Prime Minister Mark Carney announced Thursday that his government is investing $2 billion into a new national heat pump rebate program, with the goal of incentivizing Canadians to retrofit more energy efficient heating options. The government says the program will aim to help lower energy costs across the country, reduce emissions, and increase energy efficiency. Speaking with reporters on background in a technical briefing ahead of the announcement, senior government officials said the new plan has the ability to help support up to one million home retrofits. Specifically, the government says the new investment will support up to 820,000 households through the heat-pump rebate program, while another 280,000 multi-unit residential properties will be eligible for energy-efficiency upgrades through existing programs. “Our government is focused on giving Canadians options to lower their energy costs,” said a senior government official during the technical briefing. “Heat pumps are more efficient, cleaner and safer than oil and propane. (Heat pumps) use less than 50 per cent of the electricity used by electric furnaces or baseboards. On average, they’ll save households still heating on oil or electric baseboards about $1,400 a year on their energy bill,” the official said. How does it work? The government says the new program will offer grants when homeowners install eligible heat pumps. The size of the grant will depend on household income, the government says. Eligible low to median income households could get up to $10,000, while those above the median household income will be able to receive up to $2,000. The government says the program is aimed at helping people facing emergency replacements of their heating system, although the program will not require that to be a requirement for eligibility. Officials said people looking to apply will be able to do so through an online portal and should expect to get confirmation of their eligibility including grant amount within 24 hours. Through the online portal, the government says applicants will be able to upload receipts following the install of their new heat pumps and should expect confirmation within five days. Applicants will then be reimbursed through direct deposit. Government officials said they are aiming to launch the program in early 2027 and are exploring options to extend a retroactive eligibility program.
