Energy Retrofit Loans (ERL)

• The applicant must be the owner of a building located in Toronto, or an authorized third-party applying on behalf of the building owner.
• Eligible buildings include commercial, retail, industrial, multi-family residential, condominium (common areas only), social housing, hospitals, long-term care, schools, colleges, universities, not-for-profits, and hospitality sectors.
• The project must involve eligible retrofit measures such as heat pumps, high-efficiency boilers, HVAC systems, building envelope upgrades, automation systems, lighting, renewable energy systems, energy storage, fuel switching, or other retrofit technologies.
• A feasibility study developed by a qualified third party is required, including a comprehensive long-term building decarbonization plan targeting at least 60% GHG emissions reduction by 2040.
• The applicant must submit at least two years of audited financial statements and relevant project documentation as specified in the application process.

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

• 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.

• 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.