Canadian Prime Minister Mark Carney announced a $2 billion investment on October 8, 2026, to support one million home energy retrofits over eight years. A central component is the new National Heat Pump Rebate program, designed to help up to 820,000 households switch to electric cold-climate air-source heat pumps.
Under the program, households with incomes below the median can receive rebates of up to $10,000, while other eligible homeowners can receive $2,000. The rebates can be combined with existing provincial incentives. Eligible heat pumps must appear on an approved product list containing more than 100,000 options suited to Canada’s climate.
The application process will operate through an online portal without requiring energy audits before or after installation. Approval will be confirmed within 24 hours, allowing homeowners to replace failed heating equipment quickly. Following installation, applicants will submit receipts online, with rebate payments approved within five days.
According to the government, households switching from oil, propane or electric resistance heating could save more than $1,400 annually on energy bills. Heat pumps also provide air conditioning. The government plans to consult HVAC installers on the program’s rollout and work with technical colleges and industry associations on certifications, workforce training and skills development.
The broader retrofit package also includes support for 280,000 apartment units through financing initiatives involving the Canada Mortgage and Housing Corporation and Canada Infrastructure Bank. The government expects the combined measures to reduce emissions by more than 25 megatonnes.
“Today, we are helping one million more Canadian households make energy efficient retrofits. We are lowering costs, reducing emissions, and building a stronger and more sustainable economy for all,” said Mark Carney, Prime Minister of Canada.
