As environmental responsibility continues to grow in the building sector, energy efficient retrofits of old and outdated HVAC systems are at the forefront of discussions.
The need for energy efficiency in existing homes has never been more important, but for many owners, the biggest challenge is finding a way to pay for upgrades.
According to the Canada Green Building Council, Canadians value energy efficiency, recognize its benefits, and are actively trying to reduce energy use. Yet affordability barriers, limited control over housing decisions, and upfront costs continue to slow down adoption.
Upgrading HVAC systems is critical in the effort to reduce greenhouse-gas emissions and to help combat climate change. For owners, it also improves indoor comfort and lowers household energy costs.
That is why incentives play a key role in driving adoption of energy efficient upgrades. Contractors can increase their business by being familiar with available government and municipal funding programs that can help owners finance eligible projects.
One example is the City of Toronto’s Home Energy Loan Program (HELP), which provides low-interest financing to Toronto homeowners for home energy improvements. The goal is to reduce the upfront financial barrier to undertaking energy-efficiency, electrification and renewable-energy upgrades.
The program provides financing for eligible improvements, including air-source heat pumps; geothermal systems; rooftop solar photovoltaic systems; high-efficiency furnaces, boilers and air conditioners; high-efficiency and tankless water heaters; drain-water heat recovery and more.
HELP allows homeowners to borrow up to 10 per cent of the property’s current value assessment, with repayment through their property tax bill. The loan is attached to the property not the homeowner. The financial terms available are 5, 10, 15 or 20 years. A 20-year term is available for projects involving heat pumps, solar PV, geothermal, and/or windows. HELP removes the large upfront cost barrier of home energy improvements, which owners can now pay for over time along with receiving significant energy cost savings.
HELP is an excellent option for property owners who own multiple properties or low-rise multi-unit residential buildings (triplex, quadplex’s, residential units above commercial properties – any building three storeys or less up to six units). Additionally, loans can be combined with other rebates for more cost savings. Once funding is approved, homeowners can hire the contractor of their choice and complete their renovations.
In addition, to support the adoption of heat pumps in Toronto, applicants doing a heat pump only renovation, do not need a pre- and post EnerGuide assessment and still qualify to receive Enbridge’s Home Renovation Savings Rebates.
Contractors who understand and share available funding options such as HELP with owners can turn projects that might otherwise not proceed into reality. In a competitive renovation market, that knowledge can provide greater value and strengthen client relationships while helping homeowners make energy-efficiency and property-improvement investments with confidence.
For more information or to apply for the Home Energy Loan Program, visit https://www.toronto.ca/services-payments/water-environment/environmental-grants-incentives/home-energy-loan-program-help/