People want homes that work harder for their money – and the planet. But the upfront costs of energy-efficient upgrades can be a hurdle. That’s where smart financing options like green home loans and performance-based models can help close the gap. These financing options reward smart choices, giving homeowners the power to build or retrofit homes without breaking their budgets. The right loan can make efficiency possible from the start.
In this guide we’ll explore financing options backed by government, utilities and private lenders as well as alternative financing such as EPCs.
Government and Utility Energy-Efficiency Retrofit Loans
FEDERAL – Canada Greener Homes Loan
The Canada Greener Homes Loan offers interest-free financing repayable over 10 years, giving homeowners the flexibility to invest in energy-efficient upgrades without the burden of high upfront costs.
Incentive – This loan of up to $40,000 supports a wide range of eligible improvements, like insulation, windows, heat pumps and renewable energy systems.
Eligibility – Available to homeowners who complete a pre-retrofit evaluation through the Canada Greener Homes Initiative.
Get the Green Building Project Checklist
Use this handy checklist on your next project to keep track of all the ways you can make your home more energy-efficient and sustainable.
Learn more about this program at Canada Greener Homes Loan
ALBERTA – Clean Energy Improvement Program (CEIP)
The Alberta government provides funding to municipalities, which then provide financing to homeowners wanting to make energy-efficient upgrades.
Incentive – The CEIP enables residential and commercial property owners in Alberta to pay for energy efficiency and renewable energy upgrades. Repayment is made through a tax added to the property’s tax bill.
Eligibility – Available to property owners in municipalities that have passed clean energy improvement tax bylaws. You can see if your municipality offers this program at the link below.
Learn more about this program at CEIP
MANITOBA – Home Energy Efficiency Loan
Through Manitoba Hydro you can finance your energy efficiency retrofit with low-interest financing through payments on your energy bill.
Incentive – Low-interest loans for energy-efficient upgrades, such as insulation, heating systems and windows.
Eligibility – Available to Manitoba Hydro customers who own and occupy their home. Applicants must undertake eligible energy efficiency improvements, and the loan amount must be within the financing limits set by Manitoba Hydro.
Learn more about this program at Home Energy Efficiency Loan
NEWFOUNDLAND & LABRADOR – Heat Pump and Insulation Financing
The Heat Pump and Insulation Financing program is designed to help homeowners in Newfoundland and Labrador invest in energy-efficient heat pumps and insulation, reducing their energy consumption and lowering utility costs.
Incentive – Financing for up to $10,000 of the cost for heat pump and insulation installations. Homeowners are responsible for any costs exceeding this amount. The financing is provided through affordable, low-interest loans to be paid back via monthly installments applied to the electricity bill.
Eligibility – Available to homeowners who are customers of Newfoundland and Labrador Hydro and meet specific program criteria. Homeowners must be installing eligible energy-efficient systems, including heat pumps and insulation, to improve their home’s energy efficiency.
Learn more about this program at Newfoundland and Labrador Hydro – Energy Efficiency Financing
PRINCE EDWARD ISLAND – Energy Efficiency Loan Program
This program assists homeowners in PEI with energy-efficient upgrades that include insulation, energy-efficient equipment and solar photovoltaic installations. The program aims to reduce upfront costs and promote energy savings.
Incentive – Eligible applicants can receive a repayable loan of up to $10,000, covering up to 100 percent of invoiced costs for eligible activities pre-approved by efficiencyPEI under their rebate programs. The loan is offered at a fixed interest rate of 5 percent per annum, with a repayment period of up to 7 years.
Eligibility – For homeowners who are approved applicants under either of efficiencyPEI’s Energy Efficient Equipment Rebate or Home Insulation Rebate programs. The loan is not available for new construction or for projects already completed.
Learn more about this program at Energy Efficiency Loan Program
TORONTO – Home Energy Loan Program (HELP)
This initiative by the City of Toronto helps homeowners with low-interest loans to cover the costs of eligible improvements, such as insulation, heating systems and windows. Repayment is made through property tax bills over a period of up to 20 years.
Incentive – Homeowners can borrow up to $125,000 to finance energy-efficient upgrades. The loan amount, including interest and administrative charges, cannot exceed 10 percent of the property’s current value assessment (CVA). The interest rates are fixed and vary based on the loan term.
