Federal Grant for Home Retrofits Soon Expiring, But Loan Program Still Offering Up to $40K Interest Free

A home with solar panels installed on the roof in a file photo. hansenn/iStock

The federal government’s Greener Homes Grant, which offers refunds up to $5,000 to homeowners, is set to close in March.

The federal Greener Homes interest-free loan program, however, will continue, offering up to $40,000 in loans for retrofits with 10 years to pay it back.

Through the current grant program, homeowners who retrofit their properties with environmentally friendly upgrades are eligible to receive up to $5,000 back. The top retrofits done as part of the program include windows, doors, heat pumps, air sealing, home insulation, and solar panels, according to the Natural Resources Department.

The Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI) said it was informed the program would stop taking applications in March, something that came as a surprise.

“Last September is the last we heard a report, but they were only 18 percent into their budget,” HRAI vice-president of government and stakeholder relations Martin Luymes told The Epoch Times. “I think it was 3.4 billion they allocated for 700,000 homes over a seven-year period,” he said. “So it was a bit of a surprise that two and a half years in they’re talking about being out of money or potentially running out of money.”

Mr. Luymes said the government notice he received said the program would continue and applications received by March would be processed, but new applicants would not be accepted after that time.

Natural Resources Canada statistics show that 381,000 applications had been received as of August 2023.

The government says that $375 million in grants had been handed out by the middle of last year to 93,600 homeowners.

The Epoch Times reached out to Natural Resources Canada but did not hear back by publication time.

Grant Program Details

To participate in the grant program, homeowners need to complete an EnerGuide evaluation, according to the Natural Resources Canada website. The evaluation must be completed by an energy adviser who is registered with Natural Resources.

Homeowners can then apply for a grant to help cover the costs of the renovations.

After deciding on and completing the retrofits from the evaluation, an additional, post-retrofit evaluation must be completed, the website says.

Some of the home changes eligible for the grant include smart thermostats, Energy Star doors and windows, and water heaters.

Greener Homes Loan

Aside from the Canada Greener Homes Grant, there is also the Greener Homes Loan program, which offers interest-free loans for homeowners looking to upgrade their properties.

Natural Resources data shows that more than 39,000 applications were received for the Greener Homes Loan program by August 2023.

Applicants can apply for up to $40,000 to cover the cost of energy-efficient alterations to their homes.

The loan is required to be paid back within 10 years, the government website says.

To be eligible for the loan, homeowners must complete a pre-retrofit and post-retrofit energy evaluation.