Federal heat pump rebate · Announced October 8, 2026

National Heat Pump Rebate: who gets $10,000, when it opens, and whether to wait

By Aroon Maharaj · Published October 10, 2026 · Last verified October 10, 2026 · ~10 min read

Yes, Canada has a new federal heat pump rebate, but you can't apply for it yet. The National Heat Pump Rebate, announced on October 8, 2026, will pay up to $10,000 to households below the median income and $2,000 to everyone else for an eligible cold-climate air-source heat pump. Officials say it opens in early 2027. Several rules that decide whether you get the money, including whether it covers installs made before launch, have not been published. This page separates what the government has confirmed from what has only been reported, and is updated as the rules come out.

Who gets $10,000 and who gets $2,000

The rebate has two tiers. Households below the median income can receive up to $10,000. Every other eligible homeowner gets $2,000. Both figures come from the government's own backgrounder and the Prime Minister's release.

Two details are worth knowing before you plan around a number. The government writes the second tier as a flat $2,000, while CTV and CBC wrote "up to $2,000"; until the program rules are published, treat $2,000 as the most you would get. And "up to $10,000" means the lower tier has a ceiling, not a guaranteed amount. Nothing published says how the amount is set within that ceiling, or whether it can exceed the cost of the install.

The rebate is for homeowners, and the government has set a limit of one per person. Its example is a landlord: someone who claims the rebate for a heat pump in a rental they own cannot also claim it for their own home.

The income limit: what we know

The government's documents say only "below the median income". The detail comes from officials briefing reporters. CBC reported that the cut-off will be the median after-tax income in your province, "calculated in the same way that it was for the now closed oil to heat pump program."

That closed program's test worked like this. Take line 23600 (net income) from your tax return and subtract line 43500 (total taxes payable). Do the same for a spouse or common-law partner and add the two. Compare the total with the median for your province and household size, where household size counts you, your partner and any dependants supported by household income.

Natural Resources Canada published that program's medians for three of the provinces this site covers. They are the best guide available, not the new program's thresholds, which have not been released:

After-tax household income limits under the closed oil-to-heat-pump program (NRCan, revised for inflation, 2024 tax year)
Household size AlbertaManitobaSaskatchewan
1 person $48,760$41,400$43,700
2 people $95,450$82,225$89,125
3 people $118,450$102,350$108,100
4 people $139,150$120,750$128,800
5 or more $146,050$123,050$127,650

Ontario, British Columbia, Nova Scotia, New Brunswick, Newfoundland and Labrador and Prince Edward Island ran that program through their own provincial partners, which set their own income limits, so NRCan published no figures for them. The Toronto Star reported that an Ontario family of four qualified at $96,439 under the previous program. Whether the new rebate uses one national table or provincial ones is not yet known.

Which heat pumps qualify

The government says the rebate is for "eligible electric cold climate air source heat pumps", and that the unit must be on an "Eligible Products List" of more than 100,000 options. That list has not been published. Natural Resources Canada already keeps a searchable list of qualifying cold-climate units for earlier programs, and choosing a model from it is the safest bet today, but nothing official ties the new rebate to that list.

Three things are not settled: whether ducted, ductless and multi-zone systems all qualify (the government mentions "various price points and configurations"); whether ground-source (geothermal) systems qualify at all, which the words "air source" suggest they don't; and whether homes in Nova Scotia and Quebec, which use separate product lists for some current programs, will need a different list.

Whatever the final list, a quote should name the outdoor and indoor model numbers. Without them you cannot check a unit against any list. The cold-climate heat pump guide explains what the rating means.

Gas-heated homes

CBC and The Canadian Press both report that every home is eligible, whatever it heats with now: natural gas, propane, oil, diesel or electricity. No government document says so directly, and the government's savings figure, "more than $1,400 annually", is only for homes heated with oil, propane or electric resistance. The Canadian Press reported officials saying that where natural gas is cheap, switching would not save money.

So for a gas-heated home, the rebate lowers the purchase price but not necessarily the heating bill. The heat pump vs furnace comparison works through running costs by fuel.

How applying is expected to work

The portal does not exist yet. The government has described the process in four steps:

  1. Apply online before you buy. The form asks for basic personal information and the heat pump you plan to buy.
  2. Get approval within 24 hours. According to CTV and the Toronto Star, the approval includes the amount you qualify for.
  3. Buy and install the approved heat pump. The government says one can go in "as quickly as a furnace", and that a working system nearing the end of its life qualifies, not only one that has broken.
  4. Upload your receipts. Payment is approved within five days and paid by direct deposit.

You pay the installer first and are reimbursed afterwards, so you need to cover the full invoice up front. Still unknown: what documents you will need, how income will be verified, whether a contractor can apply for you, and what the installer must be certified for.

