The Government of Canada has announced a $2 billion investment over the next eight years to help Canadians reduce energy costs and improve home energy efficiency. Announced by Treasury Board President Shafqat Ali, the plan aims to support up to one million home retrofits across the country to make buildings more sustainable and affordable.

Addressing inefficient heating

The initiative arrives as the government seeks to address high winter heating expenses. Currently, more than seven million households in Canada utilize inefficient heating methods, including oil, propane, diesel, electric baseboards, or outdated furnaces. By providing more options, the government intends to lower the financial burden on these families while strengthening economic competitiveness.

How will the funds be used?

The investment is part of a broader National Electricity Strategy designed to provide reliable and affordable power. A significant portion of the funding will go toward a new National Heat Pump Rebate. This specific program is intended to help up to 820,000 households transition to more efficient electric heat pumps.

Supporting apartment buildings

Beyond single-family homes, the government is targeting multi-unit residential buildings. Working with the Canada Mortgage and Housing Corporation and the Canada Infrastructure Bank, the initiative aims to retrofit 280,000 apartment units. This will be achieved through several methods:

  • Affordable financing via the Multi-Unit Mortgage Loan Insurance Select program.
  • Investment support through the Building Retrofits Initiative.
  • Renewed support via the Deep Retrofit Accelerator Initiative.

Reducing national emissions

These measures seek to tackle the environmental impact of residential heating. By facilitating these upgrades, the government expects to reduce Canada’s emissions by more than 25 megatons. This goal is part of a larger effort to build clean energy corridors and transform the national economy through major infrastructure projects.

FAQ

How many homes will receive retrofits?

The initiative aims to support up to one million total home retrofits, including 280,000 apartment units.

What is the National Heat Pump Rebate?

It is a new program designed to help up to 820,000 households switch to efficient electric heat pumps.