Canada's new heat pump rebate: up to $10,000
On October 8, 2026 the federal government announced a $2 billion rebate for homeowners who replace a heating system with a heat pump. Applications are not open yet.
Updated October 8, 2026 · 4 min read · Canada
Who it is for
The rebate is aimed at homeowners whose furnace, boiler, or existing heat pump has broken down, or is close to the end of its life. Ottawa says about one million Canadian households replace a heating system each year, and about 80 percent of those replacements happen because the old system failed. Most people install the same type of system again. This program is meant to change that.
Unlike the closed Oil to Heat Pump Affordability program, this one is national and covers replacements of oil, natural gas, propane, diesel, and electric heat — not only oil.
Rebate amounts
| Household | Maximum rebate |
|---|---|
| Below the median after-tax income in your province | Up to $10,000 |
| Above that provincial median | Up to $2,000 |
The income cutoff uses the same method as the 2022 oil-to-heat-pump program. Prime Minister Mark Carney said the federal rebate can be combined with provincial heat pump grants. Officials said a typical household would save about $1,400 a year on heating, and that the funding could reach up to 820,000 homeowners over eight years.
- The heat pump must be on the federal Eligible Products List, which the government describes as equipment suited to the Canadian climate.
- No pre- or post-retrofit energy audit is required.
- One rebate per person. A landlord who claims it for a rental cannot also claim it for their own home.
How applying is supposed to work
When the portal opens, homeowners apply before the heat pump is installed. The government said the portal will confirm the rebate level within 24 hours. After the system is bought and installed, the homeowner uploads receipts and the rebate is approved within five days, then paid by direct deposit.
Apartments and larger buildings
Separate from the homeowner rebate, Ottawa said it will work with the Canada Mortgage and Housing Corporation on low-interest financing so apartment owners can retrofit more than 280,000 homes over eight years. It is also putting $110 million over three years, starting in 2027–28, into the Deep Retrofit Accelerator Initiative for commercial, institutional, and mid- or high-rise residential buildings.
Source
Figures on this page come from the federal announcement as reported by CBC News on October 8, 2026: Ottawa to provide $2B in rebates for homeowners who install heat pumps. Program rules can change before the portal opens.
Questions
When can I apply for the new federal heat pump rebate?
Not yet. The government said the program will not open until early 2027, so installers have time to stock heat pumps. There is no application portal today.
How much is the rebate?
Households below the median after-tax income in their province can get up to $10,000. Households above that median can get up to $2,000. It can be combined with provincial heat pump grants.
Do I need an energy audit?
No. The government said homeowners do not need a pre- or post-retrofit energy audit to take part.
Can a landlord claim it for more than one property?
No. The program allows one rebate per person. A landlord who uses it on a rental cannot also use it on their own home.
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