Carney Heat Pump Rebate Offers Up to $10,000 for Homeowners
Canada is launching a $2-billion heat pump rebate program for homeowners replacing broken or aging heating systems. Rebates will reach up to $10,000 for…
When a heating system fails, Canadian homeowners may soon have federal help to switch to a heat pump. The carney heat pump rebate program will provide up to $2 billion in rebates, targeting households that need to replace broken or aging systems.
The program is expected to begin early next year and will offer rebates to as many as 820,000 homeowners over eight years, according to the federal government. Officials estimate participating households will save an average of $1,400 a year on heating bills.
That could affect the choice homeowners make during an urgent repair. Officials said most households currently replace a failed system with the same type, while the new program aims to make switching to a heat pump more affordable.
Rebates vary by household income
Households with income below the median after-tax income in their province can receive up to $10,000. Those above the provincial median can receive up to $2,000, the federal government said.
Prime Minister Mark Carney said homeowners can combine the federal rebate with provincial grants and rebates for heat pump installations, lowering their upfront costs further. The income threshold will use the same calculation method as the now-closed oil-to-heat-pump program for low- and middle-income households launched in 2022, officials said.
The new program is broader in scope. The earlier initiative focused on replacing oil furnaces and operated only in some provinces. The new rebate will apply across Canada and cover replacements for systems using natural gas, propane, diesel and electricity, as well as existing heat pumps.
Timing matters. The federal government said about one million Canadian households replace a heating system each year, and 80 per cent of those replacements follow a breakdown. Officials said announcing the program months before its launch will give the government time to consult industry and allow installers to stock heat pumps.
Applications and building upgrades
Homeowners will be able to apply through an online government portal before installation. The portal is expected to determine eligibility within 24 hours, according to a government background document. Heat pumps must appear on the Eligible Products List, which the document describes as containing over 100,000 options suited to the Canadian climate.
Carney announced the program in Sherbrooke, Que. “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,” he said.
The government also plans to work with the Canada Mortgage and Housing Corporation to offer low-interest financing to apartment building owners. That financing is intended to support retrofits covering more than 280,000 homes over eight years.
A separate $110 million will fund the renewal of the Deep Retrofit Accelerator Initiative over three years starting in 2027-28. The initiative supports energy and emissions-reduction work in commercial, institutional, and mid- or high-rise multi-unit residential buildings.
The federal rebate is designed for the moment when a household has to act quickly: a failed furnace or another heating system nearing the end of its life. The maximum rebate for eligible households below their province’s median after-tax income is $10,000.
Source: cbc.ca
