What to know
- The federal government’s National Heat Pump Rebate will offer eligible households between $2,000 and $10,000 toward installing or replacing heat pumps.
- The program is expected to launch in early 2027 and run until 2034.
- Canadians can qualify retroactively for installations completed on or after Nov. 1, 2026.
- Rebate amounts depend on household income, province, region and installation costs.
- Applicants must own the property, use an eligible heat pump and hire an HVAC contractor for the installation.
- The government says funding is not guaranteed until applications are reviewed and approved.
The Canadian government is supporting up to 820,000 Canadian households to install heat pumps this winter. Here’s how to receive the benefit.
The national rebate is part of a federal government initiative that is investing $2 billion to help households prepare for cold climate.
The National Heat Pump Rebate offers eligible households between $2,000 and up to $10,000 in rebates to install or replace their heat pumps. The program will be available in the beginning of 2027 and close in 2034.
Although the rebate will only be available on the government’s website starting next year, eligible households can receive a retroactive rebate if they install their heat pumps starting Nov. 1.
Program eligibility
To be eligible for the rebate, residents must:
- Reside in Canada and own the home where the heat pumps are being installed
- The home doesn’t need to be a primary residence, and can be a property that’s being rent out
- Must not have received a heat pump rebate for the home where the work is being done
In addition, the heat pump must be one included in the government’s eligible product list, found on its website. The pump must also be purchased from and installed by a HVAC contractor.
Canadians hoping to receive the rebate will be asked to submit receipts of the installation dated within six months, and must include:
- Name and address of the rebate recipient
- Name of the company that installed the heat pump
- Make, model, and AHRI number of the equipment
- Total number of heat pumps installed
- Total cost of the installation
The rebate applies to both emergency and planned work, and residents don’t need to prove their previous system had been broken.
Rebate amounts vary by income, region, installation costs
Heat pump rebates vary from $2,000 to up to $10,000, and the amount to be received depends on household income, region, and installation costs.
Households with an income above their province’s median income will receive a rebate of $2,000, while those with an income below the median are eligible for rebates of up to $10,000.
In Ontario, the median household income for a one-person household is $46,981. For a two-person household it jumps to $92,884, $119,850 for three people, $146,217 for four people, and $158,202 for five or more people.
Residents are advised to calculate their household income after tax by referring to their 2025 income tax return. They can find the income on line 23600 and subtract the total tax on line 43500.
The median household income varies from province to province, and residents can find this information on the government’s website.
To receive the higher rebate, residents will have to provide their Social Insurance Number (SIN), and the CRA will verify their household income and determine what level of incentive they are eligible to receive.
How to receive the rebate
The program will officially open early 2027, with no definite date available as of publication.
Residents can ask for retroactive rebates for heat pumps installed starting Nov. 1, and will need to submit a complete application through the government portal once the program launches. However, the government warns funding is not 100 per cent guaranteed until applications are approved. Eligibility for the rebate might also change until the program launches.
Those installing the equipment before the program’s launch are warned to confirm the appropriate system and size before carrying out the work.
According to the government, electric heat pumps come with a series of benefits, including more efficiency, reduced greenhouse gas emissions, and more reliable heating.
