Canada Announces $2 Billion Investment for Home Retrofits and Heat Pump Rebates
On October 16, 2026, the Government of Canada announced a $2 billion investment over eight years to support up to one million home retrofits, including a new National Heat Pump Rebate for 820,000 households. The measures are part of the broader Powering Canada Strong strategy launched in May 2026.
On October 16, 2026, the Government of Canada announced a $2 billion investment over eight years aimed at helping Canadians reduce energy costs and improve home energy efficiency. The initiative is designed to support up to one million home retrofits across the country.
A central component of the announcement is the introduction of a new National Heat Pump Rebate, which will help up to 820,000 households switch to more efficient electric heat pumps. The rebate program will be accessible through an online portal, and no energy audits will be required before or after installation.
In addition to single-family homes, the government is working with the Canada Mortgage and Housing Corporation and the Canada Infrastructure Bank to retrofit 280,000 apartment units over the next eight years. Together, these combined measures are expected to reduce Canada’s emissions by over 25 megatonnes.
To address the skilled labour shortages needed to carry out these projects, Minister Patty Hajdu announced an investment of up to $258.6 million over five years, with $50 million ongoing, through the Sectoral Workforce Innovation Fund (SWIF). The call for proposals under SWIF was launched on August 28, 2026.
These workforce and retrofit measures are part of the broader "Powering Canada Strong" national electricity strategy, which Prime Minister Mark Carney launched in May 2026. That strategy aims to double the capacity of Canada’s electricity grid by 2050.