Energy costs are rising quickly for Canadian businesses. According to Natural Resources Canada, energy retrofits can lower building energy use by 20% to 40% if done right. Grants for energy efficiency and retrofits help cover these upfront costs. This makes upgrades more affordable. Over time, these improvements can boost your cash flow and increase your property’s value.
This guide explains how these grants work, which programs are available now, and how to choose the best one for your business. We also look closely at CMHC Eco Plus, a key program for multi-unit residential buildings.
Energy efficiency grants usually pay back part of your retrofit costs after you finish the upgrades and prove your energy savings. Most programs only cover upgrades that save energy, not cosmetic changes.
Common funded upgrades include:
Funding comes in different forms. Some programs give non-repayable grants. Others offer rebates or repayable incentives based on your energy savings. For more details, see Repayable vs Non-Repayable Business Funding in Canada: Program Examples Explained.
The CMHC Eco Plus Program helps pay for energy-saving retrofits in insured multi-unit residential buildings, such as apartments and mixed-use properties with homes.
Eco Plus does not give cash upfront. Instead, you get a refund on your CMHC insurance premium after you prove your energy savings. This is helpful for owners who are already refinancing or buying with CMHC-insured loans.
Tip: GrantHub’s eligibility matcher can help you quickly check which energy efficiency programs fit your building type and province.
While CMHC Eco Plus is a federal program, many grants and incentives are also available from provinces and utilities.
Starting upgrades before approval
Many programs need pre-approval. If you start too early, those costs may not count.
Skipping the energy audit
Most grants require an audit. It shows what upgrades are eligible.
Assuming all renovations qualify
Cosmetic changes do not count. Only upgrades that save energy are funded.
Overlooking stacking rules
Some grants can be combined, but not all. Always check the rules before applying.
Q: Are energy efficiency and retrofit grants taxable in Canada?
Most grants must be reported as income, but they might offset your expenses. Ask your accountant for details.
Q: Can small businesses apply, or are these programs only for large buildings?
Many programs help small and medium businesses, not just big ones. The size of your building often matters more than your company size.
Q: Does CMHC Eco Plus apply to commercial office buildings?
No. CMHC Eco Plus is only for insured multi-unit residential properties.
Q: How long does approval usually take?
It depends. Utility programs may approve in weeks, but federal programs can take months.
Q: Can I combine Eco Plus with provincial retrofit incentives?
Yes, often you can. Eco Plus usually stacks with other rebates if you follow the total assistance limits.
Energy efficiency and retrofit grants for Canadian businesses can help you save money on upgrades. But each program has its own rules based on your province, building, and business type. GrantHub keeps track of hundreds of energy and retrofit funding programs across Canada. You can use GrantHub to find options that fit your business before you spend time or money applying.
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