1.0 Program overview Financing details The PAYS principle Transferability Products eligible for financing...

Transcription

1

2 TABLE OF CONTENTS 1.0 Program overview Financing details The PAYS principle Transferability Products eligible for financing Residential space heating equipment Insulation Drain water heat recovery systems WaterSense-labelled toilets Participation Important information Supplier (contractor and retailer) participation Customer participation Ineligibility Owner-performed renovation Contractor-performed renovation Online calculator Residential space heating equipment Insulation Drain water heat recovery systems WaterSense-labelled toilets Loan Agreement forms Using the PAYS online calculator Filling out the PAYS Agreement form Tips for filling out Agreement forms Frequently asked questions Promotion of program Promotional materials Power Smart advertising & promotions guidelines... 52

3 Important notice to all contractors and retailers: Your company must be registered to work with Manitoba Hydro s Power Smart programs prior to commencing any residential projects. The Supplier Participation Agreement form must be completed and submitted to Manitoba Hydro. This is a one-time requirement unless otherwise requested. Submission of this completed form will officially register your company and allow you to submit Power Smart applications to Manitoba Hydro. See page 14 for more details.

4 1.0 Program overview Power Smart Pay As You Save (PAYS) Financing provides convenient and affordable on-bill financing for Manitoba Hydro residential customers. PAYS Financing allows a property owner to use their estimated annual utility savings from installing a particular efficient measure to pay for that measure (or a part thereof). The objective of PAYS Financing is to encourage customers to improve the efficiency of their home while minimizing their financial burden. PAYS Financing has a couple of key features: The monthly payment is less than the estimated annual utility savings achieved by installing the energy efficient measure. These savings are averaged out over 12 months and used to calculate the monthly payment. It is tied to the property and is transferable from one homeowner to another or from a property manager to a tenant. The monthly payment will be added to a customer s Manitoba Hydro energy bill. PAYS Financing covers upgrades for the following product categories: Residential space heating equipment; Insulation; Residential water heating and conservation: o o Drain water heat recovery systems; WaterSense-labelled toilets (in conjunction with one of the above energy efficient measures). Registered suppliers can request program materials, order loan Agreement forms and download program resources by visiting the online supplier portal at hydro.mb.ca/contractors. For general Power Smart inquiries: powersmartexpert@hydro.mb.ca For PAYS Financing inquiries: paysfinancing@hydro.mb.ca 3

5 1.1 Financing details The minimum amount that can be financed is $500. The financing is transferable from one homeowner to another or from a property manager to a tenant. The maximum financing term is dependent upon the upgrade. If multiple upgrades are financed at the same time, the maximum finance term for all upgrades will be based on the upgrade with the longest term. o o Residential space heating equipment: 20 years Insulation, drain water heat recovery systems, and WaterSense-labelled toilets: 25 years The monthly financing payment is less than the estimated annual energy savings averaged out on a monthly basis. The annual interest rate is fixed for 5 years. Monthly installments are applied to the customer s energy bill. The applicant must be the owner of the property in which the efficiency improvements are made and the property must have an active Manitoba Hydro account in good standing. Additional or complete payments may be made after six months from the first finance charge on the customer s account. A $20 administration fee will apply for complete payments prior to six months. 4

6 1.2 The PAYS principle The Government of Manitoba passed Bill 24 in June 2012, which is an amendment to the Energy Savings Act. Section 9 of Bill 24 states that Manitoba Hydro may offer a new efficiency improvements financing program where the monthly payment for the funds borrowed from Manitoba Hydro by the customer must be less than the estimated annual utility bill savings averaged out on a monthly basis. Essentially the customer is using the estimated value of the utility bill savings to finance efficiency upgrades, therefore paying as they save. Traditional financing, such as a bank loan, has four key components: 1) The amount of money borrowed; 2) The interest rate; 3) The length of financing, or term (in months or years); 4) The monthly payment. Through traditional financing, the customer decides on the amount they would like to borrow from their financial institution, the financial institution dictates the interest rate that is charged and the customer decides for how long they would like to borrow the money. Once this information is determined, the monthly payment amount can be calculated. PAYS Financing approaches the financing equation in the reverse order. The customer first decides on the efficiency upgrade they would like to undertake (e.g. installing a new high efficiency natural gas furnace or adding insulation). The upgrade has estimated annual utility bill savings associated with it (i.e. energy savings), which is averaged out on a monthly basis. The estimated average monthly utility bill savings becomes the basis for the monthly payment. Bill 24 states that the customer s monthly payment must be less than the estimated monthly utility bill savings. The customer then must find out from a participating contractor or retailer the cost of the upgrade that the utility bill savings are associated with; this becomes the maximum amount that can be borrowed. The interest rate is set by Manitoba Hydro. These three variables (monthly payment, amount to be borrowed and interest rate) are entered into the financing equation and the term is calculated. PAYS Financing has maximum terms for which a customer can borrow money, which are dependent on the product category. Bill 24 states that if a customer is financing multiple measures, the maximum term is based on the product category that has the longest term. The amount borrowed must be paid off prior to the maximum term being reached. If the full cost of the work (including interest charges) can t be paid back before the maximum term is reached, the customer will only be allowed to finance an amount that can be paid back within the set term. Below is a PAYS Financing example (all information presented below is for illustrative and educational purposes only): 5

