Ottawa announces rebates of up to $10,000 for home heat pumps

The federal government announced a $2-billion home-retrofit package on October 8 that includes a new heat-pump rebate and financing measures for apartment buildings.

Under the Prime Minister’s October 8 announcement, eligible households with income below the median could receive up to $10,000 toward a heat pump, while other eligible households could receive $2,000. Federal rebates could be combined with participating provincial programs.

The government says the rebate is intended to reach up to 820,000 households. It also says an online portal will remove the need for before-and-after energy audits and target decisions within 24 hours. Households should check the final program rules and launch details before signing contracts, because the announcement does not make every purchase automatically eligible.

The package also includes Canada Mortgage and Housing Corporation and Canada Infrastructure Bank measures aimed at retrofitting 280,000 apartment units over eight years. Ottawa estimates households now using oil heat or electric baseboards could save an average of about $1,400 a year after switching, although actual savings will depend on the building, climate and energy prices.

Illustrative home photo: Venrick Azcueta / Unsplash Licence. It is not a photographed retrofit funded by the program; cropped and resized for publication.