One of the advantages of homeownership is the ability to make improvements that reduce your energy costs and carbon footprint. Canada offers several federal and provincial programs designed to help homeowners fund energy-efficient upgrades — sometimes covering a significant portion of the cost.
Whether you are looking to lower your monthly energy bills, reduce your environmental impact, or increase your home’s resale value, energy efficiency upgrades are among the smartest investments a homeowner can make. This page covers the available programs, common upgrades, the audit process, and the return on investment you can expect.
Canada Greener Homes Programs
The federal government has offered programs to help Canadian homeowners make energy-efficient improvements. While the specific programs, grant amounts, and eligibility criteria evolve over time (programs are regularly updated, paused, or replaced), the general structure has remained consistent:
How Federal Programs Typically Work
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EnerGuide pre-retrofit audit — A certified energy advisor visits your home, assesses its current energy performance, and produces a report with recommended upgrades prioritized by impact.
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Complete eligible upgrades — You hire qualified contractors to complete the recommended improvements. Common eligible upgrades include insulation, windows and doors, heat pumps, solar panels, and air sealing.
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Post-retrofit audit — The energy advisor returns to verify the work was completed correctly and measures the improvement in your home’s energy performance.
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Receive funding, if a program is still open — Closed Greener Homes Grant and Loan applicants submitted audits and invoices for a grant or interest-free loan. CGHAP uses a direct-install model (the delivery partner handles the work). Confirm the current path on NRCan before you start.
Current programs (October 2026)
Federal retrofit incentives change often. As of NRCan’s Greener Homes Initiative:
- Canada Greener Homes Grant — closed. New applications closed in February 2024. December 31, 2025 was the last day to submit documents.
- Canada Greener Homes Loan — closed. No further applications can be approved. Previously approved loans are not affected.
- Canada Greener Homes Affordability Program (CGHAP) — Open in participating provinces. No-cost retrofits (such as insulation and heat pumps) for eligible low-to-median-income homeowners and tenants, delivered by provincial and territorial partners. The federal government is not accepting household applications directly.
- Oil to Heat Pump Affordability Program — Helps eligible oil-heated homes switch to a heat pump (up to $10,000 where federally delivered; up to $25,000 where co-delivered). July 31, 2026 was the last day to apply for residents of Alberta, Manitoba, Northwest Territories, Quebec, and Saskatchewan. Check NRCan for other jurisdictions.
Check the Natural Resources Canada website for the most current programs and eligibility requirements. Programs can be updated, paused, or replaced at any time.
Provincial and Utility Programs
In addition to federal programs, many provinces and local utilities offer their own energy efficiency incentives. These can often be stacked with remaining federal programs for maximum savings. Do not assume the closed Greener Homes Grant or Loan still applies.
British Columbia
- CleanBC Better Homes — Rebates for heat pumps (up to $6,000), insulation, windows, and heat pump water heaters
- BC Hydro and FortisBC rebates — Additional utility-specific rebates for high-efficiency equipment
- CleanBC income-qualified programs — Enhanced rebates for lower-income households
Ontario
- Home Renovation Savings Program — Delivered by Enbridge Gas and Save on Energy (IESO), with support from the Ontario government. It launched January 28, 2025 and replaced Enbridge’s Home Efficiency Rebate, which stopped taking new intake on January 27, 2025. It covers insulation, air sealing, windows and doors, heat pumps, heat pump water heaters, smart thermostats and solar with battery storage, for homes heated with electricity, natural gas, oil, propane or wood. You can bundle upgrades after a home energy assessment or claim single upgrades. The attic insulation rebate on Save on Energy’s page runs to November 30, 2026. Rebate amounts and rules change, so confirm them on the program site before you book work.
- Not available in Ontario: the federal Canada Greener Homes Affordability Program (CGHAP) is not offered here. It runs through partners in other provinces (BC, Manitoba, Nova Scotia, PEI and Quebec), and there is no direct application.
- Local utility programs — Many Ontario utilities (Hydro One, Toronto Hydro, etc.) offer energy-saving programs and rebates
Quebec
- Renoclimat — Grants for insulation, air sealing, and heating system upgrades
- Chauffez vert — Financial assistance for replacing oil or propane heating with electric or renewable energy systems
- Hydro-Quebec programs — Rebates on specific high-efficiency products
Alberta
- Emissions Reduction Alberta — Various programs supporting residential energy efficiency
- Municipal programs — Some Alberta municipalities (Calgary, Edmonton) offer local energy efficiency incentives
Nova Scotia
- Efficiency Nova Scotia — Rebates for insulation, heat pumps, solar, and other efficiency upgrades
- Income-qualified programs — Free or low-cost upgrades for qualifying homeowners
Other Provinces
Most provinces and territories have energy efficiency programs. Check your provincial energy agency or utility company’s website for current offerings. Programs change frequently, so check at least once a year or before starting any major project.
