Quick Answer
Better Homes Peterborough offers Peterborough homeowners two loan streams for energy retrofits: a Local Improvement Charge (LIC) loan at 4.50% fixed over 15 years ($10,000 to $50,000, repaid via property taxes), or a Kawartha Credit Union loan at 4.95% variable over 5 years. Solar panels, heat pumps, insulation, air sealing, and battery storage are fully eligible, plus up to 30% of the loan can go toward cosmetic upgrades. Performance-based incentives of up to $3,600 are applied to your loan balance after completion. The program launched April 22, 2025, relaunched with improvements on February 19, 2026, and runs through March 2029.
If you own a home in Peterborough, Ontario and you have been waiting for the right time to invest in solar panels, a heat pump, or a full energy retrofit, the Better Homes Peterborough program has made that decision significantly easier. Originally launched on Earth Day (April 22, 2025) and relaunched with improvements on February 19, 2026, the program offers low-interest loans of up to $50,000, free energy coaching, and performance-based incentives of up to $3,600 all designed to help Peterborough homeowners cut energy bills, reduce emissions, and improve home comfort.
This guide covers every verified detail of the program as of April 2026: loan terms, eligibility, the step-by-step process, eligible upgrades, how to stack with other Ontario and federal programs, real cost scenarios, and the mistakes that slow people down.
What Is Better Homes Peterborough?
Better Homes Peterborough is a four-year municipal retrofit financing program run by the City of Peterborough in partnership with EnviroCentre, Kawartha Credit Union, and GreenUP. It is funded through the Federation of Canadian Municipalities' Green Municipal Fund.
Residential buildings account for 24% of total greenhouse gas emissions in Peterborough, with tens of thousands of homes generating an average of 118,000 metric tonnes per year. Better Homes Peterborough was created to tackle this head-on by giving homeowners access to low-interest financing, targeted incentives, free energy coaching from a Registered Energy Advisor, and expert guidance through the entire retrofit process.
The program launched in April 2025 and is funded through March 2029. In February 2026, it relaunched with improvements designed to lower barriers to participation and make the application process smoother.
Unlike older federal programs that required out-of-pocket spending and reimbursement, Better Homes Peterborough provides upfront financing. You can receive 50% of your estimated project cost in advance to help with deposits and contractor payments.
How the Financing Works in 2026
Better Homes Peterborough offers two loan options.
Local Improvement Charge (LIC) Loan through the City
| Detail | Terms |
|---|---|
| Interest rate | 4.50% fixed |
| Loan term | 15 years |
| Minimum loan | $10,000 |
| Maximum loan | $50,000 |
| Application fee | $450 (added to loan, no interest on fee) |
| Repayment | Through your property tax bill |
| Transferable on sale | Yes, loan stays with the property or you can pay it off at sale |
| Early repayment | Yes, lump sum at any time, no penalty |
Financial Institute Loan through Kawartha Credit Union
| Detail | Terms |
|---|---|
| Interest rate | 4.95% variable |
| Loan term | 5 years |
| Minimum loan | Lower minimums available (below $10,000) |
| Maximum loan | $50,000 |
| Application fee | $450 |
| Repayment | Directly to Kawartha Credit Union |
Both streams use the same application process, eligibility requirements, and completion process. The LIC option is better for homeowners who want lower monthly payments spread over 15 years and the convenience of property-tax repayment. The credit union option suits homeowners who want a shorter term or need a loan under $10,000.
Key difference from other Ontario LIC programs: Better Homes Peterborough allows up to 30% of your loan to go toward non-energy-related improvements including cosmetic upgrades like roofing, drywall, paint, and even asbestos removal. This is more flexible than many comparable programs that cap non-efficiency spending at 20%.
Program Rebates, Incentives, and Offers
Better Homes Peterborough includes several built-in financial benefits beyond the loan itself:
$600 EnerGuide rebate
Toward your EnerGuide Home Energy Assessment (applied after project completion, available to participants not receiving a similar rebate from another program).
$250 air sealing rebate
Available to applicants who achieve their home's air sealing target.
Free electrical panel load assessment
Important if you are considering a heat pump, solar system, or EV charger that may require a panel upgrade.
Performance-Based Incentives
Performance-based incentives are applied as a discount on your loan balance after post-retrofit verification. The first 26 applicants who successfully complete a retrofit with significant energy or emissions reductions qualify for higher amounts.
| Achievement | First 26 Applicants | Standard (After First 26) |
|---|---|---|
| 30 to 59% reduction in energy use or emissions | $1,500 | $1,000 |
| 60%+ reduction in energy use or emissions | $3,600 | $2,000 |
Why this matters: A homeowner who installs a heat pump, adds insulation, completes air sealing, and adds solar panels could realistically hit 60%+ reduction and receive $3,600 off their loan balance, in addition to stacking external rebates like HRSP.
