3 “Green Home” Renovations the CRA Will Pay for

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So, you’re a Canadian who is on board with addressing climate change. You compost, lower your energy usage, and generally try to do the right thing. But there’s one major issue staring you in the face: your home.

A home can be a great cost burden, and although there are many green energy solutions that could lower your costs overall, those renovations cost money—a lot of money in some cases.

Today, we’re going to look at three options that the Canada Revenue Agency (CRA) could help you with. From grants to loans, there are ways to start addressing your climate change needs in your own home, so let’s get to it.

The Canada Greener Homes Grant

First up, we have the Canada Greener Home Grant. This grant is provided to eligible homeowners to help Canadians “live more energy efficient.” Depending on where you live, Canadians can receive back a portion of the costs after retrofitting their homes. This can amount to anywhere between $125 to $5,000!

The grant depends on the province or territory that you live in. For instance, in Ontario, the grant is delivered under the Home Efficiency Rebate Plus (HER+) program. Homeowners can use it for home insulation, windows, doors, heat pumps, and even renewable energy systems.

Yet look over the list of locations, especially if you’re considered “off grid.” You may be eligible for even more retrofitting for your home and could receive thousands from the government in green energy solutions. So, take a look and start planning!

The Canada Greener Homes Loan

Another option is to apply for the Canada Greener Homes Loan. This interest-free loan helps Canadians who are trying to make their homes more energy efficient. You can apply for eligible retrofits, and it’s recommended that you hire an “energy advisor” before getting started.

That being said, you should not start work until your loan has been submitted and approved. This could leave you needing to apply for the grant and perhaps unable to claim everything. Even still, the loan can be quite substantial.

Eligible applicants can receive a minimum of $5,000 and up to $40,000, interest free, with a term of 10 years. There is a maximum of one loan per property and homeowner, with the maximum loan calculated based on the retrofits in the application. Part of the loan can be delivered up front as well to assist in deposits.

Oil to Heat Pump Affordability Program

Finally, there is the Oil to Heat Pump Affordability Program. This applies to those who have a home heated by oil, with a household after-tax income that falls at or below the median household after-tax income. Right now, that remains at $68,400, according to Statistics Canada.

If so, Canadian homeowners can receive an upfront payment of up to $10,000. This would be used to put in a new, energy-efficient heat pump. This can save you thousands in heating bills every year, as well as help reduce greenhouse gas emissions. So, if you were putting up with it because of the cost, get on it today!

Put the cash somewhere useful

Now that you’ve got cash coming in from the government, putting money towards clean energy solutions, there are multiple benefits. One is that you’ll likely save thousands in energy bills. Further, you’ll be helping out the environment.

What’s more, the money you save can be put to use, such as with renewable energy stocks. That will turn your savings into income! A great option to consider is Brookfield Renewable Partners (TSX:BEP.UN), a solid, diversified renewable energy asset company.

This stock invests in every type of renewable energy asset, though shares are down in this current economic environment. That leaves room for long-term gains in the future. Meanwhile, you can grab a 6% dividend yield as of writing! So, don’t wait around; start saving and creating income today.

The post 3 “Green Home” Renovations the CRA Will Pay for appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has positions in Brookfield Renewable Partners. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.