Canada's New $2 Billion Heat Pump Rebate, Explained
A Big New Rebate Is Coming for Heat Pumps in Canada
On October 8, 2026, Prime Minister Mark Carney announced a new National Heat Pump Rebate Program — a $2 billion commitment spread over eight years, aimed at helping retrofit roughly a million Canadian homes. On the heat pump side specifically, the federal government says the program could help as many as 820,000 homeowners install a new system.
If you've been putting off a heat pump upgrade because of the price tag, this is worth paying attention to. But here's the part that got buried in a lot of the coverage: the program isn't open yet. Here's what's actually confirmed, what's still up in the air, and what makes sense to do in the meantime.
What's Actually Confirmed So Far
How much money we're talking about
The rebate is income-tiered. Households below the median income are eligible for up to $10,000. Other eligible homeowners can get up to $2,000. There's no income cutoff that disqualifies you outright — your income level determines which tier you land in, not whether you qualify at all.
What equipment counts
This rebate is specifically for electric cold-climate air-source heat pumps that appear on the federal government's Eligible Products List, which reportedly already includes more than 100,000 qualifying models. It does not cover furnaces, boilers, or tankless water heaters — just heat pumps.
How you'd apply, once it's live
Based on what's been announced, the process is meant to be simple: a short online application with your basic information and the heat pump model you've chosen, approval expected within about 24 hours, then you buy and install the unit, upload your receipts, and get reimbursed by direct deposit within roughly five days afterward. No energy audit, before or after installation, is required. It's also one rebate per person.
What We Don't Know Yet
This is the part that matters most for timing your decision: officials have said they're aiming to launch the application portal in early 2027, not right away. The October announcement kicked off industry consultations, not applications. No firm start date has been locked in, and as of now, no end date or deadline has been announced either — which, if it holds, should give homeowners a reasonably long runway once it does open.
We're keeping an eye on this and will update this post the moment the application portal goes live with confirmed dates.
What You Can Do Right Now
You don't have to wait on the federal timeline to start planning. If your current furnace or AC is already struggling, getting ahead of a breakdown with a properly sized cold-climate heat pump — the kind very likely to land on that Eligible Products List once the portal opens — puts you in a good position to apply the moment it's available, instead of scrambling.
We've been installing and servicing heat pumps across the GTA, Hamilton, London, Kitchener-Waterloo and Ottawa since 2012, and our certified technicians can walk you through which systems are likely to qualify, what sizing actually makes sense for your home, and how financing can bridge the gap until rebate money shows up. We'll also keep our own current rebates page updated as federal and provincial programs change.
The Bottom Line
A $2 billion federal heat pump rebate is coming, with real money attached — up to $10,000 for many households. It's just not here yet. The smart move is to get your home heating setup evaluated now, so you're ready to move the moment applications open, instead of starting from scratch in 2027.
Thinking about a heat pump but want a professional opinion on timing, sizing, or cost first? Call 1-888-705-7368 for a free quote — we're available 24/7 across the GTA, Hamilton, London, Kitchener-Waterloo and Ottawa.
FAQs
Is the Canada Heat Pump Rebate program open for applications yet?
Not yet. It was announced October 8, 2026, but officials have indicated they're aiming for an early 2027 launch for the actual application portal. We'll update this post with confirmed dates as soon as they're available.
How much can I get from the new federal heat pump rebate?
Up to $10,000 for households below the median income, and up to $2,000 for other eligible homeowners. Everyone eligible gets something — income affects the amount, not whether you qualify.
Does the rebate cover furnaces or only heat pumps?
Only electric cold-climate air-source heat pumps on the federal Eligible Products List are covered. Furnaces, boilers, and tankless water heaters aren't included in this particular program.