$40,000 Canada Greener Homes Loan

The Canadian government recently announced a $40,000 interest-free loan for homeowners to perform energy efficiency upgrades such as installing solar panels. Through the Canada Greener Homes Loan, people can get $40K to install solar panels on their home and pay it off over the next 10 years.

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Loan Amount:             $5,000 to $40,000

Payback Term:            up to 10 years

Interest:                      0%

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This no-interest solar loan program sits on top of the Canada Greener Homes Grant program which provides homeowners up to $5,000 off their solar power system.

Note that there are 2 similar federal programs:

1. A $5,000 rebate for installing solar panels (the Greener Homes Grant). This one-time incentive has been existing since Summer 2020.
2. A $40,000 interest free loan for home solar power (the Greener Homes Loan). This new solar incentive was announced in June 2022.

City of Edmonton homeowners can further stack the City of Edmonton municipal rebate on top of that for up to another $4,000 off.

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In Edmonton, AB, you can can receive a $24,000 solar power system for $15,000 amortized over 10 years with 0% interest. Nearly 40% in savings.

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How To Apply for $40,000 Interest Free Loan

To apply for the $40K no-interest solar loan:

1. Apply for the $5K Greener Homes Grant program. This will confirm eligibility for both programs. Kuby Energy can facilitate this with you.
2. Complete a pre-construction energy audit.  Kuby Energy can also help expedite this process to reduce typical wait times experienced through the federal government portal.
3. Plan your solar installation and other retrofits.  This starts by reaching out to us.  Note – you can’t get a bigger loan later so it is best to plan all your work from the start.
4. Submit your loan application through your Greener Homes Grant account. You will have to upload documents such as your property tax statement, driver’s license, income verification (such as T4 or employer letter), and your quote from Kuby Energy.
5. Complete your home solar power installation.
6. Get a post-construction energy audit to verify the work was completed.
7. Receive your loan.

Please contact us tohelp plan and execute your project. We will work with you throughout the process and deal with as much of the paperwork as we are allowed to.

Payments and Deposits

You can receive a portion of your loan upfront to cover deposits required up to 15% of your eligible loan amount.  Off-grid homes or homes in NWT can receive a 25% deposit up front.

For example, if you are approved for a $30,000 application to install solar panels on your home in Kamloops, you can receive $4,500 up front to cover a deposit.

You will receive the remainder of your loan within 10 days of the post-construction energy audit information being submitted.

Canada Greener Homes Loan Eligibility

The Greener Homes Loan is an unsecured personal loan meaning it is not tied to one of your assets such as a mortgage or home equity line of credit is to your house.

Because of this, applicants must have good credit history and not be under a current consumer proposal, an orderly payment of debt program, or bankrupt proceeding. Proof of good credit may be required during your application.

Residential Solar Loan Applicants

Applicants must be eligible for the Greener Homes Grant program, complete a pre-construction energy audit, be a Canadian homeowner, and install solar panels on your primary residence.

Multi-Unit Residential Building 0% Interest Loan Applicants

Multi-Unit Residential Buildings (“MURBs”) can apply for the low-interest solar loan if they meet some additional requirements.

Exact requirements are dependent whether the owner lives in the building, and how many units are in the building.

Townhomes, row houses, retirement homes, side-by-side duplexes and homes with secondary suites are not considered MURBs and are not eligible for additional funding under this category.

Owner’s of townhomes, duplexes, or homes with secondary suites can apply for the standard $5K solar grant and $40K interest free loan.

Indigenous Low Interest Loan Applicants

Indigenous group applicants can register multiple homes for this program if they own the home(s) and/or have a formal partnership to represent the owners. In such a case, the home does not need to be the owner’s primary residence.

What Measures are Eligible?

The same measures are eligible for the $40,000 interest free Greener Homes Loan as the $5,000 Greener Homes Grant program.

You can receive up to $5,000 for implementation of an energy efficiency measure below and up to $600 for the cost of the pre- and post-retrofit EnerGuide evaluation.  $5,600 in total potential one-time grant incentives.

You can receive a $45,000 solar power system for $40,000 which you can amortize over 10 years at 0% interest.

In Edmonton, AB, you can stack the City of Edmonton solar rebate on top of that and receive a $49,000 solar power system for $40,000 amortized over 10 years with 0% interest. This is nearly 20% savings spread out over 10 years.

The loan doesn't have to be maximized either. In Edmonton, AB, you can can receive a $24,000 solar power system for $15,000 amortized over 10 years with 0% interest. Nearly 40% in savings.

1. Renewable Energy aka Home Solar Panels – up to $5,000
2. Home Insulation – up to $5,000
3. Air-Sealing – up to $1,000
4. Windows and doors - up to$5,000
5. Thermostats (must be combined with other measure) - up to $50
6. Heating - up to $5,000
7. Resiliency measures (must be combined with other measure) - up to $2,625
8. Small Multi-Unit Residential Buildings – Grant value dependent upon number of units. 4-6 Units = 1.5x, 7-9 Units = 2.0x, 10-12 Units = 2.5x, 13-16 Units = 3.0x, 17+ Units = 4.0x.

Under the Greener Homes Grant Program, solar panels are eligible for $1,000/kW ($1.00/W) up to $5,000.  Most homes will be limited by and receive the federal rebate cap of $5,000.

Battery energy storage systems can be included in the Resiliency measures category for a $1,000 incentive, however, the $5,000 cap will still remain across all measures. 

Conclusion

New funding makes solar panels for your home more affordable than ever. The Canada Greener Homes Loan program provides interest-free loans up to $40,000 at 0% interest.  This can stack on top of the Canada Greener Homes Grant program which provides one-time rebate up to $5,000.

City of Edmonton homeowners can then stack an additional $4,000 through the municipal rebate program.

Please contact Kuby Renewable Energy if you have any questions about the programs mentioned here or solar power systems in general.

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