Eligible Canadians could get up to $10,000 from the government soon — here's how
The federal government has announced a new $2-billion national heat pump rebate program aimed at lowering energy costs, reducing emissions and making Canadian homes more energy efficient.
Speaking Thursday, Prime Minister Mark Carney said the program will support over one million home retrofits across the country.
“When fully taken up, these upgrades will save Canadian families more than $1 billion every year on their energy bills. That is a great return on investment,” Carney said.
“When fully taken up, these upgrades will save Canadian families more than $1B every year on their energy bills. That is a great return on investment,” says Prime Minister Mark Carney as he announces $2B in funding for more than a million home retrofits.
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Heating is one of the biggest household expenses during the winter months, and, according to the government, over seven million Canadian households are still heating their homes using oil, propane, diesel, electric baseboards, or outdated furnaces.
“Every year, about one million Canadian homes replace their heating system. More than 80 per cent of the time, it is because the old system broke down without warning,” according to the news release.
Electric heat pumps can provide a more efficient alternative as they use less energy than traditional heating methods and cost less in the long run.
For households currently heating with oil or electric baseboards, the government estimates a heat pump could save an average of $1,400 a year.
How much could you receive?
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The biggest part of the new program is a rebate that will help cover the upfront cost of purchasing and installing an electric heat pump.
Some Canadians could receive up to $10,000 back from the federal government, although the amount will depend on household income.
Households with incomes below the median will be eligible for a rebate of up to $10,000, while other eligible households will be able to receive a $2,000 rebate. The government says these rebates can be combined with existing provincial programs to potentially reduce the upfront cost even further.
How to receive the money
The new program and online application portal are not expected to launch until early 2027.
Once the program launches, applicants will receive confirmation of their eligibility and rebate amount within 24 hours, the government says.
Homeowners will have to upload their receipts online, and eligible applicants will then receive their rebate through direct deposit within five days.
The federal government is also planning to help apartment building owners improve the energy efficiency of their properties.
It is working with the Canada Mortgage and Housing Corporation (CMHC) and the Canada Infrastructure Bank (CIB) to support retrofits for 280,000 apartment units over the next eight years.
“Combined, these measures will support one million home retrofits and reduce Canada’s emissions by over 25 megatonnes – the equivalent of taking nearly eight and a half million cars off our roads for one year,” the government states.