7 A customer who lives in a 1,200 square foot bungalow built in 1965 in southern Manitoba decides they would like to improve the efficiency of their heating system and add insulation to their attic. The customer has a standard efficiency natural gas furnace and an insulation level of R-20 in the attic. The customer wants to install a high efficiency natural gas furnace and improve their attic insulation to R-50. The customer uses the PAYS online calculator that is found on Manitoba Hydro s website (hydro.mb.ca/pays) to calculate the estimated utility bill savings they could expect to realize by installing these upgrades in their home. The calculator tells the customer that they would save approximately $24.44 per month* on their utility bill for installing these upgrades. The maximum term is 20 years for a heating system and 25 years for insulation. Per Bill 24, the maximum term of the financing in this scenario is 25 years. The customer speaks to at least 3 contractors to get quotes on the work and selects the contractor with which they are most comfortable. The heating system costs $4,500 and the insulation costs $1,000 for a total work cost of $5,500. The customer enters $5,500 into the calculator as the total amount they would like to borrow. The calculator tells the customer that based on their situation, the maximum they can borrow over a 25 year period is $4,268. Any amount they would like to borrow over $4,268 would not be able to be paid off prior to the maximum financing term of 25 years. The customer will be required to pay the difference directly to the contractor. Total cost of work $5,500 Total amount to finance $4,268 Difference to be paid to contractor $1,232 The above example illustrates how the PAYS principle dictates how much a customer can borrow from Manitoba Hydro. If an upgrade has substantial estimated utility bill savings (i.e. a large monthly payment), the monthly savings may pay for the entire cost of the work. However if the upgrade has low estimated utility bill savings, the amount of available funding that can be borrowed from Manitoba Hydro is reduced, increasing the likelihood the customer would have to pay for a portion of the upgrade out of pocket. *Please note that all calculated figures presented here are based on the energy rates at the time of publication. 6

8 1.3 Transferability PAYS Financing is unique compared to other financing options because it allows a homeowner to transfer their financing to the next homeowner in the event the property is sold, or transfer the monthly payment to a tenant renting their property. Homeowners PAYS Financing can be transferred from the original homeowner (seller) to a new homeowner (buyer) in the event the property is sold. 1) Both the buyer and seller call the Manitoba Hydro Customer Contact Centre ( ) to confirm the Effective Date (i.e. the date that ownership legally transferred from the seller to the buyer). 2) The seller downloads the PAYS Owner Assignment and Novation Agreement from hydro.mb.ca/pays. 3) Both the seller and buyer complete and sign the Agreement. 4) The buyer s lawyer mails the completed Agreement to Manitoba Hydro within 30 days of the Effective Date. 5) Manitoba Hydro transfers the remaining principal balance of the PAYS Financing Agreement to the buyer. If Manitoba Hydro does not receive the Agreement within 30 days of the Effective Date, the Agreement will not be transferred to the buyer and the customer must pay the remaining principal balance of the Agreement on their final bill for that property. Landlords and tenants The PAYS Financing monthly payment can be transferred from a property owner to a tenant if the tenant pays the monthly utility bill at the property where the upgrade is to take place. This can only take place with the tenant s consent, which must occur before Manitoba Hydro approves the PAYS Agreement. 1) Provide the property owner with a Tenant Acknowledgment Form. If you don t have any of these forms, you can order a booklet from hydro.mb.ca/contractors. 2) Both the property owner and tenant complete and sign the form. 3) As the supplier, you are required to submit a copy of the form along with a faxed or ed copy of the PAYS agreement to Manitoba Hydro for approval. The Tenant Acknowledgement Form only needs to be filled out once at the time of approval. When subsequent tenants move in, it is the responsibility of the landlord to inform the tenant(s) of the PAYS monthly payment. A new Tenant Acknowledgement Form does not need to be filled out with each new tenant. 7

9 2.0 Products eligible for financing In order to be eligible for PAYS Financing, energy efficient upgrades must meet Manitoba Hydro s specified requirements. Qualifying upgrades are listed below. 2.1 Residential space heating equipment CSA-approved high efficiency condensing natural gas furnaces with a minimum AFUE of 92 per cent when replacing an existing standard efficiency natural gas furnace (AFUE of 60 per cent) or an electric, fuel oil or propane heating system. o Includes all costs directly related to the furnace upgrade such as modifications to venting, ductwork plenums, gas piping, permits and the thermostat. CSA-approved near condensing or condensing natural gas boilers with a minimum AFUE of 85 per cent when replacing an existing standard efficiency natural gas boiler (AFUE of 60 per cent), a mid efficiency natural gas boiler (AFUE of 80 to 84 per cent), or an electric, fuel oil or propane heating system. o Includes all costs directly related to the boiler upgrade such as modifications to venting, ductwork plenums, gas piping, permits and the thermostat. Electric heating systems (furnaces, boilers or baseboard heaters) when replacing a propane or fuel oil heating system. o The new electric heating system must be the primary heating source. Geothermal heat pump systems. o The heat pump must be designed and installed by a certified contractor. The contractor must be recognized by the Manitoba Geothermal Energy Alliance ( o The geothermal heat pump must be tested and rated under CSA Standard C , and installed to meet CSA C448. o o o Air source heat pumps do not qualify. A heat loss calculation (supplied by the contractor) and Part II of the Residential Earth Power Loan Agreement (available at hydro.mb.ca/pays) must be completed, attached to, and submitted with the PAYS Financing Agreement for approval. A Startup Verification Form is required upon completion of the work (available at hydro.mb.ca/pays). 8

