Canada Greener Homes Loan Program Closes Applications

September 17, 2025 – Efficiency Canada is deeply concerned by the federal government’s decision to close applications to the Canada Greener Homes Loan Program. The final day to apply is October 1, 2025 — Energy Efficiency Day.

The program is the principal way the federal government is helping middle-class Canadians reduce their energy costs and greenhouse gas emissions — offering interest-free loans for upgrades like heat pumps, insulation, windows, and solar panels. It supports careers in the skilled trades, strengthens local supply chains, and helps households lower bills while cutting emissions.

The sudden announcement mirrors the abrupt end of the Canada Greener Homes Grant last year, which left contractors and homeowners scrambling.

“This is the second major energy efficiency program to be abruptly shut down in as many years,” said Brendan Haley, Senior Director of Policy Strategy at Efficiency Canada. “These kinds of boom-bust policies drive skilled tradespeople out of the sector, disrupt small businesses, and erode public trust.”

Ending the Greener Homes Loan would undermine federal commitments to reduce emissions, support skilled trades, and bring down costs for Canadians. While a new low-income stream has recently launched, it fills a different gap.

“The Greener Homes Loan is the principal way the federal government supported middle-income Canadians to cut their energy costs and emissions,” says Haley. “Without a universal program that serves middle-income households, the entire energy efficiency system becomes more fragile.”

Efficiency Canada urges the federal government to recapitalize the Greener Homes Loan in Budget 2025 as part of a suite of programs that make energy efficiency accessible to all Canadians. They encourage all parties to make this a condition of budget support.

Background:

• On average, participating households cut their energy use by 24% and emissions by 39% while lowering bills and improving comfort. 
• Loan disbursements are recorded as financial assets with relatively low fiscal costs, making the program a productive public investment that builds customer demand, supports skilled trades, and grows Canada’s retrofit workforce.
• Efficiency Canada’s Budget 2025 Submission recommended recapitalizing and evolving the loan program with long-term funding to prevent the kind of disruption seen with the abrupt end of the Greener Homes Grant
• In August, more than 80 organizations and businesses signed an open letter to Minister Robertson on the urgent need to recapitalize the program.
• Since then, close to 800 Canadians have written to their MPs calling for the program to continue.

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