Canada Launches Greener Homes Affordability Program to Cut Energy Bills and Emissions
September 15, 2025
Buildings are Canada’s third-largest source of greenhouse gas emissions, and the way we heat, cool and power them is critical to tackling climate change. The Government of Canada is stepping up with practical, affordable solutions that deliver real results for Canadians. That’s why we are launching the Canada Greener Homes Affordability Program (CGHAP) — a new initiative that will help low- to median-income households reduce their energy bills and greenhouse gas emissions through no-cost home retrofits.
Tim Hodgson, Minister of Energy and Natural Resources, announced that the first CGHAP agreement has been reached with Manitoba. The federal government will provide nearly $30 million to support Efficiency Manitoba for the program.
CGHAP will be delivered in partnership with provinces and territories to ensure the program meets the distinct needs of communities across Canada. For the first time, this program will be available to tenants. Using a direct-installation model, CGHAP participants will not have to pay out of pocket for upgrades to their homes. Retrofits may include insulation, air sealing, heat pumps, solar panels, windows and doors.
CGHAP will also provide resources to Indigenous governments and representative Indigenous organizations through existing agreements administered by Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada. Employing a distinctions-based approach with streamlined administrative requirements, CGHAP will work with First Nations, Inuit and Métis partners to advance their self-determined priorities in home energy efficiency.
CGHAP is a complementary program to the Oil to Heat Pump Affordability (OHPA) program that is already available to low- to median-income Manitoba households that are ready to make the switch from oil heating to an eligible heat pump system. With OHPA, Manitobans can receive an upfront payment of up to $20,000 to help pay for the switch. Eligible Manitobans can now apply for funding from both the OHPA program and CGHAP, making energy efficiency improvements to homes across the province more accessible and affordable.
By transforming how we heat, cool and power our buildings, we’re not only tackling emissions, we’re also reducing Canadians’ bills and creating a blueprint for long-term economic prosperity.
Quick facts
- Efficiency Manitoba is Manitoba’s Crown corporation dedicated to energy efficiency. With legislated long-term energy savings targets to achieve, the organization has a diverse suite of accessible offers available to help Manitobans save energy, money and the environment.
- Efficiency Manitoba will use CGHAP funding to build on the success of two existing low- to median-income programs, the Energy Efficiency Assistance Program and the Métis Energy Efficiency Offers and will now cover the full income-based loan portion for ground-source heat pumps, reducing it to $0 for eligible homeowners.
- Manitobans can apply directly through the Efficiency Manitoba website and learn more about eligibility.
- Efficiency Manitoba also offers many cost-effective programs and services to help all Manitobans save energy, lower their bills and improve home comfort.
- Homeowners and tenants who pay their energy bills can benefit from CGHAP retrofits — expanding access to more low- to median-income Canadians.
- CGHAP is expected to become available in many additional provinces and territories over the coming year.
- Across Canada, over 96 percent of direct building emissions come from space and water heating. Replacing fossil fuel heating systems with low-carbon options, like electric ground-source heat pumps, will make a real difference in reducing greenhouse gas emissions and monthly heating costs.
- Over 260,000 new heat pumps have been installed nationally with federal support since 2020, including provincial/territorial support from co-delivery partners.
