Canada offers heat pump rebates of up to CAD 10,000

Canada's government has announced a new national rebate for homeowners installing a heat pump, a heating and cooling system that moves heat rather than burning fuel to make it. Households with below-median income can get up to CAD 10,000 toward the purchase, while other eligible households qualify for CAD 2,000. The rebate can be combined with existing provincial programs, and the government says it will cover up to 820,000 households as part of a CAD 2 billion plan to fund 1 million home retrofits. Applications go through an online portal with approval promised within 24 hours, and no energy audit is required before or after installation.

The push targets the more than 7 million Canadian households still heating with oil, propane, diesel, electric baseboards, or old furnaces. The government says heat pumps can save households using oil or electric baseboards about CAD 1,400 a year. It also notes that about 1 million Canadian homes replace their heating system each year, often because the old one has failed unexpectedly, which is part of the reasoning for making the rebate quick and audit-free.

Separately, the plan includes financing to retrofit up to 280,000 apartment units over the next eight years through housing and infrastructure agencies. The announcement does not add any new federal support for rooftop solar or home batteries. Canada's main solar grant program closed to new applicants in 2024, though some provinces, including Quebec, still offer their own solar incentives.