Grants for energy-efficient residential construction (May 2024)
- Kim Cloutier
- May 15, 2024
- 9 min read
Updated: Oct 16, 2024
In 2024, the idea of embarking on an energy-efficient construction or renovation project in Quebec can seem financially daunting. High initial costs often dissuade homeowners from opting for greener solutions. Fortunately, many government subsidies are available to ease the financial burden.
Aware that many people, like you, struggle to find their way through the various possibilities, I've compiled this guide in the course of my research. It brings together all the financial assistance currently available to give you a comprehensive, up-to-date picture of the opportunities for making sustainable living economically accessible. Whether you're building a new home or modernizing an existing one, understanding these opportunities can turn your green project into a tangible reality.
Grants for energy-efficient residential construction
Single-family Home
A single-family home is a dwelling housing a single household. It can be detached, semi-detached or row house.
New construction
1. Novoclimat
The Novoclimat 2.0 program is aimed at new constructions and is fully subsidized by Transition énergétique Québec (Ministère de l'Environnement). If Novoclimat standards are met, the first homeowner can benefit from financial assistance of $2,000, or $4,000 if he or she is a first-time homeowner.
Click here for eligibility criteria
2. LogisVert
Hydro-Québec's LogisVert" program aims to reduce the energy consumption of homes. It is aimed at homes whose construction has been completed (whether new or not).
The LogisVert program encourages the purchase of low-consumption appliances, such as induction stoves and heat pump dryers, for which it offers a $250 subsidy .
Finally, the installation of a high-efficiency heat pump can earn you a return of between $1,500 and $2,500, depending on the unit's capacity. Combining several measures in a single application may also entitle you to additional financial assistance. Subscribing to the Hilo program may also entitle you to certain bonuses.
Retrofit
1. Rénoclimat
The Rénoclimat program is designed to improve the energy efficiency of existing homes. It has 4 objectives: to improve thermal insulation (foundations, walls and roof), to improve airtightness (or reduce air leakage), to replace doors and windows with more efficient components, and to improve the efficiency of mechanical systems in order to reduce their energy consumption. Each category is divided into different points that can earn you a little money.
If you aim for the maximum in each category, you can get a grant of up to $10,000, in addition to the energy savings you'll make on your electricity bill! What's more, you don't have to undertake major renovation work to qualify for some of these grants, and the work can be done in stages, which can also be an advantage.
To find out the specific amounts granted for each improvement, visit the Rénoclimat website.
2. LogisVert
Hydro-Québec's LogisVert" program aims to reduce the energy consumption of homes. It is aimed at homes whose construction has been completed (whether new or not).
The LogisVert" program encourages the purchase of low-consumption appliances, such as induction stoves and heat pump dryers, for which it offers a $250 subsidy. Roof insulation and caulking are also eligible, but cannot be combined with Rénoclimat grants.
Finally, the installation of a high-efficiency heat pump can earn you a return of between $1,500 and $2,500, depending on the unit's capacity. Combining several measures in a single application may also entitle you to additional financial assistance. Subscribing to the Hilo program may also entitle you to certain bonuses.
Click here for more details on the LogisVert program
3. Chauffez vert
The Quebec government's Chauffez vert program is designed to support homeowners who wish to replace their fossil fuel (oil or propane) heating system with a renewable energy system such as electricity.
|
| Oil | Propane |
Heating system replacement | Detached house | 1275$ | 850$ |
Semi-detached or row house | 875$ | 650$ | |
Mobile home | 1075$ | 600$ | |
Water heater replacement |
| 250$ | 200$ |
More details: Chauffez vert
Financing options
1. Canadian Greener Homes Loan
The Canadian Greener Homes Loan offers interest-free financing to help Canadians improve the energy efficiency and comfort of their homes. The loan is worth between $5,000 and $40,000, and must be repaid over a 10-year period.
Please note: No work must have begun on the home prior to submission of the financing application.
For more details, visit the Natural Resources Canada website.
2. Loans from financial institutions
Some financial institutions also offer assistance to owners of energy-efficient homes. Desjardins offers a cash rebate of $2,000 for new construction, $500 for renovation, a discount on home insurance and better mortgage rates.
