How to Start Getting a Cheap Heat Pump in Canada

Heat pumps cost $10,000–$25,000 installed, but rebates can cut that in half or more. The federal and provincial programs still running in 2026, how to stack them, and the order to do things so you don't lose the money.

Updated October 8, 2026 · 4 min read

Applies in: BC, AB, SK, MB, True, QC, NB, NS, PE, NL, YT, NT, NU

The short version

A heat pump is the single biggest home-energy upgrade most Canadians can make, and 2026 is a genuinely good year to do it — but the money is scattered across programs, and the order you do things matters. Get pre-approval before you sign anything, use a registered contractor, and check which rebates stack in your province.

Just announced: new $2B federal program (October 8, 2026)

Prime Minister Mark Carney announced today a new national heat pump rebate program launching in early 2027 — and it will be retroactive to this fall. The headline numbers: up to $10,000 back for households below the median income level, $2,000 for other homeowners, with $2 billion budgeted over eight years and a target of one million retrofitted homes.

It's aimed at the moment most people actually replace heating: when the old system breaks down or is near the end of its life (government data says 80% of HVAC replacements happen this way). Full details aren't finalized yet. What this means for you right now: if your furnace is on its last legs this fall, keep every receipt — the program is designed to be retroactive, so a purchase you make now could still qualify when it launches.

Step 1: Know what's actually available

The rebate picture changed recently, so forget anything you read two years ago:

NEW federal program (announced Oct 8, 2026, launches early 2027): up to $10,000 for below-median-income households, $2,000 for everyone else. Retroactive to fall 2026. Details still coming — this is the successor to the old Greener Homes Grant.
The old federal Canada Greener Homes Grant is closed to new applicants. Don't plan around it.
Canada Greener Homes Affordability Program (federal, income-qualified): covers retrofits including heat pumps at up to 100% of cost for qualifying lower-income households, delivered through provincial utility partners. If your household income is modest, start here — it's the best deal in the country.
Ontario's Home Renovation Savings program holds the biggest provincial pot. Cold-climate air source heat pumps: up to $7,500 for electrically heated homes, up to $2,000 for gas-heated homes. Ground source: up to $12,000. Single upgrades don't need an energy audit. You must use a participating registered contractor and get pre-approval.
BC Hydro offers up to $4,000 for replacing electric heating with a heat pump, plus a $1,000 bonus if you buy an eligible air source unit by October 31, 2026 (apply by end of November 2026). It must be installed by a Home Performance Contractor Network professional.
Other provinces: CleanBC and most provincial utilities run their own heat pump rebates in the $1,500–$4,000 range, usually tied to fuel-switching (getting off oil or electric baseboards). Nova Scotia also runs a separate $400 Heating Assistance Rebate for lower-income households each winter — applications opened October 1, 2026.

Rebate amounts change. Verify the current numbers with the program itself before you sign an installation contract.

Step 2: Get pre-approval before you sign

Almost every program that pays real money requires pre-approval or a registered contractor. The expensive mistake is signing an install contract and then discovering the rebate needed paperwork you didn't do. The safe order:

Confirm your eligibility on the program's website.
Get pre-approval if the program requires it.
Choose a contractor from the program's participating/registered list.
Confirm the heat pump model is on Natural Resources Canada's qualified products list.
Sign, install, then submit your rebate application with receipts.

Step 3: Stack what you can

Ask each program directly which other rebates it combines with — the rules differ by province and change over time. In general: provincial base rebates plus provincial bonus rebates (like BC Hydro's) stack cleanly; federal affordability money is meant for people the provincial programs don't fully cover. Your contractor has usually done this dance before — ask them which combinations they've actually seen paid out.

Step 4: Think about the whole house

A heat pump in a leaky house is money leaking out the vents. If your budget allows one more move, air sealing and attic insulation are cheap, often rebated separately, and make the heat pump itself smaller and cheaper. Some programs pay a bonus when you do more than one upgrade.

What it actually costs you

Rough math for a typical electrically heated Ontario home: a $15,000 cold-climate air source install minus up to $7,500 in rebates = ~$7,500 out of pocket, plus lower heating bills every winter after. An income-qualified household through the federal Affordability Program could pay close to nothing. A BC household acting before the October 31, 2026 bonus deadline stacks $4,000 + $1,000 off the top.

These are 2026 figures from program announcements — confirm them before you commit.

Questions people ask

How much does a heat pump cost in Canada in 2026?

A cold-climate air source heat pump typically runs $10,000–$20,000 installed in Canada, and a ground source (geothermal) system runs $20,000–$40,000. Ductless mini-splits for a single zone can be under $5,000. Rebates can knock $2,000–$12,000 off the air source price, depending on your province.

Is the federal heat pump rebate still available in 2026?

A brand-new one was just announced. On October 8, 2026, the federal government unveiled a $2 billion national heat pump rebate program launching in early 2027 — up to $10,000 back for households below the median income, $2,000 for other homeowners, retroactive to fall 2026. Full details aren't out yet. The old Canada Greener Homes Grant has closed to new applicants. Separately, the Canada Greener Homes Affordability Program (income-qualified, up to 100% covered) is still running through provincial utility partners.

How much is the Ontario heat pump rebate?

Ontario's Home Renovation Savings program pays rebates per ton of cooling capacity. For electrically heated homes: $1,250 per ton for a cold-climate air source heat pump (up to $7,500), $2,000 per ton for ground source (up to $12,000). For natural gas heated homes the air source rebate is $500 per ton (up to $2,000). You must use a participating registered contractor and get pre-approval.

How much is the BC heat pump rebate?

BC Hydro offers up to $4,000 through its Home Renovation Rebate Program when you replace electric heating with a heat pump, installed by a Home Performance Contractor Network professional. There's also a $1,000 bonus for eligible air source heat pump upgrades purchased by October 31, 2026, with the rebate application submitted by the end of November 2026.

Can I stack federal and provincial rebates?

Sometimes. The old federal grant was explicitly stackable with provincial programs, and some provincial programs allow stacking with each other (for example, BC Hydro's bonus rebate on top of the base rebate). But you can't double-claim the same dollars — each program has rules about which other programs it combines with. Read the eligibility terms of each program before you sign a contract, and ask your contractor which combinations they've actually seen approved.

Do I need an energy audit before installing a heat pump?

It depends on the program. Some legacy federal programs required a pre- and post-retrofit EnerGuide assessment (around $600 out of pocket). Ontario's Home Renovation Savings program has a no-assessment stream for single upgrades like heat pumps — you can skip the audit entirely for a straight heat pump install. Check your specific program's requirements before booking anything.

What is a cold-climate heat pump, and does it work in a Canadian winter?

A cold-climate air source heat pump is rated to keep heating efficiently well below freezing — typically down to -25°C or colder. They're the standard choice for Canadian homes now. Only models on Natural Resources Canada's qualified products list count for rebates, so make sure your contractor quotes a listed model.

Can renters get heat pump rebates?

The Canada Greener Homes Affordability Program has expanded to include renters in some provinces, but the tenant needs the landlord's written permission since the work modifies the property. Income-qualified households can get the full retrofit — heat pump included — at no cost. Check your province's delivery agent for the current rules.