Toronto Energy Retrofit Loans (ERL): 100% Financing, 30-Year Terms

Toronto Energy Retrofit Loans (ERL)

The City of Toronto's Energy Retrofit Loans finance up to 100% of the cost of energy and low-carbon retrofits at a rate equal to the City's cost of borrowing, with terms up to 30 years. Applicants need an ASHRAE (the widely accepted industry standard) Level 2 or equivalent description of the building, a feasibility study and a decarbonization plan.

Some of the cheapest long-term money available to Toronto building owners, if the application is built properly.

Reviewed by Adam Polakow, Managing Director · Checked October 27, 2026

The terms

Up to 100% of cost

Financing for the full project, with limits set by a business case review.

City's borrowing rate

Fixed for the term; the quoted rate is held for 60 days once the agreement is issued.

Up to 30 years

For qualifying projects, with up to one year interest-free and payment-free.

Funds up front

Advanced at project start; unsecured loans may be available.

Eligible buildings and measures

Buildings: all buildings in Toronto, including commercial, retail, industrial, multi-family residential, condominium common areas, social housing, hospitals, long-term care, schools, colleges, universities, not-for-profits and hospitality.

Measures: heat pumps; high-efficiency boilers, chillers and HVAC (heating, ventilation and air conditioning); building envelope; building automation and controls; lighting; renewable energy; energy and battery storage; fuel switching; and other retrofit measures.

What the application needs

Requirement	What it means	How we help
Project summary	Existing facility described at ASHRAE Level 2 or equivalent, budget and project plan	Level 2 audit
Feasibility study	By a qualified third party such as a P.Eng or Certified Energy Manager	Prepared by a Certified Energy Manager
Measure details	Equipment, specification sheets, drawings, energy, cost and emissions savings	Compiled from the audit
Decarbonization plan	At least 60% greenhouse gas (GHG) reduction by 2040 from a 12-month baseline, with fuel switching and envelope measures, no offsets	Built from the audit and, where needed, a Level 3 analysis
Financials	Two years of audited financial statements	Provided by the owner

The process

Enrol through the City's Better Buildings navigation hub.
Detailed application with the documents above. Authorized third parties can apply on the owner's behalf.
Technical and financial review by City staff, who build the business case.
Funding agreement signed by the owner and the City.
Disbursement to the building owner.

Stack the loan with Enbridge Gas and Save on Energy incentives to cut the amount you borrow.

Sources: City of Toronto: Energy Retrofit Loans. Program details change; we confirm current rules before you commit.

Common questions

Which buildings qualify for Energy Retrofit Loans?

All buildings in Toronto, including commercial, retail, industrial, multi-family residential, condominium common areas, social housing, hospitals, long-term care, schools and not-for-profits.

What documents does the City require?

Two years of audited financial statements, a project summary with an ASHRAE Level 2 or equivalent description of the facility, a feasibility study by a qualified third party such as a P.Eng or Certified Energy Manager, measure details, and a decarbonization plan.

What does the decarbonization plan need to show?

At least a 60% reduction in greenhouse gas emissions by 2040 against a baseline of 12 months of recent energy data, including fuel switching and envelope measures, without carbon offsets.

What interest rate applies?

The City's cost of borrowing, which changes daily. The rate in the funding agreement is held for 60 days.