Saskatchewan's energy code uses a five-tier system to set energy efficiency targets for new residential construction, with Tier 1 as the provincial baseline and Tier 5 as the highest performance level. Understanding what each tier requires — and what it costs and unlocks — is the starting point for any energy code conversation in this province.
This article gives you a plain-language introduction so you can read other articles on this site with full context, and have more productive conversations with your permit office, Energy Adviser, and trades.
What the tier system is
Section 9.36 of the NBC 2020 (National Building Code 2020), as adopted in Saskatchewan, establishes a tiered system of energy performance requirements for new Part 9 residential buildings — that is, houses and small buildings of three storeys or fewer. The tiers run from Tier 1 (the code minimum) to Tier 5 (the highest performance level), with each step representing a meaningful improvement in a home's overall energy efficiency.
The tier system exists to give builders, municipalities, and homeowners a shared language for talking about energy performance. Instead of comparing raw numbers, you can say "this home was built to Tier 2" and everyone in the conversation knows roughly what that means.
A tier isn't achieved by any single building component; no one piece of insulation or furnace "earns" you a tier. Each tier sets targets for the home's overall energy performance, based on how the envelope and mechanical systems work together.
The five tiers at a glance
Breaking down each tier
Tier 1: The provincial baseline
Tier 1 is the minimum energy efficiency requirement under Section 9.36 of the NBC 2020 as adopted in Saskatchewan. Meeting Tier 1 means satisfying the code's prescribed minimums for insulation, windows, air tightness, and mechanical system efficiency for Climate Zone 7A — Saskatchewan's designated climate zone under the NBC 2020, reflecting our cold continental climate.
Tier 1 is achievable through the prescriptive path, which means following fixed minimum values for each building component as set out in the code tables. No energy modelling is required. Many builders find that their standard assemblies are already close to Tier 1 compliance, which is part of why it remains the most common baseline outside Saskatoon.
While Tier 1 is the provincial minimum, some municipalities have adopted a higher local requirement. If you're building in the City of Saskatoon, Tier 1 alone won't get you a permit as the local minimum is currently Tier 2.
Tier 2: The Saskatoon baseline and a common target
Tier 2 represents a moderate step up in performance. It calls for tighter air sealing, better overall envelope performance, and more efficient mechanical systems than Tier 1 but it's well within reach for most Saskatchewan builders, particularly when using the performance path.
The City of Saskatoon currently requires Tier 2 as its minimum for new residential construction, which makes it the de facto starting point for a large share of the province's residential construction.
Tier 2 is technically achievable via the prescriptive path, but most builders use the performance path here: HOT2000 (federal energy modelling software) run by a licensed Energy Adviser (a certified professional who models a home's energy performance and produces EnerGuide ratings — standardized assessments of overall energy efficiency). The flexibility of modelling typically makes Tier 2 more cost-effective than prescriptive compliance, because the model can find the most efficient combination of envelope and mechanical improvements for your specific design rather than forcing you to hit each component's prescribed value individually.
Tier 3: High performance
Tier 3 is where the home's energy performance becomes tangible to the people living in it, with noticeably lower heating costs, more even temperatures, and a quieter, more comfortable interior. The efficiency improvements are significant enough that buyers increasingly ask about tier levels when evaluating new homes. It's not yet universal in Saskatchewan — but builders who can speak to this confidently, and document it with an EnerGuide label, are ahead of where the market is heading.
As with Tier 2, most builders follow the performance path to achieve Tier 3 status. That means engaging a licensed Energy Adviser from early in your design process, before your mechanical and envelope specifications are locked in because that's when the model can actually shape decisions. The EnerGuide rating (a standardized score of the home's energy use) produced through the HOT2000 modelling process is also required to access the Homes Beyond Code rebates at this tier.
A growing number of Saskatchewan builders are targeting Tier 3 voluntarily, both for the rebate value and as a selling point in a competitive new-home market.
At the time of writing this article (April 2026), the rebates were as follows:
Tier 3:
- Homeowner rebate: $3,000
- Home Builder rebate: $800
Tier 4:
- Homeowner rebate: $5,000
- Home Builder rebate: $800
Tier 5:
- Homeowner rebate: $9,000
- Home Builder rebate: $800
Rebates for Multi-Unit Residential Buildings (MURBs):
- Homeowner rebate: Applicable tiered rebate per unit home as shown above in 5(e)(ii).
- Home Builder rebate: $800 per building, not per unit.
To confirm the latest rebates, check the Homes Beyond Code website.
Tiers 4 and 5: near net-zero and net-zero ready
Tier 4 is near-net-zero energy ready, meaning the home's envelope and mechanical systems are capable of approaching net-zero energy use, though they may not generate enough on-site energy to fully achieve it without additional measures like solar panels. Tier 5 is net-zero energy ready, the top of the scale.
