Toronto Launches USD 20 Million Loan Programme to Support Heat Pump Adoption
- brg_news_room
- 2 days ago
- 1 min read
Canada: The City of Toronto has introduced a USD 20 million (EUR 18.5 million) low-interest loan scheme to help single-family homeowners replace gas furnaces with electric heat pumps. Announced by Mayor Olivia Chow and Toronto Hydro CEO Jana Mosley, the initiative provides access to an “energy coach” to guide residents on financing, available rebates, and installation. The programme aims to accelerate the city’s transition to cleaner energy as part of its plan to reach net-zero emissions by 2040. Buildings account for over half of Toronto’s greenhouse gas emissions, and switching to heat pumps could reduce household emissions by more than 60 per cent.
Typical loans are expected to range between USD 10,000 (EUR 9,250) and USD 15,000 (EUR 13,875), with interest rates from 3.25 per cent for five years to 4.72 per cent for 20 years, alongside an administrative fee. Although the upfront cost of a heat pump may exceed that of a gas furnace, the programme’s low-interest financing and rebates, including USD 2,000 (EUR 1,850) from the province, aim to make the transition financially feasible. The city also plans to expand the scheme in 2026 to include installation services and incentives for low- and moderate-income households.
Source: The Star