Ottawa has launched the first phase of its plan to provide interest-free loans to Canadians planning renovations that will have a significant impact on reducing the environmental footprint of their homes.

The program will provide interest-free loans of up to $40,000 per household to help fund eligible renovations.

The first phase is open to eligible homeowners who apply or have an open application for the Canada Greener Homes Grant.

The second phase will start at the beginning of September.

It will extend eligibility to homeowners who have already received a grant or requested a post-retrofit EnerGuide evaluation, but still have qualifying renovations they are interested in that have not yet started.

The Canada Greener Homes Loan program is designed to help up to 175,000 eligible homeowners.