10 All changes to combustion equipment must be done in accordance with applicable codes. Changing a combustion appliance such as the heating system may require changes to the venting system and/or water heater. The furnace should be sized in accordance with good industry practice to ensure that units are adequately sized to achieve maximum energy savings and comfort. 9

11 2.2 Insulation Insulation must be new, purchased in Canada and have a verifiable R-value as determined by the Canadian Construction Materials Centre. Any insulation work done must meet the following Power Smart levels: Attic minimum RSI 8.8 (R-50); Attic kneewalls minimum RSI 4.2 (R-24); Flat and cathedral ceiling minimum RSI 5.0 (R-28); Foundation walls minimum RSI 4.2 (R-24); Crawlspace minimum RSI 4.2 (R-24); Wall cavities minimum of RSI 1.8 (R-10); Exterior walls (when re-siding) minimum RSI 0.7 (R-3.75) exterior wall insulation. o Re-siding materials may qualify for financing when installed with exterior wall insulation. Related building materials are also available for financing when the work is performed in conjunction with the addition of insulation. These measures include: Vapour barrier material that conforms to CGSB standards. Framing and fire protective (but not decorative) covering where required by building codes for perimeter basement walls being insulated. Fire protective covering includes gypsum, wallboard or stucco. An example of decorative covering is wall paneling. Approval for PAYS Financing does not automatically qualify a customer for a Power Smart Home Insulation Program rebate. A Home Insulation Program application form must be filled out and submitted for approval at the same time as the PAYS Financing Agreement form. 10

12 2.3 Drain water heat recovery systems Install a drain water heat recovery system certified to CSA B55.1 and B55.2. For a nonexhaustive listing of qualifying systems, visit the Natural Resources Canada website. The following drain water heat recovery system models are eligible for financing: Models at % efficiency Model no. Drain size Heat recovered* (%) ECO-GFX S mm (3") 39.0 R mm Power-Pipe R mm (3") 37.9 R mm (4") 31.5 R mm (4") 40.4 Models at 42% or greater efficiency Model no. Drain size Heat recovered* (%) ECO-GFX/ThermoDrain Watercycle Power-Pipe TD342B 75 mm (3") 42.2 TD340A 75 mm (3") 46.0 G mm (3") 46 S mm (3") 49 TD360B 75 mm (3") 53.1 S mm (4") 44.7 S mm (4") 51 DX mm (4") 44 DX mm (3") 42 R mm (3") 42.4 R mm (3") 47.3 R mm (3") 49.2 R mm (3") 53.7 R mm (3") 55 R mm (3") 58.8 R mm (3") 67.7 R mm (4") 42.4 R mm (4") 46.1 R mm (4") 52.7 R mm (4") 54.7 R mm (4") 58.4 R mm (4") 59.9 R mm (4") 62.9 R mm (4") 72.2 *Rated when at steady state 11

13 2.4 WaterSense-labelled toilets Toilets must be financed in conjunction with an energy efficient upgrade. Replace an old inefficient toilet (with a flush volume of 13 litres or more) with a new WaterSense-labelled toilet. The volume marking is usually on the toilet bowl behind the seat or inside the toilet tank. If your customer lives in Winnipeg, they may be eligible for the City of Winnipeg s residential Toilet Replacement Credit Program. ( 12

14 3.0 Participation 3.1 Important information Applying for WaterSense-labelled toilets In order for a customer to finance a WaterSense-labelled toilet, they must finance at least one energy efficiency measure with the toilet. Exceptions cannot be made. Customers who do not pay a metered water bill or pay a flat rate for water are eligible to finance WaterSense-labelled toilets as long as the energy savings from other efficient measure(s) being financed can bear the cost of the toilet(s). If the customer wants to finance a WaterSense-labelled toilet, the toilet retailer must fill out Part V of the PAYS Agreement. The customer will then give Part V to the supplier that is doing the energy efficiency upgrade (the primary contractor ). The primary contractor will include the cost of the toilet(s) in the PAYS Financing calculations. Part V must accompany Parts I through IV of the PAYS Financing Agreement at time of approval to be eligible for financing. If approval is granted, Part V will be considered its own Agreement until such time as it is incorporated into the PAYS Financing Agreement. Applying for PAYS Financing and a Home Insulation Program rebate If a customer is applying for both PAYS Financing and the Home Insulation Program for their insulation upgrade, ensure that each owner understands that the following: The Home Insulation Program rebate application must be submitted at the same time as the PAYS Financing Agreement; The rebate must be applied against the principal amount being financed through PAYS Financing; If the actual rebate amount for the work completed is determined by Manitoba Hydro to be less than the rebate amount originally estimated when the customer applied for PAYS Financing, the difference will be billed out on the customer s Manitoba Hydro account for payment. Notice registrations Through PAYS Financing, a notice will be registered against the property where the work is being done through the Land Titles office of the Government of Manitoba. A notice is registered against the property to secure the financing and allows Manitoba Hydro to offer a low interest rate to the customer. The notice also enables a PAYS Financing Agreement to be transferred from one customer to another. When a Financing Agreement has been paid in full, the notice will be removed from the property. 13

