The federal government says a new National Heat Pump Rebate would provide eligible households with up to $10,000 for an electric heat pump, as part of a plan to support one million home retrofits across Canada.
The Story
On October 8, the federal government announced it is rolling out a new National Heat Pump Rebate under its National Electricity Strategy, aimed at reducing winter heating costs for Canadian households.
The government says more than seven million households across Canada still heat with oil, propane, diesel, electric baseboards or outdated furnaces, and that Heating is one of the biggest expenses during the cold winter months.
The rebate is intended to help up to 820,000 households switch to electric heat pumps. For eligible below-median-income households, the government said the rebate would be up to $10,000 for the purchase of an electric heat pump, while other eligible households would receive $2,000.
The federal government said the rebate amounts can be combined with existing provincial programs to further reduce costs.
According to the announcement, the program will confirm a household’s approval within 24 hours, with heat pumps being installed “as quickly as a furnace.”
The government said heat pumps are cleaner and safer than oil and electric furnaces, and 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 in early 2027.
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