Canada has launched the Canada Greener Homes Affordability Program (CGHAP), a new initiative aimed at helping low- to median-income households reduce energy bills and greenhouse gas emissions through no-cost home retrofits. Buildings are Canada’s third-largest source of greenhouse gas emissions, making energy-efficient heating, cooling, and power critical to tackling climate change. The program represents a practical, affordable solution for Canadians while supporting long-term economic growth.
The first CGHAP agreement was signed with Manitoba, where the federal government will provide nearly $30 million to Efficiency Manitoba to deliver the program. CGHAP is designed in partnership with provinces and territories to meet local needs and, for the first time, will be available to tenants. Using a direct-installation model, participants will receive upgrades such as insulation, air sealing, heat pumps, solar panels, windows, and doors without out-of-pocket costs.
The program also supports Indigenous governments and representative organizations through agreements administered by Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada. By employing a distinctions-based approach, CGHAP works with First Nations, Inuit, and Métis partners to advance self-determined priorities in home energy efficiency.
CGHAP complements the existing Oil to Heat Pump Affordability (OHPA) program in Manitoba, which provides upfront funding for households switching from oil heating to heat pumps. Eligible residents can now access funding from both programs, making energy-efficient upgrades more affordable and accessible. By transforming building energy use, Canada aims to reduce emissions, lower household energy bills, and create a blueprint for long-term economic prosperity.
Government officials emphasized the dual benefits of CGHAP, noting that it supports affordability while building a cleaner, more resilient future. Efficiency Manitoba will use the funding to expand its existing programs, including the Energy Efficiency Assistance Program and Métis Energy Efficiency Offers, covering the full loan portion for ground-source heat pumps for eligible homeowners. Homeowners and tenants who pay their energy bills are eligible, expanding access to more low- to median-income Canadians.
CGHAP is expected to roll out to additional provinces and territories over the coming year. Replacing fossil fuel heating systems with low-carbon options, like electric ground-source heat pumps, is expected to significantly reduce greenhouse gas emissions, as space and water heating account for over 96 percent of direct building emissions in Canada. Since 2020, federal and provincial support has helped install over 260,000 new heat pumps nationwide, demonstrating progress toward cleaner, more energy-efficient homes.
