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Federal Heat-Pump Rebate Program Unveiled by Prime Minister Mark Carney
By Drooid · · How we work
New Federal Heat-Pump Rebate Program Unveiled
Prime Minister Mark Carney announced a federal heat-pump rebate program that will launch early next year. The initiative is budgeted at $2 billion over eight years and aims to retrofit one million Canadian homes. The rollout will be coordinated with Environment Minister Julie Dabrusin and will replace the winding-down “Oil to Heat-Pump Affordability” program that installed more than 30,000 heat pumps since 2022.
Program Design and Eligibility
The rebate targets homeowners who need emergency replacements because their existing heating system has broken down or is nearing the end of its life. Households whose after-tax income falls below the provincial median may receive up to $10,000, while higher-income households can obtain a maximum of $2,000. Only one rebate per person is permitted; landlords cannot claim a second rebate for a personal residence. Applicants will use an online portal that provides eligibility decisions within 24 hours, and approved rebates are deposited directly into the homeowner’s bank account within five days of receipt submission. The program also includes low-interest financing for apartment-building owners through the Canada Mortgage and Housing Corporation (CMHC) to retrofit more than 280,000 units.
Funding, Targets, and Expected Savings
Officials estimate the program will serve up to 820,000 homeowners over the eight-year period, delivering an average annual heating-cost reduction of $1,400 per household. Carney cited the potential to save Canadian families more than $1 billion each year on energy bills. The initiative expands coverage beyond oil-furnace replacements to include natural-gas, propane, diesel, and electric systems. Government data indicate that roughly 80 percent of HVAC replacements in Canada occur after a system failure, a pattern the new program seeks to shift.
Official Statements
He noted that oil-based heating costs have risen about 70 percent compared with 2024 levels, adding roughly $2,500 to annual household expenses. The Prime Minister framed the rebate as a “great return on investment” for Canadian families.
Verbatim Quotes
- “When fully taken up, these upgrades will save Canadian families more than $1 billion every year on their energy bills, that is a great return on investment,” — Mark Carney, facebook prime minister
- “Over one million households in Canada still heat with oil, propane, or diesel. These fuel sources are more polluting, less efficient, and at the mercy of global markets,” — Mark Carney, facebook prime minister