Ottawa announces national heat-pump rebates of up to $10,000
A technician works on a heat-pump installation in Sicamous, B.C., in April 2021. File photo.
Photo credit: Vernon Air Conditioning, Plumbing & Electrical Services
OTTAWA — The federal government has announced a new national heat-pump rebate program offering up to $10,000 to eligible lower-income households and $2,000 to other eligible homeowners to help cover the cost of switching to electric heating.
The program is part of a $2-billion federal investment announced October 8 to support energy-efficiency improvements in Canadian homes over eight years.
The National Heat Pump Rebate is intended to help as many as 820,000 homeowners install electric cold-climate heat pumps. The rebates may be combined with existing provincial programs, subject to eligibility requirements.
Applications are expected to open in early 2027, but the federal government says qualifying installations completed on or after November 1, 2026, may be eligible for reimbursement once the program launches.
Detailed eligibility requirements, including income thresholds and eligible equipment, are expected to be released November 1.
Under the announced program, homeowners will not need to complete an energy audit before or after installing an eligible heat pump. The government also plans to provide an online application process with approval decisions within 24 hours.
Heat pumps transfer heat rather than generating it through combustion or electrical resistance. Depending on the equipment and installation, they can provide both heating and cooling.
The federal government estimates that households switching from oil, propane or electric resistance heating could save an average of more than $1,400 annually. Actual savings will depend on the existing heating system, energy prices and household consumption.
The rebate program forms part of a broader federal plan to improve energy efficiency in residential buildings, including financing and support for apartment-building retrofits.
Homeowners can register for updates about the rebate program through Environment and Climate Change Canada's website. Registration does not constitute an application for funding.
The federal government is renewing $30 million in funding for a national loan program that helps women start or expand businesses, with loans of up to $50,000 available through participating nonprofit organizations.