UPDATE 23 OCTOBER 2026
Environment & Climate Change Canada has confirmed that the retroactivity period for the National Heat Pump Rebate Program will begin on November 1, 2026. On that date, further details will be published regarding rebate amounts, eligibility criteria, eligible products, and the application process. MCABC is advising our members to keep all related business and product documents for heat pumps installed on or after November 1, 2026, until it becomes clear which installations will be eligible for retroactive rebates when the program opens in early 2027.
Vancouver, B.C. — The Government of Canada has announced a major new push to accelerate home heating retrofits, with potential implications for mechanical contractors working in the HVAC and building retrofit markets.
On October 8, Prime Minister Mark Carney unveiled a $2-billion investment over eight years, including a new rebate program targeting 820,000 household heat pump installations and three further initiatives aimed at supporting energy-efficiency retrofits in 280,000 multi-family residential units.
National Heat Pump Rebate Program
Under the new program, households below the median income can receive up to $10,000 toward an eligible electric cold-climate air-source heat pump, while other eligible households can receive $2,000. These rebates can be combined with existing provincial programs.
Importantly for contractors, the new program promises a streamlined application process and a 24-hour approval timeline, helping reduce administrative and time barriers that can complicate retrofits when customers need to replace failing heating systems quickly.
Three Further Initiatives for MURBs
Prime Minister Carney’s announcement also targets the multi-unit residential market.
- Multi-Unit Mortgage Loan Insurance Product
The Canada Mortgage and Housing Corporation (CMHC) will help rental housing providers access financing on more favourable terms to undertake energy-efficiency retrofits, using its existing mortgage loan insurance framework.
- Building Retrofit Initiative
The Canada Infrastructure Bank (CIB) will mobilize further private sector investment and its existing government allocation to support retrofits in multi-unit residential buildings (MURBs).
- Deep Retrofit Accelerator Initiative
The federal government will invest nearly $110 million over three years to renew this initiative, which funds third-party accelerators that help building owners move complex retrofit projects from planning through implementation.
A Commitment to Industry Consultation
The Government of Canada has committed to work directly with HVAC contractors and industry associations on the rollout of the National Heat Pump Rebate Program, including on program details, installer readiness, certifications, upskilling, and workforce growth.
How these issues are addressed will ultimately determine how effectively the new programs translate federal investment into successful retrofit projects and opportunities for mechanical contractors.
MCABC will continue to monitor the rollout and share relevant program details and opportunities with members as they become available.
Read PM Carney’s full announcement here.
Read the Government of Canada’s backgrounder here.
About MCABC
The Mechanical Contractors Association of B.C. (MCABC) is the only dedicated representative for the mechanical contracting industry in British Columbia—the industry with the largest share of skilled trades workers in the construction sector. As the connection to industry excellence for our diverse membership, we deliver education and professional development programs that enable high standards of practice and business success. Through advocacy and strong industry partnerships, we influence policy and regulatory development at all levels of government, advancing the interests of our industry and improving its ability to meet B.C.’s growing infrastructure demand.
Media Contact
Conor Brendan Dunne
Manager, Communications & Stakeholder Engagement
cdunne@mcabc.org
(604) 205-5058
