Canada’s New $10,000 Heat Pump Rebate: What It Means for Property Owners
Ottawa’s new National Heat Pump Rebate pays up to $10,000 toward a heat pump, with 24-hour approval and no energy audits. Here’s who qualifies, what’s still unknown, and what to do before it opens.
The National Heat Pump Rebate, announced by Prime Minister Mark Carney on October 8, 2026, will pay up to $10,000 toward an eligible heat pump for households below the median income, and $2,000 for other eligible households. It isn’t open yet. Officials are reportedly aiming to launch in early 2027. This guide covers what was announced, what’s still unknown, and what to do if your heating system could fail before the online portal opens.
Key takeaways:
Ottawa is investing $2 billion over eight years toward one million home retrofits: rebates for up to 820,000 households, plus financing for 280,000 apartment units.
The rebate is up to $10,000 for households below the median income and $2,000 for other eligible households. Both can be combined with provincial programs.
Applications run through an online portal, with approval within 24 hours and no energy audits before or after installation.
The program is not open yet. Early 2027 is the reported target, and retroactive eligibility is reportedly being explored but isn’t confirmed.
If your system fails before launch, don’t count on the federal rebate for that install. Check provincial and utility programs instead.
The government says more than seven million Canadian households still heat with oil, propane, diesel, electric baseboards or outdated furnaces. The plan has two tracks:
Single-family homes: the National Heat Pump Rebate, for up to 820,000 households installing eligible electric cold-climate air-source heat pumps.
Apartments and multi-unit buildings: financing and advisory support for up to 280,000 units over eight years.
The government projects the measures will cut emissions by more than 25 megatonnes. Those are government estimates, not guarantees.
Up to $10,000 for households below the median income; $2,000 for other eligible households
Equipment
Electric cold-climate air-source heat pumps on the Eligible Products List (100,000+ options)
Audits
None before or after installation
Limit
One rebate per person
Stacking
Can be combined with existing provincial programs
The planned steps are:
Apply through a secure online portal with basic personal details and the heat pump you’ve chosen.
Get approval, which the government says will be confirmed within 24 hours.
Buy and install the pre-approved heat pump. The government says this can be as quick as a furnace replacement.
Upload your receipts to the portal.
Get paid by direct deposit. Payment is expected within about five days.
How is “median income” defined? The official release doesn’t say. Media reports citing officials say the benchmark is each province’s after-tax median income, the approach used for the Oil to Heat Pump Affordability program. Treat that as reported, not confirmed, until the government publishes the thresholds.
You can apply when your system breaks down or as it nears the end of its life. A breakdown is not required.
“One rebate per person” matters for landlords. The backgrounder’s example: a landlord who installs a heat pump in a property they own can’t also claim a rebate for a heat pump in their own home.
When can you apply?
Not yet. The announcement didn’t include a launch date. Media reports say officials are aiming for early 2027 and are exploring retroactive eligibility, meaning a rebate for installs completed before launch. Neither is confirmed in the official release.
The government says it will consult HVAC installers and industry starting immediately, so details may still change.
What it means for you
Oil or propane heat
You’re a prime target. The government says heat pumps save an average of about $1,400 a year for households heating with oil, propane or electric resistance heat. That’s an average projection. Your savings depend on your electricity rates, your home and your system. The Oil to Heat Pump Affordability program closed to new applicants on July 31, 2026, so this new rebate is the next federal option for oil-heated homes.
Electric baseboards
Baseboards are named in the announcement. A cold-climate heat pump can replace baseboard heating and add cooling. Check the Eligible Products List for the specific model, whether ducted or ductless, once you’ve got quotes.
Gas furnace
The release doesn’t say whether homes heated with a natural gas furnace qualify. Until eligibility rules are published, assume it’s unclear. Running costs also depend on local gas and electricity prices. Our guide to heat pump vs furnace in Canada explains how to compare.
“My furnace is dying this winter”
More than 80% of the roughly one million heating-system replacements each year happen because the old system broke down without warning, according to the government. If yours fails before the portal opens, replace it as you need to and don’t count on the federal rebate. Retroactive eligibility has not been confirmed. Keep every invoice and receipt in case it is.
Small landlords
One rebate per person applies. If you own a single rental property and your own home, you’d need to choose which one gets the heat pump rebate.
Apartment and multi-unit owners
Apartment owners use separate routes:
CMHC Multi-Unit Mortgage Loan Insurance: financing on better terms, expected to support retrofits in up to 250,000 rental units over eight years.
Canada Infrastructure Bank Building Retrofits Initiative: targets up to 30,000 additional units.
Deep Retrofit Accelerator Initiative: renewed with nearly $110 million over three years, starting in 2027-28, to guide owners from planning to implementation.
Condo owners and renters
The release speaks of “homeowners,” and the rules for condos and tenants haven’t been announced. Lower-income tenants and owners may qualify for no-cost upgrades through the Canada Greener Homes Affordability Program, which you apply for through your province or territory.
Unlike the Greener Homes Grant, which required EnerGuide evaluations before and after, the new rebate needs no audits.
Stacking with provincial programs
The government says the rebate can be combined with provincial programs. These are examples of what’s offered today. Check each program’s rules, because they change:
Keep every receipt and invoice, in case retroactive eligibility is confirmed.
Join the early list. Solenery’s Greener Homes replacement page will tell you the day the portal opens. For heat pump rebates and installers by address, see our HVAC page.
Frequently asked questions
Is the Canada Greener Homes Grant still available?
No. The grant closed to new applicants on February 27, 2024, and the loan closed on October 1, 2025. The National Heat Pump Rebate, announced October 8, 2026, is the federal government’s new heat pump program.
How much is the National Heat Pump Rebate?
Up to $10,000 for households below the median income, and $2,000 for other eligible households. The exact income thresholds haven’t been published.
Do I need an energy audit?
No. The government says no energy audits are required before or after installation. Some provincial programs may still ask for one, so check their rules.
Does my furnace have to break down first?
No. You can apply when your system breaks down or as it approaches the end of its life.
Early-2027 timing, retroactive eligibility and the median-income method are as reported by media (CP, CBC, BNN Bloomberg) and are not in the official release.
Program details are set by the government and may change before launch. Last updated October 9, 2026.
