National Heat Pump Rebate: what it means for your costs
Ottawa has announced a National Heat Pump Rebate. Here is what we know so far and how it relates to heat pump and furnace costs at home.
Ottawa has announced a National Heat Pump Rebate, but the amount, eligibility and start date have not been published yet. Until they are, plan around today's installed prices and don't treat any rebate as money in hand.
What was announced
According to Canada.ca, Prime Minister Carney announced a $2-billion investment over eight years to help Canadians cut energy costs and improve home efficiency. It is meant to support up to one million retrofits across the country.
The National Heat Pump Rebate is part of that package. The government says it should help up to 820,000 households move to electric heat pumps. Separately, it is working with the Canada Mortgage and Housing Corporation and the Canada Infrastructure Bank on retrofits for apartment buildings, targeting 280,000 units over eight years.
The same release describes how the rebate is meant to work:
- It will run through an online portal.
- There will be no energy audit before or after installation.
- Approvals are promised within 24 hours.
The speed matters because, according to the same release, around 80% of replacements each year happen when a system breaks without warning. A quick approval is aimed at that situation.
What has not been published
The source does not give a rebate amount, an opening date, or who qualifies. It does not say how the new rebate sits alongside existing programs. We won't guess at any of these. Check the official program page before you sign a contract, and ask your installer whether work started before launch will count. The announcement doesn't say.
What a heat pump costs today
Our figures are before GST/HST. For a ducted air-source heat pump, we estimate a typical installed cost of $12,000, with most projects falling in $9,350 – $15,600. A basic job comes in around $9,800, and a premium one around $15,800.
The system you choose changes the price. A ducted unit, a dual-fuel hybrid that keeps your gas furnace, and a whole-home ductless multi-zone setup all cost different amounts:
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Ductless multi-zone (whole home) | $10,900 | $8,450 – $14,100 | – |
| Ducted air-source heat pump | $12,000 | $9,350 – $15,600 | – |
| Dual-fuel hybrid (keeps gas furnace) | $13,000 | $10,100 – $16,900 | – |
We build these numbers from labour hours × local rates plus materials, then check them against market prices and real quotes. Our full [heat pump cost guide](Heat pump installation) covers what moves the price.
Heat pump or furnace?
If your furnace is near the end of its life, you will be comparing the two. Gas furnaces made since July 2019 must be at least 95% efficient under federal rules, so the cheap 80% option is gone. A typical furnace replacement is $5,500, usually $4,300 – $7,200. See our [furnace replacement guide](Furnace replacement) for the details.
A heat pump generally costs more up front than a furnace swap. A rebate would narrow that gap, but how much depends on figures that haven't been released.
Existing programs
Some programs are already in place. The Canada Greener Homes Grant and Loan are closed. The federal Oil to Heat Pump Affordability program offers up to $10,000, or up to $25,000 where it is co-delivered with the province, for oil-heated homes. Applications closed on 31 July 2026 in Alberta, Manitoba, the Northwest Territories, Quebec and Saskatchewan.
In Ontario, Home Renovation Savings offers up to $7,500 for a cold-climate air-source heat pump in homes heated by electricity, oil, propane or wood. Gas-heated Enbridge customers can get up to $2,000. Pre-approval and a participating contractor are required.
What to do now
- Replacing a failed system this winter: Don't wait on a rebate that isn't open. Ask whether your installer can document the work so you can apply later if the rules allow it.
- Planning ahead: You have time. Get at least three itemised quotes and compare them once the rebate terms are published.
- Checking a price: Use our "is my quote fair" tool to compare a quote against our figures for your region.
Heat pump electrical work needs licensed trades and usually a permit. Make sure your installer handles both.
We will update this article when the rebate details are published.