Home Energy Retrofit Financing Program

Switching from fossil fuel space heating to an electric heat pump.

Installing solar panels where the homeowner already has electric heating.

Installing a backup battery where solar panels are already in place.

Building envelope upgrades to reduce air leakage and improve energy efficiency, such as door and window replacements or adding insulation.

• The property must be within the municipal boundaries of the City of Nanaimo.
• The funding must be used for one or more of the above eligible improvements.
• The property tax status must be up-to-date.
• You must apply and sign a financing agreement before any work begins.
• You must complete a pre-upgrade EnerGuide evaluation. 
• Work must be completed by an approved contractor.
• You must join the free Home Energy Navigator program.
• Your total household income must be above the income limit for the CleanBC Better Homes Level 1 income threshold Energy Savings Program (ESP), unless you are already accepted in that program.
• If you qualify for rebates through ESP, City financing can only be used to cover eligible costs that are not covered by ESP funding.
• Households whose household income is above the 90^th percentile income threshold for the City of Nanaimo are not eligible. To see if your household income is above the 90^th percentile please check the chart below.

• Properties with an assessed value greater than $1.23 million are not eligible. 
  

# of adults in the household	Maximum income level
1	$185,505
2	$230,947
3	$283,919
4+	$344,712

 

Property Assessed Clean Energy (PACE) financing helps pay for home energy upgrades, so you do not have to cover the full cost upfront. Unlike a bank loan, PACE financing is linked to the property, not the homeowner. The financing is paid back over time through an extra charge on the property tax bill.

 The City’s Home Energy Retrofit Financing program is based on the PACE financing model.

The City of Nanaimo offers a 10-year, interest-free financing for eligible home energy upgrades.

For example, if you borrow $15,000, you will repay $1,500 each year through an added charge on your property tax bill for 10 years.

You can pay off your financed amount in full at any time.

• Pay by December 31 to remove the charge from next year’s property tax bill.
• You must pay the entire balance. Partial lump-sum payments are not accepted.
• Please allow 10 business days for processing.

When selling your home you have two options:

The loan stays with the property and is transferred to the new owner

Give the new owner a copy of the Financing Agreement as part of the sale of your home.

The financed amount for the year of the sale is shared between you and the new owner. Each person pays a portion based on how long they owned the property during that year. This is similar to how property taxes are divided when a property is sold.

Paying Off the Loan When You Sell Your Home

You can choose to pay off the remaining amount owed when you sell your home. Once the amount owed is paid in full, it will be removed from your property.

 To pay off your financed amount, send a written request to the City of Nanaimo. Please allow up to 10 business days for your request to be processed.

You can include your Home Energy Retrofit Financing amount in the Province of BC's Property Tax Deferment Program.

If you already defer your property taxes, you must tell the Province about the new financed amount.

For more information, visit the BC Property Tax Deferment Program website or call 1-888-355-2700.

Important: The Home Energy Retrofit Financing is added to your property's debt. This may affect the amount of equity you have in your home and could affect your eligibility for the Property Tax Deferment Program.

Before you apply, use the Province's online Equity Calculator to check whether you still qualify for property tax deferment.

To apply, complete an application online or visit the City of Nanaimo Service and Resource Centre (411 Dunsmuir Street).

You will also need to provide:

• The most recent Notice of Assessment for all adults living in the home.
• Proof of property ownership for the main applicant.

You do not need a signature for the initial application. If your application is approved, signatures will be required on the petition and financing agreement.

Quotes must be valid for at least 30 days and should remain valid until the financing agreement is signed.

We encourage contractors to keep quotes open longer when possible to give homeowners enough time to:

• Submit their quote and EnerGuide report for review.
• Receive financing approval.
• Sign their financing agreement.

A building envelope upgrade can include any improvement to the exterior walls, doors, or windows of the home that will improve the energy efficiency of that home.  Examples of building envelope upgrades include insulation, windows, doors, and draft proofing.

Dual-fuel heat pumps are not eligible for financing through this program. You may be eligible for financing if you switch from natural gas, oil, or propane heating to an all-electric heat pump.

If you own an eligible home in Nanaimo, you can apply for this program, even if you do not live in the home.

 To apply:

•  Make sure your home is eligible for the program.
• Complete and submit the application as the property owner.
• Sign the financing agreement if your application is approved.
• If you rent the home to tenants, let them know you are applying for the City of Nanaimo financing program.
• Tell your tenants what upgrades are planned and when the work is expected to take place.

 Note: Only the property owner can apply and sign the financing agreement.

Before you apply:

• Contact your mortgage lender to make sure participating in the program does not affect your mortgage terms.
• Review your mortgage agreement to ensure thee financing agreement is allowed.

When you sign the Financing Agreement with the City of Nanaimo, you will be required to declare that participating in the program does not violate the terms of your mortgage.

 Important: It is your responsibility to confirm that the financing agreement complies with your mortgage agreement.

A pre-retrofit and post-retrofit EnerGuide assessment are required to qualify for the Home Energy Retrofit Loan. 

EnerGuide Assessments are not required at the time of application, but a pre-retrofit assessment must be completed before any work starts and the financing agreement is signed.

 To help with the cost:

•  Rebates may be available to reduce the cost of the assessments.
• Additional financial assistance may be available for eligible applicants (funding is limited).
• The cost of the post-retrofit EnerGuide assessment can be included in your loan application.

 Note: Both assessments must be completed as a condition of loan approval.

An EnerGuide home evaluation helps you understand how your home uses energy and identifies upgrades that can improve comfort and reduce energy costs.

During the evaluation, a certified energy advisor will:

• Visit your home and assess its energy performance.
• Conduct a blower door test to measure air leaks.
• Discuss your renovation plans and energy-saving goals.
• Create an energy model of your home.

After the evaluation, you will receive a report with recommended upgrades and information about available rebates.

Tip: Tell your energy advisor about any planned upgrades, such as windows, insulation, or solar panels, so they can be included in the assessment.

If you completed a pre-upgrade EnerGuide home evaluation on or after April 1, 2024, you may be able to use it for the loan program.

 To qualify:

• The evaluation must have been completed on or after April 1, 2024.
• No energy retrofit work can have started since the evaluation was completed.
• You must submit a copy of your EnerGuide Renovation Upgrade Report to the program administrator.

If these requirements are met, you do not need to obtain a new pre-upgrade EnerGuide evaluation.

Use the  CleanBC Find an Energy Advisor Search Tool to find a registered energy advisor in your area.

The Home Energy Retrofit Financing Program follows these steps:

 September 14 to October 31, 2026

• Submit your application.

After the application period closes (early November)

• The City of Nanaimo and City Green Solutions will review applications and confirm eligibility.
• Applicants will be notified if they have been accepted into the program.

If your application is accepted (mid November to December 16th) 

• Sign a petition to Council to help establish the local service area required for the loan.
• Begin any pre-retrofit requirements, including:
• Booking a pre-retrofit EnerGuide assessment.
• Obtaining contractor quotes.

January/February

• The City will establish the bylaw needed to support the program.

 April to Sept, 2027

• Sign your financing agreement.
• Select your contractor.
• Begin your retrofit project.
• Important deadlines:  all financing agreements must be signed  and retrofits scheduled by September 31st

October/November

• Finish retrofit work
• All retrofits should be completed by the end of November

 The following tax year

• Start repaying the financed amount owed through your property taxes over a 10-year period.