Energy Step Code & Net-Zero for Multiplex

BC's Energy Step Code sets a graduated pathway from code minimum to net-zero energy performance. Here is what each step means for multiplex construction -- specifications, costs, and incentives.

Key Takeaways

✓ BC standard designs target Step 4, delivering significant energy savings with a manageable cost premium of $15-$25/sqft.
✓ All new multiplex construction must use heat pumps as the primary heating source -- gas furnaces are no longer permitted.
✓ CleanBC (up to $15,000/home), CMHC MLI Select, and utility rebates can help offset the incremental cost of building above minimum step requirements.
✓ Metro Vancouver falls in Climate Zone 5 (CZ5), which dictates specific insulation, window, and airtightness targets.

What Is the Energy Step Code?

The BC Energy Step Code is a provincial standard that establishes progressive performance targets for new construction. It has five steps, ranging from enhanced code compliance (Step 1) to net-zero energy ready (Step 5).

Step 1-2

Reserved

No longer meet minimum BC Building Code requirements

Step 3

Current Minimum

20% better than previous baseline; current code minimum since May 2023

Step 4

Superior

50-70% reduction; BC standard design target

Step 5

Net-Zero Ready

80%+ reduction; solar-ready

The Step Code is integrated into the BC Building Code. Municipalities can require specific step levels through their bylaws. The relationship is straightforward: higher steps mean better energy performance, tighter envelopes, and more efficient mechanical systems -- with correspondingly higher construction costs and lower operating costs.

Step 4: The Standard Design Requirement

All 10 BC standardized housing designs are engineered to meet Energy Step Code Step 4. This is the "superior" performance tier, delivering 50-70% energy reduction compared to a conventional building.

By targeting Step 4, the standard designs ensure that new multiplex construction achieves a high level of energy efficiency without the full cost premium of net-zero (Step 5). Step 4 is considered the economic "sweet spot" -- the highest step level where the incremental cost is clearly justified by energy savings, rebates, and improved comfort over the building's lifetime.

Climate Zone 5 Specifications

Metro Vancouver falls within Climate Zone 5 (CZ5) under the BC Energy Step Code. The following performance targets apply to Part 9 residential buildings (under 600 sqm and 3 storeys) in CZ5 at Step 4.

Wall Insulation

R-24 to R-30 effective

Typically achieved with 2x6 framing with R-22 batt + R-5 to R-8 continuous exterior insulation (rigid foam or mineral wool).

Roof/Ceiling Insulation

R-50 to R-60 effective

Blown-in cellulose or fiberglass in attic space, or spray foam for cathedral ceilings. Continuous exterior insulation preferred.

Below-Grade Walls

R-20 effective

Interior rigid foam or exterior drainage board insulation on foundation walls to 600 mm below grade.

Window Performance

U-1.4 W/m²K maximum

Triple-pane windows with low-E coatings and argon or krypton gas fill. Typical SHGC 0.25-0.35.

Airtightness

~1.5 ACH50 target

Verified by blower-door test at project completion. Actual target depends on the compliance path chosen. Requires continuous air barrier, taped sheathing, and sealed penetrations.

Mechanical Ventilation

HRV with 80%+ efficiency

Heat recovery ventilator providing continuous whole-house ventilation. Balanced supply and exhaust.

What Step 4 Means Practically

Here is what you will actually see on site when building to Step 4 specifications in a Metro Vancouver multiplex project.

Insulation Thickness

Walls will be thicker than conventional construction -- typically 2x6 framing plus 1.5-2 inches of continuous exterior insulation. This adds approximately 50-75 mm to total wall thickness on each side. Attic insulation will be 350-400 mm of blown-in material.
Window Specifications

Triple-pane, argon-filled windows with low-E coatings are standard at Step 4. These are heavier than double-pane windows and require robust framing. Budget 40-60% more for windows compared to standard double-pane. Specify U-1.4 or lower.
HVAC: Heat Pumps

Air-source heat pumps (ductless mini-splits or central ducted) are the standard heating and cooling solution. Look for high-efficiency units with HSPF ratings of 10+ and SEER ratings of 15+. Most Step 4 multiplex projects use a combination of ducted and ductless units.
Airtightness Testing

A blower-door test is mandatory at completion. For Step 4, a typical target is approximately 1.5 ACH50 or lower, though the exact requirement depends on your compliance path. Achieving tight airtightness requires meticulous air sealing throughout construction -- taped sheathing, sealed penetrations, continuous air barrier. Budget for mid-construction testing to catch issues early.
HRV/ERV Systems

Each dwelling unit gets its own heat recovery ventilator (HRV) or energy recovery ventilator (ERV) providing continuous fresh air without significant heat loss. These units need dedicated ductwork, typically run through ceiling spaces. Budget $3,000-$5,000 per unit for equipment and installation.

Cost by Step Level

The incremental cost of building to higher step levels varies by project, but the ranges below are representative for Part 9 multiplex construction in Metro Vancouver (2024-2025 pricing).

