The Province of Prince Edward Island has announced details of a $1.4 million energy assistance plan to help Islanders deal with higher home heating costs, save energy and reduce greenhouse gas emissions which contribute to climate change.
Premier Pat Binns and Minister of Environment, Energy and Forestry Jamie Ballem announced details of the plan today. The Government of Prince Edward Island is one of the few jurisdictions that does not charge provincial sales tax on home heating fuel or electricity. That means the province forgoes tax revenue of $16 million a year on home heating fuel and a minimum $12 million annually on electricity. At the current prices, that’s a savings of about $370 for the average household. To provide additional relief, the new plan includes direct assistance to low-income Islanders in the form of a home energy efficiency upgrade; and low interest loans, as well as a provincial sales tax exemption, on alternative heating systems such as wood stoves, pellet stoves, solar panels and geothermal units.
“The most effective way to help Islanders save money on home heating costs is to help them save energy by making home improvements to reduce the amount of oil they burn this winter,” said Premier Binns. “This program provides direct and immediate help to Islanders who need it most, but it also provides incentive for all Islanders to make long lasting improvements – to diversify their home heating system and provide some protection against global energy price shocks that we have seen over the past weeks and months.”
Islanders eligible for the home energy efficiency upgrade under the new Residential Energy Assistance Program include:
• individuals or families with a gross household income of less than $30,000;
• families who qualify for the National Child Benefit; and
• seniors who qualify for the Guaranteed Income Supplement.
The program is open to both homeowners and those who rent a house or apartment and pay the heating costs.
Minister Ballem said tradespeople will go into homes and carry out as much as $200 worth of basic energy-saving measures such as weather stripping and caulking windows, and installing a programmable thermostat and low-flow showerhead. If a furnace tune-up is needed, the homeowner will receive a voucher for the service.
“If a homeowner achieves just a 10 per cent reduction in oil consumption through the home energy efficiency upgrade, they will save more than $250 on their home heating bill and there will be a one-tonne reduction in greenhouse gas emissions,” said Minister Ballem. “One simple measure such as switching to a programmable thermostat can achieve those results, and sealing air leaks with caulking and weather-stripping on windows and doors can save up to $650 annually. So the value homeowners receive from the home energy efficiency upgrade will go far beyond the governments’ investment in this program.”
All Islanders are encouraged to take similar measures around their homes to reduce energy consumption and save money. Information on simple energy efficiency measures, potential savings, and a do-it-yourself guide are available at www.gov.pe.ca/go/saveenergy .
Through the low-interest loan program, Premier Binns said the Province will also offer an incentive for homeowners to install alternate heating systems to reduce oil consumption. Loans of a maximum $5,000 per household will be available to all Island homeowners at a rate of 6% interest. The payments will be added to the homeowner’s property tax bill and amortized up to 60 months, based on the amount borrowed. Details of the loan program are being finalized. It will be implemented later this fall.
As well, a PST exemption on small scale renewable energy equipment and heating systems such as wood-burning and pellet stoves will apply until March 31, 2006.
Premier Binns said Government has been in discussions with Environment Canada in recent weeks to explore opportunities for the two levels of government to partner on a comprehensive energy efficiency program to provide additional long-term benefits to Islanders.
“With the immediate work that will be carried out under the provincial home energy efficiency upgrades, and the financial assistance that will be available to low-income families under the federal program for measures such as insulating, heating system upgrades and window replacements, I think our initiatives complement each other well,” said Premier Binns. “Working together, we can more effectively achieve our shared goals of encouraging energy efficiency and reducing greenhouse gas emissions which contribute to climate change.”
Through the home energy efficiency upgrades, basic information on the housing stock will be collected. This information may be used in future to identify energy efficiency projects which the two levels of government could partner on.
Islanders eligible for the home energy efficiency upgrade under the Residential Energy Assistance Program can register at any Access PEI site starting Wednesday. Tradespeople who are interested in providing the service are invited to call the Department of Environment, Energy and Forestry at 368-5990 or toll-free 1-888-893-4333. They will be required to complete a training session.
For further information on any of PEI’s energy conservation initiatives, call the Department of Environment, Energy and Forestry or visit the website at www.gov.pe.ca/go/saveenergy.