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Carney promises heat pump rebate program starting early 2027, up to $10,000 per household
Carney announced the new federal heat pump rebate program in Sherbrooke: launching early 2027, retroactive to this fall, up to $10,000 per household, $2 billion over eight years targeting one million retrofitted homes.
Why it matters
This is the Carney government's first national home-decarbonization rebate program and a direct answer to soaring winter heating costs: households heating with oil now pay at least $2,500 more per year than in 2024. Officials concede, however, that switching may not pay off where natural gas is cheap — whether the rebate is worth it will vary by household.
Full report
Prime Minister Mark Carney announced on Thursday, Oct. 8, at a heating and cooling equipment manufacturer in Sherbrooke, Que., alongside Environment Minister Julie Dabrusin, that a new federal heat-pump rebate program will launch in early 2027 and be retroactive to installations made this fall.
Key points: up to $10,000 per household for switching to a heat pump; $2 billion in federal funding over eight years; a target of one million retrofitted homes; all homes eligible. Carney said more than one million Canadian households still heat with oil, propane or diesel — fuels that pollute more, are less efficient and are at the mercy of global markets.
The numbers: heating a home with oil now costs about 70 per cent more than in 2024, at least $2,500 more per household every year.
At a technical background briefing, officials acknowledged that in parts of the country with lower natural gas costs, switching from a natural-gas furnace to a heat pump would not save money, and said the government will be clear with Canadians about the cost implications. Full program details have not yet been finalized.
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