Yes, you can use the Canada Greener Homes Loan for a heat pump installation. This federal program, administered by Natural Resources Canada (NRCan), provides interest-free financing of up to $40,000 to help homeowners cover the cost of eligible energy-efficient retrofits.

To use the loan for a heat pump, you must follow these specific requirements:

  • Eligible Equipment: The heat pump must be an NRCan-approved model. Eligible upgrades include air source heat pumps, cold climate heat pumps, and furnace-to-heat pump conversions.
  • Mandatory Evaluations: You must complete a pre-retrofit EnerGuide home evaluation before starting any work and a post-retrofit evaluation once the installation is finished to verify the upgrades.
  • Professional Installation: The installation must be performed by a licensed professional. You are required to provide a detailed invoice that includes the brand, model, serial number, and itemized labor costs.
  • Primary Residence: The property must be your primary residence, and you must be the owner of the single-family home (or eligible multi-unit building).

This loan is designed to work alongside other incentives, meaning you can often combine it with cold climate heat pump rebates to further reduce your overall project costs.


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