Canada’s retrofit momentum hinges on more than just heat pumps

Jun 9

man installing a heat pump — Heat pumps alone do not constitute a deep retrofit which should also include insulation, air sealing, ventilation, windows and doors.

By Betsy Agar, Jessica McIlroy & Jay Nordenstrom

The new federal mandate letter call for “bringing down costs for Canadians” and “creating new careers in the skilled trades.” Residential retrofits can do both, giving renewed urgency to programs like the Canada Greener Homes Initiative.

A special warrant issued just before the federal election ensured a temporary top-up for the Greener Homes Loan program. However, unless long-term funding is secured, the program could soon stall, mirroring the abrupt end of the Greener Homes Grant.

The Greener Homes Initiative — largely due to the grant portion — has arguably been successful in meeting government goals. According to Green Communities Canada, from 2020 to 2024, the Greener Homes Grant and other rebate and grant programs supported more than 605,000 retrofits.

However, only 29,000 were considered deep energy retrofits. Most of the funds went to mechanical system upgrades, like heat pumps, to replace existing heating and cooling units approaching the end of their lives.

Heat pumps have become a go-to solution for electrifying heating and cooling, especially when a furnace or air conditioner reaches the end of its life. They are efficient and climate-friendly. But heat pumps alone do not constitute a deep retrofit.

Canada’s retrofit momentum hinges on more than just heat pumps

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