Energy Retrofit Loan (ERL)

“City of Toronto”

The funder does not disclose this information

Maximum Eligible Amount

Repayable Contribution

Fund Type

Through the City’s Better Buildings Partnership, low-interest loans are available to help community-based organizations and not-for-profits undertake energy retrofits.

Energy Retrofit Loans

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Through the Energy Retrofit Loan (ERL) program, the City offers fixed, long-term, low-interest financing to enable building owners to invest in low-carbon, energy-efficient capital improvements.

Highlights include:

Financing for up to 100 per cent of project costs at a rate equal to the City’s cost of borrowing, with repayment terms up to 30 years for qualifying projects
Funds are advanced at project start
Unsecured loans may be available
Up to one-year interest free and payment free
Support to access utility incentives and federal grant programs

Note: Building owners seeking financing for retrofit projects through the ERL program are required to submit a feasibility study for their building. The study requirements are detailed below, and includes a comprehensive long-term decarbonization plan that goes beyond the specific retrofits for which they are requesting financing.

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Eligible Buildings

All buildings located in Toronto are eligible, including:

Commercial, retail and industrial
Multi-family residential
Condominium (common areas only, not individual units)
Social housing
Hospitals and long-term care
Schools, colleges and universities
Not-for-profit
Hospitality

Authorized third-parties are eligible to apply on behalf of the building owner. Funds will be dispersed to the building owner.

Eligible Measures/Technologies

Eligible measures/technologies include:

Heat pumps
High-efficiency boilers, chillers and HVAC systems
Building envelope
Building automation systems and controls
Lighting
Renewable energy systems
Energy/battery storage
Fuel switching
Other retrofit measures/technologies

To begin the process please enroll in the City’s Navigation and Support Services Program. Complete the Navigation & Support Services Application

to the best of your ability and email it to bbp@toronto.ca. City staff will contact you to inform you of next steps.

How to Apply

Step 1: Enroll in the City’s Navigation and Support Services Program

To begin the process please enroll in the City’s Navigation and Support Services Program. Complete the Navigation & Support Services Application

to the best of your ability and email it to bbp@toronto.ca. City staff will contact you to inform you of next steps.

Step 2: Detailed Application

Eligible applicants will be invited to complete a detailed application to verify the project energy and carbon savings and create a business case.

Minimum documentation requirements include:

Two years of audited financial statements
Detailed project summary:
- Description of existing facility (ASHRAE Level 2 or equivalent)
- Detailed project budget
- Project management plan
Feasibility study:
- Developed by a qualified third party, such as a Professional Engineer (P.Eng), Certified Energy Manager (CEM) or equivalent.
- Description of each proposed individual retrofit measure(s)
  - Equipment details (manufacturer and model)
  - Specification sheets (if available)
  - Drawings
  - Estimated energy savings
  - Estimated utility cost savings
  - Estimated greenhouse gas (GHG) emissions reduction
- Building decarbonization plan that demonstrates a minimum of 60 per cent GHG emissions reduction by 2040 using 12 months of recent continuous energy data as a baseline:
  - Outline retrofit measures, including associated GHG emission reductions and energy savings
  - Measures shall include fuel switching and envelope improvements
  - Include a timeline for implementation of retrofit measures
  - Carbon offsets cannot be applied to meet the GHG emission reduction target
Other documents, as required.

Step 3: Technical and Financial Review

City staff will review your application and develop a business case to determine funding eligibility.

Step 4: Funding Agreement

Once your detailed application is approved, the City will create a Funding Agreement that sets out the terms of the agreement between the building owner(s) and the City of Toronto. The Agreement must be signed by both parties.

The interest rate specified in the Agreement will be valid for a period of 60 days, after which the rate will be updated to reflect the City’s current cost of borrowing.

Sample agreements can be made available for relevant projects.

Step 5: Fund Disbursement

Funds will be disbursed to the building owner, as outlined in the Funding Agreement.

Get Started to Apply