$5,000 - $40,000 Interest free loans
As the world increasingly grapples with climate change, governments and individuals alike are searching for ways to reduce carbon footprints and embrace sustainability. The Canada Greener Homes Loan (CGHL) supports homeowners in retrofitting their homes with energy-efficient technologies while simultaneously contributing to the nation’s environmental goals.
The Canada Greener Homes Loan (CGHL) is a financing program that offers interest-free loans to eligible Canadian homeowners. The primary purpose of the CGHL is to provide financial assistance for energy-efficient home renovations that reduce energy consumption and greenhouse gas emissions. Installing a new energy efficient Heat Pump qualifies for financing through the program
The loans can cover up to $40,000 in eligible retrofits, and with a 10-year repayment period, they offer flexible financing for homeowners looking to make eco-friendly improvements to their properties.
Features of the Canada Greener Homes Loan
1. The loans are entirely interest-free, making it an attractive option for homeowners who may not have access to the capital needed for substantial home renovations upfront.
2. Homeowners can borrow between $5,000 and $40,000, depending on the scope of the work.
3. The loans are designed to be repaid over a period of 10 years. This long repayment term allows homeowners to spread out the cost of their eco-friendly upgrades while benefiting from lower energy bills.
4. To qualify for the loan, homeowners must undergo an EnerGuide home energy evaluation. This assessment is conducted by a certified energy advisor who evaluates the home’s current energy performance and provides recommendations for improvement. The evaluation also helps homeowners understand where energy losses occur and where retrofits will have the most significant impact.
Who Can Apply?
The Canada Greener Homes Loan is open to most Canadian homeowners, including those living in single-family homes and multi-unit residential buildings. However, applicants must meet certain eligibility criteria:
– The home must be a primary residence, not a rental or vacation property.
– The homeowner must complete a pre-retrofit EnerGuide evaluation before beginning any renovations.
– The upgrades must fall within the categories of eligible retrofits.
– The homeowner must complete their renovations within 18 months of receiving the loan.
Additionally, it is important to note that the loan cannot be used for do-it-yourself (DIY) projects. All retrofits must be completed by licensed contractors.
Environmental and Financial Benefits
The Canada Greener Homes Loan program offers several advantages for both homeowners and the environment.
1. One of the most immediate benefits is reduced energy consumption, which translates into lower utility bills. The installation of energy-efficient heat pumps, windows and upgraded insulation can significantly reduce energy costs, especially in cold climates like we have in London.
2. Energy-efficient homes are becoming more desirable in the real estate market. Eco-conscious buyers often look for properties with green upgrades, and homes with energy-efficient features tend to sell for higher prices.
3. The program plays a crucial role in helping Canada meet its net-zero emissions goal by 2050. By retrofitting homes, Canadians can reduce their reliance on fossil fuels, cut greenhouse gas emissions, and contribute to a more sustainable future.
How to Apply
The application process for the Canada Greener Homes Loan is relatively straightforward:
1. Homeowners must first apply for an EnerGuide home energy evaluation. This step assesses the current state of the home and provides a road map for recommended upgrades.
2. Based on the results of the evaluation, homeowners select the energy-efficient upgrades they wish to undertake. It’s important to ensure that the chosen projects fall within the program’s list of eligible retrofits.
3. After deciding on the retrofits, homeowners apply for the loan through the government’s online portal. Once the loan is approved, they can proceed with hiring licensed contractors to complete the work.
4. After the renovations are complete, a post-retrofit EnerGuide evaluation must be conducted to confirm that the upgrades meet the required standards.
5. Once all steps are completed, the loan is disbursed, and homeowners can begin enjoying the benefits of their greener, more energy-efficient home.
How Does a Hybrid Heating System Work?
Hybrid heating uses two systems to heat as efficiently as possible. An electric air-source heat pump will heat the home when temperatures are moderate and electricity rates are low. When temperatures are cooler, or at times when electricity rates are at their peak, the system automatically switches to the natural gas furnace. The home will also be cooled efficiently by the heat pump.
- During the summer months, your heat pump draws heat from inside your home and moves it outside.
- In the winter months a heat pump draws heat from the outside air and moves it into your home.
