The federal government is relaunching its popular home retrofit program with a renewed focus on affordability, directing more than $500 million toward helping low- and middle-income households improve energy efficiency and lower utility bills.
Environment, Climate Change and Nature Minister Julie Dabrusin and Energy Minister Tim Hodgson are expected to officially launch the revamped Canada Greener Homes Affordability Program (CGHAP) on Monday. The program will initially roll out in British Columbia, Quebec, Nova Scotia and Prince Edward Island after already being introduced in Manitoba.
More than $500 million in total funding, including $300 million from the federal government, will help over 35,000 eligible households install heat pumps, improve insulation, enhance air sealing and complete other energy-efficient upgrades at no cost. The improvements are expected to reduce both household energy bills and greenhouse gas emissions.
Unlike the previous Canada Greener Homes Grant, which was limited to homeowners, the new affordability-focused program will also be open to renters, provided they meet income eligibility requirements.
The redesigned initiative will be administered by provincial governments in partnership with utilities including Hydro-Québec, B.C. Hydro, FortisBC and Nova Scotia’s EfficiencyOne. Responsibility for the program has also shifted to Environment and Climate Change Canada.
While the government has confirmed discussions are underway to expand the program to the remaining provinces and territories, it has not announced when residents outside the initial rollout areas will be able to apply. The federal government also said dedicated funding will support regional Indigenous governments and representative organizations through existing Indigenous Services Canada and Crown-Indigenous Relations agreements.
The original Canada Greener Homes Grant launched in 2021, offering homeowners up to $5,000 for energy-efficient home upgrades and an additional $600 for energy evaluations. Although the $2.6-billion program was intended to remain available until 2027, it closed early in 2024 after funding was exhausted, drawing criticism from homeowners and the retrofit industry over the lengthy gap before its replacement.
The new Canada Greener Homes Affordability Program aims to address that criticism by targeting households most affected by rising energy costs while expanding access to renters and lower-income Canadians.
