The P.E.I. government’s latest operating budget appears to signal less focus on climate action and energy savings, an expert says, as a number of green incentive programs have been cut or paused, though some supports remain.

The budget, tabled Tuesday by Finance Minister Jill Burridge, projects another record deficit of $410 million for the current fiscal year, more than double the $183.9 million deficit originally estimated for 2025-26.

Burridge has described the budget as one that required “difficult decisions” and cost-saving measures, including ending the popular free heat pump program. Islanders who have already applied and been approved will still be able to proceed, but no new applications are being accepted.

Brendan Haley, senior director at Efficiency Canada, said the program had drawn praise across the country and helped many Islanders install heat pumps in their homes.

“The budget seems to indicate reduced emphasis on climate action, helping people save money on energy,” Haley told CBC’s Island Morning.

“But I also have to say it’s not unusual for program strategies to change.”

In a statement to CBC News, the province said a number of other programs have also been paused effective this week, as funding for Net Zero and efficiencyPEI programs is lower than in previous years. Programs that have been paused include:

• Bicycle Rebate Program
• E-bike Rebate Program
• Electric Vehicle Incentive Program
• Energy Efficient Equipment Rebate (except biomass)
• Instant Energy Savings Rebates
• New Home Construction Rebate — Islanders registered before April 15, 2026, remain eligible following their final inspection
• Renewables in Agriculture (previously paused)
• Solar Energy Rebates (previously paused)

Some programs still available

Haley noted there are still a number of support programs in the latest budget that could help Islanders.

He pointed to continued funding for home insulation rebates, adding that improving a home’s insulation may actually provide even larger benefits for the province overall.

“So a good building envelope through insulation, air-sealing windows, that’s quite important for those heat pumps to work well,” he said.

“It also reduces costs of using electric heat on the electricity system by reducing demand, especially during those coldest days of the year.”

He added that Islanders interested in improving their home’s energy efficiency should still reach out to efficiencyPEI to see what supports remain available.

Haley said P.E.I. has been “leading the country” on programs such as its heat pump initiative, and if the province is now reducing those programs, it will need to find other strategies to continue helping people save energy.

P.E.I. could look to other jurisdictions and adopt measures, he said, such as requiring all new buildings to be highly energy efficient, introducing mandatory standards for large industrial commercial buildings, or improving energy performance disclosure for homebuyers so people know how efficient a home is before purchasing it.

“Those are mandatory policies that cost very little, that can help you save energy,” he said.

Haley said that in many other provinces, it is not the provincial government that pays for most energy efficiency programs, but rather the local electric utility. He said Maritime Electric could potentially play a much larger role in that.