As the federal government’s popular Canada Greener Homes grant program comes to a close, the energy audit industry could crumble with businesses across the country warning of mass layoffs in the months ahead.
The federal government has signalled the end of the program, which provides up to $5,000 toward energy efficiency upgrades such as insulation, windows and heat pumps. New applications are expected to close by the end of March, but an official timeline is unknown.
In the meantime, business is temporarily booming for companies across the country who conduct the required home energy audits, as homeowners try to secure the grant funding before it dries up.
The surge in business is why Stephen Farrell cancelled all vacations for his staff at VerdaTech Energy Management. Currently, the company completes about 600 assessments a month in Alberta and British Columbia, although he predicts that will plunge to one or two per month once the federal program ends. The company also operates in Ontario.
“We’ve just increased the number of energy advisers across Canada dramatically. Millions and millions and millions of dollars was spent training new energy advisors,” he said. “I would suggest we can lose about 70 per cent of them. They’ll go out of the industry.”
“There’s going to be a massive fallout,” he added.
A blower door system is one of several pieces of equipment that energy assessors use to measure the airtightness, pressure, and flow of a home. Industry officials fear the end of the Canada Greener Homes program will be bad for business. (Louise Moquin/Radio-Canada)
His advice to customers is to register for the program and have the initial assessment completed. Still, it’s difficult to provide advice to clients or his own staff, since Farrell said there is no clear timeline from Natural Resources Canada (NRCan), the department which administers the program.
“We have asked and we continue to ask for clarity,” Farrell said. “Please communicate with service organizations clearly in writing what is going on?”
Adding to the confusion is a temporary halt to new applications in Ontario effective Jan. 19 in order to “reconcile all current applicant files.”
Popular program
The grant program was supposed to last seven years, but it has proven so popular that the money is being used up at a faster rate than expected.
The federal grant helped knock $5,000 off the price of installing rooftop solar panels on Nicolas Gautier’s Calgary home. He’s also taking advantage of a related federal program providing an interest-free loan.
“It was sort of a no-brainer for us,” said Gautier of the savings.
Eligible upgrades for the Canada Greener Homes grant include attic, wall and basement insulation. (Louise Moquin/Radio-Canada)
The Greener Homes program came into effect on Dec. 1, 2020, with an end date of March 31, 2027, although it always came with a caveat that applications would be accepted until the money is allocated.
In total, the program is worth $2.6 billion including up to 700,000 grants of up to $5,000 and funding for the recruitment and training of energy advisors. “The Canada Greener Homes Initiative will help homeowners save money, create new jobs across Canada for energy advisors and fight climate change,” NRCan said on its website.
As of last month, the program had received 503,604 applications.
The program requires a homeowner to have an energy audit before and after upgrades are made to the residence.
Industry officials describe how the program was designed, in part, to increase the number of trained energy assessors across the country. These workers will be especially crucial in 2025, when proposed changes to the building code could take effect, potentially requiring energy audits on new homes to meet building performance standards.
Job cuts expected
However, if the Canada Greener Homes grant ends in the next few months, industry officials warn of a mass exodus of assessors.
“There’s literally thousands of people whose jobs are on the line,” said Rachael Murphy, co-owner of Energy Werx Alberta, who estimates 98 per cent of her business is tied to the Canada Greener Homes grant. Statistics Canada does not explicitly track the number of people who work as energy assessors.
Canada Greener Homes grant could end in February or March, experts warn
4 hours ago
Duration 2:14
Interested homeowners should register quickly and complete their first energy assessment, advises Stephen Farrell with VerdaTech Energy Management.
Becoming an energy assessor can take between three and six months for training and writing exams, said Murphy, adding that the job requires about $10,000 worth of equipment. The abrupt end to the program is like pulling the rug out from under people who joined the profession to have a stable career, she said.
“There’s no way we’re going to have the amount of business for the staff that we have now if this program ends, so it’s incredibly concerning,” Murphy added.
New applications still viable, official says
NRCan declined an interview request. In a statement, a department spokesperson said the program will accept new applications until all currently available funds are awarded, and Canadians who have already started an application will remain eligible for assistance.
In addition, the spokesperson said many applications that are already logged in the system will be granted over the next two years or more.
The potential job losses extend to other industries providing the energy upgrades such as window installers, HVAC companies and solar panel providers.
Alberta-based company Zeno Renewables ihas grown from about 20 staff to about 200 over the last four years, but the end of the federal grant program means the company expects sales to drop by as much as 40 per cent this year compared to 2023.
“The last thing we want to do is lay people off, but that’s an inevitable conversation,” said Gursh Bal, the solar energy company’s co-CEO. “2024 is going to be a rough year.”
He too is urging the federal government to provide a clear answer on the fate of the grant funding program, so there is some level of certainty on what happens next instead of relying on rumours and hearsay.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
