Mark Carney Announces $2 Billion National Heat Pump Rebate

Prime Minister Mark Carney announced a $2 billion federal investment over eight years to retrofit one million Canadian homes, centered on the new National Heat Pump Rebate program. The initiative helps homeowners transition from oil, propane, diesel, and electric baseboard heating to electric cold climate air source heat pumps. Low-to-medium income households can receive up to $10,000, while other eligible homeowners are eligible for $2,000.

To streamline adoption, the government established an online portal offering eligibility confirmation within 24 hours and deposits within five days of receipt submission. The program targets 820,000 homeowners and allows rebates to be combined with provincial grants, such as Ontario's Home Renovation Savings Program. While some reports suggest a launch early next year, other sources indicate a 2027 start, with the government considering making the program retroactive to fall 2026.

For rental housing, the Canada Mortgage and Housing Corporation and the Canada Infrastructure Bank will provide loans and insurance to retrofit approximately 280,000 apartment units. Additionally, the government will invest nearly $110 million starting in 2027-28 to renew the Deep Retrofit Accelerator Initiative. These efforts are part of the Powering Canada Strong national electricity strategy, which aims to double the capacity of the national grid by 2050 and reduce emissions by over 25 megatonnes.