Visit the Desjardins website for more details on their Sustainable Home Program
3. CMHC Eco Plus
This Canada Mortgage Corporation program offers a premium rebate to homeowners who take out an insured mortgage to purchase an energy-efficient home. This rebate may also apply to those who have taken out a CMHC-insured loan to make energy-saving renovations to their home.
To qualify, properties must either :
Have obtained a qualifying certification;
o LEED gold or platinum
o Zero Carbon Building
o Energy Star
o Novoclimat
o Passive House
OR
Be evaluated by an energy advisor certified by Natural Resources Canada (NRCan) to assess your home's energy efficiency rating and :
o Have an exemplary greenhouse gas rating;
o Have an energy consumption rating 20% lower than a standard new construction.
For more details: CMHC Eco Plus program
Small Multi-unit Building
A small multi-unit building must have a minimum of 2 units, be 3 stories or less in height and have a building area of less than 600m2.
New construction (or major retrofit)
1. Novoclimat
For multi-unit buildings, financial assistance is granted to the developer, not to the purchaser of a condominium unit if the building is intended for sale. Several parameters are used to determine the scope of financial assistance, such as energy savings, GHG reduction, the social nature of the project and its impact on the market. Financial assistance is calculated according to the number of units in the project and its purpose. A private building could receive up to $1,700/unit, while a building with a social vocation could receive up to $3,400/unit.
Novoclimat program details for small multi-unit building
2. LogisVert
Hydro-Québec's LogisVert program aims to reduce the energy consumption of residential buildings. It is aimed at buildings whose construction has been completed (whether new or not).
The LogisVert program encourages the purchase of low-consumption appliances, such as induction stoves and heat pump dryers, for which it offers a subsidy of $250 per appliance. Finally, the installation of a high-efficiency heat pump can earn you a return of up to $6,700, depending on the appliance's capacity (or about $140/1000BTU).
Retrofit
1. Rénoclimat
The Rénoclimat program is designed to improve the energy efficiency of existing homes. It has 4 objectives: to improve thermal insulation (foundations, walls and roof), to improve airtightness (or reduce air leakage), to replace doors and windows with more efficient components, and to improve the efficiency of mechanical systems in order to reduce their energy consumption. Each category is divided into different points that can earn you a little money.
In the case of multi-unit residential buildings, financial assistance is higher than for single-family homes. For insulation improvements, it is increased by applying a multiplier corresponding to the number of units in the dwelling.
For example, if you insulate the entire roof of your triplex, which was previously uninsulated, you could receive a grant of $1,500 x 1.8 = $2,700.
In the same case, if you do the same type of work on your 6-unit building, you could get a grant of $1,500 x 3 = $4,500.
For airtightness improvements and window and door replacements, financial assistance is granted according to the same principle as for single-family homes, i.e., based on the percentage of airtightness improvement and the number of windows/doors replaced.
Finally, for mechanical systems, financial assistance is granted according to the number of units you replace, regardless of the number of units in your building. Note, however, that financial assistance cannot exceed $40,000 for owners of duplexes, triplexes or multi-unit residential buildings.
Click here for more details on the Rénoclimat program for multi-unit residential buildings
Consult the Participant's Guide (May 2024) for more details.
2. Chauffez vert
The Quebec government's Chauffez vert program is designed to support homeowners who wish to replace their fossil fuel (oil or propane) heating system with a renewable energy system such as electricity.
|
| Oil | Propane |
|---|---|---|---|
Heating system replacement | Duplex/triplex | $875/unit | $650/unit |
| Multiple units | $550/unit | $225/unit |
Water heater replacement |
| $250/water heater | $200/water heater |
More details: Chauffez vert
Financing options
Canadian Greener Homes Loan
The Canadian Greener Homes Loan offers interest-free financing to help Canadians improve the energy efficiency and comfort of their homes. The loan is worth between $5,000 and $40,000, and must be repaid over a 10-year period.
Please note: No work must have begun on the home prior to submission of the financing application.
For a low-rise multi-unit residential building to qualify, the owner must be an occupant, at least 50% of the building's floor area must be residential, and the units must be stacked or connected by a common area.
For more details, visit the Natural Resources Canada website.
