Targeting energy efficiency to improve housing affordability for vulnerable Canadians

The research examines the effects of energy poverty on housing affordability in Canada. Three main issues cause energy poverty: low incomes, high energy prices and energy inefficient homes. Energy poverty increases the risk of housing and health-related harms for vulnerable Canadians. Improving energy efficiency can go a long way in addressing energy poverty. The research recommends easy ways to improve energy efficiency in households that need it the most. These recommendations can help reduce household energy costs, modernize existing housing and improve housing affordability for vulnerable Canadians.

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Project scope and expected outcomes

Making energy poverty initiatives work for those most in need
The lack of access to affordable, reliable and modern energy services, on top of inadequate housing conditions, can have serious impacts on individuals, families and communities. Eliminating this “energy poverty” helps Canadians while contributing to national net-zero and housing affordability priorities.

This research project highlighted how energy poverty is caused by the combination of unaffordability (low incomes and/or high energy costs), poor quality homes (inefficient, leaky homes) and systemic marginalization (exclusion from energy efficiency programs). Nearly 2 million Canadian households experience energy poverty, meaning they spend over 6 percent of their income on energy bills. Seniors, renters, newcomers and single-parent families are more likely to struggle with stable housing and health impacts related to energy poverty.

Guidelines to deliver affordable, comfortable and healthy homes

The research offered guidelines for effective policies:

• Define energy poverty so policymakers can address the issue and allocate resources to those in need.
• Measure energy poverty to track policy outcomes and help identify and prioritize households in need.
• Set national targets for energy poverty reduction.
• Provide flexibility in existing programs to prioritize energy saving measures and reach more households.
• Provide health and safety upgrades to households in need.
• Provide additional measures for homes that participate in energy upgrade programs to make them climate-ready.
• Provide stable funding and support systems to improve housing and health outcomes in the long term.

The research results were shared in:

• five presentations and five workshops
• contributions to academic papers and research reports
• knowledge transfer and capacity-building with practitioners developing strategies to reduce energy poverty
• an energy poverty database and user guide that identifies households that would benefit the most from effective measures at national and provincial levels
• an interactive map that visualizes energy poverty and vulnerability across Canada, providing details relevant to specific provinces, cities and communities, to help identify critical areas for intervention and support.

Future projects may consider prioritizing long-term, sustained and enhanced engagement with stakeholders. This will help build and maintain capacity among a range of stakeholders to effectively address energy poverty.

Download the final report