifies these triple-bottom-line returns is essential for getting owner buy-in. It reframes the conversation from a short-term cost to a long-term investment in the building’s financial health, comfort, and future viability.
Assessing Your Building’s Energy Performance
Before embarking on any retrofit project, it is crucial to understand how your building is currently using and wasting energy. A thorough energy assessment provides the data needed to make informed decisions, prioritize upgrades, and build a convincing case for investment.
Benchmarking with Energy Use Intensity (EUI)
The first step is to benchmark your building’s energy performance. An easy way to do this is by calculating its Energy Use Intensity (EUI), which measures the total energy consumed in a year divided by the building’s total floor area. This metric allows you to compare your building’s performance against similar properties. A high EUI suggests significant room for improvement, while a low EUI indicates your building is already relatively efficient.
Once you have a baseline, an energy audit can pinpoint specific areas of waste. There are different levels of audits, each suited to a different stage of the decision-making process:
Walk-Through Audit
This is a basic, low-cost assessment where an energy professional tours the building to identify obvious opportunities for improvement, such as outdated lighting or poorly sealed windows. It is a good starting point for stratas just beginning their sustainability journey.
ASHRAE Level 2 Energy Audit
The ASHRAE Energy Audit is the most common and recommended type for most strata corporations. It involves a more detailed analysis of the building’s energy systems, including a review of utility bills and operating data. The auditor will provide a comprehensive report with recommended retrofits, estimated costs, potential savings, and payback periods. This audit provides the robust data needed to secure owner approval and apply for rebates.
Investment-Grade Audit
This highly detailed audit is typically performed when a strata is considering a complex, multi-million dollar retrofit or an energy performance contract. It provides a more precise financial model for the proposed project.
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High-Impact Retrofit Priorities
Once your energy audit is complete, you will have a list of potential upgrades. The next step is to prioritize them based on cost, savings, payback period, and other benefits like improved comfort. Here are some of the most impactful retrofits for strata buildings:
Building Envelope Improvements
The building envelope is the physical barrier between the conditioned interior and the unconditioned exterior. A leaky envelope is a primary source of energy loss.
Upgrading to double- or triple-paned windows can significantly reduce heat loss, with an ROI typically realized over 10-25 years and immediate benefits in comfort and noise reduction.
Air sealing and insulation are also highly cost-effective measures that eliminate drafts and create more stable indoor temperatures.
Mechanical System Upgrades
Heating and hot water are major energy consumers in residential buildings. Replacing an old, inefficient boiler with a modern, high-efficiency model or an air source heat pump can cut heating costs dramatically. Installing smart thermostats and building automation systems allows for better management of heating and cooling, with a payback period for controls that can be as short as 2-5 years.
Lighting and Electrical System Enhancements
Lighting is often the “low-hanging fruit” of energy retrofits. Replacing old fluorescent or incandescent bulbs in common areas with LEDs is a simple but powerful upgrade. LEDs use up to 80% less energy and last much longer, reducing both electricity and maintenance costs. The payback period for an LED retrofit is often just 1-3 years. Planning for electric vehicle (EV) charging is another critical sustainability initiative that makes the building more attractive to residents.
By prioritizing these high-impact areas, a strata council can create a phased retrofit plan that delivers tangible results quickly while laying the groundwork for deeper energy savings in the future.
Other Sustainable Strata Practices & Ideas
Strata communities can implement numerous additional practices to further their commitment to sustainability. By adopting a multi-faceted approach, these properties can minimize their environmental footprint while promoting a greener, more cost-effective lifestyle for all residents.
Hire Sustainable Landscapers
One of the most visible ways to demonstrate a commitment to sustainability is through landscaping. Traditional landscaping often relies on gas-powered mowers, leaf blowers, and trimmers, which are noisy and produce significant carbon emissions. A sustainable approach involves hiring landscaping contractors who utilize electric-powered tools and appliances.
This transition immediately reduces noise pollution, creating a more peaceful environment for residents, and cuts down on harmful greenhouse gas emissions.
Upgrade to Smart Lighting Systems
Common areas like hallways, parking garages, and recreation rooms are often sources of significant energy waste. Upgrading to automatic light switches or motion sensor lighting ensures that energy is only consumed when these spaces are occupied.
Modern LED lighting combined with motion sensors can reduce lighting-related energy consumption in common areas by up to 80%. This not only delivers substantial cost savings on utility bills over time but also extends the lifespan of light bulbs, reducing maintenance costs and waste.
Optimize HVAC Systems in Common Areas
HVAC systems are among the largest energy consumers in any building. A simple yet highly effective strategy is to optimize their use in common areas.
By installing programmable or smart thermostats, the strata can reduce heating or cooling during periods of low usage, such as late at night or during midday on weekdays. Regular maintenance, including cleaning filters and checking for leaks, also ensures the system runs at peak efficiency, preventing energy waste and avoiding costly breakdowns.
Install Shared Community Gardens
Transforming underutilized common property into shared garden spaces is a powerful way to enhance sustainability and build community. These gardens allow residents to grow their own vegetables, herbs, and flowers, reducing “food miles” and fostering a connection to their food source.