Eligibility – Owners of a detached, semi-detached, row/townhouse, duplex, triplex or apartment building with up to 6 units.
Learn more about this program at Home Energy Loan Program
Private Lenders and Other Innovative Financing Options
Beyond government-backed programs, private lenders are expanding their offerings to meet growing demand for sustainable housing. Credit unions, fintech companies and alternative financing platforms are introducing flexible loan structures tailored to energy-efficient projects. These products often consider projected energy savings when calculating affordability, giving borrowers more leverage to fund upgrades.
Some private lenders partner directly with contractors or energy consultants, offering bundled financing that includes both the installation and equipment. This approach simplifies the process for homeowners and sometimes includes performance guarantees. Peer-to-peer lending platforms are also emerging in this space, connecting borrowers with investors who support eco-conscious living.
These options give homeowners greater choice and control. For projects that fall outside traditional mortgage structures like phased retrofits or modular energy systems, private financing can provide the speed and adaptability public programs sometimes lack. It’s a sign that the market is evolving to meet both environmental goals and individual needs.
Kingston Community Credit Union (KCCU) Green Home Loan
Kingston Community Credit Union offers a Green Home Loan to help its members invest in environmentally conscious home improvements. This loan is designed to make it easier and more affordable for homeowners to reduce their carbon footprint through energy-efficient upgrades.
Incentive – Finances upgrades like solar panels, heat pumps, insulation, energy-efficient appliances and windows. Offers low interest rates starting at KCCU’s prime rate, with flexible repayment terms (1–5 years), amortization up to 10 years and no prepayment penalties.
Eligibility – Available to KCCU members who can secure the loan against their home mortgage.
For more information visit KCCU Green Home Loan
Vancity Planet-Wise Home Renovation Loans
Vancity’s loan program supports green retrofits by helping homeowners finance energy-efficient renovations.
Incentive – Helps pay for upgrades like insulation, solar panels, heat pumps, windows, and more. Monthly payments can be structured based on anticipated reductions in utility bills.
Eligibility – Must be a Vancity member in British Columbia; loan approval subject to credit review.
For more information visit Vancity Planet-Wise Home Renovation Loans
Desjardins Green Homes Program
This program by Desjardins provides loans with preferential rates for eco-friendly home purchases and renovations, along with cashback rewards for meeting green home standards.
Incentive – Homebuyers or renovators can access financing at a reduced interest rate for purchases or renovations of homes that meet specific environmental standards for energy efficiency. The program also offers a cashback incentive of up to $2,000 for purchasing or building a new eco-friendly home and $500 cashback for completing renovations aligned with the Rénoclimat subsidy program.
Eligibility – Available to individuals purchasing or renovating a home that meets recognized energy-efficient building standards or sustainable construction criteria.
For more information visit Green Homes Program – Desjardins
RBC Energy Saver Loan
This loan offers favourable terms and incentives for homeowners wanting to invest in energy-efficient home improvements.
Incentive – Receive a 1 percent interest rate discount on a fixed-rate installment loan over $5,000 or a $100 rebate on a home energy audit. Choose repayment terms ranging from 5 to 10 years, depending on the loan amount.
Eligibility – The loan covers environmentally friendly products and services recommended during a home energy audit, products qualifying for government grants, ENERGY STAR qualified products and renewable energy projects like solar panels and hybrid cars. To qualify for the $100 rebate, a home energy audit must be completed within 90 days before or after receiving the loan.
For more information visit RBC Energy Saver Loan
FinanceIt – Energy-Efficient Renovation Loans
FinanceIt partners with contractors across Canada to provide quick, accessible financing for homeowners making green improvements. It’s a fintech-driven model designed for speed and convenience.
Incentive – Offers loans for HVAC, windows, insulation and renewable energy systems with flexible terms (up to 15 years). No upfront cost to the homeowner; payments can be made monthly.
Eligibility – Available to Canadian homeowners through FinanceIt-affiliated contractors; subject to credit approval.
For more information visit Financeit
Energy Performance Contracts and Shared Savings Models
For homeowners and multi-unit property owners looking to upgrade without heavy upfront investment, performance-based financing models offer a practical path forward. One common approach is the Energy Performance Contract (EPC), where a third-party private energy service company (ESCOs) funds the upfront costs of the project. They make the investments to upgrade the systems and then the savings in energy costs (after the upgrades) are used to pay them back over a set period.
