Canada announces $2 billion heat pump rebate program

Prime Minister Mark Carney has announced a $2 billion federal program over eight years to support the adoption of heat pumps across Canada. The initiative is part of a national electrification strategy aimed at reducing emissions and lowering household energy costs.

The program intends to support up to 820,000 households in adopting heat pumps and provide financing to retrofit 280,000 apartments. To assist with upfront costs, households with incomes below the median can receive rebates of up to $10,000, while other eligible homeowners can receive up to $2,000. These rebates can be combined with provincial incentives.

Government estimates suggest that switching from oil, propane, or electric resistance heating to heat pumps could save Canadian families an average of $1,400 annually in energy bills. The program aims to streamline the process by promising approvals within 24 hours and requiring no energy audits before or after installation.