“Free Heat Pumps & Home Retrofits: Who Qualifies for Canada’s Newly Expanded Energy Grants?”

Canada’s home energy retrofit landscape has changed dramatically in 2026 — and many homeowners are still searching for programs that have already closed. If you’ve been looking for the Canada Greener Homes Grant or the Greener Homes Loan, this guide has important news: both programs are now closed to new applications. But significant support is still available through new programs — including free, no-cost installations for qualifying low-to-median-income households. This guide covers what’s actually open in July 2026, who qualifies, and how to access it.

💡 Quick Status Update (July 2026)

Program	Status	Max Benefit
Canada Greener Homes Grant ($5K)	CLOSED Jan 20, 2026	N/A for new applicants
Canada Greener Homes Loan ($40K)	CLOSED Oct 1, 2025	N/A for new applicants
Canada Greener Homes Affordability Program (CGHAP)	OPEN (select provinces)	Free installation (no dollar cap)
Oil to Heat Pump Affordability (OHPA)	OPEN (some deadlines)	Up to $10,000–$15,000
Provincial programs	Varies by province	$2,000–$25,000+

What Actually Changed: The 2026 Retrofit Landscape

The Programs That Have Closed

The original Canada Greener Homes Grant — offering individual homeowners up to $5,000 in rebates plus $600 for EnerGuide evaluations — stopped accepting new applications on January 20, 2026. Existing approved applications are still being processed, but no new enrollments are possible.

The Canada Greener Homes Loan, which provided interest-free financing up to $40,000 for eligible retrofits, closed to new applications on October 1, 2025. The $40,000 figure referenced in many online articles about “2026 rebates” refers to this now-closed loan program — not a current grant.

What Replaced Them: The Two Active Federal Programs

1. Canada Greener Homes Affordability Program (CGHAP)

The CGHAP launched in late 2025 and is rolling out province by province. Critically, it operates differently from the old programs: instead of individual homeowners applying for rebates and finding their own contractors, delivery organizations coordinate and pay for all retrofits directly. Eligible participants pay nothing out of pocket.

As of July 2026, CGHAP is available in:

• Manitoba (first province, launched 2025)
• British Columbia (via utility delivery partners — check your electricity bill for your provider)
• Nova Scotia, Prince Edward Island, Quebec (expanded June 29, 2026)
• Other provinces are still finalizing delivery agreements — check Natural Resources Canada for updates

Over $500 million in funding ($300 million of which is federal) is directed to help over 35,000 low- and median-income households install heat pumps, better insulation, improved air sealing and other upgrades at no cost.

Important expansion: The June 2026 announcement also made CGHAP available to renters for the first time — previously, federal retrofit programs were homeowner-only.

2. Oil to Heat Pump Affordability Program (OHPA)

For households currently heating with oil, the OHPA provides grants to switch to a cold-climate heat pump system. Grants can reach up to $15,000 (plus a $250 NRCan bonus) in co-delivered provinces, covering the cold-climate heat pump, oil-tank removal, and electrical upgrades. You’ll need to prove homeownership, income eligibility, and at least 500 litres of heating oil purchased in the prior 12 months.

July 31, 2026 is the last day to apply to the Oil to Heat Pump Affordability program for residents of Alberta, Manitoba, Northwest Territories, Quebec, and Saskatchewan. Applicants in other provinces should check their relevant provincial website.

Who Qualifies for CGHAP?

The Canada Greener Homes Affordability Program provides low-to-median-income homeowners and tenants with no-cost home retrofits, such as insulation and heat pumps. Specific income thresholds vary by province, family size, and provincial median income — the program uses approximately 80%–120% of provincial median household income as eligibility bands.

To estimate eligibility, consider:

• Low income (below ~$55,000–$70,000 for a single person in most provinces): Likely fully eligible
• Median income (up to ~$100,000–$120,000 for families depending on province/family size): May qualify under “median income” tier
• Above median: CGHAP may not be available; focus on provincial programs and OHPA if you heat with oil

Because thresholds are province-specific and still being finalized in some regions, check Natural Resources Canada for the provincial program link when it goes live in your area.

How Does CGHAP Actually Work? (It’s Different from the Old Program)

The most important thing to understand about CGHAP is the direct-install model. Unlike the old Greener Homes Grant where you found your own contractor, got a pre-retrofit audit, completed work, then claimed a rebate, CGHAP works as follows:

1. Apply through your province’s delivery organization (not through a federal portal)
2. A delivery partner assesses your home and determines eligible upgrades
3. The delivery organization arranges and pays for all work — you pay nothing
4. There is no reimbursement process — it’s truly no-cost if you qualify

This is a fundamentally different process from what most “Greener Homes 2026” articles (written based on the old grant) describe. The five-step process involving individual EnerGuide audits, contractor selection, and rebate claims applies to the old closed program, not CGHAP.

What Types of Retrofits Are Available?

Both CGHAP and OHPA focus on high-impact upgrades:

CGHAP eligible upgrades include:

• Insulation (attic, walls, basement)
• Air sealing
• Heat pumps (air-source and ground-source)
• Windows and doors in some provinces
• Solar panels where provincial agreements allow

OHPA eligible upgrades:

• Cold climate air-source heat pump
• Oil tank decommissioning and removal
• Electrical panel upgrades required for heat pump installation
• $250 bonus payment available in select co-delivered provinces

Provincial Programs: Where the Real Stacking Happens

Provincial programs remain the most important layer for homeowners above CGHAP income thresholds. These programs are open to all homeowners regardless of income (with optional enhanced tiers for low-income households):

💡 The stacking opportunity: If you qualify for OHPA (oil heating, income-eligible) and a provincial program, your total support could approach or exceed $25,000 in provinces with strong co-delivery programs. Provincial programs typically stack freely with federal programs.

