If you are planning a custom home in Metro Vancouver or the Fraser Valley, energy performance is no longer optional. The BC Energy Step Code sets mandatory efficiency targets for new construction, and those requirements have been tightening, with more changes coming before 2032.

For most homeowners, Step Code feels like a compliance hurdle. Done right, it is something different: an opportunity to build a home that costs less to run, performs better year-round, and holds its value as the market increasingly recognizes these qualities.

Here is what you actually need to know before you start designing.

What Is the BC Energy Step Code?

The BC Energy and Zero Carbon Step Codes⁠ are provincial, performance-based standards that set measurable energy efficiency and airtightness targets for new residential buildings. They work alongside the BC Building Code and are structured in steps, from Step 1 up to Step 5, which is Net-Zero Energy Ready.

The step your home must meet depends on where you are building. Each municipality sets its own minimum requirement, and those minimums have been rising steadily.

As of 2026, here is where key municipalities in our service area stand for new single-family homes:

• City of Vancouver — follows the Vancouver Building Bylaw, which as of September 2025 aligns with Zero Carbon Step Code EL-4. Vancouver uses its own checklist system rather than Step Code directly, but the performance expectations are equivalent or higher. You can review Vancouver energy efficiency requirements for homes⁠ here.
• Burnaby — Energy Step Code Step 3 and Zero Carbon EL-4, in effect since January 2025. Burnaby’s green building requirements⁠ provide more detail.
• West Vancouver — Zero Carbon Step Code EL-3, in effect since November 2023
• Coquitlam — Step 3, in effect since May 2023
• Most other Metro Vancouver and Fraser Valley municipalities — Step 3 minimum as of 2025, with many moving toward Step 4

The trajectory is clear: requirements are moving up. By 2032, Step 5 becomes mandatory province-wide for all new BC buildings. What is optional today will be required tomorrow.

What Step Code Actually Requires in Practice

Step Code is performance-based. That means it does not prescribe exactly how you build. Instead, it sets targets your home must hit, and you choose how to reach them.

Those targets are measured in two main ways:

• Thermal Energy Demand Intensity (TEDI) — how much energy your home needs for heating and cooling per square metre. A tighter, better-insulated building envelope leads to a lower TEDI.
• Greenhouse Gas Intensity (GHGI) — the carbon emissions your home’s energy systems produce per square metre per year. This is where heating system choice matters.

At Step 3 and above, most homes will need:

• enhanced insulation throughout the building envelope
• high-performance windows and doors, often triple-pane at upper steps
• a well-sealed building envelope verified by blower door testing
• HRV or ERV ventilation to maintain air quality in a tighter home
• an energy model completed by a registered Energy Advisor before and after construction

At Zero Carbon Step Code levels, the heating system itself becomes more important. Gas furnaces become harder to use at higher performance levels. Electric heat pumps, which provide both heating and cooling efficiently, are now the standard choice for many new custom homes targeting upper Step Code levels.

Why This Matters More Than Compliance

The energy model for your home is not just a permit document. It shapes decisions that affect comfort, efficiency, and operating cost for decades.

A home built to Step 3 or Step 4 will usually:

• hold more consistent indoor temperatures
• cost less to heat and cool
• perform better in both winter and summer
• reduce the risk of moisture-related issues through better envelope detailing
• qualify for rebates that are not available to homes built only to minimum standards

That last point matters. Better Homes BC rebates⁠ and broader CleanBC rebates and incentives⁠ can provide meaningful support for homeowners building higher-performance homes with electric systems such as heat pumps.

The Catch: It Has to Be Planned Early

Step Code compliance is not something you add at the end of a project. It affects key decisions made during design, including insulation strategy, window specifications, mechanical systems, airtightness details, and how all of those parts work together.

The energy model should be one of the first things reviewed, not one of the last.

If the design team is finalizing drawings without input from an energy advisor, the project is far more likely to run into either compliance issues or costly redesigns.

This is one of the clearest examples of why early builder involvement matters⁠. At Venture Pacific, we coordinate with the design team and the energy advisor from the beginning of the planning process. We align the building envelope, mechanical systems, and construction strategy before drawings are finalized. That reduces surprises later and helps the project move more smoothly through permits and inspections.

This also connects closely to custom home cost in Vancouver⁠, because energy performance requirements directly affect pricing, materials, systems, and long-term value.

What to Expect on a High-Performance Custom Home

Building to Step 3 or Step 4 does add cost compared to a minimum-compliance home, but the premium is often smaller than homeowners expect when it is planned from the beginning.

The biggest cost drivers at higher Step Code levels are usually:

• triple-pane windows
• stronger wall and roof assemblies
• heat pump systems
• Energy Advisor fees and testing
• more careful detailing to meet airtightness targets

When these elements are built into the project early, and available rebates are factored in, the net added cost is often far more manageable than homeowners assume.

That is one reason how the right builder helps create a stress free custom home or renovation⁠ is such an important part of the conversation. High-performance homes need more planning, but they also benefit more from early structure and coordination.

The Bigger Picture

Climate goals are pushing building code requirements in one direction: higher performance and lower carbon.

The Step Code path is not likely to reverse. Step 5 by 2032 is the provincial mandate.

A custom home built to Step 3 or Step 4 today is ahead of that curve. A home built only to minimum requirements today may feel dated much sooner and may require expensive upgrades long before the homeowner expects.

For homeowners who plan to live in their home long term, the case for building to upper Step Code levels is simple: better comfort, lower operating costs, stronger long-term value, and incentives that are available now but may not always remain.

If you are still deciding whether a new build is the right path, it may also help to read Custom Home or Major Renovation: Which Is Right for You?⁠

Ready to Plan a High-Performance Custom Home?

At Venture Pacific Construction Management, high-performance construction is part of how we approach every custom home project.

If you are thinking about a custom build in Metro Vancouver or the Fraser Valley and want to understand what Step Code means for your specific project, book a free consultation⁠ with our team.