Heat Pump Rebates Guide: Available Grants, Eligibility and How to Apply

What Are Heat Pump Rebates?

Heat pump rebates are financial incentives intended to reduce the cost of purchasing and installing eligible heat pump systems.

Programs may be offered by the federal government, provincial or territorial governments, municipalities and local energy providers.

The amount available can differ significantly depending on where you live and whether you are replacing oil, natural gas, electric resistance heating or another existing system.

What Heat Pump Programs Are Available in Canada?

Program Type	Potential Support	Availability
Oil to Heat Pump Affordability Program	Up to $10,000 in federal support	For eligible oil-heated homes
Provincial and Territorial Programs	Rebates, grants or no-cost upgrades	Varies by location
Utility Provider Rebates	Equipment or installation rebates	Available in selected service areas
Municipal Programs	Local grants or financing	Available in some communities

What Is the Oil to Heat Pump Affordability Program?

The Oil to Heat Pump Affordability program helps eligible low- to median-income homeowners replace oil heating with an eligible electric heat pump.

Eligible applicants may receive up to $10,000 from the federal program. Additional provincial support may be available in participating jurisdictions.

The federal application deadline is July 31, 2026. Approved applicants have additional time to complete the installation and upload the required documents.

Who May Qualify for Heat Pump Assistance?

Requirements vary, but programs may consider:

• Your province or territory of residence.
• Your household income.
• Whether you own and occupy the property.
• Your current home heating system.
• The type and model of heat pump being installed.
• Whether the installation is completed by an eligible contractor.
• Whether you applied before purchasing or installing the equipment.

What Types of Heat Pumps May Qualify?

Heat Pump Type	Potential Eligibility
Cold-Climate Air-Source Heat Pump	Commonly supported
Ductless Mini-Split Heat Pump	May qualify
Central Ducted Heat Pump	May qualify
Ground-Source Heat Pump	Supported by selected programs
Heat Pump Water Heater	Supported by selected programs

A heat pump must usually meet technical efficiency requirements and may need to appear on an approved equipment list.

What Costs May Be Covered?

Depending on the program, eligible costs may include:

• Purchase of an eligible heat pump.
• Professional installation.
• Electrical panel upgrades.
• Removal of an existing oil tank.
• Safe disposal of old heating equipment.
• Necessary piping or ductwork modifications.
• Home energy evaluations when required.

How to Apply for a Heat Pump Rebate

1. Check the programs available in your province or territory.
2. Confirm the income, property and heating-system requirements.
3. Verify whether approval is required before starting the work.
4. Select eligible equipment from the approved product list.
5. Use a qualified contractor when required.
6. Keep quotes, invoices, receipts and equipment information.
7. Submit the final documents before the program deadline.

Apply Before Starting the Installation

Some rebate programs require homeowners to apply and receive confirmation before purchasing equipment or beginning installation.

Starting the work too early could make the project ineligible. Read the rules carefully and obtain written confirmation before signing a contract.

Documents You May Need

• Proof of home ownership and primary residence.
• Government-issued identification.
• Household income information.
• Heating oil bills or fuel purchase records.
• Contractor quotes and invoices.
• Heat pump model and product information.
• Proof of payment.
• Before-and-after installation photographs.

Can Renters Receive Heat Pump Rebates?

Most heat pump installation rebates are intended for property owners because the equipment becomes a permanent part of the home.

However, renters may benefit from affordability programs delivered through landlords, social housing providers or provincial energy-efficiency initiatives.

Can You Combine Multiple Heat Pump Rebates?

Some federal, provincial, municipal and utility incentives can be combined, while others prohibit receiving multiple payments for the same expense.

Review the stacking rules for every program before submitting an application.

Are Heat Pump Rebates Taxable?

Tax treatment can depend on the program, the recipient and whether the property is used personally or for business or rental purposes.

Homeowners with questions about their individual situation should review the program terms or consult a qualified tax professional.

Heat Pump Rebates Frequently Asked Questions

Is the Canada Greener Homes Grant still open?

No. The Canada Greener Homes Grant is closed and is no longer accepting payment requests.

How much does the Oil to Heat Pump Affordability program provide?

Eligible homeowners may receive up to $10,000 in federal support, with additional assistance potentially available through participating provinces.

Can I receive a rebate for replacing natural gas heating?

Possibly. Provincial, municipal or utility programs may support heat pump installations that replace natural gas systems.

Do all heat pumps qualify?

No. Programs usually establish efficiency standards and approved equipment lists.

Can I install the heat pump myself?

Most programs require installation by a qualified or registered professional.

Should I apply before hiring a contractor?

You should check the program rules first. Some programs require approval before equipment is purchased or work begins.

Related Northbly Guides

• Utility Rebates Canada Guide
• Home Energy Rebates Guide
• Ontario Energy Rebates
• Winter Heating Assistance Guide