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Canada's Green Revolution: Transforming Homes with New Energy Efficiency Measures

Published on

August 7, 2024

‍Canada’s New Green Buildings Strategy: Boosting Energy Efficiency and Reducing Emissions in Residential Buildings

The Government of Canada has introduced a suite of new measures under the Green Buildings Strategy, aimed at improving energy efficiency in residential buildings. These initiatives focus on enhancing affordability for Canadians while significantly reducing greenhouse gas emissions.

Here are the key programs announced for residential buildings:

Canada Greener Homes Affordability Program (CGHAP)

The Canada Greener Homes Affordability Program (CGHAP) is an ambitious $800-million retrofit initiative designed to support low-to-median-income Canadians, including renters. This program offers up to four times more funding than the existing Canada Greener Homes Grant. It covers the direct installation of energy-efficient upgrades at no cost to households, ensuring that energy savings are accessible to those who need them most.

Oil to Heat Pump Affordability Grant (OHPA)

Launched in 2022, the Oil to Heat Pump Affordability Grant (OHPA) helps low-to-median-income households transition from oil heating to electric heat pumps. This switch can save households between $1,500 and $4,500 annually on energy bills. The program supports not only cost savings but also contributes to significant reductions in greenhouse gas emissions.

Canada Greener Homes Grants

The Canada Greener Homes Grants program provides up to $5,000 in funding for eligible home energy-efficient retrofits. Although the intake for applications closed in February 2024, the program has already facilitated the installation of over 149,000 heat pumps, resulting in substantial energy savings for Canadian households.

Canada Greener Homes Loan

The Canada Greener Homes Loan offers an interest-free loan of up to $40,000 with a repayment term of 10 years for home energy retrofits. Since its launch, the program has committed $1.23 billion in loans, with approximately 45% of these loans used to install heat pumps, enhancing the energy efficiency of numerous homes.

Green Municipal Fund (GMF)

Administered by the Federation of Canadian Municipalities, the Green Municipal Fund (GMF) supports municipalities in delivering energy financing programs for low-rise residential properties. This fund plays a crucial role in enabling local governments to implement energy-efficient projects that benefit their communities.

National Labelling Approach

The National Labelling Approach is a $30 million initiative aimed at developing a standardized home energy labelling system. This system will empower homeowners with consistent and reliable information about their home's energy performance, helping them make informed decisions and achieve better energy efficiency.

Greener Neighbourhoods Pilot Program (GNPP)

The Greener Neighbourhoods Pilot Program (GNPP) introduces the Energiesprong model to Canada, focusing on decarbonizing large clusters of affordable housing. By aggregating similar homes for deep energy retrofits, this program aims to significantly enhance the energy efficiency of entire neighborhoods.

Canada Greener Affordable Housing Program (CGAH)

The Canada Greener Affordable Housing Program (CGAH) provides low-interest and forgivable loans for deep energy retrofits in existing multi-unit affordable housing buildings. This program ensures that affordable housing providers can upgrade their properties to meet modern energy efficiency standards.

Green Construction through Wood (GCWood) Program

The Green Construction through Wood (GCWood) Program funds demonstration projects that showcase innovative uses of wood in construction. By promoting sustainable building practices, this program supports the transition to greener construction methods.

Affordable Housing Fund

As a core component of the National Housing Strategy, the Affordable Housing Fund offers capital for new affordable housing builds and renovations that meet energy and greenhouse gas reduction standards. This program is essential in ensuring that new housing projects are both affordable and sustainable.

Quick Facts

The CGHAP is an $800-million initiative focused on helping low-to-median-income Canadians.
The OHPA has already helped households save up to $4,500 per year.
The Canada Greener Homes Grants program had over 615,000 applications, leading to significant energy savings and heat pump installations.
The Canada Greener Homes Loan has provided $1.23 billion in loan commitments, with a significant portion including heat pump installations.
The GMF supports municipalities in implementing energy efficiency programs for residential properties.
The National Labelling Approach aims to standardize home energy performance information across Canada.
The GNPP uses the Energiesprong model to retrofit clusters of homes for greater energy efficiency.
The CGAH helps affordable housing providers with loans for energy retrofits.
The GCWood Program promotes the use of wood in sustainable building practices.
The Affordable Housing Fund provides funding for affordable housing that meets energy efficiency standards.

These initiatives collectively represent a comprehensive approach to enhancing energy efficiency and sustainability in Canada’s residential sector, paving the way for a greener, more affordable future for all Canadians.