What we know about Ottawa's $2B rebate plan for heat pumps

Program to formally launch early 2027, but may be made retroactive to fall

Canada's federal government has announced a new $2-billion rebate plan aimed at getting more heat pumps installed in homes across the country in the years ahead.

Initial details of the National Heat Pump Rebate Program were announced Thursday.

How many households will benefit?

The Government of Canada says up to 820,000 households will be able to take advantage of the rebate program, over an eight-year period.

The government expects to launch the rebate early next year. But Ottawa is eyeing making it retroactive to fall.

Homeowners will be able to apply for the rebate when their existing heating system breaks down — or when they plan to replace a heating system that is approaching end of life.

Government data suggests 80 per cent of HVAC replacements occur when current systems break. The new program is trying to cater to this group of individuals — and provide a path to switching over to heat pumps accordingly.

Ottawa launching $2B rebate program for home heat pumps

Applications for the rebate will be filed via an online portal. The government says approvals will be confirmed within 24 hours.

Homeowners will submit receipts after installation of the pre-approved heat pumps, so that rebates can follow — with payment to be "approved within five days," according to a government document outlining aspects of the new program.

The payments that follow will be made via direct deposit.

Up to $10,000 for households below the median income. Other eligible households can claim $2,000.

What kind of heat pumps will be eligible?

Homeowners will be able to look to a list of eligible products, which the government says will include "an extensive selection of over 100,000 options at various price points and configurations, all suited for the Canadian climate."

Will energy audits be required?

The government says it will be consulting with industry and work with HVAC installers to maximize the reach of the pending program.

Government officials who briefed media said that Ottawa wants industry to have the needed inventory on hand to deliver the program as planned. This is one reason why consultations are taking place.

With files from The Canadian Press