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Thrive Energy Inc

New federal heat pump rebate: what we know and why sizing still matters

The federal government announced a new National Heat Pump Rebate on October 8, 2026. Income-qualified households (below the median income) can get up to $10,000 towards a heat pump. Other eligible homeowners can get $2,000.

No energy audit is required, before or after the install. A heat load calculation may be required. There is no information on that yet, but we would get one done either way. More on that below.

What was announced

The government has committed $2 billion over eight years and expects the rebate to reach up to 820,000 households. This is what has been released so far:

  • Up to $10,000 for households below the median income, and $2,000 for other eligible homeowners.
  • The heat pump has to be an electric cold climate air source heat pump on the federal Eligible Products List.
  • No energy audit before or after the work.
  • You apply online with your basic information and the details of the heat pump you plan to buy. Approval comes within 24 hours.
  • After the install you upload your receipts. Payment is approved within five days and goes out by direct deposit.
  • It can be combined with existing provincial rebates.
  • One rebate per person.

The government says more than 80% of heating systems are replaced because the old one broke down, so the program is set up to move quickly. You can also apply if your system is near the end of its life and you want to switch before it quits.

What hasn’t been released yet

  • The launch date
  • The income cut-off for the $10,000 rebate
  • Which existing heating systems qualify
  • Whether a heat load calculation will be required
  • What will be asked of installers. The government says it will start consulting with HVAC installers right away.

You can sign up for updates from the federal government. We will update this post when the details are out.

No energy audit needed

This rebate does not ask for an EnerGuide evaluation before or after the work. For a furnace that has just quit, that is good news. There is no waiting on an evaluation before the install can go ahead, and the heat pump can go in as quickly as a furnace would.

A heat load calculation may be required, and you need one either way

A CSA F280-12 heat load calculation works out how much heat your house loses on the coldest day it is designed for and how much it gains on the hottest. That is the number the heat pump should be sized to. Natural Resources Canada recommends sizing heat pumps with CSA F280-12.

With 24-hour approvals, the easy thing to do is match the size of the old furnace. We don’t recommend it. Natural Resources Canada’s heat pump sizing guide notes that older heating equipment was commonly sized at 125% to 140% of the home’s design heat loss. Equipment sized without a proper F280 is frequently larger than the building actually requires.

Size matters more with a heat pump than it does with a furnace. According to Natural Resources Canada:

  • If the heat pump is too big, it cycles on and off in milder weather. That means less comfort, more wear on the equipment and lower savings.
  • If it is too small, the backup heat runs more often and you may not see the savings you expected.
  • A heat pump puts out less heat as it gets colder outside, so it needs to be checked against what the house needs in cold weather.
  • Heat pumps generally move more air than furnaces. The existing ducts need to be looked at, and some may need changes.

When you are spending $15,000 to $30,000 on a new system, an extra $400 to $500 to make sure it is sized properly and runs efficiently is a very small price to pay.

In BC you may need one anyway. BC Hydro asks for a CSA F280-12 heat load calculation with its whole home heat pump rebate application. CleanBC requires one for dual fuel rebates and recommends one for all heat pump installs.

What to do now

Get the heat load calculation done before your new equipment is chosen. That way you and your contractor know what size of heat pump the house needs before you pick one.

To see which BC rebates a home may qualify for on top of the federal one, try our free Rebate Finder.

To book a heat load calculation, email office@thriveenergyinc.com or call 778-867-0242.

About The Author

Picture of Brett Tracy

Brett Tracy

Brett Tracy is the founder and a Registered Energy Advisor at Thrive Energy Inc. He provides BC Energy Step Code modelling, EnerGuide evaluations, blower-door testing, CSA F280-12 heat-loss and heat-gain calculations, Integrated Design Process facilitation and building-science consulting throughout the Okanagan and BC Interior. All NRCan-regulated work is performed through Isle Energy Consulting, a Service Organization licensed by Natural Resources Canada.