In practice, very few Saskatchewan residential builders are currently targeting Tiers 4 or 5. The cost premium is significant (BILD Alberta estimates a 7-25% increase in construction costs, or a $20,000-$77,000 impact per home), and the market hasn't broadly moved to reflect it yet. That said, the tier system was deliberately designed to give builders and municipalities a clear pathway to higher performance over time; these tiers exist so the goalposts are already set when the market gets there.
If you have a client who wants to build to Tier 4 or 5, the conversation starts with a licensed Energy Adviser and a HOT2000 model.
How tiers are actually measured
Each tier is defined by maximum allowable values for two performance metrics. Understanding what these measure — even at a high level — helps explain why no single component "achieves" a tier on its own.
TEDI (Thermal Energy Demand Intensity) measures how much energy the home's envelope needs to maintain comfortable temperatures, expressed in kWh per square metre of heated floor area per year (kWh/m²·year). A lower TEDI means the building shell itself is doing more work to hold heat, through better insulation, better windows, and tighter air sealing.
MEUI (Mechanical Energy Use Intensity) measures the energy used by the home's mechanical systems, such as heating, cooling, ventilation, and hot water. Like TEDI, it’s expressed in kWh/m²·year. A lower MEUI means more efficient equipment and systems.
Each tier sets a maximum for both TEDI and MEUI. That's why the tier you reach is a function of how the whole building performs, the envelope and mechanical together. A very efficient heating system can partially offset a less insulated envelope, and vice versa. This is exactly what the performance path is designed to take advantage of.
Which tier applies to your project?
The authority having jurisdiction (AHJ) — the local municipality or regulatory body responsible for permits and code enforcement in your area — sets the minimum tier requirement for your project. When in doubt, ask your permit office directly.
Saskatoon vs. the rest of Saskatchewan
Saskatchewan's provincial energy code sets Tier 1 as the minimum for new residential construction across the province. But municipalities can adopt a stricter local requirement, and the City of Saskatoon has done exactly that: it currently requires Tier 2 for new residential construction.
If you're building inside Saskatoon city limits, your designs, specifications, and Energy Adviser engagement all need to be calibrated to Tier 2 from the start. The difference is real, and it affects your insulation strategy, air-barrier detailing, and mechanical system choices.
Outside Saskatoon, requirements vary by municipality. Tier 1 is the provincial floor, but it's worth a quick call to your local permit office to confirm what's being enforced before you finalize your design.
Talking to clients about tiers
Most clients don't know what a tier is, and they don't need to. What they do understand is comfort, lower utility bills, and getting value for what they're spending. Your job in the client conversation isn't to explain the code; it's to translate what the tier means in terms they care about.
Here's a starting point for each tier your clients are likely to ask about:
Tier 1 meets the provincial minimum. It's a compliant home, but it's not a selling point; it's a baseline.
Tier 2 is the Saskatoon starting point and a meaningful step up. Clients building in Saskatoon are already getting this whether they ask for it or not. Outside Saskatoon, it's worth framing as: "this is what the city requires; it's a stronger, more comfortable home than the provincial minimum."
Tier 3 is where the difference becomes tangible for the person living there. More consistent temperatures from room to room. Lower heating bills over Saskatchewan's long winters. A quieter, better-sealed interior. Fresher air from controlled ventilation rather than random air leakage. Clients don't always know to ask for this, but when you describe it in those terms, most of them want it. The SaskEnergy homeowner rebate at Tier 3 is currently $3,000, which softens the cost conversation considerably.
Tiers 4 and 5 are for clients specifically seeking a high-performance or near-net-zero home. The homeowner rebates at these tiers — $5,000 and $9,000, respectively — are meaningful, but the conversation starts with what the client wants for their home, not the rebate. If a client is asking for it, the performance path and a capable Energy Adviser are your starting point.
One practical note: clients who are energy-conscious, thinking about long-term operating costs, or curious about EnerGuide ratings are becoming more common in Saskatchewan. Builders who can speak fluently about tiers — and show what each tier means in real terms — are better positioned than those who can't. You don't need to sell the code. You need to sell the outcome.
Getting started
- Confirm your tier requirement before you design. Ask your local AHJ what tier your municipality currently requires. If you're building in Saskatoon, that's Tier 2. Elsewhere in Saskatchewan, Tier 1 is the floor, but confirm locally.
- Decide early if you're targeting a higher tier. If SaskEnergy rebates are part of your business case, or if you're building for a buyer who cares about energy costs, Tier 2 or Tier 3 may be worth pursuing from the start. It's far easier to design toward a tier target than to retrofit your specifications after your drawings are finished.
- Engage a licensed Energy Adviser if you're targeting Tier 2 or above. The performance path — using HOT2000 to model your home's energy performance — is the most practical route to Tier 2 and the only practical route to Tier 3 or higher. Getting an Energy Adviser involved before your mechanical and envelope specs are finalized is the move. See What does an Energy Adviser do? for how that process works.
- Read the compliance paths article next. How you demonstrate compliance is a separate question from what tier you're targeting and the two choices interact in ways that affect your total project cost. See Which compliance path should you use? for a full breakdown.
