Part 1: The Project
We're building 12 units in Surrey past what the code requires. Here's the case, with the numbers.
Built Futures was engaged by an ownership group on a 12-unit infill development in Surrey — two phases, across two adjacent properties. The principal is also a partner in the project.
That second part matters for how you read this series. Because in addition to a client case study, it's also our own capital in the ground, which means every number here is one we actually had to live with.
We're going to publish them as we go.
| Location | Surrey, BC — SSMUH infill |
| Total units | 12, across two phases |
| Phase 1 | 8 units — two four-unit houseplexes |
| Phase 2 | 4 units — one four-unit houseplex |
| Standard | BC Energy Step Code 4 + Zero Carbon Step Code EL-4 |
| Mechanical | Air-source heat pump (principal), gas furnace backup, electric hot water, HRV per unit |
| Status | Phase 1 in permit application; Phase 2 in design |
What the energy model actually says
Surrey required Step 3. The building is modelled at Step 4, and at EL-4 on the Zero Carbon Step Code — the top level.
| Metric | Code requirement | This project |
|---|---|---|
| Energy Step Code | Step 3 | Step 4 |
| Zero Carbon Step Code | — | EL-4 |
| Rated energy use | 136 GJ/yr reference | 75 GJ/yr |
| Mechanical energy improvement | 40% min | 45% |
| Thermal energy demand (TEDI) | 25 max | 11 |
| Airtightness | 1.5 ACH max | 1.50 |
| Annual GHG | 1,060 kg CO₂e max | 545 |
Modelled figures, pre-construction, verified at completion by blower-door test and as-built report. EL-4 is achieved on the GHG performance path; the building retains a gas furnace as backup heat.
Two things worth pulling out of that table. The building uses about 45% less energy than the code reference — that's the buyer's utility bill, every month, for as long as they own it. And annual emissions come in at roughly half the allowable cap.
Why we built past code
The decision was made on cost, not principle. The evidence supported it three separate ways:
The rebates roughly cover the upgrade. Step 3 to Step 4 runs about $8,000–$15,000 per unit. Stacked provincial and utility rebates land in a similar range. The premium largely pays for itself.
Rated homes sell for more. A 2025 global meta-regression on housing found a 4.2% sale premium for energy-rated homes over comparable unrated ones.
The buyer gets paid too. Qualifying energy-efficient new builds with CMHC-insured mortgages can have 25% of the mortgage insurance premium refunded through CMHC Eco Plus. The threshold is 20% better than code. This project models at 45%.
Builder side, buyer side, and operating cost. That's the whole argument for going early, and none of it depends on anyone caring about carbon.
What we left on the table
The building runs a heat pump as principal heating and cooling, electric hot water, and a gas furnace as backup for cold snaps. Gas was already serviced to the property, so the hybrid was cheap to do and covers peak heating load.
That one appliance is the difference between this and a fully electric building — and a fully electric building would have earned another $4,000 per unit in CleanBC's no-fossil-fuel bonus. Roughly $48,000 across 12 units.
We took the reliability and the lower install cost instead. It was a defensible trade, but it was a trade, and we'll show the full math in a later post.
What's next
Post 2 — The grants: what the rebate stack actually pays, program by program, and what it takes to keep it.
Figures in this series are calculated estimates that evolve as the project progresses, and may change with the financial environment and construction costs. Energy figures are modelled pre-construction and subject to as-built verification. Program criteria and rebate amounts are current as of publication and subject to change by the administering bodies. Nothing here is financial advice.