Canada Greener Homes Grant

by Kirby Chan, Broker

Canada Greener Homes Grant: What Ontario Homeowners Need to Know

The Canada Greener Homes Grant helped thousands of Canadian homeowners make energy-efficient upgrades to their homes. If you are searching for this program in 2026, here is the current status: the original grant is closed. But replacement programs exist and Ontario homeowners still have access to meaningful rebates for energy-efficient renovations. This guide covers what happened, what replaced it and what options are available to homeowners in Richmond Hill, Markham and across York Region.

Quick takeaway: The Canada Greener Homes Grant closed to new applications in February 2024. Final documentation was due by December 31, 2025. In 2026, Ontario homeowners can access energy-efficiency rebates through the Home Renovation Savings Program (up to 30% rebate on eligible upgrades through Save on Energy), the Canada Greener Homes Affordability Program (CGHAP, launching province by province for low-to-median income households with no upfront costs) and CMHC programs for new construction. Energy-efficient upgrades still make financial sense for homeowners regardless of grant availability because they reduce utility costs, improve comfort and add value at resale.

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What Was the Canada Greener Homes Grant?

The Canada Greener Homes Grant was a federal program launched in May 2021 by Natural Resources Canada. It provided homeowners with up to $5,000 (later increased to $5,600) for energy-efficient home retrofits including insulation, windows, doors, heat pumps, solar panels and air sealing. The program also covered up to $600 for pre and post-retrofit EnerGuide energy evaluations.

The grant was part of Canada's broader goal of reaching net-zero greenhouse gas emissions by 2050. It was backed by a $2.6 billion budget and was originally intended to run until 2027. In Ontario, the program was co-delivered by Natural Resources Canada and Enbridge Gas under the Home Efficiency Rebate Plus (HER+) program.

To qualify, homeowners needed to own and occupy the property as their primary residence. Only one grant was available per home. The process required a pre-retrofit energy evaluation by a licensed energy advisor, completion of eligible upgrades using approved contractors and materials and a post-retrofit evaluation to verify the improvements.

Why the Program Closed

The Canada Greener Homes Grant closed to new applications in February 2024 after the allocated funding was depleted faster than anticipated. The program was supposed to last until 2027 but demand significantly exceeded projections. The complementary Canada Greener Homes Loan also closed to new applications as of October 1, 2025.

Final documentation for existing Ontario applicants was due by December 31, 2025. Applications that were submitted before the deadline continue to be processed, but no new applications are being accepted.

The closure drew criticism from homeowners and the retrofitting industry because the abrupt end disrupted planned renovations and created uncertainty for contractors who had built their businesses around the program. The federal government committed to bringing back a replacement, which materialized as the Canada Greener Homes Affordability Program (CGHAP).

What Replaced It in Ontario

Home Renovation Savings Program (HRSP)

The Home Renovation Savings Program launched on January 28, 2025 and is the primary Ontario alternative to the former Greener Homes Grant. Delivered under the Save on Energy brand through the IESO, it offers rebates of up to 30% on eligible energy-efficient renovations. Eligible upgrades include heat pumps (rebates up to $10,000), windows and doors ($100 per rough opening, minimum 3 openings), insulation (up to $7,700), air sealing ($250) and other improvements. The program is available to Enbridge Gas customers and those on the IESO electricity grid. It runs through November 30, 2026 and does not require a federal energy audit, unlike the former Greener Homes Grant.

Canada Greener Homes Affordability Program (CGHAP)

The CGHAP is the federal successor to the original Greener Homes Grant. Backed by $800 million over five years, it is designed for low-to-median income homeowners and uses a "direct install" model. This means selected organizations handle all costs and logistics for planning and delivering home retrofits. Homeowners pay nothing out of pocket. Eligible upgrades include insulation, air sealing, heat pumps, solar panels, windows and doors. The program is rolling out province by province in 2026. Both homeowners and tenants can apply. Ontario-specific application details and income thresholds will be announced when the provincial agreement is finalized.

CMHC Eco Plus and Eco Improvement

The CMHC offers a 25% mortgage insurance premium refund for energy-efficient homes. Eco Plus applies to new builds that meet high efficiency tiers. Eco Improvement applies to existing homes where the homeowner spends at least $20,000 on eligible energy retrofits. This remains the only federal program specifically supporting new construction homeowners in 2026.

What Makes a Home "Green" and Why It Matters for Value

A green home is one that has been built or retrofitted to be resource-efficient, cost-effective and healthier for its occupants. The key characteristics include superior insulation and air sealing, high-efficiency heating and cooling systems (particularly heat pumps), ENERGY STAR-certified windows and doors, water-efficient plumbing fixtures, improved indoor air quality through ventilation and filtration and in some cases renewable energy systems like solar panels.

Green homes are not just an environmental choice. They are a financial one. Lower utility bills (often $1,500 to $3,000+ per year in savings depending on the upgrades), reduced maintenance costs from durable sustainable materials, improved comfort through consistent temperatures and better air quality and stronger resale positioning as buyers increasingly prioritize energy efficiency all contribute to the financial case for going green.

Regular building materials can contain and release volatile organic compounds (VOCs), formaldehyde and other substances that affect indoor air quality. Green building materials and proper ventilation systems reduce these exposures and create a healthier living environment, which is particularly important for families with children, seniors or anyone with respiratory sensitivities.

