B.C. expands heat pump program to make it more affordable for people with low incomes

An expansion of the province's heat pump rebate program is targeted at making clean energy retrofitting affordable to low- and middle-income households, including renters, B.C. Energy Minister Adrian Dix announced on Wednesday.

"Cost remains a barrier for too many people looking to make the switch to a heat pump, which is why I'm announcing today we're re-focusing our efforts to make clean energy solutions and year-round comfort more accessible to British Columbians who need them most," said Dix at a news conference outside the B.C. Legislature on Wednesday.

B.C. will invest $50 million in each of the next two fiscal years as part of the Clean B.C. Energy Savings Program, which it said will provide up to 8,300 rebates.

But poverty reduction advocates say the measure may not provide that much of a benefit to many renters and low-income households. 

Douglas King, executive director of the Together Against Poverty Society, said it's landlords that could see the most energy savings with long-term infrastructure upgrades from heat pumps introduced to renters' units. He does not expect to see high uptake from low-income households, which he said will struggle to afford heat pumps even with rebates.

"I think the provincial government has kind of lost sight of what really matters here to tenants," said King. "It's not going to cause rent to go down, so it's kind of a misplaced focus of attention."

Heat pumps are an electrical heating system that present a more efficient alternative to traditional indoor climate control systems by transferring warm and cool air instead of generating it. They can also be installed in addition to existing heating or cooling systems in a home to form a hybrid system.

Those living in multi-unit residential buildings can apply for up to $5,500 in rebates for a ductless mini-split heat pump. 

The average cost of installing a heat pump, according to the province, is between $8,000 and $19,000.

Renters will not be able to take the heat pump with them when they move as they are not portable. 

To participate in the rebate program, they will have to get their landlords' written permission and work alongside them in the retrofit process. The consent form signed by landlords will require them to ensure there are "ongoing benefits to income-qualified tenants," the province said.

Dix said the province is still in the process of finalizing details on the new income requirements for the program, as well as the exact eligibility process for renters to participate in the program.

According to the Clean B.C. website, currently, a family of four in the lowest income group can earn up to a combined pre-tax income of $87,350 to qualify for the program.

In the middle and higher income categories, the same-sized family can earn up to $114,647 or $185,620 a year, respectively.

Through a partnership with BC Hydro and FortisBC, the province will also offer heat pump installations to the lowest-income households in homes and individual units in residential buildings.

Rebates put onus on tenants to solve heat concerns, King says 

King warned that this program may have unintended consequences for renters and is not a "realistic" solution to mitigating risks from the changing climate. He's seen numerous cases where landlords raise the rent for tenants after making a change or repair to the building and then benefit from rebates and reduced utility costs. 

A measure that could prove more beneficial, King said, is strengthening regulations on the maximum temperature allowable for tenants in their units. 

"What we saw from the heat dome that happened a few years ago is that tenants, especially elderly tenants, are the most vulnerable," he said. 

"Instead of the government setting an expectation or obligation on the landlord to provide adequate cooling and building, we're seeing rebates for the tenants to do it themselves."

Health risks may be lowered, but climate concerns remain

Dr. Melissa Lem, a Vancouver family physician and president of the Canadian Association of Physicians for the Environment, said that support for making clean energy accessible to lower-income individuals is a positive gain, as these people are often more at risk of illnesses from heat.

"This could mean certainly better health for many, many people in B.C. who are more at risk," she said, though she noted her concern for ways the province is also contributing to the climate crisis.

"I definitely support this announcement, but no amount of individual action can offset the enormous emissions and health impacts caused by B.C. expanding fossil fuel exports like LNG."

Switching from fossil fuels to heat pumps can save households up to 80 per cent on their energy bills, the province said.

More than 13 per cent of B.C. households currently use heat pumps, according to B.C. Hydro, totalling about 275,000 across the province.

According to BC Hydro, sales of heat pumps began to exceed those of furnaces in 2022.

In 2023, the B.C. government also launched a program offering free air conditioners to low-income households. More than 27,000 free units have been installed by BC Hydro since it began.