Heat Pumps in BC: Rebates, Costs and What to Check Before You Switch

A heat pump heats your home in winter and cools it in summer. If you own a house, townhouse or condo in Metro Vancouver or the Fraser Valley, here is what you can claim as of November 2026, which programs have closed, what drives the cost and what to check before you sign, plus what to ask when a home you are buying or selling has one.

The short version

What a heat pump does

A heat pump moves heat rather than making it: in winter it draws heat from the outdoor air, and in summer it reverses to cool. BC Hydro says a high-efficiency model can deliver roughly two to three times more heat energy than the electricity it uses over a heating season. The main types:

• Ductless mini-split. One outdoor and one indoor unit, usually for one room.
• Multi-split. One outdoor unit serving indoor units in several rooms.
• Central ducted. Heats and cools the whole home through ductwork.
• Hybrid or dual fuel. A ducted heat pump with a gas furnace that takes over below a set outdoor temperature.

Rebates if your home is heated with electricity

BC Hydro's Home Renovation Rebate Program covers houses, townhouses and other ground-oriented homes heated with baseboards or an electric furnace that are your year-round primary residence and at least 12 months old.

• Amount. Up to $4,000 to heat the whole home, or $1,500 if the heat pump meets at least half of the home's heating needs in a main living area.
• Equipment. A variable-speed unit on BC Hydro's eligible list. Homes over 1,200 square feet need a multi-split or central system, backup heat must be electric, and whole-home systems need a heat load calculation.
• Contractor. A Home Performance Contractor Network (HPCN) member. Self-installs, emergency replacements and replacing an existing heat pump don't qualify.
• Timing. Apply within six months of the invoice date; BC Hydro suggests three quotes.

In select postal codes, including parts of Abbotsford, Maple Ridge, White Rock, Surrey's Campbell Heights, Vancouver west of Cambie and the Mission to Agassiz area, a community top-up adds another $4,000 or $1,500 automatically. Condo owners can get up to $2,250 to replace a unit's electric heat, but need BC Hydro's pre-approval, with the strata's sign-off, before buying anything. The $1,000 bonus for installations completed and paid for between August 1 and October 31, 2026 has ended; its applications are due November 30.

Rebates if you heat with gas or oil

The general CleanBC rebates for switching from gas, oil or propane to an all-electric heat pump ended on April 11, 2025, except in northern BC. Unless you qualify on income, that switch earns no provincial rebate here. What remains:

• FortisBC dual fuel rebate. $4,000, or $8,000 if you are income-qualified, for a new central heat pump paired with a new high-efficiency gas furnace, replacing a gas furnace that is your main heat and at least 15 years old. It covers installations completed on or after October 15, 2026 in ground-oriented homes, and needs a heat load calculation, a licensed gas contractor in the HPCN and the furnace set to take over only at 5°C or colder.
• Oil heat. In BC, the federal Oil to Heat Pump Affordability program runs through the Energy Savings Program below. You must show at least 500 litres of oil used in the past 12 months and remove the tank; see Buying an Older Home in BC on oil tanks.

Income-qualified rebates and free upgrades

CleanBC's Energy Savings Program pays more based on household income and size. For a household of four, the limits are $94,900 for Level 1, $118,600 for Level 2 and $189,800 for Level 3, and the home's assessed value must be at or under $1,200,000, or $1,820,000 at Level 3.

• Gas or propane heat. Up to $13,000, $7,000 or $3,500 by level for a central or three-head system, less for smaller ones, plus up to $5,000 for an electrical service upgrade. Oil-heated homes get similar amounts.
• Electric heat. In houses and other ground-oriented homes, only Level 1 households have qualified since July 6, 2026, for up to $5,000.
• Condos. Up to $5,000 at Level 1 or $4,000 at Level 2 to replace electric heat in a unit assessed at $754,000 or less, in a building of up to six storeys, with your strata's consent.
• How it works. Pre-register before any work. A registered contractor installs, receives the rebate and bills you the balance.

Households within the Level 1 limits can also apply to BC Hydro and FortisBC's Energy Conservation Assistance Program (ECAP), which installs free upgrades that can include a heat pump. The program picks the products and contractor, and not every home qualifies.

