Thursday Feb 08th, 2024


The federal government's Canada Greener Homes Grant, aimed at subsidizing eco-friendly home renovations, has seen an overwhelming  in demand, leading to the early closure of its application portal.

Energy minister Jonathan Wilkinson revealed that with over half a million applications already submitted and the program's $2.6-billion budget nearly maxed out, they're set to stop accepting new applications.

Enbridge Gas, which has been working alongside the federal government to roll out the grants, has ceased taking new applications.

Launched in December 2020, the grant was expected to be available until the end of 2024.  The overwhelming response has pushed the program to its financial limits sooner than anticipated.

Nearly 550,000 families had applied by the end of January, seeking financial assistance of up to $5,000 for upgrades like installing heat pumps and solar panels, along with $600 to help cover the cost of necessary home energy audits.

The average amount awarded has exceeded more than the Government anticipated, with recipients getting more than $4,200 on average, largely due to the high demand for heat pump installations.

The grant is part of a broader initiative to encourage sustainable living, distinct from another program that offers up to $15,000 for lower- and middle-income families to switch from oil furnaces to electric heat pumps.

Additionally, Canada Mortgage and Housing Corp. (CMHC) has been offering up to $40,000 in interest-free loans for eco-renovations, with a significant portion of these loans going towards heat pump installations.

Lower- and middle-income families in affording the upfront costs of these renovations, even with the promise of grant reimbursement. On average, installing a heat pump costs about $13,500.

The government is planning the next phase of the grant to be more inclusive and supportive, possibly offering some funds upfront, similar to recent adjustments in the oil-to-heat-pump conversion program.

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