An astronomer named David Kipping once said that the possibility of life arising on a planet like Earth was 1 in 10 billion. This is because factors like the presence of liquid water, a suitable atmosphere, and an appropriate temperature range are just some of the many elements that had to be just right for us to be here. So, I guess it is safe to assume that life on earth is nothing short of a miracle or coincidence, that is, if you don’t believe in divine intervention. Regardless of what you believe, the fact of the matter is what we have here is special and most likely cannot be replicated. So we have to do all we can to protect it.
Threats like global warming, climate change, vector-borne diseases etc., are making news every day about all the damage they are causing to us and the planet. In Canada alone, the number of casualties due to environmental issues has increased significantly. In fact, it is estimated that climate change could lead to an additional 1,400 deaths per year in Canada by 2050. This is a significant number of lives that could be saved by simply adopting an eco-friendly lifestyle, and what better way to do it than to buy a home that is built or modified just to do just that?
However, buying an affordable home in the ever-changing real estate market of Canada is a troublesome task in itself, so when you aim to buy a sustainable home which is typically 1-5% more expensive than regular homes, the cost becomes a significant consideration. That is why in an effort to lower the burden on the average Canadian home buyer, the federal government has introduced several incentive plans to promote the purchase of sustainable homes.
Read More: The Benefits of Investing in Sustainable Housing
01Canada Greener Homes Grant
Introduced in May 2021 it is a federal program that provides homeowners with grants of up to $5,000 to help them make energy-efficient upgrades to their homes. The program is administered by Natural Resources Canada.
The Canada Greener Homes Grant is available to homeowners in all provinces and territories except for Quebec, which has a similar program. To be eligible for the grant, homeowners must have a valid EnerGuide evaluation of their home, and they must make energy-efficient upgrades that meet the program's criteria.
The Canada Greener Homes Grant is a great way to save money on your energy bills and reduce your carbon footprint. If you are thinking about making energy-efficient upgrades to your home, I encourage you to apply for the grant.
Here are some of the eligible energy-efficient upgrades for the Canada Greener Homes Grant:
- Air sealing: Air sealing helps to prevent warm air from escaping in the winter and cool air from escaping in the summer. This can save you money on your energy bills.
- Insulation: Insulation helps to keep your home warm in the winter and cool in the summer. This can also save you money on your energy bills.
- Window and door replacement: Replacing old, inefficient windows and doors with new, energy-efficient ones can save you a significant amount of money on your energy bills.
- High-efficiency appliances: Installing high-efficiency appliances, such as furnaces, water heaters, and refrigerators, can save you money on energy bills.
- Smart thermostats: Smart thermostats can help you to save energy by automatically adjusting the temperature in your home when you are not there.
02Canada Greener Homes Loan
Just a year after Canada Greener Homes Grant, this incentive program was introduced in June 2022. While sharing similar features with its predecessor, this program distinguishes itself by offering significantly higher funding, placing a greater emphasis on substantial retrofits and renovations. As the name implies, eligible applicants can now obtain an interest-free loan ranging from $5,000 to $40,000, with a comfortable repayment period of 10 years.
The eligibility criteria remain unchanged, requiring applicants to undergo a valid EnerGuide evaluation of their home. Remarkably, individuals can apply for both the grant and loan versions of the program, enabling them to maximise their benefits. This advantageous flexibility undoubtedly sets this program apart, giving homeowners an unparalleled opportunity to transform their residences into greener, more energy-efficient spaces.
03Oil to Heat Pump Affordability Program
Are you currently using an oil-based heating system in your home? Does your annual household income fall at or below the median household income after taxes? If you answered yes to both questions, congratulations! You may be eligible to receive an amount of $10,000 through the Oil to Heat Pump Affordability Program offered by the federal government. By switching from an oil heating system to energy-efficient heat pumps powered by electricity, you can save thousands of dollars and contribute to reducing greenhouse gas emissions, benefiting the environment.
Under this program, you will receive an upfront payment of $10,000 through a cheque. This funding is intended for the installation of necessary electrical and mechanical upgrades to your home, including the installation of a cold climate air source heat pump. It also covers the safe removal of your oil tank, the installation of a backup electric heating system if required, and the conversion of other oil-using household systems, such as a water heater, where necessary. What's more, you can combine this funding with additional financial assistance programs available from existing federal, provincial, and territorial sources.
04Canada Greener Affordable Housing
Introducing the Climate-Resilient Affordable Housing Program (CGAH), launched on June 1st, 2023, with a robust budget of $1.2 billion allocated over a four-year period. This program aims to support affordable housing providers in implementing deep energy retrofits on residential rental buildings by offering forgivable and low-interest loans.
The CGAH program extends its assistance to providers who own or manage residential rental buildings with a minimum of five units or beds. For single detached dwellings, duplexes, and townhouses, they must have a minimum age of 10 years to be eligible for the program.
The primary objective of the program is to promote net-zero energy consumption and enhance climate resilience within the affordable housing sector. To achieve these goals, deep energy retrofits facilitated by the CGAH program must achieve a 70% reduction in energy consumption compared to pre-retrofit levels and an 80% reduction in greenhouse gas emissions.
Affordable housing providers meeting the program's eligibility criteria can access two types of funding:
- Forgivable loans: These loans are gradually forgiven over a 15-year period. The amount of the forgivable loan is determined as the lesser of $85,000 per unit or 80% of eligible retrofit costs.
- Low-interest repayable loans: These loans offer a favourable repayment term of 20 years, accompanied by a low-interest rate of 2%. Affordable housing providers can obtain up to $170,000 per unit through this option.
The CGAH program serves as a valuable resource for affordable housing providers seeking to enhance the energy efficiency and climate resilience of their buildings. It offers substantial financial assistance, helping to offset the costs associated with deep energy retrofits.
Let’s Look at Some Numbers
Let's look at the numbers regarding Canada's efforts in promoting sustainable practices in the affordable housing sector:
As of September 2022, the Canada Greener Homes Grant has successfully distributed $69 million in grants to nearly 19,000 homeowners nationwide. Additionally, the Canada Greener Homes Loan has received more than 3,200 applications, demonstrating an interest in adopting environmentally friendly solutions.
Furthermore, the Oil to Heat Pump Affordability Program has facilitated the transition from oil heating to heat pumps for over 1,500 households, reducing reliance on fossil fuels.
In its early stages, the Canada Greener Affordable Housing program has already secured over $100 million in funding for deep energy retrofits in affordable housing buildings.
These figures highlight the active engagement and commitment of both the Canadian government and its citizens in promoting sustainability and climate-conscious practices within the affordable housing sector.
These initiatives have not only provided financial support but have also empowered homeowners and communities to take meaningful steps towards reducing their environmental impact and embracing sustainable living. With such active engagement and a collective drive towards a sustainable future, Canada is paving the way for a brighter and more environmentally conscious affordable housing sector, setting an inspiring example for others to follow. Together, through continued collaboration and innovation, we can build a more sustainable and resilient world for generations to come.