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The Texas Reporter > Blog > World > How a lot greener did Canada’s houses get? Report takes a better have a look at federal rebate program
World

How a lot greener did Canada’s houses get? Report takes a better have a look at federal rebate program

Editorial Board
Editorial Board Published April 6, 2025
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How a lot greener did Canada’s houses get? Report takes a better have a look at federal rebate program
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The federal authorities offered $2.6 billion for warmth pumps, photo voltaic panels, insulation and different inexperienced upgrades to Canadians’ houses via the Canada Greener Properties Grant. However what distinction did that really make? 

A brand new report launched this week by the non-profit Inexperienced Communities Canada suggests this system didn’t do sufficient to satisfy Canada’s targets to scale back greenhouse gasoline emissions.

That’s as a result of “the savings aren’t deep enough and because we’re not doing enough retrofits,” stated Kai Millyard, the group’s power supervisor and co-author of the report.

What was the Canada Greener Properties Grant?

The federal grant program launched in December 2020, with said objectives of serving to Canadians decrease their power payments, create new jobs for power advisers and struggle local weather change. Pure Sources Canada says buildings account for 18 per cent of Canada’s emissions, making them the third-largest emitting sector of the economic system, after oil and gasoline and transportation.

This system provided as much as $5,000 per family for inexperienced retrofits that might be added to different funding, comparable to provincial and territorial packages. The cash might be used to subsidize the prices of electrical warmth pumps, extra energy-efficient home windows and doorways, air sealing, residence insulation and photo voltaic panels.

Purposes opened in December 2020 and abruptly closed in February 2024. Whereas this system was speculated to final for seven years, by 2023, the federal government stated funds had been working out sooner than anticipated as a result of program’s reputation. Nonetheless, grants are nonetheless being paid out to present candidates.

WATCH | Federal rebates for residence energy-efficiency renos working out of cash:
How a lot greener did Canada’s houses get? Report takes a better have a look at federal rebate program

Federal rebates for residence energy-efficiency renos drying up

A preferred federal rebate that gives householders as much as $5,600 to retrofit their houses to make them extra power environment friendly is working out of cash prior to anticipated. The Greener Properties Grant was anticipated to final till 2027 however might dry up nicely earlier than then.

Grants led to large warmth pump uptake …

Over 500,000 Canadian households utilized to this system. As of this previous January, 366,786 had accomplished retrofits and acquired a rebate averaging $4,498, the federal authorities studies.

It estimates that has minimize 704,000 tonnes of greenhouse gases, equal to taking 215,670 vehicles off the street. On common, it says, every taking part family is saving $386 on power prices and has minimize their greenhouse gasoline emissions 1.92 tonnes because of their retrofits.

About 60 per cent of candidates selected to put in a warmth pump, and so they had been the highest retrofit by householders in British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Quebec. The federal authorities says it expects 250,000 warmth pump installations by this system’s finish.

Millyard acknowledges the grant program made an enormous distinction in adopting the electrical heating know-how, which replaces gas- and oil-burning furnaces and boilers in lots of houses — a serious supply of greenhouse gases from buildings.

“It’s built a meaningful market,” he stated. “The industry is learning quickly, and there’s demand all across the country for heat pumps. This has been a really important development.”

There has additionally been a rise in photo voltaic installations over the course of this system. In 2024, they represented 56 per cent of retrofits in Alberta and had been the highest retrofit in P.E.I., Yukon and Nunavut.

WATCH | Residents and companies involved about P.E.I. pausing photo voltaic rebate:

‘It is not fair’: Islanders and companies alike involved about P.E.I. pausing photo voltaic rebate

Some Islanders are nervously ready to be taught extra about the way forward for the province’s photo voltaic rebate program, after it was placed on pause not too long ago. Companies are sitting on gear they anticipated to make use of this summer time, and people hoping to place panels on their houses are nervous they might not be accredited if modifications are made. CBC’s Tony Davis has the story.

… however much less insulation

In the meantime, the report discovered that over the course of this system, using grants for insulation upgrades declined.

This system required folks to get an power audit from an power adviser, who recommends what upgrades to make — a service that Inexperienced Communities Canada offered via member organizations. The audits might even be offered by non-public companies.

However the report discovered that most individuals whose power advisers really useful insulation and air leakage work didn’t do it.

Millyard stated wall insulation is commonly finished at the side of different tasks, comparable to ending a basement, that may price tens of hundreds of {dollars}, “so there were a lot of people who had recommendations to make upgrades to the houses that they just couldn’t afford to get to.”

