End of Canada’s Greener Homes Program Could Trigger Thousands of Layoffs
With the imminent closure of the federal government’s popular Canada Greener Homes grant program, the energy audit industry faces an uncertain future, with businesses nationwide warning of impending mass layoffs.
The program, which offers up to $5,000 for energy efficiency upgrades such as insulation, windows, and heat pumps, is slated to conclude soon, with new applications expected to cease by the end of March. However, an official timeline remains undisclosed.
In the interim, companies conducting mandatory home energy audits are experiencing a temporary surge in demand as homeowners rush to secure grant funding before its expiration.
This surge has prompted Stephen Farrell, CEO of VerdaTech Energy Management, to cancel all staff vacations. Currently, the company conducts approximately 600 assessments monthly in Alberta and British Columbia, but Farrell anticipates a drastic reduction to only one or two assessments per month once the federal program concludes. VerdaTech Energy Management also operates in Ontario.
Farrell advises customers to enroll in the program and undergo the initial assessment promptly. However, providing guidance to clients or his own staff proves challenging, as Farrell noted the absence of a clear timeline from Natural Resources Canada (NRCan), the program’s administering body.
Further complicating matters is the temporary suspension of new applications in Ontario starting January 19, aimed at “reconciling all current applicant files.”
Adding to the confusion is a temporary halt to new applications in Ontario effective Jan. 19
Should the Canada Greener Homes grant conclude in the coming months, industry officials caution about a potential mass departure of assessors. ”
There’s literally thousands of people whose jobs are on the line,” said Rachael Murphy, co-owner of Energy Werx Alberta.
According to Murphy, becoming an energy assessor involves undergoing three to six months of training and exams, coupled with an investment of approximately $10,000 in equipment. She emphasized that the sudden termination of the program disrupts the stability that many professionals sought when entering the field.
“There’s no way we’re going to have the amount of business for the staff that we have now if this program ends, so it’s incredibly concerning,” Murphy added.
NRCan refused an interview request. However, a department spokesperson stated in a released statement that the program will continue accepting new applications until all currently allocated funds are disbursed. Additionally, Canadians who have initiated an application will maintain their eligibility for assistance.
Furthermore, the spokesperson noted that numerous applications already logged in the system will be processed and granted over the next two years or beyond.
The risk of job losses extends beyond energy assessors to encompass other industries involved in providing energy upgrades, including window installers, HVAC companies, and solar panel providers.
Zeno Renewables, based in Alberta, has expanded its staff from around 20 to approximately 200 employees over the past four years. However, with the conclusion of the federal grant program, the company anticipates a potential sales decline of up to 40 percent compared to 2023.
“The last thing we want to do is lay people off, but that’s an inevitable conversation,” said Gursh Bal, the solar energy company’s co-CEO. “2024 is going to be a rough year.”
He, too, urges the federal government to offer a definitive response regarding the future of the grant funding program. Clarity is essential to provide a level of certainty regarding what lies ahead, rather than relying on speculations and hearsay.
