In a few weeks, a federal program promoting energy efficiency upgrades for homeowners, such as enhanced insulation, window replacements, and heat pump installations, will be discontinued. Participants in the Canada Greener Homes Loan program were informed via email that applications will no longer be accepted after October 1, 2025, due to depleting program funds.
Although the program, which commenced in May 2021, provided interest-free loans ranging from $5,000 to $40,000 and required pre- and post-retrofit evaluations, the allocated funds are nearly exhausted. Brendan Haley, senior director of policy strategy at Efficiency Canada, expressed concerns over the sudden termination of the program, highlighting its adverse impact on businesses, skilled trade jobs, and consumer trust.
The Canada Greener Homes Loan has played a vital role in reducing greenhouse gas emissions, addressing affordability issues, and generating employment opportunities, according to Haley. Last year, the popular Canada Greener Homes Grant, offering up to $5,000 for energy efficiency upgrades, was discontinued, leaving a gap for middle-income Canadians seeking financial assistance for energy-saving measures.
Over 120,000 loans amounting to $2.9 billion have been committed thus far, as per a Canada Mortgage and Housing Corporation representative. While the Canada Greener Affordable Housing program and the Oil to Heat Pump Affordability program will remain available, efforts are underway in Ottawa to introduce a replacement program, currently accessible in Manitoba and primarily targeting low-income households.
During the recent federal election, the Liberal Party’s platform emphasized retrofit programs, aiming to facilitate the adoption of heat pumps and energy-efficient upgrades, particularly for low- and middle-income households. Minister of Housing and Infrastructure Gregor Robertson’s office did not provide an immediate response to requests for comments on the program changes.
