Buildings and Comfort

Canada's heat pump rebate covers installs from Nov. 1, with applications opening in early 2027

The federal program offers $2,000, or up to $10,000 for households below median income, for cold climate heat pumps installed by HVAC contractors.

By The Gradient Report Staff

Key points

  • Canada's National Heat Pump Rebate offers $2,000 to households above median income and up to $10,000 to those below it, according to Environment and Climate Change Canada.
  • Cold climate heat pumps installed on or after Nov. 1, 2026 may qualify for a retroactive rebate. The application portal is planned to open in early 2027, and receipts must be submitted within six months.
  • The equipment must be on the program's eligible product list by AHRI number and be bought from and installed by an HVAC contractor.
  • The government says it is investing $2 billion to support up to 820,000 households. Program details are still being finalized.

Canadian households that install an eligible cold climate heat pump on or after Nov. 1 may be able to claim a federal rebate once applications open in early 2027, Environment and Climate Change Canada says on its program page, updated Nov. 5. The government says it is investing $2 billion "to support up to 820,000 Canadian households." The program is expected to close in March 2034.

Households above median after-tax income may be eligible for $2,000. Households below it may be eligible for up to $10,000. The thresholds vary by province or territory and household size. In Ontario, the threshold is $46,981 for one person and $146,217 for a household of four.

Prime Minister Mark Carney announced the program Oct. 8 in Sherbrooke, Que., saying the government is "investing over $2 billion to help almost one million homes purchase a heat pump." "Canada strong starts in a warm home," Carney said.

Canada's rebate covers cold climate heat pumps bought from and installed by an HVAC contractor on or after Nov. 1.
Canada's rebate covers cold climate heat pumps bought from and installed by an HVAC contractor on or after Nov. 1.AI-generated illustration

What contractors need to know

The program page lists these requirements:

  • The home is now heated with electricity, including electric furnaces or baseboards, or with natural gas, heating oil, propane, diesel, coal or wood.
  • The heat pump is on the eligible product list, identified by AHRI number. The page describes eligible equipment as cold climate heat pumps that can heat the entire home, and encourages households to confirm with the contractor that the system is sized for the whole home.
  • The equipment is purchased from and installed by an HVAC contractor.
  • Receipts are submitted within six months, once the portal opens.

No energy audit is required before or after installation, and the program page tells applicants they "do not need to remove your existing system nor do you need to demonstrate that it has broken down." Receipts must include the installing company, the make, model and AHRI number, the number of units and the total project cost, including ductwork and electrical upgrades, HPAC Magazine reported. Applicants must own the home, though it doesn't have to be their primary residence, and properties that already received federal heat pump funding are excluded, HPAC reported.

The government says program parameters and eligibility criteria are still being finalized and may change.

Sources

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