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Energy Retrofit Loans (ERL)
Low-interest financing for energy-efficient building retrofits in Toronto
Last Update: March 4, 2026
Funding available
Up to 100% of project cost
Timeline
- Open continuously
Location
Toronto, Ontario, Canada
Overview
The Energy Retrofit Loans (ERL) program provides up to 100% financing of project costs with fixed, long-term, low-interest loans to support low-carbon, energy-efficient building retrofits in Toronto. Eligible activities include upgrades such as heat pumps, HVAC systems, building envelope improvements, lighting, renewable energy systems, and other decarbonization measures.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Reduce environmental footprint
- Renovate or expand facilities
Eligible Funding
- Up to 100% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Manufacturing
- Retail trade
- Real estate and rental and leasing
- Professional, scientific and technical services
- Educational services
- Health care and social assistance
- Accommodation and food services
- Other services (except public administration)
- Public administration
Location
- Toronto
- Ontario
Legal structures
- Non-profit
- Public or Parapublic institution
- Social economy enterprise
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Non-profit candidates
Sector of operation
- All industries
Target groups
- All the groups
Revenue structures
- All structures
Scope
- All dimensions
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Upgrading buildings with low-carbon, energy-efficient retrofits.
- Installation of renewable energy systems such as solar panels or geothermal systems.
- Implementing advanced building automation and control technologies.
- Replacing existing systems with high-efficiency heating, cooling, and ventilation solutions.
- Comprehensive building envelope improvements to enhance energy conservation.
Documents Needed
- Two years of audited financial statements
- Detailed project summary
- Feasibility study prepared by a qualified third party
- Building decarbonization plan
- Other supporting documents as required
Official resources
Eligibility
Who is eligible?
- Commercial, retail, and industrial buildings
- Multi-family residential buildings
- Condominium (common areas only)
- Social housing facilities
- Hospitals and long-term care institutions
- Schools, colleges, and universities
- Not-for-profit organizations
- Hospitality sector buildings
Eligible expenses
- Purchase and installation of heat pumps
- Acquisition and installation of high-efficiency boilers, chillers, and HVAC systems
- Building envelope improvements
- Building automation systems and controls
- Lighting upgrades
- Procurement and installation of renewable energy systems
- Energy and battery storage systems
- Fuel switching costs
- Other retrofit measures or technologies contributing to energy efficiency and decarbonization
Eligible geographic areas
- Buildings located in Toronto
Selection criteria
- Demonstrated energy and greenhouse gas (GHG) savings, including estimated energy and utility cost reductions.
- Comprehensive building decarbonization plan showing at least 60% GHG emissions reduction by 2040.
- Feasibility study and detailed project plan prepared by a qualified third party.
- Strength of the business case as developed by City staff based on provided documentation.
- Submission of all required documentation, including financial statements and project summary.
How to apply
1
Enroll in support services
- Visit the City’s Better Buildings Navigation Resource Hub
- Complete the online application form for navigation and support
- Wait for City staff to contact you with next steps
2
Submit detailed application
- Complete the detailed application upon invitation
- Provide two years of audited financial statements
- Submit a detailed project summary and management plan
- Provide a feasibility study by a qualified third party
- Include a building decarbonization plan
3
Undergo technical and financial review
- City staff review application documents
- Evaluation of project energy and carbon savings
- Business case is developed to determine funding eligibility
4
Sign the Funding Agreement
- Receive the Funding Agreement from the City
- Review terms and conditions of the agreement
- Sign the Funding Agreement alongside the City of Toronto
- Secure the applicable interest rate for up to 60 days
5
Receive funding and implement project
- Funds are disbursed to the building owner
- Payment schedule follows the terms of the Funding Agreement
- Proceed with project implementation
Processing and Agreement
- City staff review the application for technical and financial eligibility.
- A business case is developed to determine funding eligibility.
- If approved, a Funding Agreement is issued and must be signed by both parties.
- Funds are then disbursed to the building owner as set out in the agreement.
Additional information
- Funds are advanced at the start of the project, allowing immediate initiation of retrofit activities.
- Unsecured loans may be available for eligible applicants.
- Applicants may receive support to access additional utility incentives and federal grant programs.
- Up to one year of interest-free and payment-free period is available at the start of the loan.
Contacts
Frequently Asked Questions about the Energy Retrofit Loans (ERL) Program
What is the Energy Retrofit Loans (ERL)?
The Energy Retrofit Loans (ERL) program provides up to 100% financing of project costs with fixed, long-term, low-interest loans to support low-carbon, energy-efficient building retrofits in Toronto. Eligible activities include upgrades such as heat pumps, HVAC systems, building envelope improvements, lighting, renewable energy systems, and other decarbonization measures.
How much funding can be received?
Energy Retrofit Loans (ERL) Funds up to 100% of admissible expenses.
Who is eligible for the Energy Retrofit Loans (ERL) program?
To be eligible for the Energy Retrofit Loans (ERL) program, you must:
Must own a building located in Toronto
Includes commercial, industrial, multi-family residential, condominium (common areas), social housing, healthcare, educational, not-for-profit, and hospitality sectors
Authorized third-parties may apply on behalf of building owners
What expenses are eligible under Energy Retrofit Loans (ERL)?
Upgrading buildings with low-carbon, energy-efficient retrofits.
Installation of renewable energy systems such as solar panels or geothermal systems.
Implementing advanced building automation and control technologies.
Replacing existing systems with high-efficiency heating, cooling, and ventilation solutions.
Comprehensive building envelope improvements to enhance energy conservation.
Who can I contact for more information about the Energy Retrofit Loans (ERL)?
You can contact City of Toronto by email at bbp@toronto.ca.
Where is the Energy Retrofit Loans (ERL) available?
The Energy Retrofit Loans (ERL) program is available the province of Ontario.
Is the Energy Retrofit Loans (ERL) a grant, loan, or tax credit?
Energy Retrofit Loans (ERL) is a Loans and Capital investments