Accounts
Accounts Overview
RBC Vantage
Explore Account Types
Chequing Accounts
Cross-Border Banking
Savings Account
Youth and Student Banking
Earn More with RBC
Value Program
Chequing Products
Advantage Banking
Advantage Banking for Students
Day to Day Banking
Signature No Limit Banking
VIP Banking
US Personal Banking
Savings Products
High Interest eSavings
Enhanced Savings
Day to Day Savings
US Savings
Leo’s Young Savers Account
Tools & Resources
Account Selector Tool
Compare Chequing Accounts
Compare Saving Accounts
Customer Service
Managing Your Bank Account
Wire Transfer
International Money Transfer
Virtual Visa Debit
Direct Deposit
Additional Account Services
Credit Cards
Credit Cards Overview
View All Credit Cards
Travel Cards
Rewards Cards
Cash Back Cards
Low Interest Cards
No Annual Fee Cards
Student Cards
Business Cards
Tools & Resources
Help me Choose a Credit Card
Company Credit Cards
Credit Card Cash Back Calculator
Frequently Asked Questions
Cards Advice: How Do I…
Improve my credit score
Reduce my credit card interest
Pay my credit card bill
Manage expenses with credit cards
Protect from credit card fraud
I’m a Cardholder
Activate My Card
Cardholder Resources
Report Lost or Stolen Credit Card
Add an Additional User
Benefit Guides and Insurance Documents
Optional Add-On Services
Mortgages
Mortgages Overview
Mortgage Rates
Mortgage Products
Manage Your Mortgage
Special Mortgage Offers
Connect with a Mortgage Specialist
Get Pre-Qualified in 60 Seconds
Your Next Move
Buy Your First Home
Buying Your Next Home
Renovate Your Home
Buying an Investment Property
Buying a Vacation Home
Renew Your Mortgage
Switch Your Mortgage to RBC
Refinance Your Mortgage
Tools & Resources
Mortgage Payment Calculator
Home Value Estimator
Neighbourhood Explorer
Rent or Buy Calculator
All Mortgage Tools & Calculators
RBC Homebuyer Advantage
Personal Loans
Loans Overview
Personal Loans
Lines of Credit
Student Lines of Credit
Home Improvement Loans
RRSP Loans
Car Loans & Vehicle Solutions
Car Loans Overview
Car Loans Through a Dealer
Loans for Electric Vehicles
Financing Your Boat or RV
Business Vehicle Solutions
Buying Your First Vehicle
Buying Your Next Vehicle
Managing Your Car Loan
Car Loan Prequalify Calculator
Tools & Calculators
My Auto Affordability Tool
Car Loan Calculator
RV & Marine Locator
Loan Payment Calculator
Debt Consolidation Calculator
Compare Lines of Credit & Loans
Pay Down Debt & Improve Cash Flow
Loan Calculators
Investments
Savings and Investments Overview
Popular Accounts & Products1
Tax-Free Savings – TFSA
Retirement Savings – RRSP
First Home Savings – FHSA
Education Savings – RESP
Guaranteed Investment Certificate – GICs
Mutual Funds
Exchange-Traded Funds – ETFs
Stocks and Bonds (RBC Direct Investing)
ESG Investing
All Investments Accounts and Products
Ways to Invest
With Access to an Advisor
Low-Efffort, Automatic Investing (RBC InvestEase)
Trade and Invest Yourself (RBC Direct Investing)
Purchase Investments
Advice and Planning
MyAdvisor
How to Save and Invest Guides
Retirement Planning
Financial Planning (RBC Financial Planning)
Customized Wealth Planning (RBC Wealth Management)
Resources and Tools
All Investment Tools & Calculators
TFSA Calculator
RRSP Calculator
GIC Selector
Compare GICs
