The Deep Retrofit Challenge (DRC) is a competition-style incentive program funded by a grant of up to $5 million from the Federal Government. Applications for the DRC were accepted from August 26 to October 31, 2022 and are now closed. 

The program aligns with the City’s Net Zero Existing Buildings Strategy, part of the larger TransformTO Net Zero Strategy, with the aim of reducing greenhouse gas (GHG) emissions from buildings (the largest source of GHG emissions in Toronto) to net zero by 2040. 

For more information on the Deep Retrofit Challenge, please contact drc@toronto.ca. 

Overview

A deep energy retrofit is a holistic approach to upgrading a building’s systems, using high-efficiency technology and best practices to significantly reduce GHG emissions and energy consumption. It is considered a major step towards net zero emissions.

A deep retrofit can also significantly reduce utility costs, as building energy usage is generally reduced by 50 per cent or more. Core components of a deep retrofit typically include:

  • Improvements to the building envelope, HVAC systems and building operations
  • Fuel switching away from fossil fuels
  • Incorporation of renewable energy generation.

Examples of deep retrofit upgrades can include high-performance windows, installation of heat pumps for space heating and domestic hot water, incorporation of energy recovery systems, renewable energy generation and electric vehicle chargers, building controls upgrades and more.

To achieve the City’s net zero emissions target, almost all buildings in Toronto will be required to undergo deep energy retrofits.

As projects progress, the City will share updates on participating buildings and project outcomes.

Deep Retrofit Challenge Projects

Project Phases

As part of their applications, participating buildings submitted pre-retrofit energy modelling reports, calibrated to building energy data, outlining the current state of the building and projected energy savings based on the measures being implemented.

Participants were required to attend an integrated design workshop, hosted by the City of Toronto, where subject matter experts reviewed their initial designs and provided recommendations for modifications or additional measures that could be considered.

Most of the retrofit work for the participating buildings is expected to be completed in 2025. Once projects are complete and fully commissioned, energy performance will be assessed over a one-year post-retrofit period to determine the actual energy savings. Savings will be calculated using a whole-building approach.

Upon program completion, comprehensive case studies, including retrofit designs, energy data, budgets, realized performance and lessons learned will be developed and made public.

The projects in the Deep Retrofit Challenge demonstrate replicable, cost-effective pathways to help move buildings toward net zero emissions and provide all building owners with the necessary best practices to do so.

Deep Retrofit Challenge Toolkit

To support participants with occupant engagement and education during their deep retrofits, the City of Toronto developed the following.

See the Deep Retrofit Challenge Toolkit.

Deep Retrofit Challenge Video Series

Participant Profiles

Project profiles showcase each building’s retrofit journey, highlighting implemented measures, the process undertaken, and key lessons learned to support future deep retrofit efforts.

* 88 College Street and 350 Bay Street completed the integrated design phase, but withdrew from the program prior to the start of the retrofit phase.

    Goals

    • De-risk investment in deep energy retrofits
    • Build market confidence
    • Encourage voluntary compliance with existing buildings policies
    • Inform future energy codes.

    Key Eligibility Criteria

    • Building greater than 600 square meters or three storeys
    • Multi-residential or commercial building
    • Minimum GHG emissions reduction of 50 per cent
    • Minimum energy use intensity reduction of 50 per cent
    • Maximum payback period of 20 years.

    Incentive Limit

    The incentive limit for each selected deep retrofit project is the lesser of:

    • $200 per square meter of gross floor area
    • 25 percent of the total project costs

      The maximum eligible incentive per project is $500,000.