The Most Impactful Energy-Efficient Upgrades

Heat Pumps

Heat pumps are the single most impactful upgrade for most Ontario homes. They provide both heating and cooling from a single system and operate at 2 to 3 times the efficiency of traditional furnaces. Cold-climate heat pumps are effective in Ontario's winters and qualify for the highest rebate amounts under current programs (up to $10,000 through HRSP). The Canada Greener Homes Grant data showed that heat pumps were the most popular retrofit among participating homeowners.

Insulation and Air Sealing

Heat loss through walls, attics and basements is the largest source of energy waste in most homes. Adding insulation to the attic, walls and basement, combined with air sealing around windows, doors and penetrations, can reduce heating costs by 20 to 40%. These upgrades are among the most cost-effective and carry rebates of up to $7,700 through the HRSP.

Windows and Doors

ENERGY STAR-certified windows and doors reduce heat loss, improve comfort and reduce noise from outside. Triple-pane windows are increasingly standard in high-performance homes. The HRSP offers $100 per rough opening with a minimum of 3 openings required. For a typical home with 15 to 20 windows, that translates to $1,500 to $2,000 in rebates.

Water Efficiency

Water-efficient plumbing fixtures, low-flow toilets and greywater recycling systems reduce water consumption and lower utility bills. While these upgrades carry smaller rebates, they contribute to the overall efficiency profile of the home and are increasingly valued by buyers.

Energy Efficiency and Home Value in York Region

In Richmond Hill, Markham and Thornhill, where the average home price ranges from $689,000 in Langstaff to $3.47M in South Richvale, energy efficiency is becoming a meaningful factor in how buyers evaluate properties. A home with a new high-efficiency furnace, upgraded insulation and ENERGY STAR windows is perceived as move-in ready and well maintained. A home with a 25-year-old furnace, single-pane windows and no insulation upgrades is perceived as requiring immediate investment.

For sellers, completing energy-efficient upgrades before listing can reduce inspection renegotiation (buyers cannot ask for a furnace credit if the furnace is new), improve showing impressions (a comfortable, well-insulated home feels better during a showing) and support a stronger asking price because the home presents as turnkey.

For buyers, understanding a home's energy profile helps you budget accurately. Asking the right questions about furnace age, insulation levels, window type and utility costs during your evaluation can save thousands in unexpected expenses after closing.

Recognition

Kirby Chan Awards and Achievements

πŸ† #1 Individual Producer in Ontario for eXp Realty 2023

πŸ† Top 3 Best Rated Real Estate Agent in Richmond Hill

πŸ† Toronto Star Platinum Award for Best Real Estate Agent

πŸ† Top Real Estate Agent Award in Markham

πŸ† 2X ICON Agent Award with eXp Realty

πŸ† 2025 Community Votes Platinum Award, Thornhill

πŸ† 2024 Community Votes Platinum Award, Thornhill

πŸ† 2025 Gold Award for Real Estate Brokers in Markham

πŸ† 2024 Community Votes Bronze Award, Richmond Hill

πŸ† 2023 Community Votes Platinum Award, Thornhill

Frequently Asked Questions

Is the Canada Greener Homes Grant still available in 2026?

No. The program closed to new applications in February 2024. Final documentation was due December 31, 2025. No new applications are being accepted.

What replaced the Greener Homes Grant in Ontario?

The Home Renovation Savings Program (HRSP) is the primary replacement, offering rebates of up to 30% on eligible upgrades through Save on Energy and Enbridge. The Canada Greener Homes Affordability Program (CGHAP) is rolling out for low-to-median income households with no upfront costs.

How much can I get for a heat pump in Ontario?

Through the Home Renovation Savings Program, heat pump rebates can reach up to $10,000 depending on the system type and installation. This is currently the largest single-item rebate available to Ontario homeowners.

Do energy-efficient upgrades increase home value?

Yes. A home with updated mechanical systems, upgraded insulation and ENERGY STAR windows is perceived as move-in ready and well maintained. These upgrades reduce buyer negotiation on inspection items and support a stronger asking price.

Should I make energy upgrades before selling?

It depends on the cost and the impact. Replacing a 25-year-old furnace before listing eliminates one of the most common inspection renegotiation points. Adding insulation and air sealing improves comfort during showings. Your agent can help you evaluate which upgrades offer the strongest return relative to their cost.

Who can help me evaluate energy efficiency when buying or selling?

Kirby Chan and the Kirby Chan & Co. Real Estate Team help buyers and sellers across Richmond Hill, Markham and Thornhill evaluate home condition, energy efficiency and how these factors affect pricing and negotiation. Understanding a home's mechanical and insulation profile is part of our standard evaluation process. Reach Kirby at (416) 305-8008.

Contact Kirby Chan

Buying or Selling a Home? Energy Efficiency Matters

Whether you are buying and want to understand a home's true operating costs or selling and want to know which upgrades offer the strongest return, energy efficiency is part of the conversation. The Kirby Chan & Co. Real Estate Team evaluates mechanical systems, insulation and energy profile as part of our standard advisory process.

Book a consultation with Kirby Chan to discuss your home's condition, value and how energy efficiency fits into your buying or selling strategy.

Kirby Chan | Kirby Chan & Co. Real Estate Team
416-305-8008
info@kirbychanandco.com
https://kirbychanandco.com

Note: Government rebate programs, eligibility criteria and funding amounts are subject to change. The Canada Greener Homes Grant is closed as of February 2024. Replacement program details, income thresholds and application procedures should be verified directly with the relevant program administrators before making renovation decisions. This guide is for general information only. For advice specific to your situation, consult a licensed real estate professional and a qualified energy advisor.

Kirby Chan, Broker

Kirby Chan, Broker

Co-Founder & Broker | License ID: 9533841

+1(416) 305-8008

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