Canadian Climate Institute: New federal Support for Home Retrofits will give Modest Boost to Affordability and Electrification, but more Action Needed

October 23, 2026

The federal government’s new retrofit program will reduce up-front costs for Canadians, drive electrification and energy efficiency improvements, and cut emissions from Canadian homes.

Sachi Gibson, Research Director of Mitigation at the Canadian Climate Institute, made the following statement in response to the federal government’s announcement of new funding and programming to support home energy retrofits: 

 “Today’s announcement of federal funding to upgrade Canadian homes gives a modest boost to help electrify the buildings sector and improve affordability and energy security for more people. That’s an important step forward as many Canadians continue to grapple with high and volatile fossil fuel costs driven by global uncertainty—but more action will be needed to increase those benefits. 

“Electrifying more households with heat pumps and improving home energy efficiency will not only mean more comfortable homes and lower bills. It will also provide cooling during extreme summer heat events and protect people from damaging wildfire smoke. And it is the primary solution to reducing emissions from the buildings sector, which altogether makes up 12 per cent of national emissions. 

“According to the Climate Institute’s latest national emissions estimates, emissions from buildings contributed to an increase in national emissions seen last year, which was largely due to stagnating progress switching from fossil fuel technologies to electric ones and a cold winter. 

“The federal announcement includes heat pump rebates, making it easier for people to upgrade their homes. However, the focus on one solution—heat pumps—risks missing the bigger benefits of doing electrification and efficiency hand-in-hand in a more co-ordinated way, including more potential for cost savings and emission cuts. 

“The announcement also includes a welcome commitment to new financing tools for multi-unit housing, and a commitment of $110 million for the Deep Retrofit Accelerator Initiative, which focuses on existing commercial, institutional, and multi-unit residential buildings. Overcoming barriers to solutions for these buildings will be critical if Canada is to make inroads upgrading homes and businesses for more people.

“Ultimately, all orders of government will need to step up with stronger policy incentives to drive electrification and energy efficiency in more homes across the country to reduce emissions and support further savings on Canadian’s energy bills.”

Resources from Canadian Climate Institute

• Blog | How governments can help Canadian households electrify with cleaner and more cost-stable energy
• Report | Heat Exchange: How today’s policies will drive or delay Canada’s transition to clean, reliable heat for buildings
• New release | Estimates show Canada’s emissions went up in 2025, emphasizing need for electrification

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