What is the $1.2 Million Property Assessment Rule?

If you register on or after April 1, 2026, your home's total BC Assessment value must be $1,200,000 or less to qualify for ESP1 or ESP2 rebates. Homes assessed up to $1,820,000 can still qualify for ESP3. Condos and apartments fall under a separate rebate stream with a $754,000 cap.

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

The combined pre-tax income of everyone living in the home who is over 18, excluding dependants. Income verification is required for each of them - a CRA Notice of Assessment works, but the program also accepts income or disability assistance confirmation, SAFER or Rental Assistance letters, a GIS notice, ECAP proof, or a signed Endorsement Form.

How big does the heat pump need to be?

Switching from gas, oil, or propane: the heat pump must be able to heat all the conditioned space your old system served, and the old fossil-fuel system must be removed. Switching from electric or wood: it must be sized as the home's primary heating system and serve a main living area. Your contractor may be asked for a CSA F280-12 heat load calculation to prove sizing.

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

Electric baseboards can stay - for electric conversions the backup must be electric. A gas furnace cannot: gas, oil, and propane conversions require removal of the fossil-fuel system, though a gas fireplace can remain as secondary heat. Dual-fuel systems that keep a gas furnace are only eligible for Pacific Northern Gas customers or tanked-propane homes.

Why must I use an HPCN-Certified contractor?

All rebate-eligible upgrades must be installed by a contractor registered with the CleanBC Energy Savings Program, drawn from the Home Performance Contractor Network (HPCN). Hiring a non-registered contractor or self-installing makes you ineligible for provincial rebates.

Do I need to apply before or after the installation?

Before. You must pre-register and receive an Eligibility Code before any work begins or equipment is paid for. For applications received on or after July 6, 2026, your code is valid for 3 months from approval. Your contractor then submits the final application within 6 months of the invoice date.

The Basement Suite Conflict: How to Secure Your Rebate with a Tenant

In British Columbia, “Secondary Suites” are a cornerstone of our housing market. However, for the 2026 Energy Savings Program, they present a significant technical hurdle. Whether your suite is for a family member or a tenant, how it is heated and how it is metered can be the difference between a $13,000 rebate and a total rejection.

1. The “Single Meter” vs. “Separate Meter” Rule

The first thing the government looks at is how BC Hydro bills your property.

Single Utility Meter: If your entire house (including the suite) is on one BC Hydro meter, the program views your home as a Single Family Dwelling. To get the maximum rebate, your new heat pump must be able to heat the entire conditioned space your old system served, including the suite.
Separate Utility Meters: If the suite has its own meter, it is often viewed as a separate residential unit. This changes everything. You may be eligible for two separate rebates, but each unit must meet its own “Primary Heat” requirements.

2. Navigating the Sizing Rule with a Suite

As we’ve discussed in our system sizing guide, your new system must serve all the space your old heating system covered.

The Trap: If you install a central ducted heat pump that only serves the upstairs, but the basement suite (which makes up 35% of your floor area) is still heated by old electric baseboards, your system no longer serves all the space the old one did — a common reason for rejection.
The Solution: You must either duct the new system into the suite or add a “head” (indoor unit) specifically for the basement so the new system serves the whole conditioned space, suite included.

3. Can My Tenant’s Income Help Me?

This is a frequent “Outside the Box” question. If you are applying for the income-qualified rebates (up to $13,000), the government looks at Household Income.

The Rule: If the suite is not a legal separate dwelling (shared kitchen or no separate entrance), the tenant’s income may technically need to be included in the household total.
The Strategy: If the suite is a fully independent, legal secondary suite, you can usually exclude the tenant’s income from your application. This is vital if your tenant earns a high salary that would otherwise push you out of the maximum rebate bracket.

4. Shared Equipment vs. Independent Systems

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

Scenario	Rebate Eligibility
One Large System for Both	Eligible for up to $13,000 (if the system heats the whole house, suite included).
Separate System for Suite	A separately metered suite can qualify as its own home — up to $5,000 for electric conversions (Level 1).
Upstairs Only (Ignoring Suite)	High risk of Rejection if the suite was heated by the old system but is not served by the new one.

5. Essential Steps for Suite Owners

If you make more than that and your home is worth more than the cap, there is no provincial heat pump rebate for gas conversions (outside Northern BC). Electric-to-heat-pump conversions can still get up to $4,000 through BC Hydro at any income.

Check the Asset Cap: Your home is valued as one single asset. Even if you have a suite, if the total property value exceeds $1.2M, your rebate potential is capped. Check your value here.
HPCN Verification: Ensure your contractor specifically notes the “Suite Coverage” in their Load Calculation. Find an HPCN installer here.
Tenant Consent: If the installation requires work inside the suite (new vents or a wall unit), you must have a signed consent form from the tenant as part of your pre-registration.

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