WATCH | Ending Greener Properties Grant program could be ‘big change’ for power auditors:

Cancelling the Greener Properties Grant program could be a ‘big change’ for power auditors

Dylan Trebels skilled to assist folks with their residence power retrofits. The 30-year-old left his company tech desk job hoping to develop into a part of a military of registered power auditors.

Solely 29,000 of 600,000 retrofits by the tip of 2024 had been “deep retrofits” that minimize power use by 50 per cent. That usually requires doing three issues: upgrading the constructing envelope with issues like higher insulation, electrifying heating and scorching water, and including renewable power comparable to photo voltaic panels.

The brand new report argues that’s what’s wanted to succeed in Canada’s goal of net-zero emissions by 2050, and it needs to be a precedence in future greener residence grant packages.

Canada additionally must step up the tempo of retrofits, it says. Whereas the Greener Properties Grant was designed to retrofit 100,000 houses a yr, the report says it could take greater than 100 years to retrofit all of Canada’s 11 million present houses at that charge. In the meantime, 2050 is simply 25 years away.

WATCH | What would occur if photo voltaic panels had been placed on the world’s rooftops?:

What if we put photo voltaic panels on each roof on the earth?

Scientists got down to discover the impression of protecting each rooftop on Earth with photo voltaic panels. Their analysis discovered that swapping conventional power sources for rooftop photo voltaic might truly cool the planet — reducing world temperatures by as much as 0.13°C.

What retrofits are handiest?

Maya Papineau is an affiliate professor of economics at Carleton College in Ottawa who in contrast precise power financial savings to the financial savings projected by power advisers through the ecoENERGY program, the predecessor to the Greener Properties Grant.

The examine of houses that participated in Medication Hat, Alta., discovered that air sealing and attic and wall insulation had been comparatively efficient, however basement insulation and energy-efficient home windows had no impact on power payments.

General, residence retrofits achieved solely about 60 per cent of power financial savings that power advisers predicted, the examine discovered. Even deep retrofits achieved solely 50 per cent of estimated power financial savings.

Papineau stated that’s probably as a result of the Pure Sources Canada power modelling utilized by power advisers for each the ecoENERGY program and the Greener Properties Grant program underestimates the power effectivity of most houses.

She stated she has flagged this downside to the federal government, and it’s planning to work on it.

Getting a warmth pump wasn’t an choice through the ecoENERGY program, nevertheless it’s one thing that has a major impression on a house’s carbon emissions, and Papineau thinks it’s among the finest issues a home-owner can do with a inexperienced power grant.

WATCH | How a lot can warmth pumps cut back your carbon footprint?:

How a lot can warmth pumps cut back your carbon footprint?

Ottawa is giving Atlantic Canadians extra time to modify to warmth pumps. Final week, the federal authorities introduced it could pause the carbon tax on heating oil for 3 years. CBC Nova Scotia’s Amy Smith spoke to Dalhousie College environmental research professor Wayne Grosko concerning the impression.

Does Canada want one other inexperienced houses program?

Remodeling Canada’s economic system is required to succeed in web zero, and households have to be part of that, Papineau stated.

“I think that energy efficiency can be and should be a key part of climate change policy. But it has to be done in a way that improves the returns to households,” she stated. In any other case, they could not wish to take part.

Millyard, of Inexperienced Communities Canada, stated any new program wants greater grants so folks can truly do all the retrofits they want. He additionally stated the packages can’t final only some years after which disappear, just like the Canada Greener Properties Grant and former packages.

“For organizations like us in the energy-efficiency industry, it’s murder,” he stated. “You know, you train up a whole bunch of people and then you have to let them go.”

Canada nonetheless has a Greener Properties Mortgage program, however the uptake has been comparatively low. Millyard stated loans are “generally not good enough in the residential sector,” which wants grants.

“The pressure to reduce our greenhouse gas emissions is only growing,” he stated, “so we need to return to … a better version of a program like [the Canada Greener Homes Grant] so we can get back to retrofitting our houses.”

Election guarantees

At this level within the federal election marketing campaign, the NDP has promised $1.5 billion yearly to retrofit 2.3 million low-income houses over 10 years, in addition to loans to assist 1,000,000 different households.

On their web sites, the Liberal Celebration says it should present residence retrofit grants of as much as $5,000 and interest-free loans of as much as $40,000, whereas the Inexperienced Celebration guarantees a nationwide retrofit program, nevertheless it has not offered particulars. Retrofits aren’t talked about on the Conservative Celebration web site.

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