Common Upgrades and Their Impact
Here are the most popular energy efficiency upgrades, with typical costs, annual savings, and payback periods:
| Upgrade | Typical Cost | Potential Annual Savings | Simple Payback | Notes |
|---|---|---|---|---|
| Air-source heat pump | $5,000 - $10,000 | $500 - $1,500 | 4-8 years | Provides both heating and cooling; most popular upgrade |
| Cold-climate heat pump | $8,000 - $15,000 | $800 - $2,000 | 5-10 years | Works efficiently in Canadian winters down to -25C or colder |
| Attic insulation (top-up) | $1,500 - $3,000 | $200 - $500 | 4-8 years | One of the best ROI upgrades; easy to install |
| Basement insulation | $3,000 - $6,000 | $200 - $400 | 8-15 years | Reduces heat loss through the foundation |
| Wall insulation (blown-in) | $3,000 - $8,000 | $200 - $500 | 8-16 years | Significant improvement for older homes with uninsulated walls |
| High-efficiency windows | $8,000 - $20,000 | $300 - $700 | 15-25+ years | Improves comfort and reduces drafts; longer payback |
| Air sealing (professional) | $500 - $2,000 | $100 - $400 | 2-5 years | Sealing gaps, cracks, and penetrations; excellent ROI |
| Smart thermostat | $200 - $400 | $100 - $200 | 1-3 years | Quick win with fast payback |
| Heat pump water heater | $2,500 - $4,000 | $200 - $400 | 6-12 years | Uses heat pump technology to heat water efficiently |
| Drain water heat recovery | $500 - $1,000 | $50 - $150 | 4-10 years | Recovers heat from shower water to preheat incoming cold water |
| Solar panels (grid-tied) | $15,000 - $30,000 | $1,000 - $2,500 | 10-15 years | Generates electricity; value depends on location and electricity rates |
Prioritizing Upgrades
Not all upgrades deliver equal value. Here is how to prioritize:
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Air sealing first. Before adding insulation or upgrading equipment, seal the gaps and cracks that let air (and money) leak out of your home. Air sealing has the best return on investment of any energy efficiency upgrade.
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Insulation second. Adding insulation to your attic, basement, or walls reduces heat loss and improves comfort. Attic insulation is typically the easiest and most cost-effective.
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Heating and cooling third. Once your home is well-sealed and insulated, upgrading to a heat pump or high-efficiency furnace delivers maximum savings because your home retains the heated or cooled air more effectively.
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Windows and doors last. Windows are important for comfort and aesthetics, but they have the longest payback period. Prioritize them after the higher-ROI upgrades are complete — unless your existing windows are single-pane, severely damaged, or causing major comfort issues.
The EnerGuide Audit Process
An EnerGuide audit (also called an EnerGuide home evaluation) is the starting point for most government energy efficiency programs. It provides a detailed assessment of your home’s energy performance and a roadmap for improvements. Here is what to expect:
Step 1: Book the Audit
Find a registered energy advisor through the Natural Resources Canada website or your provincial program’s website. Costs for the pre-retrofit audit are typically $300 to $600, though some programs offer partial or full reimbursement.
Step 2: Pre-Retrofit Audit (2-3 Hours)
The energy advisor visits your home and conducts a thorough assessment:
- Blower door test — A specialized fan is mounted in your front door and pressurizes or depressurizes the home. This measures exactly how much air is leaking through cracks, gaps, and penetrations in the building envelope. The result is expressed in “air changes per hour” (ACH) — lower is better.
- Insulation assessment — The advisor checks insulation levels in the attic, walls, and basement, and identifies areas that are under-insulated.
- Heating and cooling systems — The advisor evaluates the efficiency, age, and condition of your furnace, air conditioner, water heater, and any other energy-consuming equipment.
- Windows and doors — The advisor assesses the type, condition, and energy performance of your windows and doors.
- General inspection — The advisor looks at ventilation, ductwork, and other factors that affect energy use.
Step 3: Receive Your Report
You receive a detailed report that includes:
- Your home’s current EnerGuide rating (a score from 0 to 100 — higher is better)
- A list of recommended upgrades, prioritized by energy impact and cost-effectiveness
- Estimated energy savings for each recommended upgrade
- Information on which upgrades qualify for government incentives
Step 4: Complete the Upgrades
Work with qualified contractors to complete the recommended improvements. Keep all invoices, receipts, and proof of payment — you will need them to claim your incentives.
Step 5: Post-Retrofit Audit
After the upgrades are complete, the energy advisor returns to:
- Conduct a second blower door test to measure the improvement in air tightness
- Verify that the upgrades were completed as recommended
- Issue a new EnerGuide label reflecting your home’s improved performance
Step 6: Claim Your Incentives
Submit your pre- and post-retrofit audit reports, contractor invoices, and proof of payment to the relevant federal and/or provincial programs. Processing times vary, but you can typically expect to receive your grant or rebate within a few weeks to a few months.
Return on Investment
Energy efficiency upgrades provide returns in several ways:
- Reduced energy bills — The most direct and measurable benefit. Depending on the upgrades, you could save $500 to $3,000 or more per year on heating, cooling, and electricity.
- Increased home value — Energy-efficient homes are increasingly desirable to buyers. An upgraded home with a high EnerGuide rating can command a premium on resale, directly contributing to building your home equity.
- Improved comfort — Better insulation, air sealing, and modern heating/cooling systems make your home more comfortable year-round — fewer drafts, more consistent temperatures, and less noise from outside.
- Reduced maintenance costs — Modern, high-efficiency equipment is often more reliable and requires less ongoing maintenance than aging systems.
- Environmental impact — Reducing your home’s energy consumption lowers your carbon footprint. For many homeowners, this is as important as the financial benefits.
When evaluating upgrades, consider the net cost after incentives and the annual savings to determine your true payback period. Many upgrades pay for themselves in five to eight years — and then continue generating savings for decades.
Sources: Canada Greener Homes Initiative — Natural Resources Canada · Canada Greener Homes Affordability Program · Home Renovation Savings Program — Save on Energy · Enbridge Gas — Home Efficiency Rebate (ended) · CMHC Homebuying Guide
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