Energy poverty means a household spends such a large share of its income on home energy that it has to cut back on heat, cooling or other essentials. In Canada it is linked to low incomes, older and leaky housing, expensive heating fuels and cold winters. Income-qualified programs exist in every region to help, ranging from emergency bill assistance to free insulation and heat pumps, and many eligible households, including renters, never apply.
Key takeaways
- Energy poverty is commonly measured as spending a high share of after-tax income on home energy; a threshold of about 6% is often used in Canadian research.
- Renters, seniors, rural households, people heating with oil or propane, and residents of older homes are especially affected.
- Help comes in three forms: emergency assistance, ongoing bill discounts, and free or heavily subsidized efficiency upgrades.
- The federal Canada Greener Homes Affordability Program funds no-cost retrofits for low- to median-income homeowners and tenants through provincial and utility partners.
- Eligibility thresholds are often higher than people assume, so it is worth checking even if you do not think of yourself as low-income.
What energy poverty looks like
Energy poverty is not only about income. It is the combination of:
- Low or fixed income, such as pensions or social assistance.
- High energy needs, from cold climates, poorly insulated homes, or large older houses.
- High energy prices, especially for heating oil, propane and electric resistance heat in some regions.
The effects are real: keeping the thermostat too low, closing off rooms, falling behind on bills, or choosing between energy and other necessities. Researchers often describe energy poverty as households spending more than about 6% of after-tax income on home energy, roughly double the national median share, though definitions vary.
Who is most affected
- Renters, who often pay utilities but cannot upgrade the building.
- Seniors living on fixed incomes in older homes.
- Rural and remote households, which are more likely to rely on oil, propane or wood and face higher delivery costs.
- Northern and Indigenous communities, where diesel-generated power and fuel deliveries can make energy very expensive. Community-led renewable projects are changing this in some places; see our pages on solar and wind.
- Households in Atlantic Canada and parts of the Prairies with high heating loads and, in some areas, heavy oil use.
Types of help available
| Type of help | What it does | Typical examples |
|---|---|---|
| Emergency assistance | One-time help to avoid disconnection or pay arrears | Utility hardship funds, provincial emergency programs |
| Ongoing bill support | Monthly credits or discounted rates | Provincial or utility low-income rate programs |
| No-cost upgrades | Free insulation, air sealing, appliances, heat pumps | Federal-provincial affordability programs, utility low-income programs |
| Enhanced rebates | Larger rebates for income-qualified households | Higher-tier heat pump and retrofit rebates |
Ontario, for instance, has long offered both the Ontario Electricity Support Program (a monthly bill credit for eligible low-income customers) and the Energy Affordability Program (free efficiency upgrades). Other provinces and utilities run their own versions.
The Canada Greener Homes Affordability Program
The Canada Greener Homes Affordability Program (CGHAP) is the federal government's main initiative focused on lower-income households. Instead of reimbursing homeowners after they pay, it funds no-cost retrofits such as heat pumps, insulation and air sealing, delivered with provinces, utilities and program agencies. Unlike the earlier Greener Homes Grant, it is open to tenants as well as homeowners.
In June 2026 the federal government announced rollouts in Quebec, British Columbia, Nova Scotia and Prince Edward Island, delivered with partners including Hydro-Québec, BC Hydro, FortisBC and Nova Scotia's EfficiencyOne, following an earlier launch in Manitoba. Each partner sets its own intake process and income thresholds, and more jurisdictions may join. Check our rebate finder or your province guide for how it works where you live.
The federal government has also announced a National Heat Pump Rebate, expected to open in early 2027, which it says will offer a larger amount to low- to median-income households. Eligibility details are still being published, so confirm before relying on it.
How to find and apply for programs
- Search by address. Our rebate finder lists programs available where you live, including income-qualified ones.
- Check your utility's website for low-income, affordability or assistance programs, for both electricity and gas.
- Gather documents. Most programs ask for proof of income (often your most recent Notice of Assessment) and a recent utility bill.
- Renters: many programs need landlord permission for upgrades. Programs can often contact the landlord on your behalf.
- Ask community agencies. Local social service agencies, seniors' organizations and housing groups often help people apply.
- Watch out for scams. Legitimate programs do not cold-call demanding payment for "free" upgrades. Verify through official websites.
Why upgrades beat bill credits long-term
Bill credits and emergency help are essential in a crisis, but they do not fix the underlying problem. Insulation, air sealing and efficient heating reduce energy needs permanently, improve comfort, and protect households from future price spikes. That is why income-qualified retrofit programs matter so much, and why they often prioritize homes heated with costly oil, propane or electric baseboards. Our home energy page explains how these upgrades fit together, and our post on stacking rebates covers how to combine programs.
Frequently asked questions
Do I have to own my home to get help?
No. Bill assistance programs are generally open to renters who pay their own utilities, and some retrofit programs, including the Canada Greener Homes Affordability Program, are open to tenants with landlord co-operation.
What counts as low income for these programs?
It varies. Thresholds usually depend on household size and sometimes region, and some programs extend to median-income households. Check each program's current income table.
Will getting a free heat pump raise my electricity bill?
Your electricity use will rise, but if you are replacing oil, propane or electric baseboards, total energy costs usually fall. Programs typically assess your home to make sure the upgrade will help.
The bottom line
Energy poverty affects households across Canada, but help exists at every level, from emergency bill relief to fully funded upgrades that cut costs for good. If energy bills are a strain, check what you qualify for; eligibility is often broader than people expect, and the most valuable programs pay for the upgrades that make your home cheaper to heat for years.
Sundamentals is an independent, non-profit education platform. Program details and prices change often — check current programs for your address in our rebate finder.