How it stacks with provincial rebates

The Prime Minister's release says the rebate "can be combined with existing provincial programs." The table adds it to the largest provincial rebate open today for an air-source heat pump, for a household at market income. It assumes each province's program allows the combination, which none has yet confirmed; several of them, including Ontario's Home Renovation Savings and BC Hydro's rebate, are run by utilities and set their own rules.

Largest provincial air-source heat pump rebate today for a household at market income, plus the federal rebate once it opens (per-ton programs counted at 4 tons)
Province Provincial today + federal, above median + federal, below median
Ontario $5,000 $7,000 up to $15,000
British Columbia $4,000 $6,000 up to $14,000
Alberta None open $2,000 up to $10,000
Manitoba $2,000 $4,000 up to $12,000
Saskatchewan None open $2,000 up to $10,000
Nova Scotia $2,000 $4,000 up to $12,000
New Brunswick $1,500 $3,500 up to $11,500
Newfoundland and Labrador None open $2,000 up to $10,000
Prince Edward Island None open $2,000 up to $10,000

Provincial amounts depend on the system, the fuel it replaces and, in Ontario and Nova Scotia, the system's size in tons. A typical 3-ton system earns less from a per-ton program than the 4-ton figures in the table. The rebate stacking guide works through examples, and the cost calculator applies today's provincial rebates to your home. Provincial figures were last checked on October 9, 2026.

Should you install now or wait for the rebate?

It depends mostly on whether your current system still works. The biggest open question is retroactivity: The Canadian Press reported that the rebate "will be made retroactive to this fall." CTV reported that officials are "exploring options." No government document mentions it either way.

  • Your heating has failed, or is failing, this winter. Don't go without heat for a rebate that has no launch date. Install a cold-climate model from Natural Resources Canada's current list, keep the invoice, model and serial numbers and the install date, and claim your provincial rebate as usual. Budget as if the federal money will not come; if retroactivity is confirmed, you will have the paperwork.
  • Your system works and you were planning to replace it anyway. Waiting until the program opens is the lower-risk choice: $2,000 for most households and up to $10,000 below the median income. Use the time to get quotes and check that the models are cold-climate rated.
  • You're counting on a provincial rebate. Provincial programs change on their own schedules; Prince Edward Island paused every heat pump rebate in April 2026. If your province's program needs approval before work starts, apply for it on its own terms rather than waiting on Ottawa.

Either way, a quote you get now is useful later. The heat pump cost guide gives price ranges by province and home size to check it against.

What's confirmed, reported and unknown

"Confirmed" means a government document says it. "Reported" means news outlets attribute it to officials, usually speaking on background. "Not announced" means no source addresses it yet.

Topic What we know Status
Budget $2 billion over eight years, for up to 820,000 homeowners. Sources: Environment and Climate Change Canada backgrounderPrime Minister's news release Confirmed
Amount, below median income Up to $10,000. Sources: Environment and Climate Change Canada backgrounderPrime Minister's news release Confirmed
Amount, everyone else $2,000. The government says "$2,000"; some news reports say "up to $2,000". Sources: Environment and Climate Change Canada backgrounderPrime Minister's news releaseCTV News Confirmed
Equipment Electric cold-climate air-source heat pumps on an "Eligible Products List" of more than 100,000 options. The list is not published yet. Source: Environment and Climate Change Canada backgrounder Confirmed
Energy audit None, before or after installation. Sources: Environment and Climate Change Canada backgrounderPrime Minister's news release Confirmed
How you apply Online portal. Approval within 24 hours, before you buy. After installation, upload receipts; payment is approved within five days, by direct deposit. Source: Environment and Climate Change Canada backgrounder Confirmed
Limit One rebate per person. A landlord who claims for a rental cannot also claim for their own home. Source: Environment and Climate Change Canada backgrounder Confirmed
Stacking Can be combined with existing provincial programs. Source: Prime Minister's news release Confirmed
Launch Early 2027. No date has been published. Sources: CTV NewsCBC NewsThe Canadian Press Reported
Income test Officials said it will be calculated the same way as the closed oil-to-heat-pump program: after-tax household income against your province's median for your household size. Source: CBC News Reported
Gas-heated homes Reported as eligible, along with propane, oil, diesel and electric heat. No government document names natural gas. Sources: CBC NewsThe Canadian Press Reported
Breakdown required No. Officials said a breakdown is not a requirement; you can also replace a system nearing the end of its life. Sources: The Canadian PressCTV NewsEnvironment and Climate Change Canada backgrounder Reported
Retroactivity Unsettled. The Canadian Press reported it "will be made retroactive to this fall"; CTV reported officials are "exploring options". No government document mentions it. Sources: The Canadian PressCTV News Reported
Ground-source (geothermal) Not mentioned. The government describes eligible equipment as air-source. Not announced
Income thresholds Not published for the new program. Not announced
Portal address Not published. The program is not taking applications. Not announced

Watch for rebate scams

Large rebate announcements tend to bring door-knockers and callers offering to "pre-register" homeowners or "lock in" the money. For this rebate, there is nothing to register for: the program is not open, and the government says applications will go through its own online portal. A caller who wants personal or banking details to secure the federal rebate is not from the government. The heat pump scam guide covers the patterns in circulation and how to check an installer.

