2026 Guide to Residential HVAC Rebates

Upgrading your home’s heating, cooling, and energy systems isn’t just about comfort and performance — it can also put thousands of dollars back in your pocket through government rebates and incentives. Whether you’re considering a high-efficiency heat pump, a smart thermostat, improved insulation, or other energy upgrades, this guide outlines the most important active residential HVAC rebate programs available in Ontario and Canada.


1. Ontario Home Renovation Savings Program

The Home Renovation Savings Program (HRSP) is Ontario’s primary rebate initiative supporting homeowners who invest in energy-efficient upgrades. It is funded through the Province of Ontario and delivered in partnership with utilities such as Enbridge Gas and Save on Energy.

Eligible Rebates Include:

UpgradeMaximum Rebate
Cold-Climate Air Source Heat PumpUp to $7,500
Ground Source (Geothermal) Heat PumpUp to $12,000
Heat Pump Water Heater$500
Home Energy AssessmentUp to $600
Insulation (attic, wall, basement, foundation)Up to $8,900
Air Sealing ImprovementsUp to $1,300
Smart Thermostat$75 or more
Solar Panels & Battery StorageUp to $10,000
Energy-Efficient Windows & Doors$100+ per unit

Key Eligibility Notes:

  • Home must be located in Ontario and be a primary residence.
  • Installed equipment must meet minimum efficiency requirements (ENERGY STAR® or equivalent).
  • Some upgrades require a pre- and post-retrofit home energy assessment.
  • Rebates may vary depending on utility provider and project scope.

2. Federal Programs – Canada Greener Homes Initiative

While the Canada Greener Homes Grant is no longer accepting new applicants, homeowners who previously enrolled and completed eligible upgrades may still be receiving rebates or loan funding.

Previously, this program offered:

  • Up to $5,600 in total rebates
  • Up to $600 for EnerGuide home evaluations
  • Interest-free loans to support energy retrofits

If you applied under this program in prior years, it is recommended to confirm your remaining eligibility or loan status with your energy advisor.


3. HVAC & Energy Upgrades That Commonly Qualify for Rebates

Heat Pumps

  • Cold-climate air source heat pumps for year-round heating and cooling
  • Ground source (geothermal) heat pumps
  • Hybrid systems paired with existing furnaces

These systems typically qualify for the highest rebate values due to their efficiency and emissions reduction.

Furnaces and Air Conditioners

  • Select high-efficiency gas furnaces
  • ENERGY STAR® rated central air conditioners
    Eligibility depends on efficiency ratings and utility-specific programs.

Insulation and Air Sealing

  • Attic, wall, basement, and foundation insulation
  • Air sealing and weatherproofing measures
    These upgrades often deliver the best return on investment by reducing heat loss.

Smart Thermostats and Controls

  • Wi-Fi enabled and learning thermostats
  • Utility-approved demand-response devices

4. Additional Incentives and Financing Options

Utility-Based Programs

Some local utilities offer additional incentives such as:

  • Time-of-use energy savings programs
  • Peak demand reduction rebates
  • Equipment replacement incentives

Interest-Free Financing

Homeowners completing qualifying upgrades may be eligible for interest-free retrofit loans, helping reduce upfront installation costs.


5. Important Tips Before Applying

  • Complete a home energy assessment first, if required
  • Use licensed and rebate-approved HVAC contractors
  • Confirm product eligibility before purchase
  • Keep all invoices, serial numbers, and documentation
  • Apply for rebates promptly to avoid missing deadlines

Final Thoughts

Ontario homeowners have access to some of the most generous HVAC and energy-efficiency rebates in Canada. With incentives available for heat pumps, insulation, smart controls, and renewable energy systems, now is an excellent time to upgrade your home, reduce energy bills, and improve comfort, all while maximizing available rebates.

If you’re planning an upgrade and want help selecting eligible equipment or navigating rebate applications, working with an experienced HVAC professional can make the process simple and stress-free.

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