The Town of Drayton Valley is developing a plan to help its residents make their homes more energy efficient.
Town council recently passed the first draft of the municipality’s Clean Energy Improvement Tax.
The Clean Energy Improvement Tax was developed by the Province of Alberta, and works very similar to the Property Assessed Clean Energy (PACE) Program.
Officials describe it as a loan you take out from the town. You can use it for home improvements to enhance the energy efficiency of your home. Adding solar panels, would be one example.
Drayton Valley Mayor Michael Doerkson, however, wants to emphasize that despite the name, this is not a tax.
“The loan is administered through the municipal tax roll. Whatever your tax bill is, there will be an addition on to that – the repayment of the loan – for the improvement that you made,” he explains.
One issue raised by council is who ultimately repays the loan. Doerkson says the loan stays with the home.
“Say you have a 10 year repayment. You sell your home three years after you made the improvement,” explains Doerkson. “It needs to be disclosed to the new owner that they will be paying for this on their property taxes.”
According to the Town of Drayton Valley’s modeling, between 10 and 20 people will take advantage of the program in its first year.
Council passed first reading of the Clean Energy Improvement Tax during their Aug. 18 meeting. It goes to second and third reading in September.
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