Have you heard about the new federal home retrofit program for Canadians? If you’re a home business owner planning to do some renovations in the foreseeable future, read on. Even if you’re just an entrepreneur who wants to save on their home energy bills, you’ll want to know about this new initiative, which covers renewable energy home improvements like solar panels.
The Government of Canada launched a new federal program called the Canada Greener Homes Grant that offers Canadians grants of up to $5,000 to pay for energy-saving upgrades to their homes like replacing windows and doors, adding insulation, sealing air leaks, improving heating and cooling systems and installing solar panels.
The program will invest $2.6 billion over the next seven years. The initiative will also recruit up to 2,000 new energy advisor jobs across the country with emphasis on advancing inclusion and diversity in the workforce by including women, Indigenous peoples, persons with disabilities and racialized Canadians.
Everyone has their own reasons for doing home improvements and upgrades. If you own a home or home business, yours could be making your home more comfortable, saving on energy and utility bills, adding value to your home and helping the environment.
Focusing on what’s important to you can help you decide what retrofits to make. Even small changes can improve the energy efficiency of your home and provide lasting impacts on your home’s overall safety and maintenance. These improvements could be in your kitchen, bathroom, living room, dining room or office.
And while this investment cannot be used as a tax write-off, free money is always good from an entrepreneur’s perspective, am I right?
Wondering what types of retrofits qualify? Eligible home improvements and upgrades include the following:
You can review the full list of eligible retrofits on the Government of Canada website. Just remember that while you can do more than one of the retrofits, the maximum reimbursement is $5,000 in total.
This summer, they’re also announcing a $40,000 interest-free loan to help pay for bigger upgrades! Register to receive updates on this loan initiative.
Did you know that the cost of solar panels have come down 90% in the last 10 years? There are a couple of other reasons why solar energy in Alberta makes a lot of sense:
There is one caveat. With so much supply of power coming into the electricity grid from all of these giant solar projects, electricity prices in Alberta could be permanently low. While this would attract electricity-intensive businesses like crypto mining and data centres, these same cheap prices would mean a longer payback period for your own solar power investment.
The Arc Energy podcast, hosted by Peter Tertzakian and Jackie Forrest, is one of my favourites as they keep you up-to-date on what’s happening in the Alberta energy industry. Their June 8, 2021 episode goes deep into what’s changed in solar for Albertans. I highly recommend giving it a listen.
And if you want to nerd out on the economics of residential solar power, here are a few Alberta-specific articles:
The timing of this new federal home retrofit program is ideal if you’re thinking of adding solar panels to your home. Only residential properties are eligible for the grant, which is a shame because solar energy would be ideal for small businesses. At our two offices in Bridgeland and Okotoks, we consume energy during the day while we work (and the sun shines), and then shut down at night.
The property needs to be your primary residence, unless you’re the owner of the property and the tenants are Indigenous.
Sorry new homeowners, you're not eligible for this grant. A homeowner’s primary residence must be at least six months old from the date of occupancy by the first homeowner. Thankfully, new homes are built with efficiency in mind these days, so you're still ahead of the game.
As part of this program, here’s what you can claim:
Who’s eligible? First of all, only one homeowner per home can register. And you’ll need to show proof of ownership and residence. You’ll need:
Local Indigenous governments and housing management bodies partnering with Indigenous organizations are eligible for the program, and are allowed to register multiple homes.
Before you start tearing down walls and reimagining your home office space, make sure you review the grant requirements:
It’s important to provide and keep copies of all your receipts and documents. Without them, you may not be reimbursed for your expenses. To verify your eligible retrofits, the CRA needs:
Hubdoc is what we’d recommend to keep everything in one place. You can read our blog on other ways to organize your home office!
Ready to start? Make sure you consider how much budget you have before you begin — this will play a major role in deciding what home renovations you can do. (And don’t forget about the $40,000 interest-free loan they’re announcing this summer!)
To apply for the Canada Greener Homes Grant, visit the Government of Canada website. Here’s your to-do list:
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