The Government of Canada is investing $2 billion over eight years to deliver one million home retrofits to lower energy costs for Canadians and reduce emissions. At the same time, we are doubling our grid, giving Canadians access to more affordable, reliable, and cleaner electricity than ever before.
Funding for One Million Home Retrofits Across Canada
The National Heat Pump Rebate Program
This $2 billion investment, over eight years, will provide easy-to-access rebates to up to 820,000 homeowners installing eligible electric cold climate air source heat pumps.
Homeowners can apply quickly for the Rebate when their existing heating system breaks down and they decide to replace it with a new heat pump system. They can also apply as their existing heating system approaches end of life, and they want to make the transition before a breakdown occurs.
Some Benefits of Switching to a Heat Pump System
- Average savings of more than $1,400 annually on energy bills for households heating with oil, propane and electric resistance (electric furnaces, baseboards).
- Heat pumps also provide air conditioning - vital protection in increasingly frequent extreme heat events.
Eligibility
- Households below the median income can receive up to $10,000; other eligible homeowners can receive $2,000.
- To qualify for the Rebate, heat pumps must be on the 'Eligible Products List', an extensive selection of over 100,000 options at various price points and configurations, all suited for the Canadian climate.
- Only one Rebate per person will be issued, e.g., if a landlord elects to install a heat pump in an owned property, that person cannot also receive the Rebate for a heat pump installed in their own residence.
- No pre- or post-energy audits are required.
An Easy-to-Use Online Application Portal, Quick Approvals Process, and Direct Deposit Payments
- Eligible homeowners can submit an application using an easy-to-use, secure online portal.
- The simplified application form requires only basic personal information from the homeowner and details of the eligible heat pump they wish to purchase, and it takes minimal time to complete.
- This new program will confirm approval within 24 hours, and a heat pump can be installed as quickly as a furnace.
- Following the purchase and installation of the pre-approved heat pump, homeowners will submit receipts through the online portal, and payment will be approved with five days.
Partnering with HVAC Installers to Deliver for Canadians
The Government of Canada will work with HVAC installers on the rollout of this program to maximize its effectiveness and reach as many eligible Canadians as possible. Consultations with industry will begin immediately following the program announcement. The government will engage key industry partners regarding program details and ensure installers are equipped to act as champions for this program. The government will also work with technical colleges and industry associations on certifications, and support upskilling and growth of the workforce.
Multi-Unit Mortgage Loan Insurance Product
The Canada Mortgage and Housing Corporation (CMHC) will help rental housing providers access private financing from approved lenders on more favourable terms to undertake energy-efficiency retrofits in existing rental buildings. These investments can improve building quality and energy performance for tenants while reducing energy use. Operating through CMHC's existing mortgage loan insurance framework, the initiative will leverage private capital, rather than relying on new direct government spending. CMHC receives insurance premiums and fees for the coverage, typically paid by borrowers, such that the product is delivered at no cost to taxpayers. Through this initiative, CMHC is expected to support retrofits in up to 250,000 rental housing units over the next eight years.
The Building Retrofit Initiative
This Canada Infrastructure Bank (CIB) initiative will target up to an additional 30,000 residential units in Multi-Unit Residential Buildings (MURBs), by mobilizing more private sector investment in building retrofits. The CIB will leverage its existing government allocation, meaning no new funding is required from the federal government.
Deep Retrofit Accelerator Initiative
The Government of Canada will invest nearly $110 million over three years starting in 2027-28 to renew the Deep Retrofit Accelerator Initiative. This initiative funds third-party accelerators that help building owners tackle complex retrofits by guiding them from planning through to implementation. These accelerators also help build a knowledgeable and innovative retrofit sector, through training activities, to meet growing demand and to maximize energy and cost savings for building residents. The Deep Retrofit Accelerator Initiative builds a pipeline of projects for new retrofit financing, including through the Canada Infrastructure Bank and the Canada Mortgage and Housing Corporation and ensures that investment dollars go as far as they can go.