Incremental construction cost by Energy Step Code level for a typical multiplex unit
	Incremental Cost/sqft	Total Premium (2,000 sqft)	Key Requirements
Step 1-2 (Reserved)	N/A	N/A	Steps 1-2 are now reserved in the BC Building Code and no longer meet minimum requirements
Step 3 (Current Minimum)	$10-$18	$20,000-$36,000	High-performance windows, HRV, heat pump, improved airtightness (target ~2.5 ACH50)
Step 4 (Recommended)	$15-$25	$30,000-$50,000	Triple-pane windows, continuous exterior insulation, enhanced airtightness (~1.5 ACH50), HRV
Step 5 (Net-Zero Ready)	$30-$50	$60,000-$100,000	Passive House-level envelope, very tight airtightness (~0.6 ACH50), solar-ready roof, all-electric systems

Costs are incremental above Step 1 baseline. Actual costs vary by project scope, builder experience, and material availability.

Vancouver Net-Zero Density Bonus

The City of Vancouver offers a density bonus for projects that achieve net-zero energy performance (Step 5 or equivalent). This allows additional floor area beyond what the base zoning permits.

Projects that demonstrate net-zero energy performance through certified energy modelling may receive up to a 10% floor space ratio (FSR) bonus. For a typical fourplex on a 50-foot lot, this translates to approximately 200-300 additional square feet of buildable area -- enough for an extra bedroom or expanded living space. The bonus is available in all residential zones that permit multiplex housing. Projects must be certified by a Step Code energy advisor and verified through post-construction testing.

Electrification & EV Charging

BC's climate strategy requires full electrification of new buildings. Here is what this means for multiplex construction.

Heat Pump Mandates

Gas furnaces and gas boilers are no longer permitted as the primary heating source in new construction. Air-source heat pumps are the standard, with ground-source (geothermal) as a premium option for larger projects. Gas fireplaces are still permitted as a supplementary heating source.

EV Charging Infrastructure

All parking stalls must be EV-ready with conduit and electrical panel capacity for Level 2 (240V, 40A) chargers. At least 20% of stalls must have chargers installed at occupancy. Electrical room sizing must accommodate the full future EV load. Budget $2,000-$4,000 per stall for conduit and wiring, plus $800-$1,500 per installed charger.

Rebates & Incentives

Multiple rebate programs are available to offset the incremental cost of building to higher energy performance levels. These programs can be combined (stacked) in most cases.

CleanBC Better Homes

New construction: Up to $15,000 per home for Step 3+ with electric space and water heating
All-electric bonus: $4,000 additional for homes with no fossil fuel connection
Energy advisor support: $1,000 for working with a Program Qualified Energy Advisor

CMHC Programs

MLI Select: Reduced mortgage insurance premiums for buildings meeting affordability, accessibility, or climate criteria (up to 30% premium discount based on points achieved)
Green Home: Partial premium refund for energy-efficient new construction

Utility Rebates

BC Hydro: Rebates for heat pumps, heat pump water heaters, and high-efficiency appliances
FortisBC: Rebates available for high-efficiency equipment; amounts vary by program and equipment type
Municipal programs: Some cities (Vancouver, North Vancouver) offer additional top-up incentives for above-code energy performance

For a detailed breakdown of how energy costs factor into total project budgets, see our Cost Analysis page.

Frequently Asked Questions

What Energy Step Code level is required for new multiplex construction? +

As of 2024, the BC Building Code baseline requires Step 3 for most Part 9 buildings. However, many municipalities have adopted higher requirements -- Vancouver requires Step 3 with a pathway to Step 4, and the BC standard designs target Step 4 as the recommended performance level. Check your specific municipality for their adopted step level.

How much more does it cost to build to Step 4 vs Step 3? +

Building to Step 4 typically adds $15-$25 per square foot compared to Step 3, or approximately $30,000-$50,000 total for a 2,000 sqft unit. The incremental cost covers higher-performance windows, additional insulation, improved air sealing, and an HRV system. These costs are partially offset by utility rebates and lower operating costs over the building's lifetime.

Do I need to hire an energy advisor for Step Code compliance? +

Yes. An accredited energy advisor must perform energy modelling before construction begins and a blower-door airtightness test upon completion. The energy model demonstrates that the design will meet the target step level, and the airtightness test verifies construction quality. Budget $3,000-$5,000 for energy advisory services on a multiplex project.

Can I get rebates for building above the minimum step level? +

Yes. CleanBC Better Homes offers up to $15,000 per home for new construction built to Step 3 or above with electric heating, plus a $4,000 bonus for all-electric homes. CMHC's MLI Select program offers reduced mortgage insurance premiums (up to 30% discount) for energy-efficient buildings. BC Hydro and FortisBC offer additional rebates for heat pumps and high-efficiency equipment. Combined, these incentives can help offset a significant portion of the incremental cost.

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