Canadian Prime Minister Mark Carney announced a CAD 2 billion federal rebate program on 8 October 2026 to help up to 820,000 households switch to electric heat pumps, with the scheme set to launch in early 2027.
Carney made the announcement in Sherbrooke, Quebec, at a facility belonging to HVAC manufacturer Dettson. The investment, over eight years, will provide rebates to up to 820,000 homeowners installing eligible electric cold climate air source heat pumps. Households below the median income can receive up to CAD 10,000, while other eligible homeowners can receive CAD 2,000, according to a government release. Both tiers of rebate can be combined with existing provincial programs.
What’s new
The program replaces Ottawa’s existing Oil to Heat Pump Affordability scheme, which is being wound down. Ottawa is in the process of winding down that existing program, which as of March had helped install more than 30,000 heat pumps across the country. The new program is far broader in scope and no longer limited to oil-heated homes.
Unlike the earlier scheme, the government says applicants won’t need an inspection before or after installation. The rebate will be available through an online portal, with approval within 24 hours and no energy audits required before or after installation. The government is pitching it as a response to emergency situations: about 1 million Canadian homes replace their heating systems each year, and more than 80% of the time because the old system has broken down without warning, officials said.
The program won’t formally start until early 2027, but according to the Globe and Mail, it will be made retroactive to this fall. A separate stream will route funding through the Canada Mortgage and Housing Corporation and the Canada Infrastructure Bank to support retrofits in up to 280,000 units in multi-unit residential buildings over the next eight years.
Why it matters
Canada’s government frames the program around household energy bills as much as emissions. More than 7 million Canadian households still heat their homes with oil, propane, diesel, electric baseboards or outdated furnaces, and heat pumps save households heating with oil or electric baseboards an average of CAD 1,400 a year, according to the government. Carney told reporters “when fully taken up, these upgrades will save Canadian families more than $1 billion every year on their energy bills, that is a great return on investment.”
The plan has drawn political pushback. Conservative leader Pierre Poilievre criticized the program, saying it amounted to the government taking $2 billion from taxpayers to “give it to companies, like those owned by Brookfield, to give people back a small amount on applications for heat pumps.” HVAC industry representatives welcomed the move, with the Globe and Mail reporting that leaders of Canada’s HVAC industry applauded the announcement, particularly the decision to make the program retroactive to the fall.
At a glance
| Item | Detail |
|---|---|
| Program | National Heat Pump Rebate Program |
| Announced by | Government of Canada, PM Mark Carney, Sherbrooke, Quebec |
| Funding | CAD 2 billion over 8 years |
| Rebate per household | CAD 10,000 (below-median income) or CAD 2,000 (other eligible) |
| Target reach | Up to 820,000 households; plus up to 280,000 multi-unit apartments |
| Status / date | Announced 8 October 2026; launch early 2027, retroactive to fall 2026 |
What to watch
Program details, including full income thresholds and the official launch date, have not yet been published on the government portal. Whether the retroactive window actually covers heat pumps installed this fall, and how quickly the 24-hour approval process works in practice, will determine how fast uptake builds toward the 820,000-household target.
Sources
- Source: Prime Minister Carney announces landmark investment to retrofit one million homes, cutting energy costs and emissions (Canada.ca)
- Source: What we know about Ottawa’s $2B rebate plan for heat pumps (CBC News)
- Source: Ottawa to launch $2-billion heat pump rebate program early next year (The Globe and Mail)
- Source: Ottawa to provide $2B in rebates for homeowners who install heat pumps (CBC News)
- Source: Federal Government Announces $2 Billion in Rebates for Heat Pump Installations (The Epoch Times)
- Source: Canada offers heat pump rebates of up to CAD 10,000 (pv magazine USA)