Homeowners applying for the federal government’s interest-free loans for energy-efficient renovations should consider provincial and municipal incentives for additional support, an energy-efficiency expert recommends.
the federal government launched a long-awaited program in mid-June, providing interest-free loans of up to $40,000 for home renovations, such as replacing fossil fuel heating systems, fixing drafty windows and doors, improving wall insulation or installing solar panels.
With rising interest rates, this loan should be attractive to people, but making your home as energy efficient as possible will likely cost upwards of $40,000, said Brendan Haley, director of policy at Efficiency Canada. Depending on the building, you could be looking at more than $100,000 in costs, he said.
“I would really encourage anyone looking for support for a modernization, especially a deep remodel, to not only think about this program, but also look at provincial incentives and maybe additional loans,” Haley said. Canadian National Observer.
Deep modifications are necessary to help reduce greenhouse gas emissions from homes. Buildings and homes accounted for 13 percent of Canada’s carbon emissions in 2020, and the retrofit programs are part of the federal government’s push to achieve net-zero emissions by 2050. While the initial cost of these renovations can be discouraging, homeowners who take the step will save money in the long run by lowering their energy costs.
How does it work
the federal program is designed to help up to 175,000 households make energy-efficient home improvements with interest-free loans ranging from $5,000 to $40,000 that must be repaid within 10 years. A maximum of 15 percent of the loan may be advanced in advance for initial payments to contractors. The remainder of the loan comes after a post-modernization evaluation is completed. Natural Resources Canada advises homeowners to get up to three cost estimates for all the different remodels they want to do because once the loan amount is determined, it will not increase.
Who is eligible?
Homeowners who have already applied or are applying to receive the $5,000 Greener Housing Grant are eligible for the first phase of the Greener Homes Loan program. All Canadian homeowners can apply, with a maximum of one loan per eligible household. Applicants must obtain an EnerGuide assessment, an audit that analyzes a home’s energy efficiency, to determine what the modifications are appropriate for your home. The loan can only be used for retrofits and installations recommended by an energy consultant and listed on the Natural Resources Canada website.
Homeowners applying for interest-free loans from the federal government for energy efficient renovations should consider provincial and municipal #retrofit incentives to achieve maximum #EnergySavings, recommends @br_haley of Efficiency Canada.
Canadians can fill out a short online survey to see if they qualify for the grant and loan.
Provincial and municipal incentives
Federal grant and loan programs are designed to ensure homeowners can take advantage of other financial incentives, Mirabelle Ibalanky, media relations officer for Natural Resources Canada, said in an email.
the Department directory of energy efficiency programs for homes allows Canadians to search for programs based on location and other criteria to help them make the most of different programs.
In Quebec and Nova Scotia, federal home retrofit programs are delivered through provincial partners: RenoClimat and the EfficiencyOne Home Energy Assessment Program, respectively.
British Columbians looking to switch their home from a fossil fuel heating system to a heat pump can apply for five-year interest-free loans of up to $40,000 through CleanBC better homes. Across the country, provincial utilities often provide incentives, such as discounts on new equipment, such as BC Hydro Rebates for household appliances such as refrigerators and washing machines.
PEI Efficiency offers free heat pumps for low-income islanders and discounts on heat pumps, doors, windows, and insulation.
Many municipalities also offer financing solutions for homeowners. toronto Home Energy Loan Program offers zero or low interest loans of up to $125,000, repaid over 20 years, for home energy improvements such as insulation, heat pumps, and window replacement.
On Thursday, the Better Homes Ottawa Loan The program received $30 million from the Vancity Community Investment Bank to continue offering 20-year, low-interest modernization loans of $15,000 to $125,000. A similar pilot program it is expected to start in Calgary this fall, offering $50,000 loans to be repaid over 25 years.
Many municipal programs are established for homeowners to repay the loan to the municipality through their property taxes. If the property is sold before the loan is paid off, the new owner bears the remaining cost, but will benefit from the home’s increased energy efficiency and savings, according to a joint news release from the city of Ottawa and Vancity.
Canada has yet to create a policy framework that makes retrofits easy and out-of-the-box, Haley said. He hopes efforts will be made to achieve that gold standard, but in the meantime, he encourages Canadians to seek provincial and municipal support that complements federal programs so they can maximize their energy savings.
Natasha Bulowski / Local Journalism Initiative / Canadian National Observer