Retirement Budget Calculator
GIC Rates
FAQs
1 Products and services may be offered by Royal Bank of Canada or by a separate corporate entity affiliated with Royal Bank of Canada, including but not limited to Royal Mutual Funds Inc., RBC Direct Investing Inc. (Member–Canadian Investor Protection Fund), RBC InvestEase Inc., RBC Global Asset Management Inc., Royal Trust Company or The Royal Trust Corporation of Canada
Insurance
Insurance Overview
Creditor Insurance
Creditor Insurance Overview
HomeProtector Insurance
LoanProtector Insurance
BalanceProtector Insurance
Travel Insurance
Travel Insurance Overview
Travel Insurance Packages
Travel Medical Insurance
Trip Cancellation and Interruption Insurance
Get a Quote
Tools & Resources
Creditor Protection Selector
HomeProtector Insurance Quote
LoanProtector Insurance Quote
Make a Travel Insurance Claim
Ways to Bank
Ways to Bank Overview
Online Banking
ATM, Branch, & Telephone Banking
RBC Digital Banking Security Guarantee
Mobile Banking apps
RBC Mobile
Avion Rewards
Pay with Your Mobile Device
RBC Launch
Learn How To…
Reset Your Password
View or Print a Void Cheque
Add or Remove a Payee
Set up Direct Deposit
Transfer Money Between Accounts
View or Print Your Tax Documents
View All Tutorials
Newcomers
Newcomers Overview
Banking
Credit Cards
Mortgages
Car Loans
Investing
The RBC Newcomer Advantage
Advice by Visa Status
Permanent Resident
International Student
Business Owner/Entrepreneur
Foreign Worker
Tools & Resources
What Our Partners Can Offer You
How Banking Works in Canada
Building a Credit History in Canada
Buying Your First Home in Canada Checklist
Buying Your First Car in Canada Checklist
Retirement Planning
Retirement Overview
I’m Saving and Planning
I’m Getting Close
I am Already Retired
Retirement FAQ
Tools and Resources
Retirement Budget Calculator
Test Your Retirement Knowledge
Will and Estate Planning
What is CPP and QPP?
Tailored Products & Offers
Retirement Savings – RRSP
Retirement Income Fund – RRIF
My Advisor
Student Solutions
Student Hub
Student Bank Accounts
Student Credit Cards
Student Loans
Popular Accounts
RBC Advantage Banking for Students
RBC High Interest eSavings
RBC Leo’s Young Savers Account
Build Your Career
Future Launch
Gain New Skills
Grow Your Network
Work Experience
Beyond Banking
Personal Beyond Banking
Business Beyond Banking
Arrive: For Newcomers to Canada
Learn More About Arrive
Sustainable Finance Solutions
Sustainable Finance Solutions Overview
Switch to Electronic Statements
Savings & Investments
ESG Investing
Travel & Commuting
Electric Car Financing
Electric Car Cost Calculator
Electric Car Guide
Electric Car Rebates
Home
Home Energy Guide
Home Energy Rebates
Rewards
Rewards Overview
Avion Rewards Credit Cards
Pay with Points
Offers
RBC Petro-Canada
Rewards Credit Cards
Popular Rewards Cards
RBC Avion Visa Infinite
RBC ION Visa
RBC Avion Visa Infinite Privilege
RBC ION+ Visa
What’s New
View Offers
#LifeMatters: Bryan Baeumler on Choosing a Path Less Travelled
Struggling to Make Ends Meet
Managing and Consolidating Debt
Managing Expenses
Improving Your Credit Score
Unexpected Events
Loss of Income
Handling Financial Stress
Money in an Emergency
Bankruptcy
Personal Bankruptcy
Business Bankruptcy
Consumer Proposals
Need Financial Help?
