At Novell Design Build, we understand how crucial it is for homeowners to navigate the complexities of building or renovating a home. One significant aspect you may encounter is the British Columbia Step Code, a progressive framework aimed at improving energy efficiency in buildings across the province. This blog post aims to demystify the Step Code, outlining its importance and implications for your home project.
Why is there a step code?
In striving to reduce our carbon footprint, the government is regulating that future homes will need to be Net-Zero. But, what does that mean? Net Zero homes are highly efficient homes that are carbon neutral when renewable energy sources such as solar panels are installed. Homes that meet these specifications but do not have the renewable energy systems hooked up are considered Net-Zero Ready. To achieve this goal, the province has introduced the BC Step Code as part of the province’s Building Act to serve as the roadmap to Net-Zero. The code is structured in "steps," ranging from Step 1 to Step 5, with each step mandating higher energy performance levels. The ultimate goal is that all new homes built in BC by 2032 will be Net-Zero Ready.
How is this implemented?
It is up to your local municipality or authority having jurisdiction (AHJ) to dictate the pace at which they implement the various steps before full implementation of step code 5 by 2032. For example, the City of Burnaby requires all Part 9 residential buildings (which are all buildings less than 3 storeys in height, with a building footprint not exceeding 6,458 square feet) to meet minimum step code 3. Neighbouring New Westminster, as of January 2025, requires a minimum step code 4 on all new homes. One exception is the City of Vancouver, which has its own program because it is a “Charter City” with gives it autonomy to create and enforce the Vancouver Building By-law (VBBL). This is the Vancouver specific program for achieving higher energy-performing buildings.
Homeowners wishing to build a new home should also be aware that the step code is a minimum requirement. If you wish to build a high-performance home exceeding the current step code in your AHJ, it is certainly encouraged, and there are additional incentives depending on your AHJ. One example is a percentage bonus of additional FSR (floor space ratio) in addition to the maximum allowed in your zoning district. This will enable you to build bigger if your home has higher energy efficiency targets.

So what are the requirements for each step code?
Step 1: Energy Efficiency Standards
- Focus: Basic energy efficiency compliance.
- Requirements:
- Meets the provincial energy efficiency requirements set out in the BC Building Code.
- Minimal improvements over the existing code standards but includes basic insulation and air sealing guidelines.
- Energy use must be documented and must meet specific benchmarks for energy efficiency.
Step 2: Enhanced Energy Performance
- Focus: Improved energy efficiency metrics and building performance.
- Requirements:
- A slight increase in insulation levels.
- More stringent air leakage targets, requiring better air sealing in buildings.
- Additional energy modeling may be required to demonstrate compliance.
- Basics of heat recovery, and energy-efficient appliances could also be encouraged.
Step 3: Significant Energy Reductions
- Focus: Higher performance with a greater emphasis on energy savings.
- Requirements:
- Further increases in insulation levels and overall building envelope performance.
- Enhanced ventilation systems, including heat recovery ventilators (HRVs).
- Windows and doors must meet higher energy performance standards.
- Energy modeling and assessments are often required to prove compliance.
- Introduction of low carbon energy sources, although not mandatory.
Step 4: Advanced Energy Efficiency
- Focus: High-performance buildings designed for net-zero energy readiness.
- Requirements:
- High-performance envelope with advanced insulation and air tightness.
- Comprehensive building energy modeling to forecast energy use and compliance.
- Renewable energy systems, such as solar panels, encouraged and often integrated within designs.
- Efficiency measures must deliver substantial reductions in energy consumption without sacrificing comfort.
Step 5: Net-Zero Energy Ready
- Focus: Buildings capable of producing as much energy as they consume over a year.
- Requirements:
- Net-zero energy performance targeting both new builds and major renovations.
- Full implementation of renewable energy systems (e.g., solar photovoltaics) to offset annual energy consumption.
- Extremely high performance levels in insulation, air sealing, and ventilation systems.
- Compliance might involve advanced energy modeling and diagnostics to ensure energy targets are met.
Need more help navigating the BC Energy Step Code? Want your new home to be Net-Zero Ready? Contact us here, and together with our Certified Energy Advisor partners, we can help develop a plan for your project to meet and/or exceed energy efficiency requirements to suit the needs of your specific project.
.jpg)


