What is the $1.23 Million Property Assessment Rule?

In 2026, the CleanBC Energy Savings Program uses an asset-based limit to determine rebate eligibility. If your home's total assessed value exceeds $1,230,000, you are disqualified from the maximum $16,000 and $12,000 rebate tiers, though you may still qualify for a $10,500 rebate.

Whose income is included in the 'Household Income' calculation?

The program calculates household income based on the combined gross income of all adults (aged 18+) living in the home. You must provide a Notice of Assessment (NOA) for every adult resident to verify total household earnings.

What is the '80% Rule' for Whole-Home Rebates?

Your new heat pump system must be sized to provide primary heating for at least 80% of the home's total conditioned floor area to qualify for whole-home rebates.

Can I keep my gas furnace or electric baseboards as backup?

Yes, you can keep a fossil fuel backup in a dual-fuel configuration or maintain electric baseboards, provided the heat pump remains the primary source for 80% of the home.

Why must I use an HPCN-Certified contractor?

The BC government requires all rebate-eligible heat pumps to be installed by a member of the Home Performance Contractor Network (HPCN). Hiring a non-registered contractor makes you ineligible for provincial rebates.

Do I need to apply before or after the installation?

For the Energy Savings Program, you must pre-register and receive an Eligibility Code before you begin any work. Applying after installation leads to automatic disqualification.

The $1.23M Property Assessment Rule: Are You Disqualified from BC’s Max Rebates?

In 2026, the BC Energy Savings Program uses a property value “ceiling” to decide who gets the largest rebates. If your home’s official assessed value is over $1,230,000, you are disqualified from the maximum $16,000 and $12,000 payouts, even if your income is low.

When you hear about the massive $16,000 heat pump rebates available in British Columbia, there is usually a small asterisk next to the number. For 2026, the biggest factor other than your income is the official value of your home.

The BC government uses a $1,230,000 property assessment cap to determine who gets the top-tier funding. This article breaks down exactly how this rule works, how to check your status, and what happens if you’re just over the limit.

What is the $1.23 Million Property Rule?

The BC government designed the 2026 rebate system to prioritize “Social Equity.” Their logic is simple: if you own a home worth significantly more than the average, you likely have more equity to fund a heat pump than someone in a more modest home.

To enforce this, they set a $1.23 million limit. This limit acts as a gatekeeper for the high-value “income-qualified” rebates.

How it Affects your Payout

Your eligibility for the biggest checks depends on two factors meeting at once: your household income and your property value.

Under $1.23M Value: You can qualify for the maximum rebates of $16,000 (for lower incomes) or $12,000 (for moderate incomes).
Over $1.23M Value: You are automatically moved to a secondary tier. The most you can receive is $10,500, regardless of how little money your household makes.

How to Find Your Official Assessed Value

The government doesn’t care what Zillow says or what your neighbor’s house just sold for. They only care about the BC Assessment value.

Visit BCAssessment.ca.
Search for your address.
Look for the “Total Assessed Value.” This is the combined value of your land and the structures on it.
Important: If that number is $1,230,001, you are technically over the limit.

Assess Your Homes Value

Are there any Exceptions?

The rule is quite strict, but there are a few nuances to keep in mind:

Townhomes & Duplexes: The $1.23M cap applies to the individual unit’s assessment, not the entire complex.
Secondary Suites: If you live in a house with a basement suite, the cap applies to the total value of the building.
Condos: While the cap exists for condos, it is much lower (usually around $772,000), reflecting the lower average cost of apartments.

What Happens if Your Home is Over $1.23 Million?

If your home is worth more than $1.23M, don’t panic. You aren’t getting zero.

You still qualify for the $10,500 rebate as long as your household income falls under the provincial “moderate-income” threshold (which varies by the number of people in your home). For a family of four, that limit is roughly $114,647.

If you make more than that and your home is worth more than the cap, you move to the standard $6,000 rebate available to all BC residents.

Do all Homes have the Same Cap?

The $1.23M number is for “ground-oriented” homes (detached houses, townhomes, etc.). If you live in an apartment or a condo, the rules are even tighter:

Condos & Apartments: The property value cap is roughly $772,000.
Townhomes & Duplexes: These are treated like houses, so the $1.23M cap applies to your specific unit’s assessment.

Common FAQ and What-If Scenarios

“My house is worth $1.5M, but I have a huge mortgage.” Unfortunately, the government doesn’t look at your debt or your mortgage balance. They only look at the total value of the asset as listed by BC Assessment.

“I have a basement suite that I rent out.” The cap applies to the entire property. If the whole house is assessed at $1.3M, you are over the cap, even if you only live in half of it.

“I live in a high-cost area like Vancouver or Victoria.” This is a common frustration. Because property values are so high in the Lower Mainland and the Island, many average families find themselves disqualified from the $16k rebate simply because of their zip code, even if their actual income is modest.

This guide is updated for the February 2026 CleanBC Energy Savings Program standards and applies to all residential property assessments within the province of British Columbia.

Pro Tip for Homeowners
If you are planning to apply for a rebate and you know your assessment is “borderline,” keep a copy of your January 2026 Assessment Notice. You will likely need to upload this during the pre-registration process on the CleanBC portal to prove you meet the asset requirements.