Community gardening also promotes social interaction, encourages physical activity, and beautifies the property, increasing its overall appeal and value. This can be a big social plus, and a great way to generate small revenue from renting garden plots to residents.
Take Care of Seasonal Maintenance
Maintaining current strata and building infrastructure is imperative to a long-term and sustainable building. When the proper structures, systems, and common areas are maintained, less upkeep and replacement costs required. Here are a few guides to seasonal maintenance:
Embedding Sustainable Practices Long-Term
A successful energy retrofit is a major achievement, but it should not be the end of your strata’s sustainability journey. To ensure long-term success, sustainability needs to become part of the building’s culture and operational DNA.
Securing Owner Approval
One of the biggest hurdles for any major strata project is securing the necessary owner approval. Energy retrofits are no exception. A successful proposal requires clear communication, strategic planning, and a focus on the direct benefits to owners.
Structure Projects to Minimize Hurdles
Major projects often require a 3/4 vote special resolution, which can be difficult to achieve. Where possible, consider phasing the project into smaller components that may only require a majority vote or can be funded through the operating budget. For example, an LED lighting upgrade could be a standalone project with a quick payback, building momentum and trust for larger projects.
Translate Technical Jargon into Personal Benefits
Most owners are not engineers or energy experts. Focus on what the retrofit means for them personally: lower strata fees, increased comfort from eliminating drafts, higher property values, and improved building aesthetics.
Address Renter-Owner Dynamics
In buildings with a mix of owners and renters, some investors may be hesitant to approve upgrades. Emphasize how a modernized, energy-efficient building is more attractive to high-quality tenants, can command higher rental income, and is less likely to have issues that could disrupt tenancy.
Communicate Early and Often
Start the conversation early through newsletters, town hall meetings, and informal discussions. Provide clear, easy-to-understand information about the energy audit findings, proposed solutions, and the business case. Transparency is key to building trust.
Financing and Incentives
The cost of a major energy retrofit can be a significant barrier. However, a combination of government incentives and flexible financing options can make these projects much more attainable.
Leverage Rebates and Government Programs
British Columbia offers generous incentive programs for energy efficiency. Organizations like BC Hydro and FortisBC provide substantial rebates for everything from insulation and heat pumps to commercial-grade boilers. These programs can often cover 25-50% of the total project cost, dramatically improving the business case.
Here are a few:
- CleanBC Multi-Unit Residential Building Retrofit Program provides up to $500,000 in rebates.
- Better Homes Energy Savings Program Condo and Apartment Rebate delivers rebates up to $5,000 for high-performance electric heat pumps in individual suites within buildings six storeys and under.
- CleanBC programs target both building-wide retrofits and individual suites, offering income-tested enhancements and supporting upgrades like heat pumps, LED lighting, and improved windows and ventilation.
Compare Financing Options
There are several ways to fund the remaining cost. A special levy is common but can be a financial burden. Using the CRF may be an option if the retrofit aligns with the depreciation report.
A strata corporation can also get a loan. Learn more about that in this strata loans guide.
Present a Holistic ROI
When presenting the financial case to owners, go beyond a simple payback calculation. A holistic Return on Investment (ROI) analysis should include direct utility savings, the projected increase in property value, avoided future maintenance costs, and the value of any rebates received. This comprehensive picture provides a much more compelling argument for the investment.
Recommended Resource: Reading and Understanding Strata Financial Statements
Embedding Sustainability Long-Term
A successful energy retrofit is a major achievement, but it should not be the end of your strata’s sustainability journey. To ensure long-term success, sustainability needs to become part of the building’s culture and operational DNA.
Establish a Sustainability Committee
Form a volunteer committee of interested owners to champion green initiatives. This group can research new opportunities, educate residents, and maintain momentum beyond a single project. A dedicated committee ensures that sustainability remains a priority for the strata council year after year.
Integrate Energy Performance into Depreciation Reports
Traditional depreciation reports often focus on replacing assets on a “like-for-like” basis. Work with your depreciation report provider to incorporate energy performance into their recommendations. Instead of simply replacing an old boiler with a standard new one, the report should recommend upgrading to a high-efficiency model, factoring in the long-term energy savings.
Launch Low-Cost Behavioral Programs
Capital projects are only one piece of the puzzle. Significant energy savings can also be achieved through behavioral changes. Your sustainability committee can lead initiatives such as distributing conservation guidelines, improving waste reduction and recycling programs, and organizing community challenges to promote sustainable habits.
Recommended Resource: Condo & HOA Depreciation Reports in Canada
Charting Your Sustainable Future
For strata corporations in British Columbia, embracing sustainability through energy efficiency is no longer optional – it is essential for financial resilience, regulatory compliance, and resident satisfaction.
The journey starts with a single step. Begin the conversation at your next council meeting, investigate the possibility of an energy audit, or form a committee of passionate owners. Take the steps now and see how sustainable your building is in a year from now.