Apartment Construction Loan Program (CMHC)
The program offers low-cost financing (from construction to stabilization of operations) up to 100% of the cost for buildings with at least 5 rental units. The project must qualify for a loan of at least $1 million, and must meet a rental housing need. The project must also meet certain affordability, accessibility and energy efficiency requirements.
More details on the CMHC website.
Canada Greener Affordable Housing program (CMHC)
This program offers forgivable loans and low-interest loans to finance the renovation of affordable housing buildings of 5 units or more that were built more than 20 years ago and aim for a better energy balance. and activities required to meet climate objectives. The forgivable loan covers a minimum of $85,000 or up to 80% of eligible renovation costs. Low-interest loans will be available to finance the remainder, up to a maximum of $170,000 per dwelling.
The program also offers contributions for pre-retrofit activities required to plan, prepare and apply for renovation financing, up to a maximum of $130,000.
More details on the CMHC website.
Large Multi-unit Building
A large multi-unit building has more than 3 floors and/or a building area greater than 600m2. For some grants, the number of floors or units is limited. Refer to the guides to validate the eligibility of your project.
New construction (or major retrofit)
1. Novoclimat
For multi-unit buildings, financial assistance is granted to the developer, not to the purchaser of a condominium unit if the building is intended for sale. Several parameters are used to determine the scope of financial assistance, such as energy savings, GHG reduction, the social nature of the project and its impact on the market. Financial assistance is calculated according to the number of units in the project and its purpose. A private building could receive up to $1,300/unit, while a building with a social vocation could receive up to $2,925/unit.
Novoclimat program details for big multi-unit building
LogisVert
Hydro-Québec's LogisVert program aims to reduce the energy consumption of residential buildings. It is aimed at buildings whose construction has been completed (whether new or not).
Please note: For buildings with more than 20 units, it is not possible for the developer to access the subsidies. Applications must be made by the apartment owners.
The LogisVert program encourages the purchase of low-consumption appliances, such as induction stoves and heat pump dryers, for which it offers a subsidy of $250 per appliance. Finally, the installation of a high-efficiency heat pump can earn you a return of up to $6,700, depending on the appliance's capacity (or about $140/1000BTU).
Click here for more details on the LogisVert program
Apartment Construction Loan Program (CMHC)
The program offers low-cost financing (from construction to stabilization of operations) up to 100% of the cost for buildings with at least 5 rental units. The project must qualify for a loan of at least $1 million, and must meet a rental housing need. The project must also meet certain affordability, accessibility and energy efficiency requirements.
More details on the CMHC website.
Canada Greener Affordable Housing program (CMHC)
This program offers forgivable loans and low-interest loans to finance the renovation of affordable housing buildings of 5 units or more that were built more than 20 years ago and aim for a better energy balance. and activities required to meet climate objectives. The forgivable loan covers a minimum of $85,000 or up to 80% of eligible renovation costs. Low-interest loans will be available to finance the remainder, up to a maximum of $170,000 per dwelling.
The program also offers contributions for pre-retrofit activities required to plan, prepare and apply for renovation financing, up to a maximum of $130,000.
More details on the CMHC website.
Conclusion
As we have seen, a multitude of subsidies are available to support energy-efficient construction and renovation projects. While some are more important than others, they all share a common goal: to make sustainable housing more accessible and affordable.
We haven't explored them here, but several Quebec municipalities also offer property tax credits for LEED and Novoclimat certified homes. These are interesting programs that would benefit from being extended to all Quebec municipalities!
And why not add other ecological and energy-efficient certifications such as Passivhaus, Zero Carbon, Net Zero and Living Building Challenge to the list?
Don't forget that investing in energy efficiency is not only good for your wallet, but also contributes to a healthier environment.
For those of you ready to begin an energy-efficient construction or renovation project, I encourage you to consult the links provided in this article to deepen your understanding of the programs available. This will enable you to optimize your investments and maximize the financial benefits offered.
About the author:
Kim Cloutier is an experienced architect with a career marked by projects focused on simplicity and sustainability. She is a certified Passive House Designer and LEED Green Associate, demonstrating her commitment to high standards of energy performance and environmental sustainability. Kim aspires to promote healthier living through her projects, with a focus on creating healthy, sustainable environments.
