How the Federal Government's Latest Budget Will Impact Your Home Retrofit Plans

The federal government just released its budget for 2024, and amidst the thousands of times it mentions ‘housing’ and ‘savings’, we dug up the section that tells you what grants and loans homeowners are eligible for when they upgrade their house to make it more energy efficient! 

You’ll remember that earlier this year, the government announced it was walking away from its popular Greener Homes Grant, because it was so successful the initial pot of money allocated to it ran out quickly. 

Following the announcement, Paddio alongside thousands of civil society organizations, energy efficiency professionals, and citizens called for a renewal of the program. Unfortunately, Budget 2024 does not deliver a new set of country-wide incentives for all households who want to do home energy upgrades.

This year’s budget allocation for home energy upgrades is more focused: to access federal grants for energy retrofits, you have to fit in the low to median-income category.

We should celebrate that there are now special programs for lower income Canadians to make their homes safer and more energy-efficient! But improving our homes to save energy isn't just about saving money; it's also a big part of how Canada plans to achieve its climate goals - namely reducing emissions by 60% by 2030 compared to 2005 level, and reaching net-zero emissions by 2050. That's why it's important for the government to encourage everyone, regardless of income, to upgrade their home to waste less energy. 

So, how does Budget 2024 influence the financing options available to you as you get ready to retrofit your house? Let’s break it down below.  

By the way, if you want to skip the math and let our team do the work, you can sign up for Paddio.ca’s services at any time by filling out this simple form.

What has not changed: interest-free loans from the federal government

All Canadian households are still eligible for interest-free loans from the federal government to help complete some of the more major retrofits recommended by your energy advisor. 

Pro tip: make sure you sign up for the program before you get work done! 

What has not changed: for those already signed up to the Greener Homes program

If you were already participating in the Greener Homes Grant, meaning you already were signed up and had started doing work, you are still good to go! You should proceed in a timely manner with your retrofits, and you still have access to the  Canada Greener Homes portal to manage your project.

If you qualify as 'low to median income'

Budget 2024’s big announcement on the energy retrofit front was $800 million for a new Greener Homes Affordability Program. The details will be made publicly available in the coming weeks, but the key feature of this program is that it is focused for households who qualify as low to median income. Although the government has not yet confirmed what income bracket you need to be in to qualify, it is likely to be in the same ballpark as another focused low to median income program: the Oil to Heat Pump Affordability Program! 

The Oil to Heat Pump is an ongoing program still active under this new budget. If your home is heated by oil and your household is at or below the median household after-tax income, you could receive a payment of up to $10,000 (up to $15,000 in Nova Scotia, Newfoundland and Labrador and Prince Edward Island) to switch from oil heating to new, energy-efficient heat pumps.

For example, if your household’s after-tax income is at or under the following for the provinces listed, you should qualify for the Oil to Heat Pump Affordability Program. The full table is available here.

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While it’s not confirmed that the new Greener Homes Affordability Program - which would cover much broader types of retrofits than just oil to heat pump - will use exactly the same thresholds, it should be within similar ranges. 

Low-income or not, if you are in British Columbia, you still have many options

If you are lucky enough to call BC home, you could still qualify for the CleanBC rebates below no matter your income level: 

•  Up to $ 5,500 for insulation
•  Up to $7,000 for space and water heating
•  Up to $2,000 for windows and doors (up to $100 per window or door, up to 20 windows). 

Many of these can be sought in addition to interest-free loans and, especially for lower-income households, in addition to other programs. 

Although less generous than British Columbia’s, other provinces and municipalities have their own programs. You can find a comprehensive list here. Some examples include:

• The Solar Rebate Program offers Edmonton homeowners $0.40/watt towards the cost of the system, which covers approximately 15% of the costs of going solar! 
• The city of Medicine Hat helps homeowners obtain an energy home evaluation by rebating up to $200 directly to the energy advisor. 

Depending on your city, your income and your house, programs might vary! Our team can help you sort out what financing option works best for you. All you have to do is sign up for Paddio.ca’s services! 

Savings await even without government rebates 

We are disappointed that the federal government scaled back its support to households who make their homes more energy efficient. Yet, the energy upgrades generate sufficient savings to cover at least the cost of the upgrades. So, if you are curious about what energy retrofits can do for your home, reach out today!