It’s no secret that it’s expensive to heat your home, but a newly-introduced rebate could help cut back on costs as Canadian homes are switched to more efficient electric heat pumps.
The rebate follows Prime Minister Mark Carney’s announcement of a $2 billion investment to deliver one million home retrofits across Canada.
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National Heat Pump Rebate
On October 8, the federal government highlighted the struggle Canadian households undergo during the cold winter months to warm their homes. As living costs continue to rise throughout the country, many houses still utilize inefficient ways to heat their homes. And while households may want to replace these methods, that comes at an additional cost that not everyone can afford.
In a press release, the federal government explained,
Heating is one of the biggest expenses for Canadians during the winter months, and too often that money goes to the most expensive and least efficient ways to heat a home. Over seven million households in Canada still heat their homes with oil, propane, diesel, electric baseboards, or outdated furnaces. Our government is laser-focused on giving Canadians options to lower their energy costs. That’s why, as part of our National Electricity Strategy, we committed to help one million Canadian households make retrofits.
Lowering Costs
This strategy includes a new National Heat Pump Rebate, which plans to help up to 820,000 households switch over to electric heat pumps. For eligible homes, this means receiving up to $10,000 in rebates for the purchase of a new electric heat pump.
“Eligible below-median-income households will receive a rebate of up to $10,000 for the purchase of an electric heat pump. Other eligible households will receive $2,000. Both rebates can be combined with existing provincial programs to bring the cost down even further.”
Notably, the new program will confirm a household’s approval within 24 hours, with heat pumps being installed “as quickly as a furnace.”
According to the federal government, heat pumps are cleaner and safer than oil and electric furnaces, and they can save households an average of $1,400 a year.
The National Heat Pump Rebate will be available through an online portal, and is expected to launch sometime in early 2027.
