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Published December 12, 2022

The Greener Homes Grant and Other Money-Saving Programs for Homeowners

Canada's Greener Home Grant is just one of many programs and incentives that can help you pay for upgrades and retrofits that make your home more efficient.

If you want to significantly impact your home’s energy consumption, it will likely require a little more than switching to LED lightbulbs or adjusting your thermostat.

There are several federal, provincial and municipal incentive programs, including the Greener Homes Grant, that can help you manage the cost of making your home more energy efficient. Let’s find out more about them.

» MORE: Steps to take before buying a house

What qualifies as a “green” home?

Residences that are specifically designed or retrofitted to use less energy, water and natural resources compared to standard homes are often referred to as “green homes.”

Not only do green homes benefit the environment, but they often lead to lower utility bills and increased comfort.

Some builders choose to construct homes and residential properties following green principles right from the start, which could allow them to get a green rating or certification, or help them qualify for benefits such as discounts on mortgage insurance.

Even if your home wasn’t built following green principles, it’s possible to make updates to increase efficiency. Those updates aren’t always cheap, but they’re easier to pay for with a little help from the government. 

» MORE: First-time home buyer guide

Programs and incentives for a greener home

Canada Greener Homes Grant

The Canada Greener Homes Grant is available to homeowners who want to retrofit their primary residence. All homeowners are eligible, regardless of where they live, as are Indigenous governments and housing organizations. Homes six months old or newer are excluded.

The Canada Greener Homes Grant offers two main benefits:

  • Get up to $600 toward the combined costs of your pre- and post-retrofit evaluations, as performed by a registered energy advisor.
  • Get up to $5,000 for eligible retrofits conducted after December 1, 2020.

That’s a total of $5,600 for completing certain energy-efficient upgrades. However, you’ll need to follow specific steps to qualify for the grant.

  1. Book an EnerGuide evaluation to explore what upgrades might make sense for your home. A registered energy advisor from Natural Resources Canada (NRCan) will evaluate your home and recommend retrofits to undertake.
  2. Use your evaluation report to decide which upgrades to make. Note that installations and upgrades to mechanical and electrical systems must be handled by licensed professionals, and you’ll need to keep receipts for all the work.
  3. Hire the proper professionals to execute your renovation, and schedule a time to have the project or projects completed.
  4. Book a post-retrofit EnerGuide evaluation, which will assess the energy savings due to the upgrades. You’ll upload your evaluation and all receipts from the work for NRCan to review.
  5. Confirm your total costs to receive your grant funds from the Greener Homes Initiative. The grant amount is not taxable, and you don’t need to declare it as income.

» MORE: First-time home buyer grants and assistance programs

Green home loan programs

If you don’t have the ability to pay for energy-efficient upgrades up front and wait to be reimbursed by the Green Homes Grant, consider some of these available green home financing programs:

  • Greener Homes interest-free loan: Launched by the federal government in June of 2022, this interest-free loan would provide up to $40,000 to help homeowners pay for energy-efficient upgrades.
  • Ottawa Better Homes Loan Program: This pilot program by the city of Ottawa provides homeowners low-interest loans worth up to 10% of the current value of their home.
  • Clean Energy Improvement Program: Beginning in January 2023, the Clean Energy Improvement Program will provide Alberta homeowners in participating municipalities with low-interest financing for home renovations. CEIP allows them to pay back these loans through increases to their municipal property tax bills.
  • Toronto Home Energy Loan Program: Toronto has enhanced its existing Home Energy Loan Program by offering 0% or low-interest loans of up to $125,000 for energy-efficient home upgrades. Loans for some projects can be paid back over 20-year terms.
  • RBC Energy Saver Loan: When you use a fixed-rate installment loan of more than $5,000 to purchase eligible green products, such as energy-efficient appliances, RBC will give you 1% off the loan’s interest rate or a $100 rebate on a home energy audit.

Green home rebates

Depending on your province and energy provider, you may qualify for a rebate on certain energy-efficient products. Some Canadian energy-rebate programs include:

  • Efficiency Manitoba: Manitoba residents may qualify for rebates on multiple upgrades, including energy-efficient appliances, windows, and insulation.
  • CleanBC Better Homes and Home Renovation Rebate Program: Rebates of up to $6,000 are available when BC residents purchase energy-efficient heat pumps, water heaters, furnaces, and more. Some upgrades even qualify for a top-up in certain municipalities, such as the cities of Vancouver and Kelowna.
  • Efficiency Nova Scotia: Get up to $3,000 in rebates when you add solar power to your home.
  • Home Efficiency Rebate Plus: Beginning in January 2023, Enbridge Gas will partner with the Greener Homes Grant to provide rebates toward eligible retrofits in Ontario. Homeowners whose gas service is provided by Enbridge can receive up to $10,000 in rebates for upgrading their insulation, air sealing, windows, doors and more.

Rebate details and deadlines often change, so it’s important to double-check to make sure you qualify. In addition, you often need to choose specific products to qualify for rebates, so be sure to confirm that your planned retrofit matches the rebate’s requirements before making any upgrades.

» MORE: Home inspection checklist for buyers and sellers

Why retrofit a home to be more green?

A green home can save you money and help you feel better about your resource consumption.

Economic benefits

Some homeowners go green to pursue an immediate financial advantage. For example, new single-family homes that are certified through Built Green Canada may be eligible for a mortgage insurance refund of up to 25%.

Additionally, improvements like energy-efficient appliances, windows, or doors could help you save money on your monthly water, electricity and gas bills. A green home could also be a way to attract more buyers if you ever sell your home — and potentially increase its selling price.

Environmental benefits

The other advantage of a green home is that it reduces your overall impact on the environment. Green homes typically feature appliances and construction materials that produce fewer emissions and use energy more efficiently, resulting in a smaller carbon footprint. Lower-flow toilets can significantly reduce the amount of water your home uses each day and certain improvements can enhance air quality.

About the Authors

Barry Choi

Barry Choi is a personal finance and travel expert. His website is one of Canada's most trusted sites when it comes to all things related to money and travel.

Clay Jarvis

Clay Jarvis is NerdWallet’s mortgage and real estate expert in Canada. Thus far, his entire professional writing career has revolved around real estate. Prior to joining NerdWallet, he was the editor and senior writer for four publications, including the leading website for the country’s mortgage industry, Mortgage Broker News. Clay has written 30,000-word examinations of Canada’s real estate investment market, interviewed the industry’s most powerful leaders and analysts, and has helped choose both the nation’s top realtors and mortgage brokers. He is based in Toronto, Ontario.

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