In a few weeks, the federal government will close a program that encourages homeowners to retrofit their properties through energy efficiency upgrades, such as improved insulation, window replacement and purchasing a heat pump.
Homeowners involved with the program received an email on Wednesday from the federal government notifying them the Canada Greener Homes Loan would no longer receive applications after Oct. 1, 2025.
For those who apply before the deadline, they might not receive the loan since funding for the program is running out.
In the message sent to homeowners, the program is described as “successful” and the “funding will soon be fully allocated.”
Since launching in May 2021, the program has offered interest-free loans between $5,000 and $40,000, and required a pre- and post-retrofit evaluation.
“Cutting a program like this quite abruptly really disrupts businesses, it kills jobs in the skilled trades, and it really breaks the trust of consumers who perhaps relied on this program,” said Brendan Haley, the senior director of policy strategy with Efficiency Canada, an energy efficiency think-tank based out of Carleton University’s Sustainable Energy Research Centre.
The Canada Greener Homes Loan helps reduce greenhouse gas emissions, address affordability concerns and creates job, said Haley.
Last year, the federal government stopped receiving applications for the popular Canada Greener Homes Grant, which provided up to $5,000 toward energy efficiency upgrades.
“When the grant was cancelled, the promise was that the loan was there,” said Haley. “Now, if the loan program goes away, there’s really no solution from the federal government for Canadians who are middle income and would benefit from a loan to reduce their energy costs and reduce their greenhouse gas emissions.”
To date, more than 120,000 loans have been committed, totalling $2.9 billion, said a Canada Mortgage and Housing Corporation spokesperson in an emailed statement.
The federal government will continue to offer the Canada Greener Affordable Housing program and the Oil to Heat Pump Affordability program.
Meanwhile, Ottawa has begun to introduce a replacement for the grant program, although it’s currently only available in Manitoba and generally limited to low-income households.
In the federal election earlier this year, the Liberal platform included several references to offering retrofit programs, including pledges to make it “easier for low- and middle-income households, including renters, to adopt heat pumps and energy efficiency upgrades,” and to “enable opportunities for big polluters to support consumers in lowering their carbon footprint.”
A spokesperson for Minister of Housing and Infrastructure Gregor Robertson did not immediately respond to a request for comment.
