Financing Solar Panels Interest-Free
Everything Canadian homeowners need to know to access up to $40,000 interest-free through the federal program
Why This Matters
Solar energy is one of the most powerful tools Canadian homeowners have to cut electricity bills, reduce reliance on fossil fuels, and increase property value, all while doing something great for the planet.
But here’s the reality: solar isn’t inexpensive upfront. There is an investment.
That’s where the Canada Greener Homes Loan comes in. It offers $5,000–$40,000 in interest-free financing over 10 years, allowing you to invest in solar (or other energy-efficient upgrades) without touching high-interest credit or personal savings.
This guide is written for average Canadians who want solar panels on their roof, but aren’t sure how to navigate the process. As a Canadian solar specialist and homeowner myself, I’m going to walk you through every step clearly and simply.
What Is the Canada Greener Homes Loan?
The Greener Homes Loan is a federal program administered by the Canada Mortgage and Housing Corporation (CMHC). It’s designed to help Canadians make eligible energy upgrades to their primary homes, with zero interest, no upfront repayment, and up to 10 years to pay it back.
Loan Amount: $5,000 to $40,000
Term: Up to 10 years, no interest
Funding: Paid out in 1–2 installments
Use of Funds: Only for eligible upgrades recommended in your EnerGuide evaluation
Who Can Apply?
To be eligible for the Greener Homes Loan, you must meet ALL the following:
You must:
- Own and live in the home (it must be your primary residence)
- Have a valid Canadian address and property tax account
- Have a decent credit history (CMHC will assess)
- Complete a pre-retrofit EnerGuide evaluation
- Receive a quote or contract from a certified installer
- Not have started any work or made deposits before approval
Eligible Home Types:
- Detached homes
- Semi-detached
- Row homes or townhouses
- Mobile homes (on a permanent foundation)
- Low-rise multi-unit residential buildings (under 3 storeys, 600m² or less)
What Can the Loan Be Used For?
The loan only covers retrofits that were recommended in your EnerGuide evaluation. These must be done by licensed contractors and supported by invoices.
Here are some eligible upgrades:
Solar Photovoltaic Systems
- Roof-mounted or ground-mounted solar PV (min. 1.0 kW)
- Grid-connected with proper permits
- Installed by a certified solar professional
Heat Pumps (air source, cold climate, or ground source)
Home Insulation (attic, basement, walls)
ENERGY STAR® windows, doors, skylights
Air sealing, ventilation upgrades, smart thermostats
Not covered: Routine repairs, painting, landscaping, new roofing (unless part of solar), or DIY labour costs.
Step-by-Step: How to Apply for the Canada Greener Homes Loan
STEP 1: Book a Pre-Retrofit EnerGuide Evaluation
This is required to access the loan. A licensed energy advisor will assess your home’s energy efficiency, provide an official EnerGuide label, and recommend upgrades.
To book:
- Go to NRCan’s Registered Energy Advisor list
- Choose a service organization in your area
- Cost: ~$400–$600 (check if local utilities offer rebates)
Make sure solar panels are listed as one of the recommended retrofits in your report.
STEP 2: Get a Solar System Quote from a Certified Installer
You’ll need a detailed proposal and cost estimate for your solar system. This should include:
- Size of the system (kW)
- Estimated annual electricity generation (kWh)
- Total cost, taxes, and installation timelines
- Manufacturer and model of panels and inverter
Ask for a PDF quote or signed contract. This must be uploaded during your application.
STEP 3: Log Into the Greener Homes Loan Portal
Go to:
https://CGHLI.ca
Create an account or log in using your CRA MyAccount or GCKey.
Then:
- Start a loan application linked to your EnerGuide evaluation
- Select the retrofits you’re applying for (e.g. “Solar PV system”)
- Enter your projected costs
- Upload your EnerGuide report and contractor quote
- Provide banking info for direct deposit
STEP 4: Wait for Approval from CMHC
Once submitted, your application will be reviewed by CMHC. This typically takes 1–3 weeks.
If approved:
- You’ll receive an official loan agreement
- Sign electronically
- Do not begin work until this agreement is signed
In some cases, CMHC may release a portion of the funds upfront to help cover contractor deposits.
STEP 5: Retrofit Completion and Post-Evaluation
Once your solar panels are installed:
- Schedule a post-retrofit EnerGuide evaluation
- Your energy advisor will verify that the work was completed
- Submit all final paid invoices through the portal
CMHC will then release the remaining loan amount into your bank account.
Realistic Timeline from Start to Finish
Step Estimated Time
EnerGuide evaluation 1–2 weeks wait + 1–2 weeks for report
Get quotes 1 week
Loan application 1–3 weeks for approval
Installation 2–6 weeks (depends on contractor)
Post-evaluation &
Final Disbursement 1–2 weeks
Total process time: ~2 to 3 months from start to funds-in-hand (longer if backlogs)
Common Mistakes to Avoid
- Starting work before your loan is approved
- Submitting an incomplete application or missing documents
- Choosing retrofits that weren’t in your EnerGuide report
- Using the loan for ineligible expenses (e.g., roofing not related to solar)
Frequently Asked Questions (FAQs)
Q: Can I apply if I already installed my solar panels?
No. The loan is only available if the project hasn’t started before approval.
Q: Do I need to repay the loan early if I sell my home?
Yes. The loan must be repaid in full if the property is sold or transferred.
Q: Is this loan stackable with provincial rebates?
Yes! You can combine the federal loan with rebates or grants from your province, municipality, or utility.
Q: Is the solar system mine, or is it leased?
This loan only covers owned solar systems. Third-party leasing is not eligible.
Want Expert Help With the Application?
- Help you get an EnerGuide evaluation
- Provide a compliant solar proposal for your application
- Ensure your quote meets all CMHC documentation requirements
- Guide you through each stage of the loan portal
This Is One of the Best Ways to Go Solar in Canada
Solar isn’t just a feel-good upgrade — it’s a smart investment in your home and your future.
With energy rates rising and climate incentives shifting, the Canada Greener Homes Loan is one of the most homeowner-friendly tools on the table.
Questions? Need a solar quote tailored for your home?
Contact us at here at sales@mynickenergy.com or book a free consultation with one of our solar specialists.