The Liberal government’s new $15-billion climate action plan includes welcome incentives for green renovations, the Canadian Home Builders’ Association said Monday.

But the CHBA also warned regulators must be careful not to raise housing costs too steeply when updating the building code, which could outlast incentive programs and make renovations more expensive down the line.

The government announced a plan to address climate change on Friday, a step toward its goal of lowering greenhouse gas emissions by up to 40 per cent between 2005 and 2030. The plan targets several industries, such as transportation and energy, but also pledges $2.6 billion over seven years to homeowners.

Among the potential changes are $5,000 grants for homeowners, free EnerGuide assessments, and a new model code for retrofitting homes with green technology.

The builders’ association has been pushing for the green grant program, CHBA chief executive Kevin Lee says, to upgrade old homes that lack air sealing, heat recovery ventilation systems, and up-to-scratch basics like insulation, furnaces and water heaters.

The free assessments are also helpful for homeowners, who are sometimes deterred by big-ticket items like windows and overlook low-cost renovations, like attic insulation, that can save them money on energy bills, Lee says.

“I think the education and energy literacy that comes along with this type of programming is very important,” Lee says, adding that the advisers can show people the potential of how to get the best return on investment in terms of saving on energy costs.

“If they have the budget, and they can do it over many years, which is the nice thing about the way the program’s laid out. That offers a heck of a lot to today’s homeowner rather than just a flat out, ‘Here’s a few bucks to do a little bit of work.”

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