Ottawa has launched the first phase of its plan to offer interest-free loans to Canadians planning upgrades that will have a significant impact in reducing their home's environmental footprint.

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

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

The second phase will begin in early September.

It will expand the eligibility to homeowners who have already received a grant or requested a post-retrofit EnerGuide evaluation, but still have remaining eligible retrofits they are interested in doing, that have not yet started.

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