Changes to Canada Greener Homes Initiative for Heat Pump Rebates

Natural Resources Canada has updated the Canada Greener Homes Grant Initiative, clarifying the installation requirements for heat pumps. The changes just came into effect on August 1st, 2022.

According to their website:

A minimum of one warm air supply outlet or indoor head is required on every floor, including each level of a split-level, mezzanine level, etc., of each dwelling unit in the building. More than one warm air supply outlet and/or indoor head per floor may be required to ensure heat distribution to the entire building. (A transition period is in place since this clarification came after the launch of the Canada Greener Homes Grant).

Example: In a two-unit residential building (bungalow or house with a basement suite, or duplex) where part of the basement is dwelling 1 and where the remainder of the basement together with the main floor make up dwelling 2, three heads are required. A head is required in dwelling 1, and one on each storey of dwelling 2.

The installed heat pump system must comply with the newly clarified requirements when:

1. The pre-retrofit EnerGuide evaluation is performed on or after August 1, 2022, OR

2. The pre-retrofit EnerGuide evaluation is performed before August 1, 2022, and the post-retrofit EnerGuide evaluation is performed after December 31, 2022.

Depending on the equipment installed, there are three levels of grants for air source heat pumps and cold climate air source heat pumps.

Heat pumps for which they provide a grant can be a first-time installation of a heat pump system or a replacement of an existing heat pump system. The heat pump system can work as a standalone system or with an existing backup heating system. However, the backup system is not eligible for the grant; only the heat pump system would receive the grant.

To be eligible for the grant, a licensed and trained professional must install the heat pump. It must also be able to distribute heat throughout the entire house, including the basement.