15 3.2 Supplier (contractor and retailer) participation In order to offer Power Smart programs including PAYS Financing, you must have an active Power Smart Supplier Participation Agreement in good standing with Manitoba Hydro. If several sub-trades are engaged to complete the installation, one supplier must be designated as the primary supplier and only one Agreement will be accepted from the primary supplier covering the whole amount to be financed. Registered suppliers can request program materials and loan Agreement forms by visiting the online supplier portal at hydro.mb.ca/contractors. 14

16 3.3 Customer participation The applicant must have approved credit from Manitoba Hydro prior to proceeding with the work. Manitoba Hydro does not give verbal approval for loans; a loan Agreement must be submitted prior to approval being given. The applicant must be a Manitoba Hydro customer and the owner of the property in which the energy efficient improvement(s) are to take place. The home must be the owner s primary residence (or the primary residence of the owner s tenant). In addition, the residence must be detached or semi-detached. Mobile homes on permanent foundations with a permanent water supply are also eligible, provided the customer owns the land the home is situated on. Owners of condominium units and Condominium Corporations billed at the residential rate are also eligible subject to meeting all terms and conditions applicable to homeowners. 15

17 3.4 Ineligibility Financing is not available for: Commercial properties; Unoccupied homes; Garages; Apartment buildings; Seasonal dwellings (summer homes or cottages); Projects in progress or already completed; Used equipment or materials; Natural gas/electrical materials that are not installed by an allied gas fitter/electrician licensed by the province of Manitoba; The installation of electrical equipment for any building not previously equipped with electrical service; A customer s personal labour (only materials and equipment will be covered for do-ityourself projects). Please refer to the PAYS Financing Agreement for the full terms and conditions. 16

18 3.5 Owner-performed renovation Material to be supplied by a retailer. 1) The customer visits their local participating retailer and obtains a quote on a qualifying energy efficient product. 2) The retailer uses the PAYS Financing online calculator (hydro.mb.ca/pays) to check eligibility and calculate the financing terms (see Section 4.0). 3) The retailer completes Parts I, II, and III of the PAYS Financing Agreement with the customer. The customer must complete the credit information section and sign the credit review authorization section. Where more than one person owns the property, all owners are required to sign and be listed on the Agreement. 4) The retailer s or faxes all parts (Parts I, II, III, IV and V if applicable) of the signed Agreement (and the Home Insulation Program forms if applicable) along with detailed quotes for all work being done to Manitoba Hydro for credit approval. Fax: paysfinancing@hydro.mb.ca Financing Agreements must be approved before the customer receives the materials or begins any work. 5) Manitoba Hydro conducts the credit approval process and notifies the retailer by (or fax) the status of the application. If approved, Manitoba Hydro will provide the retailer with the credit approval number which the retailer will record on the Agreement form in the space provided. The retailer will then contact the customer informing them of the application status. 6) Upon approval, the retailer will provide the homeowner with the materials to perform the renovation. a. The customer obtains any required permits and undertakes the renovation. b. The renovation work must meet the requirements of the Manitoba Building Code and applicable bylaws. c. The customer must complete the work within 6 months of the approval date. 7) Upon providing the customer with the material as specified in the Agreement, the retailer arranges for the customer to sign Part IV of the PAYS Financing Agreement (the Completion Certificate). 8) The retailer retains all pink copies for their records and gives the yellow copies to the customer. 17

19 9) The retailer mails the following original documents to Manitoba Hydro within 30 days of providing the customer with their materials: a. Original white copies of the PAYS Financing Agreement (Parts I, II, III), Completion Certificate (Part IV), and any other applicable forms (e.g. Home Insulation Program applications, Part V of the PAYS Financing Agreement for toilets, etc.). b. The customer s original invoice. The invoice for the materials must be made out to the customer and include the installation address of the energy efficient upgrade. The invoice must not be made out to Manitoba Hydro. The invoice must clearly describe the material purchased or installed (e.g. full description of home heating equipment including make, model and size/capacity) along with a complete cost breakdown. Manitoba Hydro Power Smart PAYS Financing Program 360 Portage Ave 7 th Floor Winnipeg, MB R3C 0G8 Incomplete Agreements and/or invoices will be returned to the retailer and payment will not be made until all requirements are met. 10) Manitoba Hydro s Credit & Recovery Services Department arranges for a notice to be placed on the property where the upgrade is taking place. 11) Manitoba Hydro s Customer Billing Department arranges for monthly payments to be added to the homeowner s or tenant s energy bill. 12) Manitoba Hydro s Accounts Payable Department arranges for retailer payment. Manitoba Hydro has the right to inspect/visit the building at any reasonable time from the date of the agreement until 24 months after the upgrade has been completed. 18

