On October 8, 2026, the Prime Minister announced a new federal rebate program for heat pumps, and it could change the math for a lot of homeowners thinking about replacing an old heating system. The new National Heat Pump Rebate is designed to be fast, simple, and easy to combine with the provincial incentives already available in BC. If you’ve been weighing a switch, this guide summarizes what was announced, who qualifies, and what to do next. You can also see the incentives available right now on Foster’s promotions and rebates page.
What Was Announced
The federal government is investing $2 billion over eight years to support one million home energy retrofits across Canada. The centrepiece for homeowners is a new National Heat Pump Rebate, which aims to help up to 820,000 households switch to efficient electric heat pumps.
The announcement also includes financing support for apartment and multi unit building owners through the Canada Mortgage and Housing Corporation and the Canada Infrastructure Bank. For most single family homeowners, though, the heat pump rebate is the part that matters. You can read the full details in the official news release from the Prime Minister’s Office.
How Much the Federal Rebate Program for Heat Pumps Offers
The rebate amount depends on household income:
- Households below the median income can receive up to $10,000 toward an eligible electric heat pump
- All other eligible households can receive $2,000
Both amounts can be combined with existing provincial programs. For BC homeowners, that means the new federal rebate can sit on top of the provincial incentives already available, bringing the out of pocket cost of a heat pump down even further.
Who Qualifies
Based on the government’s backgrounder, here’s what eligibility looks like so far:
- The heat pump must be an electric cold climate air source heat pump on the program’s Eligible Products List, which includes more than 100,000 options at a range of price points
- Only one rebate is issued per person, so a landlord who claims the rebate for a rental property can’t also claim it for their own home
- No energy audits are required before or after installation
- You can apply when your current system breaks down, or ahead of time if it’s nearing the end of its life
That last point is important. You don’t have to wait for a breakdown to qualify.
Why This Program Is Different
Past rebate programs have often meant paperwork, energy assessments, and long waits. This federal rebate program for heat pumps is built to remove most of that friction.
Approval Within 24 Hours
The government says applications will be approved within 24 hours. That matters because, according to the announcement, more than 80 percent of heating system replacements happen because the old system failed without warning. When your furnace quits in the middle of winter, you need a decision fast, and the program is designed so a heat pump can be installed as quickly as a replacement furnace.
A Simple Online Portal
Homeowners will apply through a secure online portal. The application asks for basic personal information and details of the eligible heat pump you plan to buy.
Payment Within Five Days
After your pre-approved heat pump is purchased and installed, you upload your receipts through the portal. The government says payment will be approved within five days and sent by direct deposit.
How Much Could a Heat Pump Save You?
According to the government’s figures, households currently heating with oil, propane, or electric resistance heat (electric furnaces and baseboards) save an average of more than $1,400 a year after switching to a heat pump.
On top of the savings, a heat pump also provides air conditioning. With hotter summers becoming more common, that’s a real comfort upgrade from a single system. Learn more about how heat pumps work and what Foster installs.
When Does the Program Open?
The announcement did not include a specific date for when the application portal opens. The government says it will begin consulting with HVAC installers and industry partners immediately, and that installers will play a key role in rolling the program out.
Because details are still being finalized, we recommend checking the official Government of Canada pages for the latest updates, or speaking with an installer who is following the rollout closely.
How to Get Ready Now
You don’t need to wait for the portal to start planning. A few steps now can make the process faster when applications open:
Know your current system. Note the age and fuel type of your furnace or heating system. If it’s approaching the end of its life, you’re in a good position to plan the switch on your own terms.
Get an assessment. A licensed technician can confirm what size and type of heat pump your home needs, and whether your electrical panel can support it.
Check the Eligible Products List. Only listed models qualify. Your installer can confirm which recommended models are on the list once it’s published.
Look at provincial incentives too. Because the federal rebate can be combined with provincial programs, it’s worth understanding everything you may qualify for before you buy.
Consider financing for the remaining balance. If you’d like to spread out the cost after rebates, Foster offers financing options for qualified customers.
Making the Most of the New Federal Rebate
The federal rebate program for heat pumps is one of the most homeowner friendly incentives Canada has offered. Up to $10,000 for eligible households, approval within 24 hours, no energy audits, and the ability to combine it with BC programs all make switching to a heat pump more affordable than it has been in years.
Foster Heating & Cooling has been helping homeowners upgrade their heating and cooling since 1928, and we’re following this program closely. If you’d like to talk through whether a heat pump makes sense for your home and which rebates you may qualify for, get in touch with our team. We’re happy to help you plan ahead.
Frequently Asked Questions
What is the new federal rebate program for heat pumps?
It’s the National Heat Pump Rebate, announced on October 8, 2026 as part of a $2 billion investment over eight years. It offers rebates to help up to 820,000 Canadian households switch to efficient electric heat pumps.
How much is the federal heat pump rebate?
Households below the median income can receive up to $10,000. Other eligible households can receive $2,000.
Can I combine the federal rebate with BC rebates?
Yes. The government says both rebate amounts can be combined with existing provincial programs, which can lower the cost of a heat pump even further.
Do I need an energy audit to qualify?
No. The program does not require an energy audit before or after installation.
How long does approval take?
The government says applications will be approved within 24 hours, and payment will be approved within five days after you submit your receipts.
Do I have to wait until my furnace breaks down?
No. You can apply if your system has broken down, or if it’s approaching the end of its life and you want to switch before a breakdown happens.
When can I apply?
An opening date for the application portal was not included in the announcement. Check the official Government of Canada pages for updates, or ask your installer about the rollout timeline.
