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

Canadian Prime Minister Mark Carney has announced a CAD 2 billion investment to deliver 1 million home retrofits, including a new national heat pump rebate for up to 820,000 households.

Eligible households with below-median incomes will receive rebates of up to CAD 10,000 for the purchase of an electric heat pump, while other eligible households will receive CAD 2,000, according to the government. Both rebates can be combined with existing provincial programs.

The rebate will be available through an online portal, with approval within 24 hours and no energy audits required before or after installation. The government said about 1 million Canadian homes replace their heating systems each year, and more than 80% of the time because the old system has broken down without warning.

More than 7 million Canadian households still heat their homes with oil, propane, diesel, electric baseboards or outdated furnaces, according to the government. It said heat pumps save households heating with oil or electric baseboards an average of CAD 1,400 a year.

Apartment retrofits

The package also targets 280,000 apartment units over the next eight years. Canada Mortgage and Housing Corp. (CMHC) will help finance retrofits of up to 250,000 additional units through its multi-unit mortgage loan insurance product, and the Canada Infrastructure Bank (CIB) will support 30,000 units through its Building Retrofits Initiative. The government is also renewing its Deep Retrofit Accelerator Initiative.

“Affordable housing is also about affordable energy bills,” said Gregor Robertson, minister of housing and infrastructure and minister responsible for Pacific Economic Development Canada.

The government said the measures will cut emissions by more than 25 megatonnes. They build on its existing Oil to Heat Pump Affordability and Canada Greener Homes Affordability programs, and form part of Powering Canada Strong, the national electricity strategy launched in May, which aims to double the capacity of Canada’s grid by 2050.

Solar support

The announcement does not identify support for rooftop solar or batteries. The Canada Greener Homes Grant, which covered residential PV, closed to new applicants in February 2024. The Canadian Renewable Energy Association (CanREA) has said that program supported solar on more than 50,000 homes.

Canada’s cumulative installed solar capacity stands at about 5.4 GW, according to CanREA, which reported that the country added only 57 MW of utility-scale solar in 2025, after installing 314 MW of solar in 2024. In Quebec, Hydro-Québec now offers a grant of CAD 1,000 per installed kilowatt for solar, capped at 40% of eligible costs.