Ottawa to provide $2B in rebates for homeowners who install heat pumps

Ottawa to provide $2B in rebates for homeowners who install heat pumps

Rebate program targets homeowners with heating systems that have broken down or are nearing end of life

Carney takes questions at news conference in Quebec

The federal government is launching a $2-billion rebate program that it says will help homeowners in Canada lower their annual heating costs while reducing emissions when they install heat pumps in their homes.

The funding will provide rebates for up to 820,000 homeowners over the next eight years, saving them an average of $1,400 a year on their heating bills when they replace existing heat pumps or heating systems, officials speaking on background said Thursday.

"Homeowners can apply quickly for the rebate when their existing heating system breaks down and they decide to replace it with a new heat pump system," a background document said.

"They can also apply as their existing heating system approaches end of life, and they want to make the transition before a breakdown occurs."

The federal government said it will also work with the Canada Mortgage and Housing Corporation (CMHC) to provide low-interest financing for apartment building owners to retrofit more than 280,000 homes over the next eight years.

"Today, we are helping one million more Canadian households make energy-efficient retrofits. We are lowering costs, reducing emissions and building a stronger and more sustainable economy for all,” Prime Minister Mark Carney said in a statement.

Peter Zimonjic is a senior writer for CBC News who reports for digital, radio and television. He has worked as a reporter and columnist in London, England, for the Telegraph, Times and Daily Mail, and in Canada for the Ottawa Citizen, Torstar and Sun Media. He is the author of Into The Darkness: An Account of 7/7, published by Vintage.