Toronto offering zero-interest loans up to $125K for green home retrofits

The City of Toronto is offering zero-interest loans of up to $125,000 for green home retrofits.

In a news release issued Thursday, the City said homeowners will be able to access the loans for terms of up to 15 years, with 20-year terms available for retrofits that include rooftop solar PV, geothermal, new windows and electric heat pumps.

Homeowners will also be able to access incentives for specific measures including electric heat pumps, rooftop solar, and deep retrofits.

“Currently, homes and buildings are the largest sources of emissions in Toronto, generating approximately 57 per cent of total community-wide emissions, primarily from the burning of fossil fuels (natural gas) for heating and hot water,” the statement said.

The City said the loans and incentives are part of its Home Energy Loan Program (HELP), which has been offering low-interest loans since 2014.

The federal government provided funding to build on the program, including a loan of up to $9.712 million to fund the zero-interest loans and a grant of up to $4.856 million.

A portion of the funding will go towards developing training, education and resources for homeowners, contractors and industry stakeholders, the statement said.

The zero-interest loans and incentives will be available until the funding is used, at which point low-interest loans will still be available, the City said.

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“Home improvements eligible for financing include electric heat pumps, insulation (attic, wall, basement), upgraded windows/doors, air sealing, geothermal systems, rooftop solar PV, tankless water heaters, solar hot water systems, EV charging stations, battery storage and more,” the statement said.

The City noted that homeowners may also be eligible for the federal government’s Canada Greener Homes Grant of up to $5,000.

The HELP program is part of the City’s wider objective to set Toronto on a path to reduce community-wide greenhouse gas emissions to net zero by 2040 and the Net Zero Existing Buildings Strategy “which recognizes the need to transform housing,” the statement said.

There have been 245 home retrofit projects supported by the HELP program since 2014.