Canadian homeowners could receive up to $10,000 toward a heat pump under a new $2 billion federal rebate program launching in 2027.
The National Heat Pump Rebate program — which requires no energy audit and promises approval within 24 hours — is particularly catered for Canadians facing emergency situations when a heating system fails and needs immediate replacement.
Under the plan, which will roll out in 2027, low-to-medium income households would receive $10,000, while other eligible homeowners would receive $2,000.
Some details remain scarce, however.
How the National Heat Pump Rebate program will work: what we know so far
According to the government, more than seven million homes still heat with oil, propane, diesel, electric baseboards or outdated furnaces. It says heat pumps are more efficient, cleaner and safer than oil and electric furnaces — saving an average of $1,400 a year for households currently heating with oil or electric baseboards.
The National Heat Pump Rebate program will be available through an online portal, with no energy audits before or after installation. Approvals will be available within 24 hours.
Low- to medium-income homeowners would be eligible for a $10,000 rebate, and other eligible residents would receive a $2,000 rebate.
The approved rebate would be deposited within five days, the government said.
The plan is to have 820,000 homes convert to a heat pump through the program.
Residents would have to purchase a heat pump from a pre-approved list provided by the federal government.
“Electrification is the backbone of the clean economy that we are building, and it is critical for us to be reaching net zero,” Minister of the Environment, Climate Change and Nature Julie Aviva Dabrusin said during a news conference today.
Federal government unveils $2B heat pump rebate program CTV News
“Now, those families will have a better option, and help to pay for it,” Prime Minister Mark Carney said.
The funding is part of an announcement Carney made in May, when he said he was creating a National Electricity Strategy.
“As part of our comprehensive focus on affordability, we are also expanding support for energy-saving retrofits for up to one million households through financing, grants, and complementary measures,” Carney said in the press release. “This includes making it easier for Canadians to transition from expensive propane, oil, and electric baseboard heating to more affordable electric heat pumps.”
The secondary part of the plan is to help 280,000 apartment building owners retrofit their units over the next eight years, with loans from the Canada Mortgage and Housing Corporation (CMHC) and the Canada Infrastructure Bank.
Can you stack the federal rebate with Ontario’s home energy grants?
Rebates can be combined with existing provincial programs.
In Ontario, there is a Home Renovation Savings Program, which can provide grants up to $12,000 for a ground source heat pump.
What the government hasn’t told us yet about the heat pump rebate
We don’t know the exact income level that will qualify to receive a $10,000 rebate, or who would be eligible for the $2,000 rebate category.
We don’t know the brand names of the approved heat pumps eligible for the program, or the approximate retail cost of the ones being offered for the retrofit.
The official website to apply with the National Heat Pump Rebate has not been announced.
We don’t know if the rebate will only be offered to homeowners in an emergency situation, or if all residents can apply to get a planned retrofit.