A similar model – the shared savings agreement – splits the energy cost savings between the provider and the homeowner. These contracts are typically used in commercial or institutional settings, but are gaining ground in residential markets, especially in condo developments or housing co-ops.
Both models remove the burden of large capital outlays. Instead of paying for the retrofit upfront, homeowners pay from the money they save on reduced utility bills. It’s a low-risk, results-driven approach that aligns incentives and keeps performance at the centre of the deal. For many, it’s an ideal way to benefit from efficiency without added financial strain.
Here are some choices you have if looking for an EPC:
Fiera Capital – EPC Financing for Commercial Buildings
Fiera Capital offers energy performance contract financing specifically aimed at commercial buildings. This financing option is particularly for businesses looking to upgrade their energy systems without upfront costs.
Incentive – This program is focused on the commercial sector, where energy savings are used to repay the costs of energy-efficient upgrades, such as HVAC systems, lighting and insulation.
Eligibility – Businesses, municipalities and large buildings can apply. EPCs are used to finance large commercial energy efficiency projects.
For more information visit Fiera Capital
City of Toronto – Better Buildings Partnership (BBP)
The Better Buildings Partnership (BBP) in Toronto offers EPCs as part of their energy efficiency programs. This program supports energy efficiency upgrades for commercial and multi-unit residential buildings in the city.
Incentive – BBP facilitates EPCs to help building owners implement energy-saving technologies without upfront costs. This is done through performance contracting where future energy savings fund the improvements.
Eligibility – Available for commercial and multi-residential properties.
For more information visit BBP Toronto
Green Municipal Fund (GMF) – Federation of Canadian Municipalities
The Green Municipal Fund offers grants and loans for energy efficiency upgrades in residential, commercial and municipal projects. While it’s not strictly an EPC program, the fund can support EPCs through its financing mechanisms.
Incentive – Provides funding to municipalities and organizations looking to invest in energy-saving projects, often with long-term energy savings used to repay loans.
Eligibility – Municipalities, non-profit organizations and commercial entities.
For more information visit Green Municipal Fund
CleanBC – EPC Programs
In British Columbia, the CleanBC initiative provides funding for energy-efficient retrofits and improvements in both residential and commercial buildings. While this is not always an EPC by name, it supports energy-saving projects similar to EPCs.
Incentive – CleanBC offers funding and incentives for energy-saving projects and EPCs may be used as a financing tool.
Eligibility – Available for residential, commercial and industrial sectors.
For more information visit CleanBC
Énergir – Energy Efficiency Programs (Quebec)
For those in Quebec, Énergir offers energy-saving programs that can be structured as EPCs. These programs focus on reducing energy consumption in both residential and commercial buildings.
Incentive – Offers financial incentives and rebates for energy-efficient upgrades and EPCs can be used for certain types of projects.
Eligibility – Both residential and commercial properties in Quebec can apply.
For more information visit Énergir
The Financial Case for Energy Efficiency
Energy-efficient homes lower monthly bills and shield homeowners from rising energy prices. Over time, better insulation, high-performance windows, and efficient heating systems pay for themselves. These savings compound, making green upgrades one of the smartest long-term investments in residential construction.
But upfront costs remain a barrier. High-efficiency materials and systems often cost more at purchase, even if they’re cheaper to operate. That gap keeps some homeowners from leaping. Financing programs aim to bridge it, but smart money management is still key.
For those juggling existing financial commitments, options like consumer proposal services can help restructure debt and create space for new investments. When handled responsibly, energy-efficient improvements become a tool for financial stability, not a burden. It’s a matter of aligning immediate affordability with future resilience.
Homeowners looking to boost energy performance have access to several generous incentive programs. These can significantly reduce the cost of upgrades when paired with smart financing. Together, these incentives make it easier for homeowners to manage upfront costs and stay on budget. By stacking grants, loans and rebates, Canadians can unlock more value from every retrofit, while reducing their long-term energy use.
Financing shouldn’t be a roadblock to building a better home. Alternative funding models, including government-backed loans and performance-based financing, are rewriting what’s possible, making efficiency upgrades more attainable, flexible and tailored to real needs. As lenders and programs evolve, so do the opportunities for homeowners to invest in long-term sustainability. The future of housing is energy-smart, and with the right tools in hand, it’s within reach for more people than ever before.
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