Eligibility: Who and What Qualifies
Property Requirements
Your property must be a residential building in the City of Peterborough: detached, semi-detached, townhouse, or multi-unit building of 3 storeys or less. The property must have a property tax account with the City of Peterborough, and property taxes and all other payment obligations to the City must be in good standing for the past five years. If you are a new homeowner with less than 5 years of payment history, a credit score of 600 or above is required.
All property owners must agree to program enrolment. The property must not be in CMHC's Mortgage Deferral Program or the City's Tax Deferral Program.
Landlords are welcome. The property does not need to be your primary residence. This makes Better Homes Peterborough one of the more landlord-friendly retrofit programs in Ontario.
Project Requirements
A pre-retrofit EnerGuide Home Energy Assessment is required before project approval. To qualify, your project must include air sealing improvements of at least 10% (if your home is rated 5 ACH50 or higher) AND at least one of the following:
- Install a qualifying cold-climate heat pump sized to heat the entire home, OR
- Install a solar system, OR
- Install a combination of eligible upgrades that will result in at least a 25% reduction in energy use or emissions
Important distinction: If you are installing solar panels, that alone satisfies the project qualification requirement. You do not necessarily need to achieve 25% energy reduction if solar is your primary upgrade. Similarly, a whole-home heat pump qualifies on its own.
Eligible Upgrades
Energy Efficiency Measures (must be at least 70% of loan)
Building envelope
Attic, wall, foundation, and basement insulation; attic ventilation; foundation drainage and waterproofing; air barriers, air sealing, and weather stripping; ENERGY STAR windows, skylights, and exterior doors.
Mechanical systems
Cold-climate air-source and ground-source heat pumps; thermostats and controllers; energy or heat recovery ventilators; high-efficiency water heaters (heat pump or electric tank); drain water heat recovery systems.
Renewable energy
Solar photovoltaic systems and battery storage devices.
Smart and other technologies
Permanently affixed lighting and lighting controls; new energy-efficient certified products.
Additional Upgrades (up to 30% of loan)
Wiring and electrical service upgrades, Level 2 EV charging stations, backflow prevention valves, low-flow fixtures, cosmetics (roofing, foundation, interior walls, drywall, paint, asbestos removal), and energy audit and permit costs.
Example from the program site: If you are requesting $15,000 for a heat pump, you can request an additional $4,500 for a non-energy upgrade such as a backwater valve, bringing your total loan to $19,500.
Step-by-Step: From Application to Repayment
Complete the application form
Submit your application at betterhomesptbo.ca. The City of Peterborough will review the last 5 years of your property tax and utility accounts. Allow approximately 10 business days for review.
Access the Better Homes Peterborough portal
After submitting, you will receive instructions to access the online portal where you can track your application status.
Book your program introduction call
During this call, the team covers your goals, determines if you need additional support or technical assistance, and addresses questions about eligibility or requirements.
Receive your Notice to Proceed
This document covers program and funding stream details. Do not begin any work before receiving this notice.
Book your pre-retrofit energy assessment
Schedule your EnerGuide Home Energy Assessment if you have not already completed one, or upload existing assessment reports to the portal.
Book your energy coaching session
The program's Energy Coach (a Registered Energy Advisor through GreenUP) walks you through how your project can achieve the program's energy savings target and guides you through your retrofit journey. This is free.
Submit your funding request
Gather contractor quotes for your planned upgrades and submit through the portal. Allow up to 1 week for review.
Choose your funding stream
Decide between the LIC loan (15-year, 4.50% fixed, through City) or the Financial Institute loan (5-year, 4.95% variable, through Kawartha Credit Union).
Complete your retrofits
Get your upgrades installed. Retain all invoices. If you chose the LIC stream and requested 50% upfront, daily interest accrues on that disbursement until the full loan is finalized.
Book your post-retrofit assessment
Once improvements are complete, schedule a post-retrofit EnerGuide assessment. This updated rating determines your project's verified energy savings and your incentive eligibility.
Submit your project completion report
Share final invoices and post-retrofit assessment reports. Allow 1 to 2 weeks for review.
Begin repayment
For LIC participants, the loan is added to your property tax bill. For KCU participants, repayment follows the terms of your credit union agreement.
Timeline note: The program encourages participants to complete all steps within 1 year of receiving their Notice to Proceed.
