Canada Announces $2-Billion Investment to Fund One Million Home Retrofits and Cut Emissions
On October 30, 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 up to 820,000 households. The measures are projected to reduce national emissions by over 25 megatonnes.
On October 30, 2026, the Government of Canada announced a landmark $2-billion investment over eight years designed to help Canadians reduce energy costs and improve home energy efficiency. The initiative will 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 aims to help up to 820,000 households switch to more efficient electric heat pumps. The rebate program will be accessible through an online portal that does not require energy audits before or after installation, with approvals available within 24 hours. This streamlined process addresses the reality that around 80% of heat pump replacements each year occur without warning due to system breaks.
To support multi-unit housing, the government is working with the Canada Mortgage and Housing Corporation (CMHC) and the Canada Infrastructure Bank to help apartment building owners retrofit 280,000 units over the next eight years. Through its Multi-Unit Mortgage Loan Insurance Select program, CMHC will help retrofit up to 250,000 additional units. Meanwhile, the Canada Infrastructure Bank’s Building Retrofits Initiative will support apartment and multi-unit residential building retrofits covering at least 30,000 units. The government is also renewing the Deep Retrofit Accelerator Initiative to provide support to building owners throughout the retrofit process.
Combined, these measures are projected to reduce Canada’s emissions by over 25 megatonnes, equivalent to taking nearly 8.5 million cars off Canadian roads for one year. The initiative is expected to deliver more comfortable, affordable, and sustainable homes and buildings while strengthening Canada’s economic competitiveness.
The retrofit funding builds on broader national energy efforts. In May 2026, Prime Minister Carney launched Powering Canada Strong, a national electricity strategy aiming to double the capacity of Canada’s electricity grid by 2050 to supply clean, reliable, and affordable power across the country. That strategy is expected to deliver up to $15 billion in total energy savings by 2050 and aims to lower total energy costs for 7 in 10 Canadian households.