Prime Minister Mark Carney’s government is launching a new national heat pump rebate that could provide up to $10,000 to eligible below-median-income households switching to an electric heat pump.
The federal government announced the program on October 8, 2026, as part of a broader $2-billion investment intended to support one million home retrofits across Canada over eight years.
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How the heat pump rebate will work
The National Heat Pump Rebate is designed to help homeowners replace an existing heating system with an eligible cold-climate air-source heat pump.
Households below the median income will be eligible for a rebate of up to $10,000, while other eligible homeowners will receive $2,000, according to the federal backgrounder released with the announcement.
The rebates may be combined with existing provincial programs, potentially lowering the upfront cost further for homeowners in provinces that offer their own heat pump incentives.
The government said the program will focus on situations in which a heating system has broken down or is nearing the end of its useful life.
Officials also said homeowners will not necessarily need to wait for a complete failure before applying, allowing some replacements to be planned before an emergency breakdown.
When will the program open?
The federal government has announced the program but has not yet published a final launch date or opened applications.
A Canada.ca information page asks Canadians to sign up for updates about the launch date, eligibility rules, rebate amounts and application process.
The government said consultations with heating, ventilation and air-conditioning installers will begin immediately as officials work on the rollout.
That means some operational details, including the final application rules and the complete list of eligible equipment, remain subject to further government guidance.
What homeowners will need to know
The program is expected to use an online application portal rather than the more complex process associated with earlier federal retrofit initiatives.
The government says applicants will not need pre-installation or post-installation energy audits.
Homeowners will provide basic personal information and details about the heat pump they intend to purchase.
Approval is expected within 24 hours, according to the federal backgrounder.
After the eligible heat pump has been purchased and installed, applicants will submit their receipts through the portal.
The government says payment will be approved within five days after the receipts are submitted, with payments delivered by direct deposit.
Only equipment listed on the federal Eligible Products List will qualify.
The government says that list will contain more than 100,000 heat pump options designed for Canadian conditions.
There will also be a limit of one rebate per person.
For example, a landlord who receives a rebate for an owned rental property would not also be able to receive another rebate for a heat pump installed at that person’s own residence.
Who could benefit most?
The federal government says households currently using oil, propane or electric-resistance heating could save an average of more than $1,400 per year after switching to a heat pump.
Those projected savings do not apply equally to every household because heating costs vary by province, energy source, electricity rates, home size, insulation and the efficiency of the installed equipment.
The announcement is therefore most directly aimed at households facing high heating costs or an imminent furnace replacement, rather than Canadians who are simply looking for a general home-improvement grant.
Heat pumps can also provide air conditioning, giving homeowners both heating and cooling from the same system.
The federal government described that cooling function as an important benefit during periods of extreme heat.
How the announcement fits with older federal programs
The new heat pump rebate follows earlier federal initiatives, including the Oil to Heat Pump Affordability program and the Canada Greener Homes Affordability Program.
The Oil to Heat Pump Affordability program is now closed to new applications, although applicants who applied by the July 31, 2026, deadline can continue completing their files under the existing deadlines.
The new national program is intended to offer a simpler route for homeowners replacing heating equipment, without requiring the energy audits that were part of previous retrofit processes.
It also forms part of the government’s wider Powering Canada Strong strategy, which aims to expand electricity infrastructure and increase the use of electricity in homes, buildings and other parts of the economy.
Broader home retrofit plan
The heat pump rebate is one part of the federal government’s larger plan to support one million home retrofits.
Ottawa says the overall investment will also support energy upgrades in apartment and multi-unit buildings through financing backed by the Canada Mortgage and Housing Corporation and the Canada Infrastructure Bank.
Those measures are expected to cover up to 280,000 rental units over the next eight years, including as many as 250,000 units supported through CMHC financing and 30,000 units targeted by the Canada Infrastructure Bank.
The government estimates that the combined retrofit measures could reduce emissions by more than 25 megatonnes, although the actual impact will depend on participation, equipment performance and the energy sources displaced.
For homeowners, the next key step is the publication of the final eligibility rules and launch date.
Until the online portal opens, Canadians should not assume that purchases made now will automatically qualify for the new rebate.
Frequently Asked Questions
How much is the new Canadian heat pump rebate?
Eligible below-median-income households may receive up to $10,000, while other eligible homeowners may receive $2,000.
Is the National Heat Pump Rebate open yet?
No. The government has announced the program but has not yet published a final launch date or opened the application portal.
Do homeowners need an energy audit to qualify?
The federal government says the new program will not require an energy audit before or after installation.
What type of heat pump will qualify?
The program is intended for eligible cold-climate air-source heat pumps listed on the federal Eligible Products List.
Can the federal rebate be combined with provincial incentives?
Yes. The government says the federal rebate can be combined with existing provincial programs where those programs allow it.
Fact-Checked: Key program details were checked against the Prime Minister’s Office, Environment and Climate Change Canada, and Natural Resources Canada information published on October 8, 2026.
Disclaimer: Final eligibility rules, launch timing and application instructions may change before the National Heat Pump Rebate portal opens.