BC Allocates $100 Million for Heat Pump Rebates Over Next 2 Years, Including for Suites in Multi-Residential Buildings

B.C. Minister of Energy and Climate Solutions and Minister Responsible for Francophone Affairs Adrian Dix speaks before touring greenhouses at Windset Farms, in Delta, B.C., on Jan. 24, 2025. The Canadian Press/Darryl Dyck

The British Columbia government is allocating $100 million over the next two fiscal years to deliver more than 8,000 heat pump rebates, expanding eligibility to individual suites in multi-unit residential buildings.

The move is part of a commitment the governing NDP made in its confidence agreement with the B.C. Green Party, aiming to make the electric heating alternative more affordable for low-income residents, according to the agreement.

B.C. Energy Minister Adrian Dix made the announcement on April 9, saying that while the province’s incentives for people to switch to heat pumps, in an effort to reduce carbon emissions, have led to increased adoption across the province, “cost is still a barrier for many.”

He said prioritizing funding in this area and expanding heat pump rebate eligibility to include individual suites, rather than entire residential buildings, will make it easier for low- and middle-income households to adopt the technology.

“That’s why we’re prioritizing funding to make clean-energy solutions and year-round comfort accessible to British Columbians who need them most, including for owners and renters who live in multi-unit buildings,” Dix said in an April 9 press release.

As outlined in the confidence agreement with the B.C. Greens, the province will spend $50 million this fiscal year and another $50 million next year for the heat pumps program. It plans to deliver up to 8,300 rebates, with households in multi-residential building suites being eligible for up to $5,500 toward a ductless mini-split heat pump.

The expanded eligibility will take effect in mid-2025.

The province will partner with provincial power companies BC Hydro and FortisBC to offer heat-pump installations “to the lowest-income households in single-family homes and individual suites,” officials said.

The CleanBC Energy Savings Program, introduced in June 2024, offers households up to $24,500 toward heat pump installation and electrical upgrades, based on their income. The funding is provided by the province, the federal government, and BC Hydro.

The rebate announcement comes after the province ended its consumer carbon tax earlier this month, following the reduction of the federal consumer carbon tax to zero. The province said the elimination of the tax would leave a $1.99 billion hole in the provincial budget—which this year projected a nearly $11 billion deficit—and that it would “restructure” government programs to make up for the shortfall.

B.C. Premier David Eby said in an April 1 press conference that his government would also review CleanBC programs to cut costs, while also pledging to maintain the province’s efforts to address climate change.

According to the the confidence agreement with the B.C. Greens, the government is set to review the heat pump program after two years “to ensure it is meeting its climate and affordability objectives—subject to BC’s fiscal situation.”