The Canada Greener Homes Loan

In May 2021 the Government of Canada launched the Canada Greener Homes Initiative to help Canadians make energy-efficient home upgrades to combat climate change and create good jobs – all while helping homeowners save on their monthly energy bills. Canada has made a commitment to reach net-zero emissions by 2050 when the Canadian Net-Zero Emissions Accountability Act was signed in June 2021 and the Canada Greener Homes Loan lies at the core at the initiative to achieve this goal.

Understanding the Canada Greener Homes Loan

The Canada Greener Homes loan is an interest free loan on a 10-year term for between $5,000 and $40,000. The loan can be taken out for home solar projects or other clean energy retrofits like an air source heat pump. The maximum eligible loan amount is based on the retrofits selected in the application and the quotes you have received to complete their installation.

The most attractive feature of the Canada Greener Homes Loan is that it is completely interest-free. A 15% portion of the loan can be disbursed to you up front, to cover your project’s down payment. This makes the Canada Greener Homes Loan the most affordable financing option for homeowners looking to go solar.

The Canada Greener Homes Loan Criteria

A maximum of one loan is available per eligible property and homeowner. For all loan
applicants the following eligibility requirements must be met before applying for the loan:

• You must be a Canadian citizen, permanent resident, or non-permanent resident
  who is legally authorized to work in Canada.
• You must own the home, and your home must be your primary residence
• You have completed a pre-retrofit evaluation of your home dated April 1, 2020, or later

You have a good credit history and aren’t under:

• a consumer proposal
• an orderly payment of debt program
• a bankruptcy or equivalent insolvency proceeding

In addition to the above requirements that pertain to all loan applicants, there are
additional requirements for Low-rise multi-unit residential buildings and Indigenous group
applicants.

Low-rise multi-unit residential buildings

• Individual homeowners living in a low-rise multi-unit residential building (MURB) must meet the additional eligibility criteria for MURBs.

Indigenous group applicants

• You are eligible to register multiple homes
• You must own the home(s) or have a formal partnership to represent the owners, but the homes do not need to be the owner’s primary residence
• Your home must be occupied by an Indigenous household
• You must select at least one eligible retrofit for each property subject to the loan

How the Canada Greener Homes Loan Works

Applying for and using the Canada Greener Homes Loan involves several steps:

1. Energy Assessment: Before you can apply for the loan, your home must undergo
   an energy assessment conducted by a certified energy advisor before undergoing
   any retrofits. This assessment evaluates your home’s current energy performance
   and identifies areas where improvements can be made.
2. Plan Your Retrofits and Obtain Quotes: The next step is to receive a solar
   assessment by a contractor. Do not start any work until your loan application has
   been submitted. Retrofits started before submitting your loan application are not
   eligible.
3. Application Process: After the energy assessment, you can apply for the Canada
   Greener Homes Loan. The application process involves submitting your energy
   assessment report, outlining the proposed upgrades, your photo ID, property tax
   bill/assessment, and proof of income.
4. Completing the Solar Install: You can advance up to 15% of the loan value to pay
   any up-front costs of the solar installation. With the loan funds in hand, you can
   proceed with the solar installation or any other retrofits outlined in your energy
   assessment.
5. Final Inspection and Repayment: After the upgrades are completed, a post retrofit
   evaluation will be done to provide you a new report showing the impact of your
   retrofits. Once this is confirmed, you will receive the rest of your loan and you’ll
   begin repaying the loan according to the agreed-upon terms.

Why go Solar with the Canada Greener Homes Loan?

Costs of electricity have increased steadily year over year. By going solar you are essentially paying up front at today’s costs for a system that will give you free energy for the next 30 to 40 years. Most homeowners have space on their roof to get a solar system that will eliminate 90-100% of their power bill.

The Canada Greener Homes Loan is a perfect opportunity to invest in solar energy with no financial strain, since the home solar system will be covering the costs of your power bills once installed. You won’t see much of a change in your monthly budget since the financing is canceled out by your power bill being eliminated.

You will experience savings even before your system is paid off, since power companies will still be raising rates yearly. Once you’re home solar system is paid off you will experience free electricity for decades.

Make Going Solar Easy with XOLAR

If the loan application process sounds overwhelming, don’t worry – there is an easy path forward. Our Solar Specialists and Project Managers can cleanly walk you through the steps of what is required for the Canada Greener Homes Loan and make sure you maximize the value of any other government programs in your area. We’ll also get you started on the vital first step of acquiring a tailor-made solar proposal for your personal energy needs at home.

Schedule a consultation for our solar specialist’s expert guidance here.

XOLAR INC.

Xolar is a full service turn-key platform for transitioning both residential and commercial clients, book a free quote today!

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