Canada Announces New Home Heating Rebates of Up to $10,000: Eligibility, Application Process and What to Know

Canadians looking to replace an aging furnace or reduce their home heating bills could soon qualify for a new federal rebate of up to $10,000.

Prime Minister Mark Carney announces funding for new housing developments in Red Deer, Alberta. 29 July 2026./Photo by Daniel Pereira/Office of the Prime Minister of Canada

Prime Minister Mark Carney announced a $2 billion investment on October 8, 2026, to support one million home retrofits across Canada over eight years.

The plan includes a new National Heat Pump Rebate for homeowners, alongside financing and support programs for energy-efficiency upgrades in apartment buildings.

How much can homeowners receive?

The National Heat Pump Rebate is designed to help up to 820,000 homeowners install electric cold-climate air-source heat pumps.

Two rebate amounts will be available:

Up to $10,000: For eligible households earning below the median income (TBA).
$2,000: For other eligible homeowners.

Both rebates can be combined with existing provincial programs to further reduce installation costs.

According to the federal government, households switching from oil, propane or electric resistance heating, including electric furnaces and baseboards, could save an average of more than $1,400 annually on energy bills.

Heat pumps also provide air conditioning during summer.

Who is eligible for the National Heat Pump Rebate?

The program is intended for homeowners replacing a heating system that has broken down or is approaching the end of its useful life.

Key eligibility requirements include:

Eligible equipment: The heat pump must appear on the government’s Eligible Products List, which includes more than 100,000 models and configurations suitable for Canada’s climate.
One rebate per person: Homeowners cannot claim multiple rebates for different properties. For example, a landlord claiming a rebate for a rental property cannot claim another for their own residence.
No energy audits: Homeowners will not need energy assessments before or after installation.

The government has not yet published detailed income thresholds or all eligibility requirements.

How can homeowners apply for the rebate?

Applications are not yet open as of October 8, 2026. The federal government has launched a website where homeowners can register to receive updates about application dates, eligibility and rebate amounts.

Once the program opens, the process is expected to work as follows:

Apply online: Submit basic personal information and details about the eligible heat pump through a secure government portal.
Receive approval: The government says applications will be approved within 24 hours.
Purchase and install: Have the pre-approved heat pump installed.
Submit receipts: Upload proof of purchase and installation through the portal.
Receive payment: Rebate payments will be approved within five days of submitting receipts, with funds delivered by direct deposit.

Homeowners can sign up for National Heat Pump Rebate updates on the Government of Canada website.

What programs are available for apartment buildings?

The federal government also plans to support energy-efficiency improvements in up to 280,000 apartment units over eight years.

CMHC Multi-Unit Mortgage Loan Insurance: Helps rental housing providers obtain financing from approved lenders on more favourable terms to retrofit up to 250,000 units.
Canada Infrastructure Bank Building Retrofits Initiative: Supports energy-efficiency upgrades in another 30,000 residential units by attracting private investment.
Deep Retrofit Accelerator Initiative: Nearly $110 million over three years, beginning in 2027-28, will support organizations helping building owners plan and complete complex energy retrofits.

These measures are primarily intended for apartment building owners and rental housing providers rather than individual tenants applying for rebates.

Why is Canada introducing these rebates?

More than seven million Canadian households still use oil, propane, diesel, electric baseboards or outdated furnaces for heating.

“Canada strong starts in a warm home,” Prime Minister Carney said while announcing the investment in Sherbrooke, Quebec.

The federal government estimates the combined measures will reduce emissions by more than 25 megatonnes, equivalent to taking nearly 8.5 million cars off the road for one year.

The investment is part of Canada’s National Electricity Strategy, which aims to double the capacity of the country’s electricity grid by 2050.

Where to Find Program Information: