BC Step Code Explained: What Net Zero Means for Your 2032 Build

BC will require every new home to be net zero energy ready by 2032. The BC Energy Step Code is the regulatory path that gets us there. Most builders are not where they need to be. Most clients have heard the term and are not sure what it means in practice.

This guide is written for anyone planning a custom home in the next two to five years. If your build will be permitted between 2024 and 2032, the Step Code already affects your design, your budget, and your timeline. Knowing how it works lets you ask the right questions before you sign a construction contract.

It is also a guide to where Major Homes sits on the code curve. Since 2016, we have been building above the minimum required step for our region. That is the context for what follows.

The BC Energy Step Code is a tiered regulatory framework for the energy performance of new construction. It was introduced in 2017 as an amendment to the BC Building Code, and it provides a clear, measurable path to net zero ready performance.

The structure has five steps for Part 9 residential buildings, which is the category most single family and multi family custom homes fall into. Step 1 is the lowest performance bar, and Step 5 is net zero ready. Each step is defined by two metrics: a maximum heat loss through the building envelope, and a maximum total energy use per square metre per year.

Municipalities adopt the steps on their own schedules. Vancouver, the District of North Vancouver, and the City of Burnaby have all adopted higher steps earlier than the provincial minimum. Other Lower Mainland municipalities follow shortly behind. By 2032, every municipality is required to be at Step 5.

You can read the official documentation at the BC Energy Step Code site.

The phrase net zero energy ready is technical. Here is the working definition.

A net zero energy ready home is designed and built so that it could produce as much energy as it consumes on an annual basis, once renewable systems are added. The home itself does not have to include solar panels on day one. It has to be built to a performance standard where, if panels were added, the math would balance.

The practical implications of that standard are significant. The envelope has to be airtight, with continuous insulation, high performance windows, and detailed flashing. The mechanical systems have to be efficient: heat pumps for heating and cooling, heat recovery ventilation for fresh air, and high efficiency hot water systems. The electrical system has to be sized and conduited so that solar panels and battery storage can be added without major rewiring.

A net zero ready home is not a futuristic concept. It is a house with very good walls, very good windows, and a well designed mechanical room. Major Homes has been building close to this standard since 2016.

The cost difference between the lowest step and net zero ready is real, but smaller than most people assume. Industry analysis across BC suggests the upgrade from Step 1 baseline to Step 5 adds 4 to 8 percent to the construction budget, depending on the home's size and the choices made.

The upgrades themselves break down roughly like this.

Three factors make early adoption of higher Step Code performance the cheaper long term decision.

First, operating cost. A home built to Step 4 or Step 5 in Greater Vancouver consumes between 30 and 50 percent less annual energy than a Step 1 or Step 2 home of the same size. Over a 25 year ownership period, the savings typically equal or exceed the additional construction cost.

Second, resale value. Buyers in 2026 and beyond will be increasingly conscious of operating cost and code compliance. A home built to Step 5 in 2024 will read as a modern home in 2032. A home built to Step 1 in 2024 will read as a legacy home that needs retrofitting.

Third, regulatory headroom. The Step Code progression is published. Step 3 is widely adopted now, and Step 4 and Step 5 are coming. A home built to current minimum will be retrofittable, but the work is expensive and disruptive. Doing it once, at construction, is dramatically cheaper than doing it twice.

The owners we work with who choose higher Step Code performance treat it the way they treat foundation engineering: something you only do once, and you do it correctly the first time.

If you are interviewing builders for a custom home anywhere in Greater Vancouver in 2024 or beyond, these five questions will tell you whether the firm is ready for the Step Code horizon.

We launched our sustainability program in 2016. The decision was simple. Every home would carry an EnerGuide rating, and we would specify to performance, not to minimum code.

In the years since, the standard has become more detailed. EnerGuide rating on every home. Built Green Canada certification on the majority of projects. Heat pump as the primary heating and cooling system on every home. Triple pane windows specified for orientation on every home. Solar ready conduit and structural provisions on every home. Heat recovery ventilation on every home. Blower door testing and air barrier verification on every home.

The sum of those standards is that our typical 2024 build sits between Step 3 and Step 5 depending on the municipality and the design. Most of our current work in the District of North Vancouver and West Vancouver is at Step 4 or above.

In 2023, Built Green Canada named Major Homes the inaugural recipient of its Transformational Maverick Award for exactly this work. We wrote about what the Maverick Award recognized and how the program developed.

The owners we work with who think two to five years ahead get the calmest builds. They have time to walk lots before purchase, to choose architects whose vocabulary fits the code horizon, and to design a home that meets the regulation without compromise.

The owners who wait until permit submission to ask about the Step Code often have to rework drawings, swap mechanical equipment, and absorb a budget impact that better timing would have avoided.

If you are at any stage of considering a Greater Vancouver custom home build, the consultation phase is a no cost first step. We will walk through the Step Code implications for your specific lot and your specific design priorities. You can reach the team through the contact page or read more about our custom home service and our project management approach.