What If You Were Counting on the Old Greener Homes Grant?

If you were planning to claim the old $5,000 Greener Homes Grant or $40,000 Greener Homes Loan and your project is already underway:

• Pre-approved for the Grant (before Jan 20, 2026): Your application is still being processed. Submit your post-retrofit documentation as required.
• Pre-approved for the Loan (before Oct 1, 2025): Existing approved loans are still being serviced; your approval is still valid.
• Not yet applied: These programs are no longer available for new applicants. Focus on CGHAP (if income-eligible) and provincial programs.

What About the EnerGuide Audit? Do I Still Need One?

Under the old Greener Homes Grant: yes, mandatory (both pre and post-retrofit).

Under CGHAP: There may be no need for a home energy evaluation as part of this program — the delivery organization handles the assessment internally.

Under provincial programs: Varies — Ontario’s Home Renovation Savings program does not require a pre-retrofit audit; BC’s CleanBC has its own assessment process. Check your specific provincial program requirements.

Common Mistakes Canadian Homeowners Make in 2026

Following Outdated Application Guides

Most online guides about “Canada energy retrofit 2026” are based on the old Greener Homes Grant process — EnerGuide audit first, contractor second, rebate claim last. This process no longer applies to the main federal program. Always verify the process on natural-resources.canada.ca or your provincial program website before starting.

Assuming the $40,000 Is Still Available

The $40,000 figure refers to the now-closed interest-free Greener Homes Loan. The active CGHAP program provides no-cost direct installation (value depends on your home’s needs), not a $40,000 grant. For homeowners above income thresholds, provincial programs and OHPA are the available options.

Missing Provincial Program Deadlines

While CGHAP rolls out province by province, provincial programs often have their own application windows and incentive cycles. CleanBC’s 2026 cycle, Ontario’s Home Renovation Savings, and Efficiency Nova Scotia all have current programs with their own timelines. Check each before assuming the window is open.

Homeowners Not Checking OHPA Deadlines

If you heat with oil and meet income requirements, the OHPA represents exceptional value — but several provinces have July 31, 2026 deadlines. If you’re in Alberta, Manitoba, Northwest Territories, Quebec, or Saskatchewan and heat with oil, this is urgent.

Waiting for Ontario’s CGHAP Portal

Ontario is a CGHAP co-delivery province, but the specific income thresholds and the Ontario application portal are still being finalized. If you’re in Ontario and income-eligible, watch Natural Resources Canada’s website for updates, and in the meantime, apply to Ontario’s Home Renovation Savings (HRS) program which is currently open.

Key Takeaways

• The Canada Greener Homes Grant ($5,000) and Greener Homes Loan ($40,000) are both closed to new applications as of early 2026 — do not rely on articles describing these as currently available.
• The CGHAP is the active federal program — it uses a direct-install model where qualifying low-to-median-income households pay nothing and a delivery organization arranges everything. Available in BC, Manitoba, NS, PEI, and Quebec as of July 2026; other provinces still finalizing.
• Renters are now eligible for CGHAP (as of the June 2026 expansion) — a first for a major federal retrofit program.
• The OHPA provides up to $10,000–$15,000 for oil-to-heat-pump conversions; several provinces have July 31, 2026 deadlines.
• Provincial programs (CleanBC, Ontario HRS, Rénoclimat, Efficiency Nova Scotia, etc.) are the most reliable option for homeowners above CGHAP income thresholds — these stack with federal programs.
• Always verify program availability and application process at natural-resources.canada.ca and your province’s energy efficiency website before starting any project.

Frequently Asked Questions

Is the Canada Greener Homes Grant still available in 2026?

No. The Canada Greener Homes Grant closed to new applications on January 20, 2026. Only applications submitted before that deadline are still being processed. The program has been effectively replaced by the Canada Greener Homes Affordability Program (CGHAP), which operates differently — it’s a direct-install program for low-to-median-income households rather than an individual rebate program open to all homeowners.

How do I apply for CGHAP in 2026?

Applications are made through provincial delivery organizations, not through a single federal portal. Visit Natural Resources Canada’s website and select your province for the current application link and process. Note that Ontario’s CGHAP portal is still being finalized as of July 2026. In provinces not yet active, focus on provincial programs while CGHAP rolls out.

Can renters access Canada’s home energy retrofit programs in 2026?

Yes — for the first time. The June 2026 CGHAP expansion included renters as eligible participants, though implementation varies by province and delivery organization. Previously, federal retrofit programs were only available to homeowners. Note that for rental properties, the delivery organization coordinates with both landlord and tenant.

What are the income limits for free heat pump programs in Canada?

CGHAP targets “low-to-median-income” households, with exact thresholds varying by province, family size, and regional median income — typically corresponding to household income up to approximately 80%–120% of your province’s median household income. OHPA uses similar income criteria. Specific dollar thresholds are set at the provincial level and differ across the country. Check your province’s delivery organization website for the exact amounts that apply to your situation.

Canada’s home energy retrofit support is significant, but the landscape changed dramatically between mid-2024 and early 2026 with several major programs closing. The current CGHAP model — free, no-cost installations organized by delivery partners — is genuinely valuable for eligible households, but it requires working through a very different process than guides based on the old Grant program describe. Verify your province’s current status before taking any action, and prioritize the OHPA if you heat with oil and face the July 31 deadline in qualifying provinces. For more strategies on managing home costs and building financial resilience, explore the complete library of Canadian personal finance guides on Getwealthy.