RENEWABLES FOR HEATING AND COOLING

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RENEWABLES FOR HEATING AND COOLING ( renewables-for-heating-and-cooling )

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138 approved for a 50% allowance on a declining basis under Class 43.2 supporting wind, solar, small hydro and the use of waste fuel such as landfill gas, manure, and wood waste. Budget 2007 extended the 50% Class 43.2 eligibility for active solar systems to include other commercial and residential applications such as space heating of commercial and apartment buildings, and hot water heating for laundries, car washes and hotels, but not swimming pool heating. Some equipment may be treated as part of the building for CCA purposes (e.g. solar collectors integrated into the building). Solar collectors, solar energy conversion equipment, solar water heaters, energy storage equipment, control equipment and equipment designed to interface solar heating equipment with other heating equipment are eligible. Equipment that distributes heated air or water within a building, and structural components such as framing or windows, continue to be considered part of the building and therefore ineligible. The changes apply to eligible assets acquired on or after March 19, 2007. Carrot and Guidance. In December 1997, as part of NRCan’s Renewable Energy Strategy, Canada announced the Renewables Energy Deployment Initiative (REDI). Initiated on April 1 1998, REDI was a programme designed to stimulate demand for water heating, space heating and industrial process heating generated by renewable energy systems. REDI was first established as a 3-year, €7.8 M programme. Incorporated with the Action Plan 2000 on Climate Change, a second three year cycle began in 2001 with an additional €9.1 M funding, and a third three-year cycle beginning in 2004 with €16.25 M of additional funding and ended in March 2007. Over its 9-year lifetime REDI was allocated €33.15 M by the government (NRCan, 2005). The Renewable and Electrical Energy Division of the Electricity Resources Branch is responsible for administering REDI ́s funding that was directed into market stimulation, industry infrastructure support, and market development. Under market stimulation, nearly 50% of the funding was allocated to provide financial incentives for the adoption of renewable heating systems. Technologies eligible for funding included active solar air and water thermal systems, and high-efficiency/low-emission biomass combustion systems between 75 kW and 2 MW. Businesses were eligible for a refund of 25% (40% in remote communities) of the purchase and installation costs of active solar and large biomass combustion systems up to a maximum refund of €52 000 per project or €162 500 per corporate entity for multiple installations. Remote communities, business, institutions and other organisations were eligible for a refund of 40% of the purchase and installation costs of a qualifying system to a maximum refund of €52 000. Geothermal heat pumps were not eligible for direct financial incentives. In addition to direct financial support, REDI supported training, standards development, and solar technology certification activities and market activities in support of the infrastructure and market development courses (roughly 5% of REDI funding)44. REDI targeted public awareness through participation in industry trade fairs, funding of studies to identify target markets, publication of information pieces and communication products such as buyers ́ guides and promotional materials. Moreover, REDI actively collaborated with partners from the renewable energy industry associations and Canadian municipalities (NRCan, 2005). Carrot. NRCan’s 1998 Commercial Buildings Incentive Program (CBIP) provided financial incentive for the energy efficient design of new or retrofit commercial buildings. Buildings eligible for funding are 25% more energy efficient than a similar building meeting the Energy Code requirements. Incentives are available for twice the difference of the estimated annual energy costs for the approved efficient design and the estimated annual energy costs if a building is constructed to the Model National Energy Code for Buildings (MNECB) standard, to a maximum of €39 000 or the total design cost, whichever is less. Passive solar systems are eligible for funding under this programme (SHC, 2006; NRCan, 2006). In July 2006 CBIP funding was approved through March 31 2007. The total budget allocated for this fund is €16.6 M over its 10 year lifetime. 44. The remaining REDI funding was used to form strategic partnerships and alliances, and program management and support.

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