Federal heat pump strategy will help cut energy costs, build electricity system

Programs will make homes more affordable to heat and cool, while growing Canadian supply chains

October 8, 2026
Media Release
Contractor installing a heat pump

Photo source: iStock

Toronto — KEVIN LOCKHART, director of the Buildings program at the Pembina Institute, made the following statement in response to the federal government’s announcement to retrofit one million homes:

“Today’s announcement is a welcome investment in making Canadian homes more efficient, affordable, resilient and safe. Helping more households access heat pumps can lower energy costs while creating opportunities for Canadian skilled trades, supply chains and manufacturers, strengthening communities and the economy.

“We’re pleased to see new funding for the Deep Retrofit Accelerator Initiative, which develops effective retrofit delivery approaches and market capacity to help deliver retrofits at scale. We also welcome the commitment to support multi-unit residential buildings through Housing, Infrastructure and Communities Canada and Canada Infrastructure Bank financing, helping maintain momentum in this important housing segment. Heat pumps are an important part of the solution: when paired with insulation, air sealing and other building envelope measures, they reduce pressure on the grid and free up electricity for new homes and a growing economy, while helping keep our energy systems reliable and affordable.

“Energy efficiency is one of the fastest ways to get more from the energy infrastructure Canada already has. Provinces, territories and utilities have a big role to play through investments in demand-side management (DSM) that lower bills and reduce pressure on the grid. As Canada works to double electricity supply, we also need to double energy productivity and electrification to keep a growing electricity system reliable and affordable for ratepayers.

“As severe weather escalates across Canada, energy efficiency is also about protecting Canadians. Better-insulated, more efficient homes stay safer and more comfortable during extreme heat and cold, while reducing energy costs year-round. Investing in whole-building retrofits helps build stronger, more affordable and more resilient communities while reducing emissions.” 

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Contact

Sarah Snowdon
Senior Comms Lead, Pembina Institute
647-797-9329

​​Background

Submission: Budget 2026
Op-ed: Canada’s buildings can do more than consume electricity
Op-ed: Buildings can be a demand-side driver for Canada’s National Electricity Strategy
Op-ed: The untapped value of retrofit investments
Blog: Electrification is industrial strategy: It's time we see it that way  
Blog: Retrofit investments are nation‑building  

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