The Government of British Columbia’s rebate program to help cover the cost of installing a heat pump in a home has been significantly expanded to provide households with more installation cost savings.
Heat pumps can both heat and cool a home’s interior spaces, and are an alternative to traditional air conditioning for summer temperature cooling needs. The electricity-powered equipment transfers heat from the outside air to the indoors in the winter, and operates in reverse in the summer from transferring interior heat to the outdoors.
As of this week, applications are now open for the expanded rebate program.
Based on a household’s income levels, CleanBC Better Homes Energy Savings Program’s rebate for heat pumps has now been increased to up to $16,000 — an increase from the previous limit of $9,500 for the first tier of income ranges for lower incomes.
The second tier of income ranges for middle incomes will now see their heat pump rebate increased from $9,500 to $12,000.
Additionally, a new third tier of income ranges for higher incomes has now been introduced to provide heat pump rebates of up to $10,500.
There are also rebates for electrical service upgrades to support the installation of a heat pump, with northern BC households receiving the most support through the rebates.
Updated heat pump rebates under the CleanBC Better Homes Energy Savings Program, as of July 2024. (Government of BC)
The provincial government anticipates the rebate program changes will enable many households to switch to a free heat pump without needing to pay up front. Applicants can register for the program to verify their eligibility and rebate amount, then contractors will deduct rebates from the final invoice.
“We’ve seen the benefits of heat pumps =- both for the environment and in terms of long-term household energy savings,” said Josie Osborne, BC Minister of Energy, Mines and Low Carbon Innovation, in a statement.
“By expanding this program and increasing rebate amounts, more British Columbians can now get a heat pump at a significantly reduced cost that fits into their family budget, with some households qualifying for heat pumps at zero cost. This program is helping more people and families save money, increase the comfort and safety of their homes, and build cleaner communities.”
This cost savings expansion for BC households follows the May 2024 announcement of a significant funding boost for the rebate program, with the federal government contributing $103.7 million to the CleanBC program and the provincial government topping up the program with $151 million.
According to the provincial government, households that switch from fossil fuels to electric heat pumps for space heating can see energy savings of up to 80%.
The number of households in BC with heat pumps has increased by about 80% since 2017, from about 142,000 to 254,000 households. About 13% of BC households now have a heat pump.
It is also noted that the provincial government and BC Hydro are in the process of planning a new program for households wanting to install heat pumps in apartments.
Separately, BC Hydro is offering up to 28,000 free air conditioning units to eligible lower income households.