Carney Announces $2 Billion Federal Heat Pump Rebate Program for Canadian Homeowners
Prime Minister Mark Carney unveiled a $2 billion federal rebate program in Sherbrooke, Quebec, to help homeowners replace broken or aging heating systems with heat pumps. Launching early next year, the eight-year initiative targets one million homes and offers rebates of up to $10,000 based on household income.
Prime Minister Mark Carney announced a new $2 billion federal rebate program on Thursday in Sherbrooke, Quebec, designed to help Canadian homeowners replace broken or aging heating systems with heat pumps. The initiative is scheduled to launch early next year and will run over the next eight years.
The program targets homeowners whose existing heating systems have broken down or are nearing the end of their life. According to the announcement, 80 percent of replacements currently occur because of system breakdowns, often resulting in identical systems being installed rather than upgrades to heat pumps. Under the new program, households earning below the median after-tax income in their province can receive rebates of up to $10,000, while those earning above the median after-tax income can receive maximum rebates of up to $2,000. Homeowners do not need to complete a pre- or post-installation energy audit to participate, and the federal rebates can be combined with provincial grants and rebates for further savings.
CBC News reports that the rebate program targets 820,000 homeowners, while Global News states the overall goal is retrofitting one million homes, a figure that includes apartment units financed through a separate partnership. Eligibility determination takes 24 hours, and rebates are approved within five days after installation. Participants can choose from 100,000 options on an Eligible Products List.
In addition to the homeowner rebates, the federal government will work with the Canada Mortgage and Housing Corporation (CMHC) to provide low-interest financing for apartment building owners. This CMHC partnership aims to retrofit more than 280,000 homes over the next eight years.
The government is also providing $110 million in funding over three years, starting in 2027-28, to renew the Deep Retrofit Accelerator Initiative.
When fully implemented, the measures are expected to lower annual heating costs for Canadian families, with estimated average annual heating bill savings of $1,400 per household. Total energy bill savings could exceed $1 billion every year once the program is fully taken up. Replacing fossil fuel and electric heating systems with heat pumps is also intended to reduce emissions.