Prime Minister Mark Carney has announced a CAD 2 billion commitment aimed at funding 1 million residential retrofits across Canada, including a new nationwide heat pump rebate expected to reach up to 820,000 households.
Under the program, lower-income households earning below the median income will be eligible for up to CAD 10,000 toward an electric heat pump, while other eligible homes can claim up to CAD 2,000. The government said these rebates can be combined with existing provincial programs.
Applications will be processed through an online portal, with decisions made within one day and no energy assessments required before or after installation. The government noted that roughly one million Canadian households replace their heating systems each year, and in more than 80% of those cases the replacement is driven by an unexpected equipment failure.
More than seven million Canadian households still rely on oil, propane, diesel, electric baseboards or aging furnaces for heat, according to the government. It said switching to a heat pump can reduce annual heating costs by an average of CAD 1,400 for households currently using oil or electric baseboards.
Apartment Retrofits Also Targeted
The plan also sets a goal of retrofitting 280,000 apartment units over the next eight years. The Canada Mortgage and Housing Corporation will help finance upgrades for up to 250,000 additional units through its multi-unit mortgage loan insurance offering, while the Canada Infrastructure Bank will support 30,000 units through its Building Retrofits Initiative. The government is also extending its Deep Retrofit Accelerator Initiative.
Gregor Robertson, minister of housing and infrastructure and minister responsible for Pacific Economic Development Canada, said affordable housing includes affordable energy bills.
The government said the measures are expected to cut emissions by more than 25 megatonnes. They are designed to complement existing programs, including Oil to Heat Pump Affordability and Canada Greener Homes Affordability, and fall under Powering Canada Strong, the national electricity plan introduced in May that aims to double the country’s grid capacity by 2050.
No New Support for Solar Power
The announcement does not include new funding for rooftop solar panels or home battery storage. The Canada Greener Homes Grant, which previously covered residential solar installations, stopped accepting new applications in February 2024. The Canadian Renewable Energy Association said that program had supported solar installations on more than 50,000 homes before it closed.
CanREA reported that Canada’s total installed solar capacity is roughly 5.4 gigawatts, with only 57 megawatts of utility-scale solar added in 2025, down from 314 megawatts added in 2024. In Quebec, Hydro-Quebec currently offers CAD 1,000 per installed kilowatt for solar projects, capped at 40% of eligible costs.
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