National Heat Pump Rebate: The Electrical Side of a Heat Pump Install

What the Government Has Announced

According to the official National Heat Pump Rebate page, the Government of Canada is investing $2 billion to support up to 820,000 Canadian households choosing to install a cold climate heat pump.

Here are the key points, as of November 13, 2026:

• How you apply: through an online portal that the government says will be available in early 2027.
• No energy audit: the page says no energy audit is required before or after installation.
• Program dates: the program is expected to launch in early 2027 and close in March of 2034.
• Retroactive from November 1, 2026: households who meet the eligibility criteria and install an eligible heat pump on or after that date may be eligible for a retroactive rebate by applying once the program opens.
• Emergency or planned installs: both are accepted. You don't need to remove your existing system or show that it has broken down.
• Current heating fuel: the page lists electricity (including electric furnaces or electric baseboards), natural gas, heating oil, propane, diesel, coal and/or wood.

No payments will be made until the program launches and applications are received and approved.

How Much Is the Rebate?

The government says actual rebate amounts will depend on household income and the cost of the equipment installed:

• Above median income households may be eligible for a rebate of $2,000.
• Below median income households may be eligible for a rebate of up to $10,000.

To receive the higher amount (up to $10,000), the official page says your after-tax household income must be equal to or less than the median for your province and household size. For Ontario, the published thresholds (median after-tax household income in 2025 dollars) are:

The page explains how to work out your household after-tax income from your 2025 tax return (line 23600 minus line 43500, added together for a spouse or common-law partner). When applications open, you would apply for the higher amount by providing your Social Insurance Number so the Canada Revenue Agency can verify your income. Check the official page for the full table and instructions.

Who Is Eligible During the Retroactive Period

For installs during the retroactive period, the official page lists these requirements:

• The heat pump must be on the eligible product list, as identified by its Air-Conditioning, Heating and Refrigeration Institute (AHRI) number(s).
• The heat pump was purchased from and installed by an HVAC contractor.
• You reside in Canada and own the home you are applying for. It does not need to be your primary residence.
• Federal funding has not previously been provided for a heat pump at that address.
• Only one rebate is available per household, even if you own more than one property.
• You must submit your receipts within 6 months.

The page also lists what the contractor's receipt must include: the applicant's name and address, the name of the company installing the heat pump, the make, model and AHRI number of the equipment, the number of heat pumps installed, and the total cost for the installation project, “including necessary directly related activities, such as ductwork and electrical upgrades.”

The program supports eligible systems that can heat your entire home. If you install during the retroactive period, the government encourages you to confirm with your contractor that the system is sized to heat your whole home.

Important Caveats

The government is clear that this program is not final:

• Program parameters and eligibility criteria are still being finalized and remain subject to change.
• Eligibility will be assessed based on the rules in effect on the date the heat pump was installed.
• Funding is not guaranteed until an application is approved.

We can't promise anyone a rebate or a rebate amount. Before you buy, check the official page for the latest rules. You can also sign up there for updates on launch dates and how to apply.

The government also notes that for homes currently heating with natural gas, a heat pump may not lower heating bills, depending on region, the system selected and other factors. It recommends talking to your installer about whether a heat pump makes sense for your home.

Watch for scams. The government warns that salespeople are using misleading references to the rebate. It says Environment and Climate Change Canada never goes door-to-door to inspect, sell or rent heating and cooling equipment, and isn't making marketing calls. Start the conversation with a qualified HVAC company yourself.

Why a Heat Pump Is Also an Electrical Project

A heat pump runs on electricity, and many homes are switching from gas, oil or propane heat at the same time. That can add a large new load to an electrical panel that was never sized for that kind of load.

Before the heat pump goes in, a few electrical questions need answers:

• Does the panel have enough capacity for the new heating load?
• Is there room in the panel for a new heat pump breaker?
• Does the electrical service need an upgrade, for example from 100A to 200A?
• What is the route for the dedicated circuit to the outdoor and indoor units?

Every home is different, so the answers depend on your panel, your service size and the loads already connected. We check these on site before anyone commits to a plan.

Panel Capacity and Service Upgrades

Many older Toronto homes still have a 100A service. Some can take a heat pump without changes, and some need a panel or service upgrade first. We won't invent an upgrade you don't need, and we won't ignore one you do.

If an upgrade makes sense, we handle the panel or service work, including upgrades such as 100A to 200A. You can see the residential work we do, including panel upgrades and new circuits, in our Residential Electrical & Renovations services.

The official page says the receipt's total project cost includes necessary directly related activities, such as electrical upgrades. How electrical work is shown on your paperwork, and what the rebate will actually cover, is decided by the program, so keep every invoice and check the official rules before you apply.

The Dedicated Circuit

A heat pump generally needs its own dedicated circuit, sized to the equipment being installed. We run that circuit from the panel, install the breaker and make the electrical connections the system needs.

Only a licensed electrician should do the panel and circuit work for a heat pump. This is not a DIY job, and we don't give DIY instructions for it.

ESA Permit and Inspection

The electrical work for a heat pump is new electrical work in Ontario, so it generally needs an ESA permit, formally a Notification of Work. We take out the ESA permit for the electrical work and arrange the ESA inspection, so the work is on record.

If ESA asks for anything to be adjusted, we take care of the electrical side.

Who Does What on a Heat Pump Job

Electro Group does the electrical work. One of the trusted HVAC partners we work with installs the heat pump itself. Since the program requires the heat pump to be purchased from and installed by an HVAC contractor, the heat pump is bought from and installed by the HVAC company. Here's how the work is usually split up:

1. Electrical assessment and free quote. We check your panel capacity, service size and circuit route.
2. Panel or service upgrade, if needed. We handle it before the heat pump goes in.
3. Heat pump purchase and installation. One of the trusted HVAC partners we work with supplies and installs the heat pump.
4. Dedicated circuit and connection. We run the circuit and connect the equipment.
5. ESA permit and inspection. We file the permit and arrange the ESA inspection.

If you'd rather have one point of contact, we can coordinate with the trusted HVAC partners we work with, so the electrical and HVAC work are scheduled together.

Get a Free Quote for the Electrical Work

If you're in Toronto or the GTA and planning a heat pump, we'd be glad to look at your panel first. Contact us or call 289-814-7241 for a free quote.

Electro Group Ltd. is a licensed electrical contractor, ESA Licence #7017939. Our team has 15+ years of experience in the trade.

FAQ

Can I apply for the heat pump rebate right now?

Not yet. The government says the online portal will be available in early 2027. Eligible installs from November 1, 2026 may qualify for a retroactive rebate once applications open. You can sign up for updates on the official page.

How much is the rebate?

The official page says above median income households may be eligible for $2,000, and households at or below the median for their province and household size may be eligible for up to $10,000. Actual amounts depend on household income and the cost of the equipment installed. Funding is not guaranteed until an application is approved.

Do I need an energy audit?

No. The official page says no energy audit is required before or after installation.

Who installs the heat pump itself?

The program requires the heat pump to be purchased from and installed by an HVAC contractor. One of the trusted HVAC partners we work with installs the heat pump, and we do the electrical work.

Will my electrical panel need an upgrade for a heat pump?

It depends on your panel, your service size and your current loads. We check panel capacity during the free quote and tell you if an upgrade is needed.

Ready to Plan Your Heat Pump Switch?

The rebate gets the attention, but the electrical work is what keeps a heat pump running safely. We serve homeowners across Toronto and the GTA.

Source: Government of Canada, National Heat Pump Rebate, accessed November 13, 2026. Program details are subject to change; check the official page for the latest rules.