Book an Appointment
1 800 769-2511
Buying a Home
Buying your First Home
Buying your Next Home
Investment Property and Vacation Home
Home Building and Renovations
Refinancing and Downsizing
Buying a Vehicle
Finding the Right Car
Financing Your Car
Travel and Cross-Border
Planning for a Big Trip
Buying or Refinancing a US property
Travelling and Shopping in the US
Studying in the US
Living in the US
School and Career
Going to College or University
Finding a Job
Continuing Education
Medical or Dental Students
Retirement
Planning for Retirement
Living in Retirement
Will and Estate Planning
Finances and Relationships
Marriage
Parenthood
Separation and Divorce
Death of a family member
Women and Money Management
New to Canada
Settling in Canada
Employment in Canada
Banking in Canada
Studying in Canada
Starting a Business in Canada
Settling into your new life in Canada can be hard. Talk to an RBC Newcomer Advisor
Banking Basics
Account Types
Budgeting
Banking Tips
Money Mindset
Credit and Borrowing
Understanding Loans
Understanding Credit Scores
Understanding Credit Cards
Investing
Types of Investments
Understanding Risk
Investing Basics
Cyber Security
Understanding Cyber Safety
Cyber Security for Business
Economics 101
Economics for Beginners
Understanding Inflation
Understanding Interest Rates
Climate Change
Business Stages
Start a Business
Grow Your Business
Transition Your Business
Managing Your Business
Business Planning
Business Financing & Funding
Cash Flow Management & Financials
Making & Receiving Payments
Get Inspired
Business Success Stories
Innovation
Right-Sized Business Advice
Small Business
Commercial
Solo Entrepreneur
Ideas & Voices
Go To Grandma with Kathy Buckworth
Real Life Stories of Cyber Crime
Take 2 Minutes
The Wealthy Barber
Bryan and Sarah Baeumler
Inspired Investor
Ideas & Motivation
Investing Academy
Smart Savings
What’s your money mindset?
Finance, Fitness and your Future
By Kate Standing
Published July 24, 2024 • 6 Min Read
Across Canada, heat pumps are rising in popularity as an energy- and cost-efficient option for heating and cooling our homes. Switching to a heat pump can reduce your household energy usage, as they can be three times as efficient as both gas furnaces and electric boiler heating. And beyond energy savings, heat pumps could also reduce your home’s greenhouse gas emissions: A recent report found heat pumps’ superior efficiency may help reduce the country’s annual household emissions by up to 19.5 million tonnes.
While heat pumps have been found to offer the lowest lifetime cost for heating and cooling in most Canadian households, one hurdle to more widespread adoption could be the upfront costs of installation, which are often higher than installing a new furnace. (Standard air-source heat pumps can cost approximately $9,000, with cold climate air-source heat pumps in the bracket of $10,000 and $19,000, and ground-source heat pumps ranging from $15,000 to over $30,000.)
With these prices, and the recent closure of the Canada Greener Homes Grant, which had provided Canadians with up to $5,000 in rebates on home energy upgrades, many homeowners are looking for ways to help cover the cost of a heat pump. The good news is that many provinces have their own rebate and financing programs, which could help to make heat pumps more accessible.
Let’s take a look at what’s available in your province, as well as today’s federal heat pump programs.
At the federal level, the government’s Oil to Heat Pump Affordability Program (OHPA) offers up to $10,000 for low-to-median-income households to switch from heating oil to a heat pump. Additionally, increased funding is available for homeowners in British Columbia, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island to claim an extra $5,000 — bringing the maximum grant amount to $15,000. A $250 bonus payment is available to help with the associated costs of switching to heat pumps in these provinces.
The Canada Greener Homes Loan also provides heat pump financing from the federal government. It offers borrowers a 10-year interest-free loan between $5,000 and $40,000, which can be used for retrofits, like heat pump installations, recommended by an EnerGuide advisor.
The Clean Energy Improvement Program helps homeowners in selected municipalities to finance energy-efficient upgrades. The program, which includes heat pump installation, ties financing to the property, rather than the property owner, and repayments are made through property tax bills. The program provides competitive interest rates, long repayment terms, and the option to pay off the project’s balance at any time.
