Starting March 2024, the Greener Homes grant program in Canada will stop accepting new applications, as reported by the Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI). The institute confirmed heightened demand for the grants, surpassing initial projections, with average application amounts exceeding expectations. The bottom line is, if you have been considering replacing windows or a furnace with a heat pump or even increasing the level of attic insulation with the help of one of these grants or loans, then it's essential to do it urgently! Consider asking a local company for a quote here.

There's a possible new home improvement grant scheme coming... 

In response to the situation that ending this grant scheme early may bring, HRAI circulated a newsletter, noting that Natural Resources Canada (NRCan) has hinted at forthcoming announcements regarding the initiatives for climate action in the coming weeks or months.

The NRCan website details the program's focus on distributing grant money for home retrofits, encompassing insulation, windows, doors, heat pumps, and solar panels. Although the grants vary from $125 to $5,000, applicants must undergo evaluations before and after the retrofit to qualify and as a way to evaluate and quantify the size of the benefits achieved.

Martin Luymes, Vice President of Government and Stakeholder Relations at HRAI, disclosed that the industry received notice several weeks ago, characterizing it as advanced warning for industry stakeholders. Luymes clarified that the program's wind-down isn't confined strictly to March 2024; there may be a delay of a year or more after the completion of the work and grant fulfillment.

The Canadian construction industry is concerned about the disappearing grants

Luymes emphasized that the grant's purpose is to incentivize Canadians to invest in home renovation projects they might otherwise overlook. In the HVAC industry, particularly concerning heat pumps and clean energy systems, Luymes stressed the importance of long-term programs over sporadic ones.

Canada Greener Homes Loans ending in March 2024
$375 million in grants have been issued to over 93,600 homeowners across Canada

Luymes voiced industry concerns about potential sales declines and the sudden halt of what was supposed to be a seven-year program after only two and a half years. He urged the government to maintain programs like Greener Homes for extended periods to meet climate action targets.

How have these home improvement grants helped?

The Greener Homes program initially aimed to retrofit 700,000 homes, representing less than 10% of detached homes in Canada and likely less than 5% of all homes. Luymes sees this as just the beginning, highlighting numerous opportunities across the country for similar programs to benefit a multitude of homes.

However what has been reported as of August 31, 2023 is a total of over 381,000 grant applications have been received through the national portal and the co-delivery partners in Ontario, Quebec and Nova Scotia, which is only a little over half of what the program set out to do.

So far, $375 million in grants have been issued to over 93,600 homeowners nationally, which has also lead to some confusion over the success of the program.

Canada Greener Homes Grant ending in March 2024
Over 39,000 loan applications were received by CMHC, with an average eligible amount of over $24,000

Over 39,000 loan applications received by CMHC with an average eligible amount of over $24,000.

The Oil to Heat Pump Affordability (OHPA) program has received over 6,100 grant applications and issued over $ 4.5 million in grants.

The top five retrofits across Canada - Canada Greener Homes Grant ending in March 2024
The top five retrofits across Canada for home improvements

The top five retrofits with grants across Canada are:

  • windows and doors
  • heat pumps
  • air sealing
  • home insulation
  • solar panels

Now you know more about the Canadian home improvement grants coming to an end in 2024, learn more about efficient home heating systems for eco homes and sustainable home building in these pages:

Find more about green home construction in the Ecohome Green Building Guide pages - also, learn more about the benefits of a free Ecohome Network Membership here.