Several programs that fall under P.E.I.’s Department of Transportation, Infrastructure and Energy are being slashed as the provincial department faces a $40-million budget cut.

The province has already sent notices to contractors and businesses that will be impacted by the loss of the energy and efficiency programs.

Thursday in the P.E.I. Legislature, Liberal Opposition Leader Hal Perry accused the Progressive Conservatives of “creative accounting.”

“On budget day, those cuts were barely mentioned, never explained, and no departments were identified — no targets, no timelines, no transparency,” Perry said.

Programs affected by the cuts include:

• Bicycle Rebate Program.
• E-bike Rebate Program.
• Electric Vehicle Incentive Program.
• Energy Efficient Equipment Rebate. 
• 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 of the department’s programs remain unscathed, including the Business Energy Rebate, Firewood Energy Rebate and Home Energy Assessment.

More cuts could be coming.

CERT, the Comprehensive Expenditure Review Target, could see government slash spending by 10 per cent over the next two budgets, resulting in nearly $400 million in cuts.

Finance and Affordability Minister Jill Burridge said in legislature that the government’s goals over the next two years include a five per cent reduction in spending.

Perry criticized the cuts, saying P.E.I. residents were told to “electrify their life” by buying electric vehicles and heat pumps.

“They trusted this government when they said that these programs would be there to support them,” Perry said during question period.

“Families made decisions, small businesses invested and contractors hired. Islanders have heard promises before, and without results those promises start to mean very little.”

Programs have to ‘wind down,’ minister says

Transportation, Infrastructure and Energy Minister Sidney MacEwen told reporters outside the legislature that efficiencyPEI and net-zero programs were reviewed during the budget process, resulting in some being “paused.”

The Energy Efficient Equipment Rebate paid for free heat pumps, and about 7,000 to 8,000 have been installed.

MacEwen said that roughly 2,000 heat pumps still in the queue will be installed, but intake for the program is now on hold.

“We have at least a year, if not more, of heat pumps to install,” MacEwen said.

“We want people driving EVs. We want people converting to solar panels. We want people driving e-bikes. So that’s why you invest in this early for early adoption. And then those programs have to wind down over time.”

Burridge, speaking after question period, said government is aligning programs to meet Islanders’ needs. That could involve “building things differently,” she said. 

“It’s more about targeted investment and what investments make the biggest impact in Islanders’ lives,” Burridge said.

“We’re looking more at regional collaboration — like, what can we as an Atlantic region look at doing together to save costs, sharing costs regionally, sharing costs nationally, too.”

MacEwen said the province still has “aggressive goals” when it comes to climate, adding the province’s greenhouse gas emissions have declined over three consecutive years.

He said the government has invested in electrification, and is now shifting to efficiency.

“We’re in the middle of that five-year review of our net-zero goals, and that will come out eventually,” he said. “For this year, we really want to focus on the efficiency in homes and the affordability of homes, too. So we are still committed to those goals.”