Carney heat pump rebate program: How Canadians can claim up to $10,000, who qualifies and when applications open

Carney heat pump rebate program: Canadian Prime Minister Mark Carney announced Thursday that his government is investing $2 billion into a new national heat pump rebate program. Under this program, the government is investing millions of dollars over a period of eight years to deliver one million home retrofits to lower energy costs for Canadians and reduce emissions. This will give Canadians access to more affordable, reliable, and cleaner electricity than before. The government says the program will aim to help lower energy costs across the country, reduce emissions, and increase energy efficiency.

ALSO READ: Thanksgiving turkey dinner for family of 4 costs $35.72, up 10% from 2025; how families can cut grocery costs

How Canadians can claim up to $10,000?

According to the Canadian government, the heat pump rebate program will offer grants when homeowners install eligible heat pumps in the houses. The most crucial thing is the size of the grant and that will be depend on the household income. Eligible low to median income households could get up to $10,000, while those above the median household income will be able to receive up to $2,000. The new federal program is expected to launch in early 2027, and the government says it is considering making it retroactive to fall 2026.

The government said that the government is aimed at helping people facing emergency replacements of their heating system. However, the program will not require that to be requirement for eligibility. People who are looking to apply need to apply through an online portal and can expect to get confirmation of their eligibility, including grant amount within 24 hours.

ALSO READ: Susan Dell philanthropy goes beyond Trump Accounts

With the help of online portal, the Canadian applicants will be able to upload receipts after their install their new heat pumps. They can expect confirmation within five days and applicants will then be reimbursed through direct deposit.

Government officials said they are aiming to launch the program in early 2027 and are exploring options to extend a retroactive eligibility program. The confirmed rebate amounts announced so far are:

• Up to C$10,000 for eligible households below the median income.
• C$2,000 for other eligible homeowners.
• Eligible heat pumps must appear on the federal government's approved products list.
• The rebate can be combined with existing provincial programs.
• The government says eligible applicants will receive approval within 24 hours, with payment approved within five days of submitting installation receipts.
• Applications are not yet open. Canadians can visit the official federal home-retrofit program page to sign up for updates on the launch, eligibility and application process

How many Canadian households will benefit?

The Government of Canada said up to 820,000 households will be able to take advantage of the rebate program, over an eight-year period. Homeowners will be able to look to a list of eligible products, which the government says will include "an extensive selection of over 100,000 options at various price points and configurations, all suited for the Canadian climate."

The government said it hold talks and consult with industry and work with HVAC installers to maximize the reach of the pending program. Government officials who briefed media said that Ottawa wants industry to have the needed inventory on hand to deliver the program as planned. This is one reason why consultations are taking place.