A major new federal investment that will help Canadians lower their energy bills, improve home comfort, and reduce emissions through energy-efficient home retrofits.
As part of Canada’s National Electricity Strategy, Prime Minister Mark Carney announced a $2 billion investment to support one million home retrofits across Canada, helping households access cleaner and more affordable heating solutions while building a stronger economy.
“Families are feeling the pressure of rising household costs, especially when it comes to heating their homes. This investment will help Canadians save money, improve energy efficiency, and access cleaner/more reliable heating solutions. By helping households make the switch to modern heat pumps and supporting building upgrades, we are lowering energy bills and reducing emissions.” Said Sonia Sidhu, Member of Parliament for Brampton South.
A key component of the initiative is the new National Heat Pump Rebate Program, which will make it easier and more affordable for families to switch to efficient electric heat pumps.
Under the program:
- Eligible households with below-median incomes can receive up to $10,000 toward the purchase and installation of a heat pump.
- Other eligible households can receive $2,000 in support.
- Federal rebates can be combined with existing provincial programs to further reduce costs.
- Applications will be processed rapidly, with approvals expected within 24 hours to help families replace broken heating systems quickly.
Heat pumps can save households currently using oil heating or electric baseboards an average of $1,400 per year on energy costs while providing reliable, year-round heating and cooling.
The announcement also includes support for apartment and multi-unit residential buildings, with federal partners working to retrofit 280,000 rental and apartment units over the next eight years. These investments will improve energy efficiency, reduce utility costs, and support more sustainable housing across Canada.
The federal government estimates that these measures will support one million home retrofits and reduce emissions by more than 25 megatonnes. This investment is part of Canada’s broader plan to build clean, reliable, and affordable energy infrastructure while helping families save money and strengthening communities for generations to come.