Real Peterborough Scenarios (2026 Numbers)
Scenario 1: Solar Plus Heat Pump Full Retrofit
The homeowner: A couple in a 1,400 sq ft 1960s home currently heated by a natural gas furnace, spending about $2,800/year on gas and electricity. They want to install a 10 kW solar panel system, a cold-climate air-source heat pump, and upgrade attic insulation with air sealing.
| Total project cost | $42,000 |
| Better Homes Peterborough LIC loan | $42,000 |
| Interest rate | 4.50% fixed |
| Loan term | 15 years |
| Application fee | $450 (added to loan) |
| Performance incentive (60%+ reduction) | $3,600 off balance |
| EnerGuide assessment rebate | $600 |
| Adjusted loan balance | ~$38,250 |
| Estimated monthly loan payment (via property taxes) | ~$293 |
| Estimated old monthly energy cost | ~$233 |
| Estimated new monthly energy cost (with solar offset) | ~$65 |
| Monthly energy savings | ~$168 |
| Net monthly cost after loan payment | ~$125 |
This household pays about $125/month more than their old energy costs during the 15-year loan term. But after the loan is paid off, they keep the full ~$168/month savings indefinitely and they own a solar system with a 25-year expected lifespan. The total cost of the loan over 15 years is offset significantly by energy savings, and the home's resale value is materially improved.
Scenario 2: Insulation, Air Sealing, and Windows
The homeowner: A single homeowner in a drafty 1940s bungalow with poor attic insulation and original single-pane windows. They spend about $3,200/year on heating (gas) and want to do a full envelope upgrade: blown-in attic and wall insulation, air sealing, and 10 ENERGY STAR window replacements. They also want to re-drywall two rooms (cosmetic, covered under the 30% non-energy allowance).
| Energy efficiency measures | $18,000 |
| Cosmetic upgrades (drywall, paint) | $5,400 |
| Total project cost | $23,400 |
| Better Homes Peterborough LIC loan | $23,400 |
| Interest rate | 4.50% fixed |
| Loan term | 15 years |
| Performance incentive (30 to 59% reduction) | $1,500 off balance |
| EnerGuide assessment rebate | $600 |
| Adjusted loan balance | ~$21,750 |
| Estimated monthly loan payment | ~$166 |
| Estimated monthly energy savings | ~$95 |
| Net monthly cost after loan payment | ~$71 |
This homeowner pays a net $71/month more during the loan period, but gets a dramatically more comfortable home, new windows, refinished rooms, and lower energy bills, all without paying a dollar upfront.
Combining Better Homes Peterborough with Other 2026 Programs
Better Homes Peterborough explicitly allows stacking with external rebate programs. Your energy coach will help you navigate what is available. Here is the current landscape.
Home Renovation Savings Program (HRSP)
Oil to Heat Pump Affordability Program (OHPA)
Canada Greener Homes Affordability Program (CGHAP)
Canada Greener Homes Grant (closed)
Important: The Better Homes Peterborough $600 EnerGuide assessment rebate and $250 air sealing rebate are only available to participants who are not receiving a similar rebate from another energy program. If you are already getting your assessment covered through another program, you will not receive the Better Homes rebate for that item. Plan your stacking carefully with your energy coach.
Expert Tips to Maximize Your Better Homes Peterborough Project
1. Start with the EnerGuide assessment since it unlocks everything
You cannot receive project approval without a pre-retrofit assessment. Better Homes Peterborough offers a $600 rebate toward the cost and coordinates the process through GreenUP. Getting your EnerGuide file number early saves weeks.
2. Solar qualifies as a standalone pathway
Unlike many retrofit programs that require a 25% energy reduction, Better Homes Peterborough accepts a solar installation as a qualifying project on its own (combined with the air sealing requirement). If solar is your primary goal, you do not need to bundle it with other measures to qualify.
3. Use the 30% cosmetic allowance strategically
If you are already investing $20,000+ in energy upgrades, you can add up to $6,000+ in cosmetic improvements like new drywall, roofing, or paint, financed at the same 4.50% rate over 15 years. This makes the program more practical for homeowners doing a full renovation.
4. Landlords should look closely
The property does not need to be your primary residence. Landlords are explicitly encouraged to apply. For rental properties, energy improvements can reduce tenant turnover, improve comfort, and increase property value, all financed through the property tax bill.
5. Do not start work before your Notice to Proceed
Only costs incurred after you have signed your program agreement are eligible for the loan. Starting early is the most common way to disqualify yourself.
6. Request the 50% advance strategically
You can request 50% of your estimated project cost upfront to cover deposits. Daily interest accrues on this amount until the final disbursement, so time your request close to when contractors need deposits.
