Furnace replacement rebates in Canada
Most current Canadian rebates pay you to replace a furnace with a heat pump, not with another furnace. The federal National Heat Pump Rebate (up to $10,000 below median income, $2,000 otherwise) is designed for exactly this moment, when a system breaks down or nears end of life, but it isn't open yet.
Rebates for gas furnaces themselves
- Saskatchewan: SaskEnergy's Residential Equipment Replacement Rebate covers high-efficiency natural gas furnaces, boilers and water heaters (see SaskEnergy for amounts).
- Toronto: the HELP loan lists high-efficiency furnaces as eligible (financing, not a rebate).
- Edmonton: CEIP does not finance high-efficiency gas furnaces unless combined with a heat pump.
- Ottawa: per local reporting, Better Homes Ottawa excludes gas furnaces.
Heat pump rebates when replacing a furnace, by province
| Province | Max provincial heat pump rebate | Status |
|---|---|---|
| British Columbia | $13,000 | open |
| Alberta | $0 | none (financing only) |
| Saskatchewan | $0 | none |
| Manitoba | $2,000 | open |
| Ontario | $7,500 | uncertain - 2025-26 registration reportedly closed May 31 2026 (homeow |
| Quebec | $6,700 | open (HQ notes federal program, LogisVert continues) |
| New Brunswick | $1,500 | EESP open for income <=$70k (free upgrades); oil-to-HP $15k advance cl |
| Nova Scotia | $10,000 | open; no rebates for replacement heat pumps (functioning or not) |
| Prince Edward Island | $0 | CLOSED April 15 2026 (claims for purchases Apr 15 2025-Apr 15 2026 onl |
| Newfoundland and Labrador | $22,000 | open (no closure date) |
| Yukon | $10,500 | open |
| Northwest Territories | $0 | limited |
| Nunavut | pending | none found |
Furnace vs heat pump cost
Government example: electric furnace about $6,000 vs heat pump about $15,000, saving about $1,400 a year. QuoteSaver (Sept 2026) puts an 80,000 BTU 96% gas furnace at $4,633–$6,267 and a 3-ton cold-climate ducted heat pump at $12,283–$16,618. See heat pump vs furnace and the cost calculator.
Furnace just died? Emergency checklist →
Sources: www.canada.ca · quotesaver.ca · www.edmonton.ca
Last verified:
FAQ
Is there a government rebate for a new furnace in Canada?
Few. Most programs now fund heat pumps. SaskEnergy offers rebates on high-efficiency gas equipment, and some cities finance furnaces.
Can I get the federal rebate if my furnace breaks?
That is the program's purpose, but it opens later (CBC: early 2027) and requires an eligible cold-climate heat pump.
Get heat pump installer quotes
Free, no obligation. We pass your request to vetted local installers.
Not a government website. nationalheatpumprebate.ca is an independent guide and is not affiliated with the Government of Canada, Natural Resources Canada, or any provincial program. Amounts can change; always confirm with the official program before buying or installing. We may earn a referral fee from installers.