Through the CleanBC Better Homes and Home Renovation Rebate Program, eligible residents and homeowners in B.C. can claim up to $3,000 in heat pump rebates, as well as rebates for other energy-saving projects like water heating and building envelope upgrades. The province’s income-based CleanBC Better Homes Energy Savings Program can help make home upgrades more affordable for many residents, who can receive up to $19,000 to install a heat pump. Income-qualified homeowners in B.C. may also be eligible for up to $15,000 to switch from oil heating to a heat pump, as part of the federal Oil to Heat Pump Affordability Program.
Efficiency Manitoba provides rebates for heat pump installation structured around the square footage of a home and whether the homeowners chooses an air- or ground-source heat pump. In addition, financing through Manitoba Hydro’s Home Energy Efficiency Loan offers up to $5,000, which is paid back in monthly energy bills over a maximum repayment term of five years.
The Total Home Energy Savings program offers homeowners in New Brunswick incentives of $1,500 for eligible air-source heat pumps, $2,000 for ground-source heat pumps, $400 for mini-split heat pumps and $350 per indoor head for multizone heat pumps.
Residents of Newfoundland and Labrador can access financing through the takeCHARGE program. Eligible customers of Newfoundland Power and Newfoundland Labrador Hydro can access financing of up to $10,000 with financing terms of up to 60 months to install a qualifying heat pump. Income-qualified homeowners in Newfoundland and Labrador may also be eligible for up to $15,000 to switch from oil heating to a heat pump, as part of the federal Oil to Heat Pump Affordability Program.
The Arctic Energy Alliance (AEA) offers rebates of up to $20,000 for the installation of ground-source heat pumps.
Efficiency Nova Scotia offers rebates of up to $2,000 for eligible heat pumps. Income-qualified homeowners in Nova Scotia could also be eligible for up to $15,000 to switch from oil heating to a heat pump, as part of the federal Oil to Heat Pump Affordability Program.
Nunavut’s Home Renovation Program (HRP) offers homeowners in the territory a one-time forgivable loan of up to $100,000, or a grant of 50 percent of eligible costs up to $20,000, for energy improvements such as improvements to heating systems.
Ontario’s Energy Affordability Program (EAP) offers free cold climate air-source heat pumps for income-qualified individuals who own, rent or lease a residence in the province.
Homeowners in both Toronto and Ottawa can access regional programs to help finance home energy projects, including heat pump installation. Toronto’s Home Energy Loan Program (HELP) and Ottawa’s Better Homes Ottawa Loan Program provide loans of up to $125,000 with a payback period of 20 years.
Residents of P.E.I. may be eligible for a point-of-sale rebate of $1,200 for qualifying mini-split heat pumps. In addition, residents with an annual household income of $100,000 or less could be eligible for the province’s Net Zero Free Heat Pump Program. Income-qualified homeowners in P.E.I. may also be eligible for up to $15,000 to switch from oil heating to a heat pump, as part of the federal Oil to Heat Pump Affordability Program.
Quebec’s LogisVert Efficient Homes Program provides eligible homeowners with financial assistance of up to $6,700 to install a heat pump.
There are currently no rebates or incentives for heat pumps for residents of Saskatchewan. However, the province’s Home Efficiency Retrofit Rebate (HERR) provides up to $1,800 for other energy-saving projects, such as air-sealing, insulation and ENERGY STAR-certified windows and doors.
Homeowners with properties less than five years old are eligible for a rebate of $1,500 for the installation of a heat pump, while older homes are eligible for a rebate of 40 percent of the installation cost, up to a maximum of $8,000.
Learn more about ways to save energy at home and energy-efficient rebates in your province.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
Share This Article
Topics:
Accounts
Credit Cards
Mortgages
Loans
Investments
Rewards
Diversity & Inclusion
Community and Social Impact
ESG Reporting
Commitment to Youth
Thought Leadership
Media Newsroom
Newcomers to Canada
Future Launch
Student Solutions
Contact Us
Find a Branch or ATM
Book an Appointment
Royal Bank of Canada Website ©1995-