Ottawa set to relaunch federal green home retrofit program in 4 provinces

A heat pump unit is shown outside a house in Delta, B.C., in August 2024. The federal government is set to relaunch its greener homes grant in B.C., Quebec, Nova Scotia and P.E.I. (Darryl Dyck/The Canadian Press)

Photo: (Darryl Dyck/The Canadian Press)

David Thurton (new window) · CBC News

After a hiatus, the popular greener homes program is returning to Nova Scotia, Prince Edward Island, Quebec and British Columbia, CBC News has learned.

Environment, Climate Change and Nature Minister Julie Dabrusin and Energy Minister Tim Hodgson are expected to announce on Monday morning the federal program’s relaunch in the four provinces.

Over $500 million in funding, $300 million of which is federal, will be directed to help over 35,000 low- and median-income households reduce energy bills and greenhouse gas emissions through no-cost home retrofits such as heat pumps, insulation and air sealing, according to a draft of the news release obtained by CBC News.

A previous version of the program, which ran out of cash, was open to homeowners. This new version will focus on low-to-median-income households and be open to homeowners and renters.

It’s been rebranded the Canada Greener Homes Affordability Program (CGHAP) and has already rolled out in Manitoba. The draft news release did not state when it could be accessed by Canadians in the five other provinces and three territories.

CBC News spoke with a senior federal source with knowledge of Monday’s announcement who said discussions are underway with the other jurisdictions.

The government's website also says CGHAP will provide dedicated support to regional Indigenous governments and representative organizations and that funds will come from existing agreements managed by Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada.

Provinces to administer program

The program will now fall under a new federal department, Environment, Climate Change Canada, and be administered by the provinces instead of Ottawa.

The draft news release mentions that it will be delivered in co-ordination with all four provinces, as well as with Hydro-Québec, B.C. Hydro, FortisBC and EfficiencyOne, based in Nova Scotia. It did not share details about the eligibility criteria or the maximum amount households could receive.

Dabrusin and Hodgson on Monday at 8.a.m. to make the announcement at the International Energy Agency's Global Conference on Energy Efficiency in Montreal. The senior federal source also confirmed that Dabrusin will now have responsibility for CGHAP, along with energy efficiency and electric vehicle charging files.

The Canada Greener Homes Grant program (new window), first launched by the federal government in 2021, provided homeowners with up to $5,000 for energy efficiency retrofits and home energy evaluations, as well as up to $600 to help cover the cost of those evaluations. Homeowners were required to spend the money and then be reimbursed.

The $2.6-billion program was supposed to last until 2027, or until funds were depleted, but the program closed in early 2024, and the government promised to bring it back.

Ottawa took heat from homeowners and the retrofitting industry for promising a program that would last for several years and then allowing it to lapse for nearly two years.