Federal programs, PST and city top-ups

• Canada Greener Homes Grant. Closed; documents were due by December 31, 2025.
• Canada Greener Homes Loan. Closed to new applicants; approved loans continue.
• PST. Heat pumps are exempt, while gas furnaces and gas fireplaces are taxed at 12%, the Ministry of Finance says.
• City top-ups. Vancouver, the City and District of North Vancouver, West Vancouver, New Westminster, Richmond and Chilliwack have offered top-ups to provincial rebates, mostly for leaving fossil fuels. Better Homes BC lists Vancouver's and the City of North Vancouver's as fully subscribed, so ask your city first.

What drives the cost

Installed costs vary widely from home to home, so your quotes are the guide. What moves the price:

• Size and heat loss. A larger or draftier home needs more capacity; BC Hydro notes better insulation can allow a smaller unit.
• Ducts or no ducts. Central systems use existing ductwork; homes with baseboards usually need ductless units, and each indoor unit adds cost.
• Electrical work. Leaving gas or oil may mean an electrical service upgrade, plus permits.

Rebates can't exceed what you paid. Since August 1, 2026, businesses can no longer sell heat pumps or furnaces at your door, Consumer Protection BC says, with some exceptions if you invited them.

Before you sign

• Sizing. Ask for a heat load calculation, not a rule of thumb. An oversized unit cycles on and off; an undersized one leans on backup heat.
• Permits and panel. Technical Safety BC says most installations need an electrical permit and a licensed electrical contractor, and Vancouver may also require development and building permits for a wall-mounted unit. Ask whether your panel can carry the load.
• Placement and noise. Units must meet your city's noise bylaw. The City of North Vancouver measures noise at the property line and suggests placing units away from neighbours' windows, on a solid pad with vibration dampers.
• Warranty and upkeep. Ask what the warranty covers, whether the equipment must be registered, and for a maintenance schedule. BC Hydro suggests professional service every one to two years and regular filter cleaning.

In a condo or townhouse, the outdoor unit and wall openings usually affect the exterior or common property, which needs the strata's written approval under BC's standard bylaws, and the rule against unreasonable refusals covers your strata lot, not common property. Check your bylaws and see Renovating a Condo.

Buying or selling a home with a heat pump

An inspection covers what is visible; the paperwork fills in the rest. Ask for, or have ready:

• Age and type. The install date, make and model, and whether it heats the whole home.
• Records. Service invoices and the warranty, including whether it transfers.
• Permits. Electrical and, if a furnace was removed, gas, plus any strata approval.

If you plan to add one after you buy, most programs need the home to be your year-round primary residence and at least 12 months old. A purchase plus improvements mortgage lets you finance upgrades as part of your purchase.

Questions homeowners often ask me

Can I get a rebate to replace my gas furnace with a heat pump?

In some cases. Outside northern BC, the general rebate for going all-electric ended in April 2025. Income-qualified households can still get one through CleanBC's Energy Savings Program, and FortisBC pays toward a heat pump installed with a new gas furnace as backup.

Will a heat pump keep my home warm in a cold snap?

Cold-climate models are built for it; Natural Resources Canada says some work down to -30°C. For its whole-home rebate, BC Hydro requires the system to hold 22°C indoors at -5°C outside without electric resistance heat. Ask your contractor how yours handles colder days.

Do I need my strata's permission?

Usually. Outdoor units, wall penetrations and refrigerant lines tend to affect the exterior or common property, which needs written approval under the standard bylaws. BC Hydro's condo rebate also asks for your strata's approval before you buy equipment.

Is there still a federal heat pump grant?

Not a general one. The Canada Greener Homes Grant and Loan are closed to new applicants. In BC, federal money now reaches homeowners through income-qualified programs, such as the Energy Savings Program, which delivers the federal oil-to-heat-pump funding, and ECAP's free upgrades.

Do I pay PST on a heat pump?

No. According to the Ministry of Finance, heat pumps are exempt from BC's PST. A natural gas furnace or gas fireplace, by contrast, is taxed at 12%.

Planning other changes? Read how strata bylaws work, or what is different about buying a townhouse.

This article is general information, not financial or professional advice. The details come from BC Hydro, FortisBC, CleanBC Better Homes, Natural Resources Canada, the Ministry of Finance, Technical Safety BC, Consumer Protection BC and local governments, and were current at the time of writing; rebates can change or close at short notice. For the current rules, see BC Hydro's heat pump rebates.