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B.C. powers up savings and climate action with new heat-pump rebates

British Columbia has unveiled a powerful new rebate program offering up to $5,000 for residents in low-rise condos and townhomes to install electric heat pumps, a move that could slash energy bills and help fight climate change.

Announced on July 15 by the Ministry of Energy and Climate Solutions, the two-phase program will first target buildings up to six storeys that currently rely on electric baseboard heating. A second phase, rolling out this fall, will expand the offer to those using fossil-fuel systems like gas furnaces and boilers.

“This program will support families and seniors in apartments and townhomes across B.C. managing affordability concerns and ensure they have the opportunity to convert to heat pumps to provide a safe and healthy controlled climate for their homes,” Tony Gioventu, executive director of the Condominium Home Owners Association of B.C., said in a statement to CityNews.

Income-qualified applicants can access up to $5,000 under the new rebate. Those who do not qualify may still be eligible for up to $2,500 in support through BC Hydro programs.

The rebate is part of the $100-million CleanBC Energy Savings Program announced in April, which aims to install at least 8,000 new heat pumps in homes and multi-unit dwellings across the province by mid-2026.

Energy Minister Adrian Dix said the province is focused on affordability while remaining committed to reducing emissions, calling the heat pump program “a cost-efficient way to address climate change.”

How heat pumps help homeowners beat rising energy costs

Heat pumps are among the most efficient heating and cooling systems available in Canada. Unlike conventional gas furnaces or electric baseboards, heat pumps move heat rather than generating it directly, delivering between two and five times more energy than they consume.

A 2023 study by the Canadian Climate Institute found that heat pumps are now the lowest-cost option for heating and cooling in much of the country over the long term. In cities like Vancouver, Toronto and Halifax, homeowners can save between $5,000 and $15,000 over 18 years, especially when replacing outdated oil or baseboard systems.

The savings extend beyond winter. Heat pumps provide air conditioning in summer, reducing the need for a second system and helping mitigate the risks of extreme heat.

Efficiency Canada notes that nearly two-thirds of Canadian households would see net annual savings after switching to a heat pump, particularly in provinces like B.C. with clean electricity and relatively mild winters.

What other provinces and Ottawa are doing to make heat pumps more affordable

British Columbia’s rebate is one of several heat pump incentives now available across Canada.

The federal government’s Oil to Heat Pump Affordability Program provides up to $10,000 — and in some provinces, up to $15,000 — to help lower-income households switch from oil-based systems. That’s on top of other financing options, such as the Canada Greener Homes Loan, which offers interest-free loans of up to $40,000.

Ontario offers rebates through the Home Efficiency Rebate Plus program, which covers up to 30% of costs and up to $4,500 for heat pump upgrades. In Quebec, Nova Scotia, New Brunswick and P.E.I., homeowners can access between $1,200 and $6,700 depending on income and system type.

In many provinces, rebates can be combined, stacking federal and provincial support to cover a significant portion of upgrade costs.

Key details B.C. homeowners and renters need before applying

There are a few things British Columbians need to know before applying:

Eligible buildings: The current rebate phase is limited to townhomes and apartment buildings up to six storeys using electric baseboards. A second phase launching this fall will include fossil-fuel systems such as gas boilers and furnaces.
Income qualification: Up to $5,000 is available for income-qualified applicants. Those who do not meet the income threshold may still qualify for BC Hydro rebates of up to $2,500.
Strata and landlord approval: If you live in a condo or rental, you’ll need written permission from your strata council or landlord before making changes to shared infrastructure.
Limited funding: B.C. is targeting 8,300 installations by 2026. Early applications are encouraged, as funding may not last indefinitely.

To qualify, installations must be done by a licensed professional and meet the provincial rebate guidelines. More information is available on the CleanBC and BC Hydro websites.

How to turn rebates into real savings on your energy bills

Making the switch to a heat pump is more than a climate-conscious move. It’s a long-term investment. To maximize your savings:

Stack incentives: Combine the B.C. rebate with federal or utility programs when available. Together, homeowners may qualify for up to $10,000 or more in support.
Plan upgrades: Check whether your electrical panel or ducting needs upgrading. These costs can be significant but may also be eligible for partial rebate coverage.
Prioritize efficiency: Seal windows, upgrade insulation and improve airflow where possible. A well-insulated home helps your heat pump perform at its best.

If you’re not sure where to start, an energy audit, which is required for some rebate programs, can help identify the most cost-effective improvements for your home.

Why now is the time to make the switch — and how to make it work

With rising energy prices, extreme weather and growing government support, 2025 may be the best time for British Columbians to make the switch to heat pumps.

Unlike past rebate programs that excluded condo and apartment dwellers, this latest initiative ensures more people, including renters and those in shared buildings, can access clean, efficient heating and cooling.

Homeowners who act quickly stand to gain the most: lower bills, improved home comfort and protection from future fossil-fuel restrictions.