For many years, homeowners across Canada have been hearing about heat pumps. While these machines have existed for a very long time, more recent advances in compressor technology have helped them achieve higher efficiency, and work in even colder conditions. These improvements have helped heat pumps become more appealing to homeowners in even the coldest parts of our country.
The increased adoption rate of heat pumps has also been accelerated by enticing government rebate programs which financially incentivize homeowners towards using cleaner energy sources for home heating while getting away from reliance upon burning fossil fuels. And since home heating and cooling makes up a huge majority of your home’s energy consumption, you can see why this approach makes sense.
The process isn’t perfect, though, as navigating the vast and shifting landscape of what rebates are offered and to whom and under what circumstances is very complex.
At ClimateCare, our goal is to help you make informed decisions about your home comfort. We’ve authored this article highlighting the various programs in effect as of May 2026 to help you understand the rebate landscape, and answer some of the key questions you may have about rebates, and heat pumps in general.
1. Is a Heat Pump a Good Choice for Heating My Home?
In short, yes. Advances in compressor technology have made heat pumps far more efficient than in the past. While weather plays a factor in their efficiency, many are rated with a Coefficient of Performance, or COP, at or above 2.5 to 3 during weather that is typical in Canadian winters. Of note, you’ll want to ensure the heat pump you’re considering bears a “cold climate” rating.
2. What is COP? How are Heat Pumps so Efficient?
To simplify things, COP refers to the performance of a heat pump; how much energy it takes versus how much heat it produces. In an electric furnace or baseboard heater the COP is 1; you get one unit of heat for every unit of electricity you use to power those appliances. A heat pump works differently. Rather than creating heat (which uses more energy) a heat pump is doing the less arduous task of moving heat. It extracts heat from even the cold, winter air, and transfers it inside the house.
3. Will a Heat Pump Work on the Coldest Winter Days?
It’s impossible to safely make a blanket statement that all heat pumps installed by any installer will keep your home as warm as you’d like during any weather. With that said, if installed properly by a licensed professional, most cold climate heat pumps will keep your home warm during the coldest winter weather Canada has to serve up. You also have the option to have supplemental heating appliances. This could be a ductwork heater to keep everything all-electric, or something gas-burning like a fireplace or even a gas furnace (more on this in question 7).
4. Will a Heat Pump Work during a Power Outage?
No. Heat pumps require electricity to operate. It’s worth nothing, though, that so do gas-burning appliances. Without electricity to power the motor that exhausts combustion air, furnaces and power vented water heaters will not operate as a safety restriction.
5. Why Aren’t Heat Pumps More Popular?
Heat pumps have long held extremely high adoption rates in cold, northern Scandinavian countries. Their relatively recent adoption in the rest of Canada is largely due to our abundant natural resources and ability to generate inexpensive fossil fuels. In areas of the country where electricity is less expensive (like in Quebec thanks to abundant hydro-generating stations), heat pumps have been far more common for a long time. They’ve also been very popular in Atlantic Canada for decades due to the high cost of fuel oil. In contrast, areas where oil is abundant and inexpensive (like in Alberta) we have seen much slower adoption. As oil prices surge due to global instability, and the government looks to incentivize low and no carbon emission heating sources, we’re seeing a shift to cleaner, electricity-based heating systems.
6. Can a Heat Pump Cool my Home?
In almost all cases, yes. What’s ironic is that you probably already have a heat pump in your home and didn’t know it! If you have an air conditioner, you have a heat pump. It’s just locked in cooling only mode. What makes a heat pump different than a standard central air conditioner is primarily that it has a reversing valve. This important piece reverses the flow of the refrigerant between the evaporator coil (in the ductwork above your furnace) and the condenser coil (the series of fins that wraps around your outdoor unit). The change in direction of the refrigerant changes the function of the air exchange – either bringing in heat from the cold winter air, or expelling heat from inside the home in exchange for cooler air during the warmer days.
7. Do I Have to Get Rid of my Furnace to use a Heat Pump?
Absolutely not. While you can use a heat pump as your sole source for heating (and cooling), you can use it in conjunction with a gas-powered furnace if you are more comfortable with this approach. This is known has a hybrid system and it is very popular with those who like the security of a fuel-burning appliance as a backup for the coldest winter days or aren’t ready to completely turn away from gas.
8. Are Rebates a Scam?
No – but you should be vigilant. Unfortunately, large financial incentives often attract bad actors. When big rebates are offered, new heating and cooling companies seemingly pop up overnight, often with very aggressive marketing campaigns. As you should regardless of rebate status, be weary of companies offering deals that sound too good to be true, or that don’t have an established track record that you can easily verify (Google Reviews, membership in the Better Business Bureau and local chambers of commerce etc.).
It’s also important to ensure that the information you’re being provided by your contractor matches what the rebate administrators (usually the federal or provincial government or their assigned administrative body) are saying. That’s why we’ve built this guide to help you make that process a lot faster, and easier.
Find the Right Heat Pump and Rebate Program
Heat pumps have come a long way in recent years, offering Canadian homeowners an efficient, reliable, and environmentally conscious way to heat and cool their homes. While government rebates can help offset the cost of upgrading, understanding which programs you qualify for and navigating the application process can be challenging as requirements continue to evolve.
That’s where your local ClimateCare dealer can help. Our experienced home comfort professionals stay informed on available rebate programs and can help you understand your options, assess whether a heat pump is the right fit for your home, and recommend solutions that align with your comfort goals and budget.
If you’re considering a heat pump or want to learn more about the rebates currently available in your area, contact your local ClimateCare dealer today. We’re here to help you make a confident, informed decision about your home’s heating and cooling future.
