How much greener did Canada’s homes get? Report takes a closer look at federal rebate program

The Canada Greener Homes Grant was a federal program that aimed to help Canadians lower their energy bills, create new jobs for energy advisers, and fight climate change by providing funding for green retrofits in households. However, a new report released by Green Communities Canada suggests that the program did not go far enough to meet Canada’s targets for reducing greenhouse gas emissions.

The program, which launched in December 2020, offered up to $5,000 per household for green upgrades such as heat pumps, solar panels, insulation, and more. While over 500,000 households applied to the program, the report found that the savings were not deep enough and that not enough retrofits were being completed.

Kai Millyard, the energy manager at Green Communities Canada, noted that the program led to a significant uptake in heat pumps, which are a more environmentally friendly alternative to traditional gas- and oil-burning furnaces. However, the report found that the use of grants for insulation upgrades declined over the course of the program.

The report also highlighted the need for more deep retrofits, which can cut energy use by 50 percent or more. These retrofits typically involve upgrading the building envelope, electrifying heating and hot water, and adding renewable energy sources like solar panels. The report argues that deep retrofits are necessary to reach Canada’s target of net-zero emissions by 2050.

Maya Papineau, an associate professor of economics at Carleton University, conducted a study that compared actual energy savings to the savings projected by energy advisers during the program. The study found that air sealing and attic and wall insulation were relatively effective, but basement insulation and energy-efficient windows had little to no effect on energy bills.

Papineau suggested that a new green homes program should focus on bigger grants to cover the costs of all necessary retrofits. She also emphasized the importance of continuity in these programs, as short-term programs can disrupt the industry and leave trained professionals without work.

Overall, while the Canada Greener Homes Grant made strides in promoting energy efficiency and reducing greenhouse gas emissions, there is still more work to be done to meet Canada’s climate targets. A more comprehensive and long-term approach to green retrofits is needed to make a significant impact on reducing emissions and energy consumption in Canadian households.