Canada Greener Homes Loan Program

Summary

The Canada Greener Homes Loan (CGHL) program, launched in 2022 and delivered by the Canada Mortgage and Housing Corporation (CMHC), offers interest-free loans of up to $40,000 to help homeowners across Canada undertake energy efficiency retrofits, making their homes more affordable to operate. The program supports the federal government’s climate goals by reducing residential greenhouse gas (GHG) emissions, lowering household energy costs, and creating jobs. By promoting the adoption of innovative low-carbon building technologies and enhancing access to high-efficiency, cost-effective products, CGHL helps make homes more affordable and resilient to climate risks. It complements provincial and territorial energy efficiency initiatives while driving billions of dollars in market activity and sustaining thousands of direct and indirect jobs in construction and skilled trades related to energy-efficient home renovations and building design throughout Canadian communities.

CGHL is part of the Natural Resources Canada-led (NRCan) Canada Greener Homes Initiative, which also includes CMHC’s Canada Greener Affordable Housing (CGAH) program supporting affordable housing providers, and NRCan’s Canada Greener Housing Affordability Program (CGHAP) for low-to-median-income households and renters. The program fully allocated its initial capital budget, facilitating over 109,000 loans, and is now accessing the additional $600 million in loans announced in the 2024 Fall Economic Statement. This top-up is expected to support up to 25,000 more homeowners to complete energy retrofit projects.

Key findings from the strategic environmental analysis

By providing up to 24,000 interest-free loans for energy-efficient retrofits, the recapitalized CGHL program will have a positive impact by reducing emissions from residential households. The loan program features a simple, straightforward application process through a secure online portal, which provides clear guidance on program participation, including instructions for requesting an EnerGuide energy evaluation. Participation requires both a pre- and post-retrofit EnerGuide audit: the pre-audit identifies eligible energy-saving measures to help homeowners make informed decisions, while the post-audit verifies the successful completion of these retrofits.

The current program funds the following climate-resilient measures: batteries connected to solar photovoltaics (PVs), heat pumps, roofing membrane, basement wall proofing, and moisture proofing crawl space floor, walls, and headers. By supporting measures that reduce GHG emissions and energy consumption, CGHL will have a positive downstream impact on various components of the environment such as soil, air, water and wildlife that are currently under strain from climate change and existing emission levels.

Program success will be measured through uptake rates, energy savings and emission reductions. Post-retrofit evaluations and regional participation monitoring will provide key data to track reductions in operational energy-related emissions.

Key findings from the cross-cutting considerations

Implications for Indigenous Peoples

CGHL aims to improve energy affordability for all homeowners, including Indigenous applicants. Even with CGHL’s built-in flexibilities for Indigenous applicants, program engagement sessions have revealed that supports should be more focused on grants and installation programs. To offer broader and more accessible supports, the Government of Canada recently announced the Canada Greener Homes Affordability Program to serve low-income populations and offer direct installations solutions, including provisions to engage more deeply with Indigenous communities.

Federal Sustainable Development Strategy (FSDS)

CGHL would contribute to several goals outlined in the Federal Sustainable Development Strategy, including:

• Goal 7: Increase Canadians’ access to clean energy;
• Goal 8: Encourage inclusive and sustainable economic growth;
• Goal 9: Foster innovation and green infrastructure in Canada;
• Goal 11: Improve access to affordable housing, clean air, transportation, parks and green spaces, as well as cultural heritage in Canada; and
• Goal 13: Take action on climate change and its impacts.

Implications on sustainable jobs

As the home retrofit and green buildings economies emerge as a part of efforts to mitigate climate change, and as new technologies enter the Canadian market, there will be an increased demand for skilled trades with training and certification that is specifically designed to support greener homes, products, and low-carbon construction approaches.