Ontario heat-pump rebate guide
Updated August 28, 2026
Ontario’s Home Renovation Savings Program offers rebates of up to $7,500 for qualifying cold-climate air-source heat pumps and up to $12,000 for qualifying ground-source heat pumps.
Your available rebate depends on your home’s existing primary heating source, the heat pump’s rated heating capacity and whether you purchase or rent the equipment.
Applications and approvals go directly through the official rebate program. Work must not begin until the program’s required approval has been received.
Up to $7,500Cold-climate air-source heat pump
Up to $12,000Ground-source heat pump
Pre-approvalRequired before installation
No EnerGuide auditFor this standalone heat-pump stream
Program amounts
| Qualifying system | Rebate |
|---|---|
| Cold-climate air-source heat pump | $1,250 per rated heating ton |
| Maximum air-source heat-pump rebate | $7,500 |
| Ground-source heat pump | $2,000 per ton of qualifying capacity |
| Maximum ground-source heat-pump rebate | $12,000 |
| Qualifying system | Rebate |
|---|---|
| Cold-climate air-source heat pump | $500 per rated heating ton |
| Maximum air-source heat-pump rebate | $2,000 |
| Ground-source heat pump | $3,000 flat rebate |
These amounts apply to homeowner-owned equipment. The current program provides lower amounts for rented equipment: up to $2,000 for a cold-climate air-source heat pump or $3,000 for a ground-source system.
The rebate cannot exceed the amount permitted by the program’s eligible-cost rules.
Eligibility
To qualify for the heat-pump program, you generally must:
Homes occupied for six months or less are considered new builds and do not qualify under the current heat-pump rules.
Condominiums, apartments and other building configurations may have different or restricted eligibility. Always complete the official program screening before proceeding.
Requirements by primary fuel
Your existing primary heating source determines the available rebate tier and how the proposed system must be designed.
01
Electric-resistance-heated homes can qualify for the higher heat-pump rebate amounts.
A ductless system may be suitable for a home without ductwork, while a centrally ducted heat pump may work for homes with an electric furnace and existing ducts. The program determines whether the proposed system and design satisfy its requirements.
Existing electric resistance heating may remain as backup where permitted.
02
Oil-heated homes can qualify for up to $7,500 toward a cold-climate air-source heat pump or up to $12,000 toward a ground-source system.
The proposed electric heat-pump system—and any required electric backup—must satisfy the program’s heating-load requirements.
Program participation can also involve oil-tank documentation. Ontario fuel-storage and TSSA requirements continue to apply even when the rebate program does not require complete removal of the existing heating equipment.
03
Propane-heated homes can qualify for the same higher rebate amounts as electric-, oil- and wood-heated homes.
A qualifying heat pump can operate independently or alongside a new or existing propane furnace when the program’s design requirements are satisfied. The propane furnace is not included in the heat-pump rebate.
04
Homes primarily heated with wood can qualify for the higher heat-pump amounts when connected to the eligible Ontario electricity grid.
The system must satisfy the program’s whole-home heating, equipment and installation requirements.
05
Enbridge Gas customers who primarily heat with a natural-gas furnace or boiler can qualify for up to $2,000 toward a cold-climate air-source heat pump.
The heat pump can operate with an existing or new natural-gas furnace as a hybrid or dual-fuel system. The rebate applies to the qualifying heat pump—not the furnace.
Qualified systems
Eligible installations can include:
Cold-climate air-source and water-to-air ground-source equipment must be active on the applicable Natural Resources Canada qualified-products list. Water-to-water ground-source systems must satisfy the program’s ENERGY STAR and Canadian-availability requirements.
Both indoor and outdoor components must be installed as a complete qualifying system. Adding only an indoor head or replacing only one component does not qualify.
The current program is intended for a home’s first space-heating heat-pump installation.
You cannot receive the rebate for:
This restriction should be confirmed during the official eligibility process before any equipment is ordered.
Important distinction
No home energy assessment does not mean no pre-approval.
A pre-retrofit EnerGuide assessment is not required for the standalone Home Renovation Savings heat-pump rebate.
However, this does not remove the requirement for:
Do not confuse “no energy assessment required” with “no pre-approval required.”
Seven steps
The application and approval happen with the official program first. Handy Bros. supports equipment selection and installation after approval.
1
Visit the official Home Renovation Savings website and complete its eligibility process.
2
Complete the application and approval steps required by the program. Handy Bros. does not determine eligibility or approve rebates.
3
Do not begin installation until the program has provided the required approval. Work performed before approval is not eligible.
4
Once approved, work with a contractor recognized by the program.
Handy Bros. is an approved contractor for qualifying Home Renovation Savings installations.
5
The equipment must meet the program’s product, efficiency, capacity and system-design rules. Confirm the exact indoor and outdoor model numbers before proceeding.
6
Your contractor installs and commissions the approved system according to the applicable program rules, manufacturer requirements and Ontario codes.
7
Follow the official program instructions for final documentation and project review. The program administrator makes the final eligibility and payment decision.
Once the post-installation application is approved, the official program indicates that the rebate cheque should arrive within approximately 60 days.
Beyond space heating
The broader program also offers incentives for:
Some of these measures require an initial and final home energy assessment and at least two qualifying upgrades. Their application process is separate from the standalone heat-pump stream.
Program questions
No. The $12,000 maximum applies to qualifying ground-source heat pumps in homes primarily heated with electricity, oil, propane or wood.
The maximum for a qualifying cold-climate air-source heat pump in those homes is $7,500.
No. Air-source rebates are calculated using the system’s qualifying rated heating capacity. A smaller system will receive less than the maximum.
No. A furnace may serve as backup to the heat pump, but the furnace is not an eligible heat-pump rebate expense.
No. A conventional central air conditioner does not qualify for the heat-pump rebate. A qualifying heat pump provides both heating and cooling.
Depending on your existing heating source and the proposed design, you may be able to keep an electric, natural-gas or propane backup system. Oil-heated homes have additional heating-load and fuel-system requirements.
No. Installation before the required pre-approval makes the project ineligible.
No. Handy Bros. can install qualifying equipment as an approved contractor, but the program administrator alone determines eligibility, approval and payment.
Primary sources
Next step
Handy Bros. can help you compare qualifying ducted, ductless and hybrid heat-pump options for your Ontario home.
Disclaimer: Rebate information is provided for general guidance. The Home Renovation Savings Program determines eligibility, qualifying equipment, approved costs and payment. Requirements and funding can change without notice. Review the current official terms before purchasing equipment or beginning work.
