Prime Minister Mark Carney announced Thursday in Sherbrooke, Que., a new federal heat pump rebate program offering up to $10,000 to households that switch to heat pumps. The program is set to launch in early 2027 and will be retroactive to this fall, though its full details have not yet been finalized.
The program is geared toward homeowners whose heating systems are broken or close to replacement, according to the announcement. Ottawa is budgeting $2 billion over eight years, with a target of retrofitting one million homes.
Carney said more than one million Canadian households still heat with oil, propane or diesel, and pitched the program as an affordability measure. He said heating a home with oil costs about 70 per cent more than it did in 2024, at least $2,500 more per household every year.
Federal officials acknowledged at a technical briefing that the switch may not save money for everyone. In parts of the country with lower natural gas costs, switching to a heat pump would not save money, officials said, adding the government will make the cost implications clear to Canadians. What that means for Lower Mainland homes on natural gas is not yet clear.
All homes would be eligible for the program, officials said, and adoption of heat pumps also serves to reduce greenhouse gas emissions. Carney made the announcement alongside Environment Minister Julie Dabrusin at a heating and cooling system manufacturer.
Source: Prime Minister’s Office itinerary and event reporting, Oct 8, 2026.