20 3.6 Contractor-performed renovation 1) The customer contacts a participating contractor and obtains a quote on a qualifying energy efficient product. 2) The contractor uses the PAYS Financing online calculator (hydro.mb.ca/pays) to check eligibility and calculate the financing terms (see Section 4.0). 3) The contractor completes Parts I, II, and III of the Financing Agreement with the customer. The customer must complete the credit information section and sign the credit review authorization section. Where more than one person owns the property, all owners are required to sign and be listed on the Agreement. 4) The contractor s or faxes all parts (Parts I, II, III, IV and V if applicable) of the signed Agreement (and the Home Insulation Program forms if applicable) along with detailed quotes for all work being done to Manitoba Hydro for credit approval. Fax: paysfinancing@hydro.mb.ca Financing Agreements must be approved before the contractor can begin work on the property. 5) Manitoba Hydro conducts the credit approval process and notifies the contractor by (or fax) the status of the application. If approved, Manitoba Hydro will provide the contractor with the credit approval number which the contractor will record on the Agreement form in the space provided. The contractor will then contact the customer informing them of the application status. 6) The contractor may now proceed to begin and complete the work as specified on the PAYS Agreement. a. The contractor obtains any required permits and undertakes the renovation. b. The renovation work must meet the requirements of the Manitoba Building Code and applicable bylaws. c. The contractor must complete the work within 6 months of the approval date. 7) Within 30 days of completing the work, the contractor arranges for the customer to sign Part IV of the PAYS Financing Agreement (the Completion Certificate). Do not have the owner sign the Completion Certificate until after the work is complete. 8) The contractor retains all pink copies for their records and gives the yellow copies to the customer. 19

21 9) The contractor mails the following original documents to Manitoba Hydro within 30 days of completing the work: a. Original white copies of the PAYS Financing Agreement (Parts I, II, III), Completion Certificate (Part IV), and any other applicable forms (e.g. Home Insulation Program applications, Part V of the PAYS Financing Agreement for toilets, etc.). b. The customer s original invoice. The invoice for the materials must be made out to the customer and include the installation address of the energy efficient upgrade. The invoice must not be made out to Manitoba Hydro. The invoice must clearly describe the material purchased or installed (e.g. full description of home heating equipment including make, model and size/capacity) along with a complete cost breakdown. Manitoba Hydro Power Smart PAYS Financing Program 360 Portage Ave 7 th Floor Winnipeg, MB R3C 0G8 Incomplete Agreements and/or invoices will be returned to the contractor and payment will not be made until all requirements are met. 10) Manitoba Hydro s Credit & Recovery Services Department arranges for a notice to be placed on the property where the upgrade took place. 11) Manitoba Hydro s Customer Billing Department arranges for monthly payments to be added to the homeowner s or tenant s energy bill. 12) Manitoba Hydro s Accounts Payable Department arranges for contractor payment. Manitoba Hydro has the right to inspect/visit the building at any reasonable time from the date of the Agreement until 24 months after the upgrade has been completed. 20

22 4.0 Online calculator It is the responsibility of the contractor or retailer, with the assistance of the customer, to fill out the information on the PAYS online calculator. Once all information is entered into the calculator and the terms of the Financing Agreement have been generated, the contractor or retailer must enter all of the information from the PAYS calculator on to the PAYS Financing Agreement. The PAYS calculator can be found at hydro.mb.ca/pays. Pages 22 to 34 provide a step-by-step walkthrough on how to enter information into the PAYS calculator for each product category. Please note that all calculated figures presented here are based on the energy rates at the time of publication. Your numbers may vary slightly based on the current energy rates. 21

23 4.1 Residential space heating equipment Enter all of the required information and click Continue. This will generate the monthly energy savings and the maximum eligible financing. Enter the amount your customer would like to finance and click Check Eligibility. The monthly payment and financing terms will calculate. 22

24 Note that the amount to finance must be equal to or less than the figure in the Maximum Eligible Financing field. If the total cost of the work is not eligible for financing and you try to enter a number larger than the number in the Maximum Eligible Financing field, an error message will appear with the maximum amount the customer can finance. In this case, the customer will have to pay their contractor or retailer $1,008 directly and the remaining $2,992 may be financed through PAYS. 23

25 Click Generate Financing Agreement Details and copy all information provided by the calculator including the questions answered on to the PAYS Agreement. 24

26 4.2 Insulation Enter all of the required information and click Continue. If the customer is applying for a Home Insulation Program rebate, be sure to enter the rebate amount in the applicable field. 25

27 This will generate the monthly energy savings and the maximum eligible financing. Enter the amount your customer would like to finance and click Check Eligibility. The monthly payment and financing terms will calculate. Note that the Home Insulation Program rebate amount reduces the amount to finance. Note that the amount to finance must be equal to or less than the figure in the Maximum Eligible Financing field. If the total cost of the work is not eligible for financing and you try to enter a number larger than the number in the Maximum Eligible Financing field, an error message will appear with the maximum amount the customer can finance. In this case, the customer will have to pay their contractor or retailer $899 directly and the remaining $2,101 may be financed through PAYS. 26

