Unlocking the potential of PACE financing: A comprehensive report on Canadian legislation
COMMUNITY EFFICIENCY FINANCING
Discover an overview of PACE legislation in Canada
Download the reportThe Property Assessed Clean Energy (PACE) model is transforming how municipalities across Canada finance home energy upgrades, making it easier for homeowners to reduce emissions, improve energy efficiency, and lower energy costs. Yet, the success of these programs depends on enabling legislation that varies widely from province to province.
An overview of PACE Legislation in Canada provides a detailed analysis of the legislative landscape, highlighting where PACE frameworks already exist, where gaps remain, and how municipalities can leverage these frameworks to launch or scale financing programs.
Why PACE financing matters
PACE programs allow homeowners to access financing for energy upgrades—such as heat pumps, insulation, and solar panels—with no upfront costs. Repayments are tied to property taxes, making the loan transferable if the property is sold. This innovative model reduces financial barriers for homeowners and encourages long-term investments in energy efficiency. This report sheds light on the policy gaps and opportunities for expanding PACE frameworks nationwide.
What you’ll find in the report
- Provincial and territorial legislative overview: Learn which regions have adopted PACE-enabling legislation and where policy development is still needed.
- Policy insights: Gain a deeper understanding of the key features of existing PACE legislation in Canada—such as the eligibility of resiliency measures, available administration models, and variations in program design across jurisdictions.
- Opportunities for municipal leadership: Explore how municipalities can take advantage of existing frameworks to deliver energy retrofits and reduce emissions.
- Flexible financing models: Learn how PACE programs can be tailored to meet diverse local needs, enabling both residential retrofits and commercial energy upgrades to drive long-term energy efficiency improvements.
Real-world impact: PACE financing in action
While this report provides a policy-level overview, programs like Kingston’s Better Homes initiative, Saskatoon's Home Energy Loan Program and Saanich’s heat pump financing pilot highlight the real-world benefits of PACE financing. These examples demonstrate how accessible financing can cut emissions, reduce energy poverty, and create jobs—showcasing the potential of PACE programs across Canada. Other great examples include the Better Homes Ottawa Program, the Clean Energy Improvement Program in Alberta and the Switch Program in Maritimes.
Who should read this report?
This report is designed for:
- Municipal decision-makers exploring energy retrofit financing solutions
- Policymakers and provincial governments working to align climate goals with energy policies
- Financial institutions and investors interested in low-risk, high-impact financing models
- Non-profit organizations and energy advocates promoting sustainable, equitable financing options
Related Resources
See All
Sustainable affordable housing
Energy | Housing
Aspen Heights: Redefining affordable housing in Saskatoon
Sustainable affordable housing
Energy | Housing
Heartland Housing Foundation: Building a sustainable future in Fort Saskatchewan
Sustainable affordable housing
Energy | Housing
Building a better future: CABN’s net-zero affordable housing pilot
Sustainable affordable housing
Energy | Housing
Pine Tree Park: Transforming affordable housing with energy efficiency and solar power
Sustainable affordable housing
Energy | Housing
Rossland Yards: Transforming affordable housing in Rossland, BC
Sustainable affordable housing
Energy
Transforming communities with Sustainable Affordable Housing: Article series
In a series of six articles, we highlight impactful projects funded by GMF's Sustainable Affordable Housing (SAH) initiative, demonstrating how energy-efficient, community-centered housing can foster resilience and well-being.
Sustainable affordable housing
Energy | Housing
YWCA Banff: Building stability and community through affordable housing
Community efficiency financing
Land Use
Webinar Recording: Making sustainable land use decisions in your municipality
Watch our webinar to explore tools for sustainable land use decision-making. Learn to assess financial and climate impacts and apply practical strategies for your municipality.
Sustainable affordable housing
Energy | Housing
Regional Energy Coach list
Get in touch with a Regional Energy Coach in your region and start your energy efficiency journey
Municipal and community buildings
Energy
Webinar recording: Accelerate your community’s net-zero transformation with new GMF funding
Watch our webinar to discover how GMF’s new funding can help you upgrade infrastructure and reduce local GHG emissions.
Community efficiency financing
Energy
Webinar recording: The real impact of home-energy efficiency financing
Watch our webinar to discover how you can achieve your climate goals by implementing a home-energy efficiency financing program in your community
Sustainable affordable housing
Energy
Webinar recording: Transform your approach to energy efficiency with the Housing Providers’ Toolkit
Watch the discussion on how to take advantage of the Housing Providers’ Toolkit.
Sustainable affordable housing
Energy | Housing
Project cash flow calculator
Our energy project calculator is designed to aid housing providers in quantifying the associated costs of sustainable, affordable housing projects. Use the calculator to understand the viability of a potential project and make informed decisions.
Sustainable affordable housing
Energy | Housing
Funders list for sustainable affordable housing
Access additional funding sources from across Canada to support your next affordable housing project.
Sustainable affordable housing
Energy | Housing
Toolkit: Navigating energy efficient affordable housing projects
Discover a toolkit designed for affordable housing providers aiming to prioritize energy efficiency. This toolkit offers insights into the benefits of energy-efficient housing, addresses unique challenges, and provides practical tools to identify solutions.
Municipal and community buildings
Energy
Webinar recording: How to start reducing GHG emissions in community buildings
Watch the discussion on how to create a GHG reduction pathway for community buildings.
Municipal and community buildings
Energy | Housing
Webinar recording: How to get a project started, tips for small francophone communities
If you’re a small francophone municipality looking to develop sustainability projects and access funding, watch this webinar to learn how others overcame common challenges.
Community efficiency financing
Energy
Video: Durham Region, ON launches novel financing model
A video showcasing innovative and accessible financing options for home-energy upgrades.
