Low to median-income households across four provinces may soon see a cheaper electricity bill, thanks to the Canada Greener Homes Affordability Program. 

Energy Minister Tim Hodgson and Environment Minister Julie Dabrusin announced Monday the program’s expansion to Quebec, British Columbia, Nova Scotia and Prince Edward Island — as well as Manitoba, which builds on an existing partnership. 

“When we use energy more wisely, we reduce pressures on supplies, we make our systems more reliable, we protect people and businesses from volatility and disruption,” Hodgson said at the International Energy Agency conference in Montreal. 

Under the Canada Greener Homes Affordability Program (CGHAP), over $500 million in funding —  $300 million of which is federal — will be directed to help over 35,000 low and median-income households to install heat pumps, better insulation, improved air sealing and other upgrades. 

The program is a rebrand from its previous version launched in 2021, which focused on granting loans to homeowners, targeting moderate or middle income families and households. 

It was abruptly shut down in early 2024, after its $2.6 billion funding ran out. The program was supposed to last until 2027.

Brendan Haley, senior director of policy strategy at Efficiency Canada, said the program is “filling a gap” that wasn’t fulfilled from the previous program, Canada Greener Homes Grant (CGHG) program. 

CGHG provided homeowners with up to $5,000 for energy efficiency retrofits and home energy evaluations, and $600 to help cover the cost of the evaluations. 

The announcement comes after the feds’ electricity strategy, which seeks to double Canada’s grid capacity by 2050, and promises to prioritize energy efficiency, such as retrofitting up to one million homes with electric heat pumps and active energy management. 

It goes in tandem to Bill S-4, legislation currently before Parliament that would modernize Canada’s Energy Efficiency Act. While the bill would update federal standards governing energy-using products and equipment, the affordability program is aimed at helping households pay for the upgrades. 

READ MORE: Senate’s handling of energy efficiency bill slowing plants to introduce consumer rebates, says government source 

Alongside the funding announcement, the feds are also transferring ministerial responsibility from Natural Resources to Environment and Climate Change Canada. 

“By helping Canadians use less energy in their homes, we can put money back in Canadians’ pockets by reducing their monthly energy costs, take pressure off our energy systems, reduce greenhouse gas emissions and enhance our energy security,” Keean Nembhard said.

The shift has prompted questions from some question from Haley about how Ottawa will measure the program’s success, whether primarily as a climate measure aimed at reducing emissions, or as an affordability program tool aimed at lowering household energy costs. 

“The Environment Department tends to be very focused on greenhouse gas emissions,” he said. 

While the Greener Homes Affordability Program does reduce greenhouse gas emissions, Haley said the program’s principal benefit is helping people with affordability, which also extends beyond saving money. 

“When you upgrade homes… you can really improve people’s health outcomes by protecting them from things like heat stress, cold stress, lack of sleep,” he said. 

On a larger scale, Haley added that it could also really improve “the productivity of large industries.” 

Energy Poverty 

While the announcement comes with great promises for households across the country, Haley holds reservations on its implementation process. 

The federal program is designed to give provinces and regional energy efficiency agencies flexibility to tailor low-income retrofit programs to local needs, meaning support may vary across the country. 

“We’re not sure if every single province is actually going to take advantage of this federal money and use it to expand or operate a low-income program in their province,” Haley said. 

Energy poverty occurs when energy costs create an unaffordable financial burden or when households are unable to access adequate energy services such as cooling during extreme heat events. 

Efficiency Canada estimates roughly two million Canadian households experience energy poverty. 

He added it’s important to see what the program’s refinancing will look like in the next few years, pointing to the previous greener homes program, which had $2.6 billion. 

“We do not want to repeat the fact that when those programs ran out of money, they were abruptly canceled,” he said. 

“What I think we really need to do is have a goal associated with the program, and the program should be eliminating energy poverty in this country, if we’re calling ourselves an energy superpower,” Haley said.