The rest of the announcement

The rebate is the part that reaches individual homeowners. The same announcement included up to 250,000 rental units through CMHC's multi-unit mortgage loan insurance, up to 30,000 units in multi-unit residential buildings through the Canada Infrastructure Bank, and nearly $110 million over three years from 2027-28 to renew the Deep Retrofit Accelerator Initiative. The government counts these together as one million home retrofits.

Federal programs that are closed are not part of this rebate. The Oil to Heat Pump Affordability program closed to applications on July 31, 2026, and the Greener Homes Loan is closed to new applications; the Loan closure guide covers what happened to both. Low- and median-income households in five provinces can still get no-cost retrofits through the Canada Greener Homes Affordability Program, listed on the rebates page.

Updates to this page

  • : Page published from the October 8 announcement, the government backgrounder and news reports.

Sources

Last full source check: October 10, 2026.

Questions about the federal heat pump rebate

Is there a federal rebate for heat pumps in Canada?

One has been announced but is not open yet. On October 8, 2026 the federal government announced the National Heat Pump Rebate: up to $10,000 for households below the median income and $2,000 for everyone else, for an eligible cold-climate air-source heat pump. Officials say it opens in early 2027. Until then, the money available is provincial and utility rebates, which the rebates page lists by province.

How much is the National Heat Pump Rebate?

Up to $10,000 for households below the median income, and $2,000 for other eligible homeowners. The government's wording is a flat "$2,000" for the second group, though some news reports say "up to $2,000". It has not said whether either amount is capped at the cost of the install.

When does the federal heat pump rebate start?

Officials have said early 2027. No launch date appears in any government document as of October 10, 2026. The government's update sign-up form is the official way to hear when it opens.

Is the federal heat pump rebate retroactive?

It is not settled. The Canadian Press reported the program "will be made retroactive to this fall", while CTV reported officials are "exploring options to extend a retroactive eligibility program". No government document mentions retroactivity. If you install before launch, keep every receipt and the heat pump's model number, but do not count on the federal money.

What is the income limit for the federal heat pump rebate?

The thresholds for the new rebate are not published. Officials told CBC the cut-off will be calculated the same way as the closed Oil to Heat Pump Affordability program's: your household's after-tax income compared with your province's median for your household size. Under that closed program, the limit for a family of four was $139,150 in Alberta and $120,750 in Manitoba. The full table is on this page.

Can I get the federal rebate if my home is heated with natural gas?

CBC and The Canadian Press report that all homes are eligible, including those heated with natural gas, propane, oil, diesel or electricity. No government document names natural gas, and the government's savings figure of $1,400 a year applies only to homes heated with oil, propane or electric resistance. Switching from gas may not lower your heating bill where gas is cheap.

How do I apply for the federal heat pump rebate?

You can't yet: the portal does not exist. The government says you will apply online before buying, get approval and your rebate amount within 24 hours, then upload receipts after the install and receive payment by direct deposit, with payment approved within five days. Nobody can pre-register you for it today.

Can I combine the federal heat pump rebate with provincial rebates?

Yes. The Prime Minister's release says the rebate "can be combined with existing provincial programs." Utility-run programs, such as Ontario's Home Renovation Savings and BC Hydro's rebates, have not published their own rules on combining. See the province-by-province table.

Do I need an energy audit for the federal heat pump rebate?

No. The government says no energy audit is required before or after installation. Some provincial programs still require one, so check yours before you book.

Does a geothermal heat pump qualify?

It has not been said. The government describes eligible equipment as "electric cold climate air source heat pumps", which reads as air-source only, but no document rules ground-source in or out.

Can landlords claim the federal heat pump rebate?

The government says one rebate will be issued per person, and gives the example of a landlord who installs a heat pump in a rental: that person cannot also claim for their own home. That implies a landlord can claim for a rental they own, once.

Is the National Heat Pump Rebate the same as the Greener Homes Grant?

No. The Canada Greener Homes Grant is closed. The Canadian Press reported officials describing the new rebate as its successor, but the rules differ: no energy audit, approval in 24 hours, and the amount depends on household income.