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Government of Canada to Establish Next Phase of Canada Greener Homes Initiative to Help More Canadians Save on Their Energy Bills

February 7, 2024

Government of Canada to Establish Next Phase of Canada Greener Homes Initiative to Help More Canadians Save on Their Energy Bills

Home energy improvements like heat pump installations and drafty window replacements can help Canadians save hundreds of dollars on their energy bills every year 

Since launching the Canada Greener Homes Grant program three years ago, the federal government has helped over 165,000 Canadians upgrade their homes and save an average of $386 per year on their energy bills. As the program continues, the Government of Canada expects to help over half a million Canadians upgrade their homes and save on their bills.

Building on the success of the program and in response to evolving needs, the Minister of Energy and Natural Resources, the Honourable Jonathan Wilkinson, announced that the federal government will establish a new phase of the Canada Greener Homes Initiative. As a key part of Canada’s forthcoming Canada Green Buildings Strategy, which will focus on energy and housing affordability, this next phase will offer supports that are more accessible to Canadian households with low to median incomes, so that energy cost-savings are available to those who need them most.

To date, the Canada Greener Homes Grant program has been successful in incentivizing Canadians to make the retrofits needed to reduce emissions and energy bills. It has also been open to Canadian households of all income levels, and while many have had the means to access both the Grant and Loan programs to complete their retrofits, this option isn’t financially accessible for everyone. The next phase of the Canada Greener Homes Initiative will ensure those who may not have the financial means to access it, can.

Canadians who have already applied for the Canada Greener Homes Grant can be assured that their applications will be processed and that the hundreds of thousands of required energy evaluations will continue as planned for the duration of the program. However, owing to the success of the program to date, the government will stop accepting new applications within the next two weeks to prepare for the transition to the next phase of Greener Homes.

The next phase of the Canada Greener Homes Initiative will complement the suite of federal government initiatives available to Canadians to upgrade their homes and reduce their bills. This includes the Canada Greener Homes Loan, which continues to provide interest-free loans of up to $40,000 to Canadians of all income levels to undertake home energy improvements. It also includes the Oil to Heat Pump Affordability (OHPA) program, which provides grants of up to $10,000 to low-to-median-income oil-heated households across Canada who want to make the switch to a heat pump.

Under new OHPA enhancements announced in the fall of 2023, the federal government has increased these grants to $15,000 for Canadians living in co-delivery provinces that have stepped up with a minimum of $5,000. The federal government will also be providing a one-time payment of $250 to low-to-median-income households in co-delivery jurisdictions when they are pre-approved to transition to a heat pump. Taken together, these enhanced OHPA grants help cover the average cost of a heat pump and will help those who make the switch save between $1,500 to $4,700 per year on their energy bills.

Regular updates on Canada’s energy and housing affordability programs are available on the Canada Greener Homes Initiative website.

Quotes

“The enormous popularity of the first phase of the Canada Greener Homes Grant illustrates Canadians’ desire for their homes to be affordable, comfortable, and sustainable. As hundreds of thousands of Canadians continue to retrofit their homes with Government of Canada support, we are readying the next phase of the Canada Greener Homes Initiative to offer more accessible supports to families across the country who need it most while continuing to take action on climate change.”

The Honourable Jonathan Wilkinson
Minister of Energy and Natural Resources

Quick Facts

  • The Canada Greener Homes Grant has offered Canadians grants of up to $5,000 to make energy-efficient upgrades to their homes and up to $600 to pay for an EnerGuide home energy evaluation, before and after retrofits. Eligible home upgrades include replacing windows and doors, adding insulation, sealing air leaks, improving heating and cooling systems (e.g., heat pumps) and installing smart thermostats and solar panels.
  • Out of the over half a million households that have applied for a Greener Homes Grant to-date, over 165,000 have received grants. Given that, on average, 1.2 tonnes/year of pollution are reduced for every home that receives a Canada Greener Homes Grant, this has meant a reduction of 194,700 tonnes/year of pollution under the program to date, the equivalent of taking almost 60,000 cars off the road. 
  • By 2027, the Canada Greener Homes Grant will have helped over half a million Canadians and reduced the equivalent amount of emissions as taking nearly 185,000 cars off the road.

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