October 10, 2026
The Government of Canada has announced a $2 billion investment over eight years aimed at supporting energy-efficiency retrofits in up to one million homes across the country, including a new National Heat Pump Rebate and measures targeting multi-unit residential buildings.
Announced October 8, 2026, the initiative is part of the federal government’s broader National Electricity Strategy and is intended to reduce household energy costs while lowering emissions. For Canada’s construction and building sectors, the program could also increase demand for HVAC installation, building retrofits, skilled trades and energy-efficiency expertise.
The largest component is the new National Heat Pump Rebate Program.
The federal government says the $2 billion investment will provide rebates to as many as 820,000 homeowners installing eligible electric cold-climate air-source heat pumps.
Households below the median income could qualify for rebates of up to $10,000, while other eligible homeowners could receive $2,000. Qualifying systems must appear on the government’s Eligible Products List.
Unlike some previous energy-efficiency programs, homeowners will not be required to complete pre- or post-retrofit energy audits.
The federal government says its online application process will be designed to provide approvals within 24 hours. Following installation of a pre-approved heat pump, homeowners will submit receipts through the portal, with payment approval targeted within five days.
According to the federal government, households currently heating with oil, propane or electric resistance systems could save an average of more than $1,400 annually after switching to a heat pump.
Heat pumps can also provide both heating and air conditioning, giving homeowners one system for year-round temperature control.
The government says the overall package of retrofit measures is expected to reduce emissions by more than 25 megatonnes.
Delivering hundreds of thousands of heat-pump installations would create significant requirements for Canada’s HVAC sector.
The federal government plans to consult HVAC installers as the National Heat Pump Rebate is rolled out, with industry consultations beginning following the announcement.
The government also plans to work with technical colleges and industry associations on certification, workforce development and upskilling initiatives intended to expand the labour capacity required to support the program.
For contractors and HVAC businesses, the scale of the initiative could create opportunities extending beyond equipment installation to electrical work, system design, servicing and related residential upgrades.
The federal initiative also includes measures aimed at apartment buildings and other multi-unit residential properties.
Through a Canada Mortgage and Housing Corporation mortgage loan insurance product, rental housing providers will be able to access private financing on more favourable terms for energy-efficiency improvements. The government expects the initiative to support retrofits in up to 250,000 rental housing units over eight years.
Separately, the Canada Infrastructure Bank’s Building Retrofit Initiative will target at least another 30,000 units in multi-unit residential buildings by mobilizing private-sector investment. The CIB will use its existing government allocation rather than new federal funding for this initiative.
The federal government will also invest nearly $110 million over three years beginning in 2027–28 to renew the Deep Retrofit Accelerator Initiative.
The program funds third-party organizations that assist building owners with complex retrofit projects from planning through implementation.
Accelerators also provide training intended to expand expertise within Canada’s building retrofit sector and help develop projects that could subsequently access financing through organizations including CMHC and the Canada Infrastructure Bank.
Beyond household energy savings, the scale of the federal initiative could have implications throughout Canada’s renovation, construction and building technology sectors.
Reaching the government’s target would require coordination among homeowners, property owners, HVAC contractors, skilled trades, equipment manufacturers, distributors, building professionals, financial institutions and training organizations.
The National Heat Pump Rebate is not yet open for applications. The federal government’s current program page allows Canadians to sign up for updates about launch dates, eligibility, rebate amounts and the application process.
Explore related articles you won’t want to miss:
What Is Construction Technology? A Practical Guide to ConTech
What Is Agentic AI in Construction? From Chatbots to Autonomous Workflows
