In a few weeks, the federal government is set to terminate a program that encourages homeowners to upgrade their properties for energy efficiency, including enhancements like better insulation, window replacements, and heat pump installations.
Homeowners participating in the program were recently informed via email that the Canada Greener Homes Loan will no longer accept applications after October 1, 2025. Due to depleting funds, even applicants before the deadline may not secure the loan.
The program, which commenced in May 2021, has provided interest-free loans ranging from $5,000 to $40,000, along with mandatory pre- and post-retrofit assessments. Efficiency Canada’s Brendan Haley expressed concerns over the sudden discontinuation of the program, highlighting its adverse impact on businesses, skilled trade jobs, and consumer trust.
Haley emphasized the positive aspects of the Canada Greener Homes Loan, stating that it aids in reducing greenhouse gas emissions, addressing affordability issues, and creating employment opportunities.
Notably, the popular Canada Greener Homes Grant, which offered up to $5,000 for energy efficiency upgrades, stopped receiving applications last year. Haley lamented that with the grant canceled, and now the loan program facing closure, there is no federal government recourse for middle-income Canadians seeking financial assistance to lower energy costs and carbon emissions.
According to a Canada Mortgage and Housing Corporation spokesperson, over 120,000 loans have been committed, amounting to $2.9 billion. While the Canada Greener Affordable Housing program and the Oil to Heat Pump Affordability program will continue, the federal government has introduced a replacement grant program, currently limited to Manitoba and primarily focused on low-income households.
During the recent federal election, the Liberal platform included commitments to expand retrofit programs, particularly targeting low- and middle-income households, renters, and initiatives to support carbon footprint reduction by major polluters. There was no immediate response from Minister of Housing and Infrastructure Gregor Robertson’s spokesperson regarding comments on the matter.