TGS Version 3: Is a No-Cost Geothermal System the Silver Bullet?

Developers in the Greater Toronto Area are facing heightened pressure to meet incredibly challenging energy and carbon targets without impacting the project pro-forma and adding complexity. In May of 2018, the City of Toronto released the Toronto Green Standard Version 3. The TGS is revised to become more demanding every 4 years with the ultimate goal to achieve zero carbon buildings by 2030. Buildings must now be 25% more energy efficient than the national code. Standard envelope and standard mechanical systems will fall short of this target, forcing developers to look at alternative technologies that are more costly and complex.

“Developers have a greater responsibility to improve building performance and lessen the overall impact on site.” Says Kenny Smith, Managing Principal of Integral Engineering’s Toronto office. “As a result of TGS version 3, conventional methods of design and technologies will fall short, requiring our clients to look at more advanced engineering solutions that may have a material impact on their ‘business as usual’ construction budget.  It doesn’t have to if they combine true integrated design, early involvement of the right expertise, realistic cost control and methods to bring alternative sources of financing/implementation“


Diverso Energy has a unique solution that not only allows developers to meet these new energy and carbon standards, but it does so by lowering their overall budget, not increasing it. Diverso owns, operates and maintains the geothermal ground loop, removing all risk from the developer. This geothermal utility model allows developers to meet new energy standards without compromising on the design of their project or their financial target. In fact, by eliminating the need for rooftop cooling units, developers will see a reduction in required capital investment.

The single act of integrating a Diverso Energy geothermal solution into a development will not only meet TGS Version 3 energy and greenhouse gas emission requirements, but in most cases it exceeds the mandated Tier 1 standard, allowing developers to be eligible for TGS Tier 2 performance rebates. A Diverso Energy geothermal utility solution achieves all this while reducing capital investment, increasing potential rooftop amenity space, improving the marketability of the building and effectively reducing Toronto greenhouse gas emissions. 

To learn more about the new Toronto Green Standard Version 3, click here.

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