Common Mistakes Peterborough Homeowners Make
Starting work before receiving program approval
Any upgrades completed before signing your property owner agreement are not eligible for funding. No exceptions.
Applying without an EnerGuide assessment
The pre-retrofit assessment is required before project approval. If you do not have one, the program can help you book it, but waiting until the last minute adds weeks to your timeline.
Not checking property tax standing
The City reviews the last 5 years of your property tax and utility accounts. If you have arrears, you may be ineligible. Resolve any outstanding balances before applying.
Forgetting multi-owner consent
All property owners must agree to program enrolment. If your property has multiple owners (common with duplexes and triplexes), get written agreement before applying.
Underestimating the $10,000 LIC minimum
The LIC stream has a $10,000 minimum loan. If your project is smaller, you will need to use the Kawartha Credit Union stream instead.
Missing the 30% cosmetic cap
Non-energy upgrades can make up no more than 30% of your eligible energy efficiency measure costs (not 30% of the total loan). Miscalculating this ratio can jeopardize eligibility.
Frequently Asked Questions
What is the interest rate for Better Homes Peterborough in 2026?
The LIC loan through the City is 4.50% fixed over 15 years. The Kawartha Credit Union loan is 4.95% variable over 5 years. Both include a $450 application fee.
Do I need an EnerGuide assessment first?
Yes. A pre-retrofit EnerGuide Home Energy Assessment is required before your project can be approved. The program offers a $600 rebate toward the cost.
Are solar panels eligible?
Yes. Solar photovoltaic systems and battery storage are fully eligible. Installing a solar system satisfies the project qualification requirement on its own (combined with air sealing), meaning you do not need to achieve a 25% energy reduction if solar is your primary upgrade.
What is the minimum loan amount?
$10,000 for the LIC stream. For smaller projects, the Kawartha Credit Union stream accommodates lower amounts.
Can I use the program for cosmetic renovations?
Yes, up to 30% of your eligible energy efficiency measure costs can go toward non-energy upgrades like roofing, drywall, paint, asbestos removal, EV chargers, or backflow prevention.
Can landlords apply?
Yes. The property does not need to be your primary residence. Landlords are encouraged to apply.
What happens if I sell my home?
For the LIC stream, you can either pay off the loan in full at sale or the loan stays with the property and the new owner continues payments through their property tax bill. Disclosure to buyers is required.
Can I pay off the loan early?
Yes. You can pay the remaining balance in a lump sum at any time, with no penalty.
Can I apply for multiple properties?
Yes. Each property can receive up to $50,000 in loans. Apply separately for each property.
How long does the process take?
Initial application review takes about 10 business days. Funding request review takes about 1 week. The program encourages completion of all steps within 1 year of receiving your Notice to Proceed.
What changed with the February 2026 relaunch?
The program relaunched with improvements designed to lower barriers to participation and make the process smoother. The core loan terms (4.50%, 15 years, up to $50,000) remain the same.
Is Better Homes Peterborough Right for You?
This program is a strong fit if you:
- Own a home (or rental property) in the City of Peterborough
- Want to install solar panels, a heat pump, insulation, windows, or a combination of upgrades
- Are looking for low-interest financing without upfront out-of-pocket costs
- Want to take advantage of the 30% cosmetic allowance to bundle energy upgrades with other home improvements
- Want free energy coaching to design the right project and navigate available rebates
- Are a landlord looking to improve rental property efficiency and value
Your next step: Visit betterhomesptbo.ca and submit your application, or call 1-888-284-9417 to speak with a program representative. You can also email betterhomesptbo@envirocentre.ca to ask questions before applying.
The program is funded through March 2029. If community uptake is strong, the City will seek to recapitalize beyond 2029, but current funding is finite. If you have been considering solar, a heat pump, or a full retrofit, this is the financing window.
Thinking About Solar for Your Peterborough Home?
Solar panels and battery storage are fully eligible under Better Homes Peterborough, and solar qualifies as a standalone project pathway. Solar X is an ESA-licensed Ontario solar installer serving Peterborough, Kawartha Lakes, and the broader region. We can help you model the right system size, walk you through the Better Homes Peterborough application alongside any HRSP rebates you qualify for, and handle the full installation.
Serving Peterborough, Kawartha Lakes, Lindsay, Cobourg, Port Hope, and all surrounding communities.
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This article is provided for informational purposes. Program details, eligibility requirements, and incentive amounts are based on publicly available information from Better Homes Peterborough and the City of Peterborough as of April 2026. Always confirm current program terms directly with Better Homes Peterborough before making financial decisions.