Ottawa is extending a key retrofit financing program and adding municipal funding, moves that will keep window and building envelope upgrades in demand for glazing contractors across Canada. The federal government has pledged $100 million to extend the Deep Retrofit Accelerator Initiative (DRAI) for three years, to 2029-30, according to a REMI Network report. Separately, the Federation of Canadian Municipalities (FCM) and the federal government announced $66.3 million for 162 energy efficiency housing projects, ReNew Canada reported.
Deep Retrofit Accelerator gets three more years
The DRAI extension adds $100 million and runs through 2029-30, the REMI Network article states. The initial program, which was set to expire March 31, 2027, allocated $185.5 million to build capacity for large-scale retrofits needed to meet Canada’s greenhouse gas reduction targets. The funding has supported skills development, decarbonization planning, innovative financing, and building performance optimization ahead of capital retrofits.
Programs under the DRAI include the Building Owners and Managers Association (BOMA) of Canada’s Enspire, which focuses on Class B and C buildings, and the Purpose Retrofit Accelerator, offered in partnership with the Canada Green Building Council. These initiatives help building owners plan and implement deep retrofits, which often involve replacing older windows with high-performance glazing.
The renewal was announced alongside a $2 billion fund for electric heat pump rebates in single-family homes, part of an effort to spur one million home energy retrofits outlined in the National Electricity Strategy in May 2026. The government also indicated that the Canada Infrastructure Bank’s building retrofits initiative will allocate funds to 30,000 additional multifamily units. And preferred mortgage insurance rates through Canada Mortgage and Housing Corporation’s MLI Select program are projected to support up to 250,000 retrofits in rental housing over eight years.
“CMHC receives insurance premiums and fees for the coverage, typically paid by borrowers, such that the product is delivered at no cost to taxpayers,” the government’s announcement states, as quoted by REMI Network.
FCM adds $66.3 million for 162 projects
The Federation of Canadian Municipalities and the Government of Canada announced $66.3 million through the Green Municipal Fund’s Community Efficiency Financing (CEF) and Sustainable Affordable Housing (SAH) initiatives. The funding includes $34.6 million for 21 CEF projects and $31.6 million for 141 SAH projects across the country, according to ReNew Canada.
CEF programs help homeowners finance energy efficiency upgrades, with average energy cost savings of 30 per cent after participation. Since 2020, CEF-funded programs have been established in 47 municipalities across eight provinces, with over 16,000 homeowners expected to access retrofits. The financing programs are designed and administered by municipalities, utility providers, and third-party partners to remove financial barriers that have historically kept energy upgrades out of reach for many Canadian homeowners.
SAH, a six-year, $300-million program launched in 2020, has supported more than 3,700 units to date, reducing emissions, lowering operating costs, and improving housing quality. The initiative supports not-for-profits, co-ops, and municipalities to retrofit existing housing and construct new, energy-efficient homes.
“Energy efficiency is an affordability solution” said Carole Saab, FCM CEO, in the ReNew Canada article.
“Through today’s $66.3 million investment” said Tim Tierney, FCM President.
Why glazing contractors should watch these programs
Deep retrofits and energy efficiency upgrades typically involve high-performance windows, doors, and building envelope improvements. The DRAI’s focus on operational performance and decarbonization planning often identifies fenestration replacement as a primary measure to reduce heat loss. The CEF program’s homeowner financing explicitly covers energy efficiency home upgrades, which commonly include window and door replacement. For glazing contractors, this means a steady flow of projects requiring measurement, supply, and installation of fenestration products. The programs’ emphasis on energy savings aligns with the performance criteria set out in Canadian standards.
The regional breakdown of FCM funding shows Ontario receiving the largest share, $36,235,143, followed by the Prairies at $15,201,640 and British Columbia at $8,501,971. Quebec received $4,213,970, Atlantic Canada $1,887,637, and the territories $238,400. This distribution signals where glazing contractors may see increased retrofit activity.
In Canada, window performance is governed by standards such as CSA A440 and referenced in the National Building Code. ENERGY STAR Canada provides separate performance tiers for windows sold in the Canadian market. While these programs do not set specific window requirements, they create a pipeline of retrofit projects that will require compliant fenestration products.
CMHC’s MLI Select adds financing incentives
Canada Mortgage and Housing Corporation’s MLI Select program uses a point system to offer reduced premiums and longer amortization periods based on commitments to affordability, energy efficiency, and accessibility. For existing properties, energy efficiency points are awarded for 15, 25, or 40 per cent reductions in energy use and greenhouse gases over current performance. New construction can earn points for outperforming the 2020 National Energy Code for Buildings or National Building Code by certain percentages. These incentives encourage deep energy retrofits, which can include upgraded windows and envelope sealing.
What comes next
Energy management specialists are waiting to learn whether the new DRAI funds will be targeted solely to multifamily housing or distributed more widely, according to REMI Network. The program’s extension to 2029-30 provides multi-year certainty for retrofit planning. Combined with the FCM’s $66.3 million and CMHC’s MLI Select incentives, the federal government is creating sustained demand for building envelope improvements.
Glazing manufacturers and installers should monitor project announcements from municipalities and housing providers participating in these programs. The emphasis on reducing energy costs and emissions aligns with longstanding Canadian priorities around building performance, and windows remain one of the most cost-effective upgrades for existing buildings. Contractors who align their product offerings with high-efficiency glazing specifications will be well positioned to capture this work.