A new federal heat pump rebate is coming to Canada in 2027, creating an opportunity for Ontario homeowners considering energy-efficient heating and cooling.
The Government of Canada has announced financial support for eligible households installing heat pumps. Although applications are not open yet, an important date is approaching: November 1, 2026.
Here’s what homeowners in Kitchener, Waterloo, Cambridge, Guelph and surrounding communities should know.
What Is the New Federal Heat Pump Rebate?
The Government of Canada has announced a $2-billion investment over eight years to help eligible households switch to efficient electric heat pumps.
The federal heat pump rebate 2027 program aims to make energy-efficient heating more accessible to eligible Canadian households.
The new National Heat Pump Rebate is expected to offer:
- $2,000 for eligible households.
- Up to $10,000 for eligible low- to median-income households.
- No energy audit required before or after installation.
- An online application process expected to open in early 2027.
The exact eligibility requirements, qualifying equipment and application details have not yet been fully released.
When Does the Heat Pump Rebate Start?
Although applications are expected to open in early 2027, the federal government has announced a retroactive eligibility period beginning November 1, 2026.
This means homeowners who install qualifying heat pumps on or after that date may be able to apply once the program launches, provided they meet all eligibility requirements.
Important: Installing a heat pump after November 1 does not automatically guarantee a rebate.
Additional program details, including eligible equipment and application requirements, are expected on November 1, 2026.
For official updates, visit the Government of Canada’s National Heat Pump Rebate announcement.
What Types of Heat Pumps Are Available?
Heat pumps transfer heat rather than generating it through combustion. They can provide efficient heating and cooling, depending on the system design.
Two common technologies include:
- Air Source Heat Pumps: Transfer heat between your home and the outdoor air. Modern cold-climate models can provide heating during Ontario winters and cooling during summer.
- Ground Source (Geothermal) Heat Pumps: Exchange heat with the ground through underground piping systems.
The federal government has not yet confirmed which heat pump types and equipment configurations will qualify for the new rebate. Additional eligibility details are expected on November 1, 2026.
Air Source Heat Pump Systems We Install
At All Year Heating & Cooling, our residential air source heat pump installation services include:
- Ducted Heat Pump with Air Handler: All-electric heating and cooling through central ductwork.
- Hybrid (Dual-Fuel) Heat Pump: An air source heat pump paired with a gas furnace.
- Single-Zone Ductless Heat Pump: Heating and cooling for an individual room or area.
- Multi-Zone Ductless Heat Pump: Multiple indoor units connected to one outdoor system.
We specialize in air source heat pumps and do not install ground source (geothermal) systems.
To explore your options, read our Heat Pump Guide for Kitchener-Waterloo Homeowners.
Heat Pump Installation Specialists in Kitchener-Waterloo & Surrounding Areas
Looking for experienced heat pump installation specialists in Kitchener-Waterloo?
At All Year Heating & Cooling Inc., we specialize in residential air source heat pump installations, including ducted, ductless, all-electric and hybrid heating systems.
Our team helps homeowners with heat pump selection, proper system sizing, professional installation and integration with existing heating and cooling equipment.
We proudly serve Kitchener, Waterloo, Cambridge, Guelph and surrounding communities, including Elmira, Elora, Fergus, Baden and New Hamburg.
Whether you’re upgrading an older heating system or exploring a new heat pump installation, we’re here to help you find the right solution for your home.
Explore our Heat Pump Installation Services or Request a Free In-Home Estimate.
All Year Heating & Cooling Inc. — Your Family Air Care
Frequently Asked Questions
Can I apply for the new heat pump rebate now?
No. Applications are expected to open in early 2027.
Will a heat pump installed in November 2026 qualify?
Possibly. The retroactive eligibility period begins November 1, 2026, but both the household and installation must meet the final program requirements.
Does the new rebate cover hybrid heat pump systems?
The final eligibility rules have not yet confirmed whether hybrid or dual-fuel heat pump configurations will qualify.
Rebate Information: All applicable rebates and incentives are subject to program eligibility, terms and conditions, and final approval by the respective program administrator. All Year Heating & Cooling does not determine rebate eligibility or guarantee rebate approval.
Information current as of October 22, 2026. Additional federal program details are expected on November 1, 2026.