Community efficiency financing
Energy
Community Efficiency Financing market guide
Guide to help Canadian municipalities assess potential home energy upgrade programs
Sustainable affordable housing
Energy | Housing
Webinar recording: Affordable housing providers’ impact on energy poverty
The webinar will feature a housing project helping moderate income households while achieving high environmental standards.
Sustainable affordable housing
Energy
Understanding energy efficiency: A guide for affordable housing providers
This guide is for affordable housing providers, such as municipalities or housing cooperatives, interested in improving energy efficiency in their buildings.
Municipal and community buildings
Energy
Resource library: Community Buildings Retrofit
Find practical case studies and guidance for planning your local community building retrofit.
Community efficiency financing
Energy
Webinar recording: Introduction to local home-energy financing programs
Learn the basics on delivering local financing programs for home-energy upgrades.
Community efficiency financing
Energy
Video: Saskatoon delivers Saskatchewan’s first local home-energy financing program
Learn how the City of Saskatoon designed its Home Energy Loan Program (HELP) to help residents retrofit their homes and reduce GHG emissions.
Community efficiency financing
Energy | Housing
Video: Nelson scales up local program to support home-energy upgrades
In this video, Carmen Proctor, Climate & Energy Manager at the City of Nelson, tells the story of the program’s success to date, shares key lessons learned from running the program, and highlights their next steps to scale up the program.
Sustainable affordable housing
Energy | Housing
Webinar recording: Asset management and energy conservation
Learn how the non-profit housing sector can integrate energy management into asset management to reduce costs and greenhouse gas emissions.
Community efficiency financing
Energy
Resources: Community Efficiency Financing
Read guidebooks and case studies to see how municipalities are designing home upgrade financing programs.
Community efficiency financing
Energy
Video: Kingston supports homeowners with financing program for energy upgrades
Hear from Julie Salter-Keane, Manager of Climate Leadership at the City of Kingston, as she discusses the City’s program implementation and their approach to designing a strong local program.
Sustainable affordable housing
Energy | Housing
Video: 5 keys for sustainable social housing success
Gordon Szaszi, Project Manager Housing Development, shares Niagara Regional Housing (NRH) experience creating the business case for a 67-unit affordable housing development for seniors.
Sustainable affordable housing
Energy | Housing
Video: 5 keys for sustainable social housing success
This video walks through the key sections of a successful business case: Needs Assessment, Organizational Readiness, Project Vision and Financials.
Community efficiency financing
Energy
Video: New municipal financing program removes barriers to energy-efficiency upgrades for homeowners
Marie-Pierre Paquette discusses how the municipalities of Plessisville, Varennes and Verchères banded together to launch a joint pilot project that would bring energy-efficient home renovations within reach for more homeowners.
Community efficiency financing
Energy
Video: Introduction to home energy upgrade programs
Watch this video to learn more about home energy upgrade programs and how they can help municipalities to tackle climate change, save money, and invest in the local economy.
Sustainable affordable housing
Energy | Housing
Resources: Sustainable Affordable Housing
Learn how to retrofit existing housing for energy-efficiency and plan new builds for higher performance.
Community efficiency financing
Energy
Video: New municipal financing program removes barriers to energy-efficiency upgrades for homeowners
Marie-Pierre Paquette discusses how the municipalities of Plessisville, Varennes and Verchères banded together to launch a joint pilot project that would bring energy-efficient home renovations within reach for more homeowners.
Energy | Housing
Webinar recording: Take your project from study to capital
Watch this webinar recording and discover how others have successfully converted studies into a capital project that provides social, economic and environmental benefits.
Energy
Webinar recording: The 5 keys to a green municipal project business case
Watch this webinar recording and discover the five critical focus areas you need to address to get your project started, from financing and partnerships to integrating a triple-bottom-line approach.
Sustainable affordable housing
Energy | Housing
Video: 1,500 Toronto residents benefit from retrofit initiative
Bryan Purcell, of The Atmospheric Fund, tells the story of how an initiative to perform energy efficiency retrofits of 7 community housing buildings in Toronto achieved so much more.
Sustainable affordable housing
Energy | Housing
Webinar recording: Making affordable housing sustainable
Watch this webinar recording to learn about the various forms of grant, loan and capacity building support we offer to help you retrofit existing units or build new ones.
Community efficiency financing
Energy
Webinar recording: How to create an efficiency financing program for your community
An overview of the funding options, eligibility and application details of GMF’s Community Efficiency Financing program.
Community efficiency financing
Energy
Factsheets: Community Efficiency Financing
Learn how to design, deliver and market a home upgrade financing program for your community.
Sustainable affordable housing
Energy | Housing
Factsheets: Sustainable Affordable Housing
Learn how to retrofit existing housing for energy-efficiency and plan new builds for higher performance.
Sustainable affordable housing
Energy | Housing
Webinar recording: Apply for GMF’s Sustainable Affordable Housing funding
Watch this joint webinar hosted by the Canadian Housing and Renewal Association (CHRA to learn how to apply for FCM’s newest funding initiative – Sustainable Affordable Housing.
Energy | Housing
Webinar recordings: Best practices in municipal sustainability
How are cities and communities of all sizes tackling their environmental challenges? Find out from our five-part webinar series on innovations and opportunities in municipal energy, waste, water, transportation and land use initiatives.
Energy | Housing
Webinar recording: How to prepare a GMF capital project application
Need advice for preparing your GMF capital project funding application? Watch our webinar recording to hear tips from our staff and find out what reviewers are looking for.
Related Projects
See All
Community efficiency financing
Energy | Housing
Case study: Bringing energy efficiency to Saskatoon homes
Community efficiency financing
Energy | Housing