What You Need to Know About the Canada Greener Homes Loan
Our detailed overview of the Canada Greener Homes Initiative briefly mentioned that homeowners in Alberta could also get an interest-free loan of up to $40,000. In this blog, we will provide more information about financing your solar installations through the Canada Greener Homes Loan.
What is the Canada Greener Homes Loan?
The Canada Greener Homes Loan offers Canadians financing to retrofit their homes and make them more energy efficient. In the long run, it’s intended to assist you in saving money on your utility bills while also lowering your carbon footprint. The Canada Greener Homes Grant can help you pay for the majority of your solar panel installation costs.
The amount and conditions
Homeowners can receive one loan per eligible property, ranging from $5,000 to $40,000. The loan has 0% interest and must be paid back within 10 years. The loan will only aid you in financing energy-efficient products and installations recommended by an energy advisor and eligible for the grant. You may receive a portion of the loan in advance, as contractors frequently demand a down payment for these projects. The loan will be paid once the retrofit is completed and a post-retrofit evaluation is carried out.
Who can apply for the loan?
Applying for the Canada Greener Homes Loan has a few requirements that must first be met:
- You must apply for and meet the requirements for the Canada Greener Homes Grant.
- If you have requested a post-retrofit evaluation or have already received a grant payment, this loan can be used for any remaining retrofits you wish to install that you have not started yet.
- If you’ve completed all of the suggested retrofits, you can’t apply for the loan.
- If you are a homeowner who lives in their home most of the time.
- If you have completed your home’s pre-retrofit assessment no earlier than April 1, 2020.
- If you have a positive credit history.
How to apply for the loan
Here are 8 quick steps to follow to get funding for your solar panels or other retrofits that make eligible energy-efficiency improvements:
- Check the eligibility requirements and submit an application for the Canada Greener Homes Grant.
- Schedule a pre-retrofit evaluation of your home’s energy consumption and efficiency.
- Decide which retrofits from the report fit best with both your budget and renovation goals. Speak with multiple contractors and get several quotes.
- Log into your Canada Greener Homes Grant account and click the button to visit the loan portal. Submit your application for the loan. The program will determine the highest loan amount you may be approved for based on your application.
- Start your retrofitting project and keep track of all receipts and invoices.
- Contact your service company to request a Post-retrofit EnerGuide assessment after the retrofits are finished.
- The loan amount will be reexamined based on the actual cost of the retrofits.
- Once the loan amount is approved, the total amount minus the initial advance (if you received one) will be deposited into your bank account within 10 days.
To read more detailed information on each of these steps, please visit the official website. As with any other loan, you will be given a plan for the loan repayment over 10 years.