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Meet Dave Stewart

Dave has worked with the City of Nanaimo for over two decades and has served as Environmental Planner for nearly four years. As part of the City’s sustainability team, his work focuses on:

• Reducing greenhouse gas emissions from buildings
• Preparing Nanaimo for the impacts of climate change
• Advancing the “green goals” within the City Plan

PACE is one of the key tools in that climate action toolbox.

What Is PACE?

PACE stands for Property Assessed Clean Energy.

At its core, it’s a financing program that allows homeowners to complete energy retrofits — such as installing a heat pump, improving insulation or building envelope performance, or adding solar — and repay the cost through their property taxes.

• What makes PACE different from a traditional loan?
• The loan is tied to the property, not the individual.
• If the home is sold, the repayment obligation stays with the property.
• Payments are made through property taxes over time.

This structure removes one of the biggest barriers to retrofit projects: fear of not recouping the investment before selling.

Nanaimo’s PACE Program: Where Things Stand

Nanaimo launched its first PACE intake in spring 2025 as a pilot program. The intake window was open for just six weeks.

The response was strong:

• 37 applications received
• 30 accepted
• 27 bylaws passed through Council
• 9 retrofits already completed

Those completed projects are now moving into repayment through the property tax system.

It’s an encouraging start for only the third PACE program in British Columbia.

Building on Leadership from Saanich

While PACE programs are common in parts of the United States, Nanaimo’s model was shaped largely by closer-to-home examples.

The District of Saanich and Central Saanich were the first two municipalities in BC to implement PACE. Their work navigating provincial legislative barriers made Nanaimo’s program possible.

Because BC does not currently have dedicated PACE-enabling legislation, municipalities must structure the program through a local service area improvement mechanism — typically used for infrastructure projects like sewer upgrades.

In Nanaimo’s case, each participating property becomes its own local service area. While workable, this approach creates administrative complexity, including individual bylaws for each property.

Funding and Administration

A significant portion of Nanaimo’s pilot funding came from the Federation of Canadian Municipalities (FCM) through the Community Efficiency Financing Program, along with support from the City’s Local Government Climate Action funding.

However, funding remains a major variable in the future expansion of PACE:

• BC municipalities cannot easily access certain loan-based funding streams due to borrowing restrictions.
• The FCM program that supported Nanaimo’s pilot is sunsetting.
• Long-term scaling will depend heavily on provincial enabling legislation.

Despite these challenges, the City plans to reopen applications in spring 2026, depending on available funding and repayments from the initial round.

Zero Interest, 10-Year Term

Under Nanaimo’s current pilot:

• Loans are zero interest
• Maximum loan amount: $15,000
• Term: 10 years
• Homeowners may pay off early within a specified window

Because the City’s goal is climate action — not profit — the structure is designed to reduce financial pressure rather than generate revenue.

Can PACE Be Layered with Rebates?

Yes — and it’s encouraged.

Participants are required to enroll in the Home Energy Navigator Program, delivered by City Green (who also administers Nanaimo’s PACE program).

• The Navigator program provides:
• Personalized retrofit guidance
• Energy goal planning
• Help identifying and applying for rebates

If a homeowner qualifies for significant rebates — such as income-qualified energy savings programs — those funds are factored in first.

“We don’t want to loan money where you can get money for free,” Dave explained.

The result is a coordinated approach that ensures homeowners access the best available funding mix before borrowing.

What’s Next?

In addition to reopening PACE applications, Nanaimo is exploring a complementary third-party financing option in partnership with a financial institution.

Unlike PACE, this program would:

• Not be tied to property taxes
• Include a low interest rate
• Potentially offer rebates

If finalized, it could launch in 2026 and provide additional flexibility for homeowners who may not qualify for PACE.

The Bigger Picture: Provincial Action Needed

The long-term growth of PACE in BC hinges on one key factor: provincial enabling legislation.

If the Province formalizes a clearer framework for PACE financing, municipalities would be able to:

• Access broader funding streams
• Reduce administrative burden
• Scale programs more efficiently

Without that legislation, programs like Nanaimo’s will continue — but likely at a smaller scale.

A Message for Homeowners and Industry

Dave’s biggest takeaway?

There are options — even in a shifting and sometimes confusing rebate landscape.

Federal programs change. Provincial incentives evolve. Deadlines come and go. But support remains available.

For homeowners considering upgrades — especially switching from oil to a heat pump — the benefits can be significant:

• Lower operating costs
• Air conditioning capability
• Reduced emissions
• Improved comfort

“It can feel like a lot of money and it can feel scary,” Dave acknowledged. “But there are ways to make it work.”

Where to Learn More

Homeowners can:

Visit the City of Nanaimo website

• Search “Home Energy Navigator Nanaimo”
• Explore PACE program details
• Review dedicated pages for multifamily buildings, rental housing, and strata properties

There are also provincial programs available for multifamily retrofits — something builders and property managers should take note of.

Nanaimo’s PACE program is still in its early stages, but it represents an important shift: giving homeowners practical, structured tools to participate in climate action — without requiring large upfront capital.

And as funding pathways evolve, programs like this may become a cornerstone of how communities retrofit their way to a lower-carbon future.