Heat Pumps and Home Retrofits - What Loans, Grants, and Incentives are Out there? (as of April 2024)

As the push for energy efficiency and environmental sustainability continues, Toronto homeowners are increasingly looking for ways to retrofit their homes with modern, efficient technologies such as heat pumps. However, navigating the myriad of financial supports available can be daunting. Here’s a comprehensive guide to the latest federal and municipal programs as of April 2024, to help you make informed decisions about home energy improvements.

Energy saving options grants Toronto Real Estate
  1. Federal government

 Although the Canada Greener Homes ‘Grant’ is no longer accepting applicants, the Canada Greener Homes Loan and the Oil to Heat Pump Affordability programs remain open.
  1. Canada Greener Homes Loan
    • Offers interest-free financing to help Canadians make their homes more energy efficient and comfortable.
    • Important: Do not start any retrofit work before submitting your loan application, as pre-started projects are ineligible.
    • Loan Details: Maximum $40,000; 10 years repayment term, interest-free.
    • Read more here.
  2. Oil to Heat Pump Affordability Program

    • For homes heated by oil and households at or below the median household after-tax income.
    • Learn more here.
  3. Canada Greener Homes Affordability Program

    • Announced in Budget 2024, this program will target low to median-income households for energy retrofits. Details will be available soon.
  1. City of Toronto

Home Energy Loan Program (HELP)

  • Provides low-interest financing for home energy improvements, including air-source heat pumps.
  • Homeowners can borrow up to $125,000 for a variety of improvements such as window/door replacements, insulation, air sealing, geothermal systems, high-efficiency water heaters, and more.
  • Projects including solar, windows, geothermal, and heat pumps are eligible for a 20-year term.
  • The program also covers limited resilience measures like backwater valves and sump pumps.
  • Learn more here.
Energy saving options grants Toronto Real Estate
  1. Other Programs

  • Enbridge Gas

    • Offers rebates and energy conservation programs, including the Home Winterproofing Program and rebates for smart thermostats.
    • The Home Winterproofing Program includes a free home energy assessment and free energy-efficient upgrades, such as insulation and draft proofing for eligible households.
    • Find out more here.
  • Save on Energy

    • The Energy Affordability Program provides support to income-eligible electricity consumers to lower their monthly electricity costs and increase home comfort.
    • Offers Comprehensive Support and Energy Saving Kits.
    • Find out more here.
Energy saving options grants Toronto Real Estate
  1. Investing in home energy retrofits, such as heat pumps, is not only beneficial for the environment but also for reducing energy costs and increasing home comfort. With various federal and municipal programs available, Toronto homeowners have multiple avenues to obtain financial assistance for these upgrades. Stay informed and take advantage of these opportunities to make your home more energy-efficient and sustainable.

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  1. Interested in more energy efficiency tips and cutting your monthly bills? Call or email me today to discuss your goals and the current options available to you.

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