28 Click Generate Financing Agreement Details and copy all information provided by the calculator including the questions answered on to the PAYS Agreement. 27

29 4.3 Drain water heat recovery systems Enter all of the required information and click Continue. This will generate the monthly energy savings and the maximum eligible financing. Enter the amount your customer would like to finance and click Check Eligibility. The monthly payment and financing terms will calculate. 28

30 Because the customer has not reached the maximum financing term, they have the option to lower their monthly payment and thereby extend the term. If the customer would like to lower their monthly payment, click Yes for Would you like to see if you can lower your monthly payment?. If this customer would like to lower their monthly payment by, for example, 15%, select this percentage from the dropdown and click Calculate. The new monthly payment and financing 29

31 terms will be calculated based on this reduction. Please ensure that the percentage reduction is noted on Part I of the Agreement. If the customer is pleased with these terms, click Generate Financial Agreement Details and copy all information provided by the calculator including the questions answered on to the PAYS Agreement. 30

32 4.4 WaterSense-labelled toilets Customers will only be eligible to finance a toilet if they are also undertaking measures to improve the energy efficiency of the home. In order to enter the required information for toilets, you must also check a box for at least one other energy efficiency improvement. Enter all of the required information and click Continue. 31

33 This will generate the monthly energy savings and the maximum eligible financing. Enter the amount your customer would like to finance and click Check Eligibility. The monthly payment and financing terms will calculate. 32

34 Because the customer has not reached the maximum financing term, they have the option to lower their monthly payment and thereby extend the term. Let s say the customer is happy with the current monthly payment. Click No for Would you like to see if you can lower your monthly payment?. Click Generate Financial Agreement Details and copy all information provided by the calculator including the questions answered on to the PAYS Agreement. 33

35 34

36 5.0 Loan Agreement forms On pages 36 to 43 you will find an example of how to fill out a PAYS Agreement form for approval. This example illustrates how an Agreement form should be completed for the following hypothetical scenario: Type of work being done: upgrading from a standard to high efficiency natural gas furnace Type of home: single detached bungalow Year home was built: 1965 Size of home: 1,250 square feet Cost of upgrade: $4,200 All information provided is for illustrative and educational purposes only. Please note that all calculated figures presented here are based on the energy rates at the time of publication. Your numbers may vary slightly based on the current energy rates. 35

37 5.1 Using the PAYS online calculator Enter all of the required information and click Continue. 36

38 This will generate the monthly energy savings and the maximum eligible financing. Enter the amount your customer would like to finance and click Check Eligibility. The monthly payment and financing terms will calculate. 37

39 Note that the amount to finance must be equal to or less than the figure in the Maximum Eligible Financing field. In this case, the customer can t finance the full $4,200. They will have to pay their contractor or retailer $883 directly and the remaining $3,317 may be financed through PAYS. Click Generate Financing Agreement Details. The information generated will be used when filling out Part I of the PAYS Financing Agreement. 38

40 5.2 Filling out the PAYS Agreement form Pages 40 to 43 show an example of a correctly filled out PAYS Agreement form. For the approval process, Manitoba Hydro requires faxed or ed copies of the following: Part I Part II Part III Part IV Completion Certificate (not signed by you or the customer) Part V Toilets (only if the customer is financing toilets) To prevent delays in the approval process, please fill out all forms completely and accurately. 39

41 40

42 41

43 42

44 43

45 6.0 Tips for filling out Agreement forms Tips for obtaining approval: All owners on the house title must be listed at the top of the Agreement and must sign Part I of the Agreement. Part I of the Agreement must be dated. All owner signatures under Part I of the Agreement must be witnessed. Owners may not witness each other s signatures. The Description of Work must be filled out. Make sure the figures under the Financing Agreement section are correct. Ensure you have copied the financing figures from the PAYS online calculator (hydro.mb.ca/pays) with 100% accuracy. If your customer is eligible and would like to to lower their monthly payment, ensure that the percentage reduction is noted on Part I of the Agreement. Ensure the title of building in the Credit Information section of the Agreement lists the owner s name(s) and not the mortgage information (e.g. RBC). If the owner(s) has been at their current address for less than 5 years, the previous mailing address must be filled out. Employment and income information must be completed for all owners. If owners are not employed, the amount and source of income is still required (e.g. pension). The mortgage and fire insurance information must be completed. The Total of All Measures section (at the bottom of Part III of the Agreement) must be completed in full and signed by you. Ensure the Completion Certificate is not signed by you or the owner until all the work is done. A copy of a detailed quote must be provided. 44

46 Tips for obtaining payment: Original Agreements must be submitted for payment. Carbon copies, scanned copies, faxed copies or photocopies of Agreements will not be accepted for payment. An invoice must accompany the original white copy of the Agreement when submitting for payment. The invoice must be issued in the full name of the owner(s) (not Manitoba Hydro) and contain the address where the work was undertaken. The invoice must contain the name and mailing address of your company. Any changes made to the Financing Agreement section on Part I of the customer s original Agreement must be initialed by the owner(s). If the monthly payment increases, this must be pre-approved prior to submitting for payment. Both you and an owner are required to sign the Completion Certificate. Ensure the signatures are dated. 45

