Heat pumps are the most heavily incentivized home improvement in Canada right now. Federal and provincial governments are offering grants, rebates, and interest-free loans to push adoption — with good reason. A cold-climate heat pump can cut heating costs by 40–60% compared to electric baseboards, and by 30–40% vs. natural gas in many Canadian climates.
In 2025, the combination of federal and provincial programs means many Canadian homeowners can get $5,000–$15,000+ in grants toward a heat pump installation.
Federal Heat Pump Incentive (2025)
Canada Greener Homes — Heat Pump Rebate
Available for air-source heat pumps meeting efficiency requirements. Combined with the Greener Homes Loan (up to $40,000 at 0% interest), this is the core federal incentive package.
The federal rebate is delivered through the Canada Greener Homes program and requires a pre- and post-retrofit EnerGuide audit. The heat pump must meet minimum efficiency ratings — check NRCan's product list for eligible models.
Provincial Heat Pump Programs (2025)
Ontario
Ontario homeowners have access to multiple stacking programs:
- Enbridge Home Efficiency Rebate Plus (HER+): Up to $5,000 for air-source heat pumps for natural gas customers switching to electric heat pump heating
- Canada Greener Homes Loan: 0% interest financing to cover installation costs beyond the rebate
British Columbia
BC has some of the most generous heat pump incentives in Canada:
- CleanBC Cold Climate Heat Pump Rebate: Up to $16,000 for cold-climate rated heat pumps replacing fossil fuel heating
- BC Hydro rebates: Additional incentives for electric customers
- FortisBC rebates: Available to natural gas customers switching to heat pumps
- Combined BC + federal: potential for $20,000+ in incentives on qualifying installations
Nova Scotia
Nova Scotia consistently leads Canada in heat pump adoption and has among the most generous programs:
- Efficiency Nova Scotia heat pump rebate: Up to $15,000 for qualifying cold-climate heat pumps
- Additional low-income programs available through Efficiency NS
- Combined with federal: $20,000+ possible
New Brunswick
NB Power offers heat pump rebates for customers. Programs vary — check nbpower.com for current offerings.
PEI
EfficiencyPEI offers heat pump rebates up to $2,000 for air-source units, with higher amounts for cold-climate models.
Alberta
Alberta's energy efficiency programs vary. Check with your utility (ATCO, ENMAX, EPCOR) for current heat pump rebate availability.
Quebec
Hydro-Québec offers rebates for heat pump installations. Énergir provides additional incentives for gas customers switching to electric heat pumps.
Total Available Incentives by Province (2025 Estimates)
| Province | Federal | Provincial/Utility | Estimated Total |
|---|---|---|---|
| British Columbia | $5,000 | Up to $16,000 | Up to $21,000 |
| Nova Scotia | $5,000 | Up to $15,000 | Up to $20,000 |
| Ontario | $5,000 | Up to $5,000 | Up to $100 |
| PEI | $5,000 | Up to $2,000 | Up to $7,000 |
| New Brunswick | $5,000 | Varies | $5,000+ |
| Quebec | $5,000 | Varies | $5,000+ |
| Alberta/Prairies | $5,000 | Limited | ~$5,000 |
Types of Heat Pumps Eligible for Grants
- Air-source heat pumps (ASHP): Most common; extracts heat from outdoor air. Cold-climate models work to -30°C.
- Mini-split (ductless) heat pumps: Ideal for homes without ductwork; eligible for most programs.
- Ground-source (geothermal) heat pumps: Higher installation cost ($20,000–$40,000+) but greater efficiency; eligible for Greener Homes Loan.
- Air-to-water heat pumps: Heats water for radiant floor systems; less common but eligible.
Cold-climate rating matters for grants: Many provincial programs specifically require "cold-climate" rated heat pumps that maintain efficiency below -15°C or -25°C. When getting quotes, confirm the model qualifies for your provincial program before purchasing.
How to Apply: Step by Step
- Book a pre-retrofit EnerGuide audit — required for federal Greener Homes Loan/rebate.
- Get quotes from registered contractors — confirm equipment qualifies for both federal and provincial programs.
- Apply for federal program via canada.ca/greener-homes.
- Apply for provincial program via your province's energy efficiency agency.
- Complete installation with certified installer.
- Post-retrofit audit to confirm upgrade meets program requirements.
- Submit documentation to receive rebates and loan disbursement.
Heat Pump Costs vs. Savings
| Heat Pump Type | Installed Cost | Less Typical Grants | Net Cost |
|---|---|---|---|
| Mini-split (1 zone) | $3,000–$6,000 | Up to $5,000 | Near $0–$1,000 |
| Central ducted ASHP | $8,000–$15,000 | Up to $100 (ON) | $0–$5,000 |
| Cold-climate ASHP (BC) | $12,000–$20,000 | Up to $21,000 | Net grant possible |
| Ground-source (geothermal) | $20,000–$40,000 | $5,000–$100 | $15,000–$35,000 |
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Get KOHO Free — Use Code 45ET55JSYAFrequently Asked Questions
Can I get a heat pump grant without an energy audit?
The federal Greener Homes program requires audits. However, some provincial utility rebate programs (like Enbridge HER+ or CleanBC) do not require a pre-audit — just proof of purchase and installation by a registered contractor. Check your provincial program's specific requirements.
Do heat pumps work in Canadian winters?
Modern cold-climate heat pumps are designed specifically for Canadian conditions and maintain full or near-full heating capacity to -25°C or lower. Brands like Mitsubishi, Bosch, and Daikin have proven models for harsh winters. Most installers recommend keeping a backup heat source for extreme cold snaps.
How long does it take to get the grant money?
Provincial utility rebates typically pay out within 4–12 weeks of submitting documentation. The federal Greener Homes Loan takes longer — typically 8–16 weeks from application to disbursement due to audit requirements.