Looking to make your home more energy-efficient without breaking the bank? The Canada Greener Homes Loan is here to help. This federal program provides interest-free loans of up to $40,000, making it easier for homeowners to tackle major energy-saving upgrades.
What is the Canada Greener Homes Loan?
The Canada Greener Homes Loan is a federal initiative designed to help Canadian homeowners invest in energy-efficient retrofits. It covers big-ticket upgrades that can lower your energy use, shrink your carbon footprint, and make your home more comfortable.
Key features of the loan
- Interest-free: Borrow up to $40,000 without paying any interest.
- Flexible terms: Repayment can be spread over 10 years, with options for flexible payment amounts within that timeframe.
- Focused on efficiency: Covers major retrofits recommended by an energy advisor, including smaller upgrades like air sealing or smart thermostats when combined with larger projects.
What kinds of upgrades can the Canada Greener Homes Loan fund?
The Canada Greener Homes Loan helps Canadian homeowners improve their homes. It makes them more energy-efficient, eco-friendly, and comfortable. Some eligible upgrades include:
- Switching to renewable energy, such as solar panels.
- Adding insulation to walls, attics, or basements.
- Upgrading windows and doors to energy-efficient models.
- Installing heat pumps for efficient heating and cooling.
- And more!
Check Eligible retrofits and grant amounts for more information on what retrofits qualify for funding.
Which retrofits are ineligible for the Canada Greener Homes Loan?
Before diving into your energy-efficient upgrades, it's important to know which projects won’t qualify for funding under the Canada Greener Homes Loan. This can save you time, money, and frustration as you plan your renovations. Here's a summary of retrofits and scenarios that are ineligible:
General rules for ineligible retrofits
- Pre-existing work: Retrofits completed before a pre-retrofit EnerGuide evaluation or prior to December 1, 2020, are not eligible.
- New home additions: Products installed in additions built after the pre-retrofit evaluation won’t qualify, as these areas are considered "new" and outside the scope of the program.
- Rebuild projects: If your renovation is part of a significant rebuild, the eligibility of certain upgrades may depend on the extent of the reconstruction. Check with the program for guidance before starting work.
Specific retrofits that don’t qualify
- Insulation for new areas: Insulating new sections of the home, such as walls or attics in an addition, won’t be covered and may reduce your overall eligible funding.
- Windows and doors in new additions: Installing energy-efficient windows and doors in a new addition is not eligible under the program.
- Partial upgrades: Retrofits requiring complete upgrades, like fully insulating crawl space walls or exposed floors, may not qualify if only partially completed.
- Equipment and components: Leased or rented equipment
- Traditional air conditioners
- Water heaters (unless they are heat pump water heaters)
- Skylights
Heating and cooling systems with restrictions
- Furnaces and boilers are generally ineligible unless you live in a northern or off-grid community.
- Air conditioners (A/C units) do not qualify for the loan, but heat pumps are a more efficient alternative that do.
- Heat pumps provide the same cooling benefits as A/C units while using less energy.
- They also serve as a backup heat source, complementing natural gas heating systems common in Alberta homes.
Other ineligible upgrades
- Roof replacements
- Windows and doors in attached garages
Why homeowners love the loan
The loan doesn’t just make upgrades affordable, it also offers these everyday benefits.
- Lower energy bills: Save money month after month on heating, cooling, and electricity.
- More comfort: Keep your home warm in winter and cool in summer.
- Increased property value: Boost your home’s market worth without taking on high-interest debt.
- Eco-friendly living: Reduce your carbon footprint and contribute to a greener future.
How the Canada Greener Homes Loan works
Here’s how you can access the Canada Greener Homes Loan and start your energy-saving journey:
1. Schedule a home energy evaluation
Book a pre-retrofit EnerGuide assessment with a certified energy advisor. This evaluation identifies areas where your home can improve energy efficiency.
Book a Home Energy Audit today to get started.
2. Plan your upgrades
Choose upgrades from your energy advisor’s recommendations. Focus on changes that will have the biggest impact on energy savings.
3. Apply for the loan
Submit your application through the official Canada Greener Homes Loan portal. You’ll need to upload quotes from the contractors you plan to use for your upgrades.
4. Complete the work
Hire licensed contractors to complete the upgrades. You can also receive an advance of up to 15% of your loan to help cover any upfront costs or deposits.
Rümi can help. We offer:
- Home Energy Audit — to get you started.
- Insulation Installation & Removal – to lock in your energy.
- Solar Panel Installation — to reduce your reliance on the grid.
- Window Replacement — to get a tighter seal.
- And more! Check out our suite of essential home services.
5. Schedule a post-retrofit evaluation
Once the work is done, your energy advisor will confirm the improvements with a follow-up EnerGuide assessment. At this stage, you'll also need to upload all your invoices to the CGHL portal.
Receiving & repaying the loan
Once your loan is approved, you’ll receive the funds in a lump sum. Here’s how it works:
How you receive the funds
The loan is disbursed directly to you, and you can use the money to pay for the cost of the retrofits. Once you complete the work and pass your post-retrofit evaluation, the loan amount is finalized.
Repayment
You will repay the loan in monthly installments over 10 years, interest-free. The amount you pay each month depends on how much you borrowed, but the plan fits within your budget. For example, if you borrowed $20,000, your monthly repayment would be $167 over 10 years.
This makes the Canada Greener Homes Loan a manageable way to invest in your home’s future while spreading the cost over time.
The Canada Greener Home Loan in action
Here’s how two homeowners used the loan to transform their homes:
Sarah’s insulation and window upgrade
Sarah lives in Calgary, and her home was always drafty in the winter. Her energy evaluation revealed that upgrading her attic insulation and replacing her old windows could save her hundreds each year on heating.
With the Canada Greener Homes Loan, Sarah borrowed $20,000 interest-free to cover the costs. She now enjoys a cozier home and lower energy bills, paying just $167 a month over 10 years.
Mark’s switch to solar power
Mark in Edmonton wanted to reduce his electricity bills and make his home more sustainable. He decided to install solar panels, but the $30,000 price tag was daunting.
Thanks to the Canada Greener Homes Loan, Mark financed the entire project interest-free. Now, he generates his own electricity and sees significant savings every month on his power bill.
A quick note on other programs
The Canada Greener Homes Loan is still available. Other programs, like the Oil to Heat Pump Affordability Program, can help with specific upgrades. These initiatives can complement your energy-saving goals.
Learn more about energy efficiency programs in Canada.
Take the first step today
The Canada Greener Homes Loan makes it easier than ever to invest in your home’s energy efficiency. If you want to upgrade insulation, install solar panels, or add heat pumps, this interest-free loan can help you.
Start your journey with a home energy evaluation. This is a great chance to save money, use less energy, and make your home more comfortable.
Ready to book energy-efficiency services with Rümi? Start here.
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