47 7.0 Frequently asked questions Q. How does PAYS Financing differ from the Power Smart Residential Loan (PSRL)? A. PAYS Financing differs from the PSRL in a number of ways: Feature PAYS PSRL Maximum financing term Monthly payment Transferability Maximum amount eligible for financing Eligible technologies Space heating systems: 20 years Insulation: 25 years Drain water heat recovery systems: 25 years Determined by the estimated utility savings of the energy efficient measure(s) being financed Can be transferred from one homeowner to another or from a property owner to a tenant Determined by the estimated utility savings of the energy efficient measure(s) being financed Natural gas furnaces and boilers Electric furnaces, boilers or baseboard heat when used as primary heating source Geothermal heat pump systems Insulation Drain water heat recovery systems WaterSense-labelled toilets (in conjunction with an energy efficiency measure) Financial security Notice placed on land title No security 5 years for all measures with the exception of high efficiency natural gas furnaces and boilers (15 years) Determined by the financing term length and amount to be financed Not transferable; balance is due upon sale of the property $7,500 for all measures with the exception of high efficiency natural gas furnaces ($5,500) Natural gas furnaces and boilers Electric furnaces Windows and doors Insulation Ventilation Air leakage sealing Natural gas water heaters Electric water heaters Electric vehicle chargers 46

48 Feature PAYS PSRL Credit criteria Tenant eligibility Utility account in good standing (i.e. no past-due amount on customer s bill) If the tenant pays the utility bill, they are eligible to have the monthly payment placed on their bill with the consent of the property owner One year minimum acceptable Manitoba Hydro bill payment history Acceptable debt to equity ratio as determined by external credit check Other processes deemed necessary at the time of application review Tenants are not eligible Q. Why must I be a registered Power Smart supplier to participate in Power Smart programs such as PAYS Financing? A. Manitoba Hydro requires suppliers to register to participate in Power Smart programs to ensure that work is completed by a licensed business, and that Freedom of Information and Privacy Protection (FIPPA) requirements are met in the collection and retention of customer s personal information. Q. Why won t PAYS let my customer finance the total cost of the work? A. All eligible technologies have a maximum term that cannot be exceeded. If PAYS only allows your customer to finance a portion of the work it is because the estimated utility savings are not large enough to pay off the entire cost of work before the maximum term is reached. Q. I checked my customer s upgrade using the PAYS calculator, and the amount eligible for financing is less than the cost of the upgrade. Can my customer use the Power Smart Residential Loan or the Energy Finance Plan to finance the portion that PAYS will not cover? A. No, you cannot combine Manitoba Hydro financing programs to complete an upgrade. In addition, PAYS Financing is offered to fund upgrades that will not increase your utility bill. Utilizing more than one program to finance the upgrade would cause your customer s utility bill to increase. Q. I used the PAYS calculator to determine how much financing my customer can get for the upgrade, and the amount seems really low. Is the calculator working correctly? 47

49 A. Yes, the calculator is working correctly. The amount your customer is eligible to finance is determined by the estimated utility savings of the measure for which they are applying. The larger the savings, the more they can finance. In addition, the current utility rates affect the customer s estimated utility savings. Manitoba benefits from some of the lowest utility rates in Canada, and these low rates have a direct impact on the utility savings your customer may realize. Q. Can I make the term of my customer s PAYS Agreement less than what the PAYS calculator generates? A. No. A term that is less than what the PAYS calculator generates would require the monthly payment to be larger than the estimated utility savings, which goes against the PAYS principle. Q. Why do you register a notice against the property where the work is being done? A. Manitoba Hydro uses the registration of a notice as a form of securitization of the financing we provide. Securing the financing via a notice allows us to mitigate the risk associated with uncollectable financing. In addition, a notice on the property allows the financing to be transferred to a new homeowner or a tenant. Q. My customer owns a commercial business. Can they finance energy efficiency upgrades through PAYS? A. No. Only residential properties are eligible for PAYS Financing. Q. Can my customer finance just toilets on their own? A. No. Bill 24 (which governs PAYS Financing) states that water conservation measures, such as toilets, can only be financed in conjunction with an energy conservation measure. Q. My customer wants to finance a toilet with their energy efficient upgrade, but I don t sell toilets. What should I do? A. Your customer will have to choose a second Power Smart registered contractor/retailer to do the toilet upgrade. The second contractor will fill out Part V of the PAYS Financing Agreement, and the customer will deliver it to you. You will then use this form to calculate your monthly payments and fill out Parts I, II, and III. Upon approval, you can begin the work, and the second contractor will either install or provide the customer with the toilet(s). The loan will be included on the customer s bill when all work is completed and the Completion Certificates have been signed. Q. My customer is financing their insulation upgrade through PAYS, and they applied for a Home Insulation Program rebate. What happens if the actual rebate is less than the amount expected at the time of pre-approval? A. If the rebate amount decreases, we will bill out the difference on the customer s Hydro account. 48

