The federal government unveiled a $2 billion, eight-year rebate scheme on Thursday that aims to put electric cold-climate air-source heat pumps in up to 820,000 homes. The program covers households that swap out oil, propane or electric-resistance heating, with the government estimating average annual savings above $1,400 for those fuel types.
Rebate tiers and application mechanics
Households below the median income qualify for up to $10,000; everyone else can claim $2,000. No pre- or post-installation energy audits are required. A single rebate per person applies, a landlord who claims the incentive for a rental property cannot claim again for a primary residence. Eligible models number more than 100,000 on the government’s product list. Applications run through an online portal with 24-hour pre-approval; receipts submitted after installation trigger payment within five days.
Rental and multi-unit channels
The Canada Mortgage and Housing Corporation will back retrofits in up to 250,000 rental units over the same eight-year horizon, financed through private lenders and supported by CMHC insurance premiums paid by borrowers. Separately, the Canada Infrastructure Bank will deploy existing allocations to mobilize private capital for up to 30,000 units in multi-unit residential buildings.
Accelerator renewal and aggregate targets
Nearly $110 million over three years starting in 2027-28 will renew the Deep Retrofit Accelerator Initiative, which funds third-party accelerators that assist building owners with complex projects. The government says the combined measures will support one million home retrofits and cut emissions by more than 25 megatonnes, equivalent to removing roughly 8.5 million cars from the road for a year.