Blog Incentive Programs

The economics of solar has dramatically improved in the last decade, with costs plummeting roughly 80%, making it the cheapest and fastest-growing energy source. Despite this progress, incentives (like interest-free financing) remain important for keeping solar energy accessible to homeowners — a key demographic if North America is to reach its ambitious decarbonization goals.

Though Canada saw a shakeup in its federal incentives, the Greener Homes Loan (now closed) offered interest-free financing to help homeowners access sustainable upgrades like solar panels.

Yet, with the program experiencing higher-than-anticipated demand — the same factor that led to the premature closure of the Greener Homes Grant — and the federal government's fiscal conditions tightening, now may be the time for homeowners on the fence to finally make the jump to solar energy, lest they be left without federal incentives.

Understanding Canada's Greener Homes Loan

Canada's Greener Homes Loan offered a minimum of $5,000 and a maximum of $40,000 in interest-free financing for homeowners looking to lower their energy bills and become more sustainable with solar energy, among other upgrades. The program had a maximum payback period of 10 years and was structured as a personal loan on approved credit.

One loan is available per eligible homeowner and property. Once approved, a partial release of the funds (up to 15%) can be made available to pay for any upfront contractor deposits. The remaining balance will be deposited to homeowners once their solar installation is verified as complete.

To be eligible for the Greener Homes Loan, homeowners were required to be Canadian citizens, permanent residents, or non-permanent residents legally authorized for domestic work. Individuals also needed to own their properties, live in them as a primary residence, have a reasonably good credit score, and have had a dedicated energy advisor perform a pre-retrofit property evaluation prior to completing their loan application.

Solar installations that had been started prior to completion of the loan application were disqualified from funding.

Timing Your Solar Investment

Homeowners should take advantage of solar incentives whenever possible to reduce system payback periods and maximize savings. With the Greener Homes Loan now closed, provincial programs and Solar X financing options are the strongest paths to an affordable installation today.

For homeowners who preferred not to pay their solar installation costs upfront, interest charges can add up, decreasing overall cost-effectiveness. The Greener Homes Loan allowed homeowners to spread the cost of their installation over a more manageable 10-year period with zero interest. Solar X continues to offer affordable, no-money-down solar packages for those who prefer to pay off their panels over time.

At the time, depending on the province, other incentive programs could be used alongside the Greener Homes Loan to provide further relief to homeowners.

As a generous incentive program, Canada's Greener Homes Loan was ultimately subject to many of the same fiscal pressures that had shuttered the Greener Homes Grant. Over 60,000 Canadians applied for the financing before the program closed, reflecting the strong demand for accessible solar financing across the country.

The Greener Homes program has now closed. Homeowners considering solar today should explore provincial rebates and Solar X’s flexible financing options, which remain strong paths to an affordable installation.