Ontario’s Green Standards: What Landlords Need to Know About Energy-Efficient Retrofits

If you own rental properties in Ontario, you have probably noticed that utility costs are harder to predict and that the government is paying closer attention to energy use in buildings.

For landlords, energy-efficient retrofits are not only about reducing monthly expenses. They can also improve tenant comfort, reduce maintenance issues, and make properties more attractive to buyers and lenders.

This guide explains what Ontario landlords need to know about green standards in 2025, the incentives currently available, and how these upgrades can strengthen property value and rental performance.

What Green Standards Mean for Ontario Rental Properties

Current Building Code Requirements

Ontario’s Building Code update, effective January 1, 2025, did not change the core energy efficiency requirements for existing homes. Landlords are not required to meet new thresholds for typical renovations, but the province is laying the groundwork for stricter standards in the near future.

City-Level Requirements

In Toronto, the city is already moving faster. Larger residential buildings must begin reporting emissions and planning for performance improvements under the city’s Net Zero Strategy. While single-family rentals and small plexes are not the primary focus, mid-rise and high-rise rentals are.

Key takeaway: At the provincial level, the rules for existing homes have not changed yet. In major cities, especially Toronto, landlords with larger assets should prepare for more reporting requirements and emissions targets.

What Happened to Federal Grants?

The End of the Canada Greener Homes Grant

The popular Canada Greener Homes Grant is no longer accepting new applicants. Existing participants can still complete their projects and submit claims until the end of 2025.

The Canada Greener Homes Loan

The interest-free loan portion of the program is still active. Landlords can borrow up to $40,000 with a 10-year repayment term. In 2025, the government added another $600 million to keep the program running. For landlords who want to complete upgrades without large upfront costs, this loan can be a valuable tool.

Ontario’s Home Renovation Savings Program

In January 2025, Ontario launched the Home Renovation Savings Program (HRS), which is now the main source of rebates for landlords and homeowners. It combines support from Save on Energy and Enbridge Gas, offering incentives for a wide range of upgrades including insulation, heat pumps, smart thermostats, and solar installations.

Two Program Tracks

1. With Assessment
2. This path starts with an EnerGuide home energy assessment. Landlords who complete at least two upgrades after the assessment receive higher bundled rebates. This is the best choice if you are planning multiple improvements during a vacancy or renovation period.
3. Without Assessment
4. Some upgrades, such as installing a smart thermostat or heat pump, qualify for direct rebates without requiring a full audit. This is ideal for quick upgrades that do not involve major renovations.

Why It Matters for Landlords

The Home Renovation Savings Program provides flexibility. You can choose a comprehensive path if you are planning a full renovation or select single-measure rebates if you want to make targeted improvements. Either way, the program lowers upfront costs and improves long-term savings.

Incentives for Larger Multi-Residential Properties

Save on Energy Retrofit Program

The Save on Energy Retrofit Program provides incentives for landlords who own mid-rise, high-rise, or mixed-use rental buildings. Incentives cover lighting, HVAC, controls, and other energy-saving measures. In some cases, landlords can recover up to half the cost of a project.

Enbridge Gas DSM Program

Enbridge Gas continues to offer incentives for natural gas savings in commercial and multi-residential buildings. Projects such as boiler upgrades, building automation systems, and envelope improvements qualify for custom incentives.

Stacking Incentives

If your building uses both electricity and gas, you can combine incentives from both Save on Energy and Enbridge Gas. Coordinating projects under both programs increases total rebate amounts and improves project returns.

Financing Options for Energy-Efficient Retrofits

Toronto’s Home Energy Loan Program (HELP)

Landlords in Toronto can access low-interest loans of up to $125,000 with repayment terms of up to 20 years. What makes this program unique is that the loan is attached to the property rather than the owner. If you sell the property, the loan transfers to the new buyer.

CMHC’s MLI Select for 5+ Units

For landlords who own multi-residential buildings with five or more units, the CMHC MLI Select program rewards energy efficiency with better financing terms. Properties that meet higher energy performance standards can qualify for higher loan amounts, longer amortizations, and reduced mortgage insurance premiums.

Do Retrofits Pay Off for Landlords?

Lower Operating Costs

Upgrades such as insulation and high-efficiency HVAC systems cut gas and electricity bills while improving tenant comfort. One study showed that natural gas consumption in retrofitted buildings dropped by 20 percent over a ten-year period.

Improved Tenant Retention

Tenants value comfort and reliability. Units with consistent heating and cooling, better air quality, and quiet, efficient systems are easier to rent and retain. Energy-efficient rentals stand out in a competitive market.

Higher Property Value and Better Financing

Energy-efficient properties can sell for more and attract better financing. Programs such as CMHC MLI Select directly reward landlords with reduced costs of borrowing. This means efficiency is not just a cost-saving measure but also an asset-building strategy.

A Practical Roadmap for Landlords

Step 1: Review Your Properties

Pull 12 months of utility bills for each property. Identify the buildings with the highest energy use and target them first.

Step 2: Choose the Right Program

• For single-family homes, duplexes, or triplexes, use the Home Renovation Savings Program.
• For larger rental properties, apply to Save on Energy and Enbridge Gas DSM.
• For properties in Toronto, consider pairing rebates with the HELP loan program.

Step 3: Book an Energy Assessment

If you are pursuing the “with assessment” path under HRS, book an EnerGuide home energy assessment. This step unlocks higher rebate levels and provides a clear priority list for upgrades.

Step 4: Sequence Your Upgrades

Complete envelope upgrades (insulation and air sealing) before replacing HVAC systems. This approach reduces the size and cost of new equipment and ensures better long-term performance.

Step 5: Apply Early and Keep Records

Programs have strict deadlines and documentation requirements. Submit applications before starting work, keep all invoices, and take photos where required.

Final Thoughts for Ontario Landlords

Energy-efficient retrofits are no longer just about environmental responsibility. For landlords in Ontario, they represent a clear path to lower expenses, better financing, and stronger rental performance.

With the launch of the Home Renovation Savings Program, updates to Save on Energy and Enbridge Gas incentives, and financing tools such as Toronto HELP and CMHC MLI Select, 2025 is the right time to plan upgrades.

Work With Royal York Property Management

At Royal York Property Management, we understand the challenges Ontario landlords face when balancing tenant needs, operating costs, and long-term asset growth. We help landlords manage their properties more efficiently, plan capital improvements, and keep rentals competitive in a changing market.

Contact Royal York Property Management today to schedule a consultation and find out how we can help you plan smarter upgrades for your rental portfolio.