50 Q. My customer wants to upgrade their mid efficiency natural gas furnace to a high efficiency model. Why can t I find mid efficiency furnaces on the PAYS online calculator? A. Mid efficiency natural gas furnaces are not listed on the PAYS online calculator because the savings associated with upgrading from a mid to a high efficiency furnace are not sufficient to finance the upgrade through PAYS. As a result, mid efficiency furnace upgrades are not eligible through PAYS Financing. Q. What if a tenant (who is going to be responsible for the PAYS monthly payment) wants to finance a toilet, but they don t pay their water bill? A. The customer who will be responsible for making the monthly payment must benefit financially from the upgrade. Because the tenant would not benefit financially from water bill savings, they would not be able to finance a toilet. Q. Do you have any other resources to help me learn more about PAYS? A. Yes. We have a series of training videos tailored specifically to Power Smart suppliers. These videos will help you understand and fill out PAYS Agreements. The links to each video are below: PAYS Introduction PAYS How to Fill Out the Forms Obtaining Approval and Payment You can also view these videos and take quizzes on our training website ( If you would like to access additional program resources and/or order application forms or promotional materials, please visit hydro.mb.ca/contractors. 49

51 8.0 Promotion of program 8.1 Promotional materials Manitoba Hydro offers a number of free promotional materials that you can use to promote our Power Smart programs. If you would like any of the materials listed below, please visit hydro.mb.ca/contractors to place your order. Power Smart financing brochure Brochure with a tri-fold explaining residential Power Smart financing options. General financing window cling A removable rectangular decal that clings to the inside of windows. Text reads Ask a store associate about financing your energy efficient upgrades through Manitoba Hydro. Financing poster An 11 x 17 poster to use in your store or showroom. Text reads Ask a store associate about financing your energy efficient upgrades through Manitoba Hydro. 50

52 Tear-away pad (furnace information) A 5 x 8 rectangular pad of paper with information about high efficiency natural gas furnaces on the front and financing information on the back. Tear-away pad (insulation information) A 5 x 8 rectangular pad of paper with information about insulation on the front and financing/rebate information on the back. How-to booklets (on USB) Series of 9 booklets on a USB stick with images and descriptions to help customers with do-it-yourself projects. 51

53 8.2 Power Smart advertising & promotions guidelines Manitoba Hydro s licence to use the Power Smart brand comes with a legal obligation to manage how it is used by contractors and retailers. The following information will help you ensure that you are using the Power Smart wordmark and trademark in accordance to the legal requirements. These guidelines apply to both digital and static forms of advertising and promotion and include, but are not limited to online initiatives, social media, signage, in-store materials, flyers, brochures, and print or electronic ads. If you require any clarification, please contact us. How to refer to Power Smart When referring to Power Smart, you must include an asterisk on the first occurrence in body copy and include the licensee line that reads: *Manitoba Hydro is a licensee of the Trademark and Official Mark. The licensee line typically appears at the bottom of the ad, or the end of the material in small, but legible type. Example: Ask us about Manitoba Hydro s Power Smart* programs. *Manitoba Hydro is a licensee of the Trademark and Official Mark. What can I say in my advertising and promotional material? You can make general statements that you offer Power Smart programs from Manitoba Hydro. Here are some examples of acceptable wording: Ask us about Manitoba Hydro s Power Smart programs. We can help you apply for Manitoba Hydro s financing and rebate programs. Save with Power Smart financing from Manitoba Hydro. What can t I say in my advertising and promotional material? You cannot use any wording that states or implies the existence of a partnership, agency arrangement, employment arrangement, or any other affiliation with Manitoba Hydro, or wording that otherwise falsely presents or promotes the programs offered by Manitoba Hydro. Any actual or suspected violation may result in suspension or termination of your Power Smart Supplier Participation Agreement and legal action. Here are some examples of unacceptable wording: Official partner of Manitoba Hydro Power Smart. A Manitoba Hydro-endorsed company. Get a cheap furnace through Manitoba Hydro! 52

54 Make money through Manitoba Hydro s programs Working with Manitoba Hydro to save you money. Can I use the Manitoba Hydro logo or Power Smart logo in my advertisements? No. The Manitoba Hydro logo and Power Smart logo may not be used by third parties such as retailers, contractors, builders, or manufacturers. Only Manitoba Hydro may use the Manitoba Hydro and Power Smart logos. Using the Manitoba Hydro logo or Power Smart logo in your advertisements or on your website may result in suspension or termination of your Power Smart Supplier Participation Agreement and/or legal action. Are there any other restrictions as to what I can and can t do to promote Power Smart programs? Yes. The following can also result in suspension, termination, and/or legal action: Going door-to-door or cold calling customers to promote Power Smart programs; Stating or implying that you are from Manitoba Hydro, or an agent or representative of Manitoba Hydro; Stating or implying that you have an employer-employee relationship with Manitoba Hydro. 53

55

56 Available in accessible formats upon request. January 2018 *Manitoba Hydro is a licensee of the Trademark and Official Mark.