Program Update (February 2026): The Canada Greener Homes Loan program is now closed as of October 1, 2025. The replacement, the Canada Greener Homes Affordability Program (CGHAP), is rolling out through provincial partners for low-to-median-income households. Learn more at https://natural-resources.canada.ca/energy-efficiency/home-energy-efficiency/canada-greener-homes-initiative/canada-greener-homes-affordability-program. For current solar financing options and provincial rebates, contact Xolar for a free consultation.
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 was an interest free loan on a 10-year term for between $5,000 and $40,000. The loan could be taken out for home solar projects or other clean energy retrofits like an air source heat pump. The maximum eligible loan amount was based on the retrofits selected in the application and the quotes received to complete their installation.
The most attractive feature of the Canada Greener Homes Loan was that it was completely interest-free. A 15% portion of the loan could be disbursed up front, to cover a project’s down payment. That made the Canada Greener Homes Loan the most affordable financing option for homeowners looking to go solar until it closed to new applications on October 1, 2025.
The Canada Greener Homes Loan Criteria
A maximum of one loan was available per eligible property and homeowner. For all loan applicants the following eligibility requirements had to 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.
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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 Worked
Applying for and using the Canada Greener Homes Loan involved several steps:
- 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. - 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. - 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. - 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. - 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 Homeowners Went 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 was a perfect opportunity to invest in solar energy with little financial strain, since the home solar system would cover the costs of the power bills once installed. Borrowers saw little change in their monthly budget, since the financing was offset by the power bill savings.
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
The Canada Greener Homes Loan is closed, but going solar doesn’t have to be overwhelming. Our Solar Specialists and Project Managers can walk you through the financing options and government programs in your area and make sure you maximize their value. 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.