Furnace upgrade & home heating rebates & incentives.IMPORTANT NOTE: This article is for informational purposes only. FurnacePrices.ca is not owned, operated or affiliated with the Canadian federal or provincial governments.

There are a variety of government grants, rebates and energy tax credits available for Canadian homeowners to offset the cost of upgrading to a new high-efficiency natural gas furnace (or propane) or other heating system, such as a combi-boiler, ductless heat pump mini-split system, or geothermal setup.

However these vary across the country, from province to province, by region or municipality, and can change at any time.

This article will examine some of the 2017 government furnace upgrades and energy tax credits & rebates available.

PLEASE NOTE: Due to the large volume of calls, we can only assist those interested in receiving a quote for a furnace, air conditioning or other HVAC system from one of our local distributor partners. Unfortunately, we cannot provide additional information or help you get rebates for systems you’ve already purchased. If you have already purchased a furnace or AC, please contact the company you bought it from for assistance with receiving any applicable rebates.

If you’re interested in purchasing a furnace, air conditioner or other HVAC system and would like a quote including the current rebates and credits, please give us a call toll-free at 1-877-960-1498. We’ve partnered with local heating and cooling companies to provide home owners with top-quality products and the best prices.

Most heating & cooling contractors should be able to tell you about the available rebates when you request a quote. If you’d like to purchase a new furnace or air conditioner, please visit our furnace quotes page to get a free estimate from local companies.

Furnace Rebates Across Canada

For the current home renovation and heating & cooling rebates available across Canada, please see Natural Resources Canada’s website.

Rebates Available for Ontario Consumers

One way to qualify for energy rebates, grants and tax credits is to give your home an energy audit from a certified ecoEnergy advisor, including a pre and post energy audit to assess your upgrades and determine your final rebate amount.

Getting a brand new furnace can be expensive, but there are ways to offset these costs. In most Ontario regions your furnace expenses can be dropped depending on the energy efficiency of the device. In fact, most new furnaces will qualify you for up to $250 in Ontario Power Authority rebates.

How much of a government rebate can I get for upgrading or replacing my central air conditioner?

Replacing your central AC with a new high-efficiency ENERGY STAR model can qualify you for a rebate credit of up to $400. The installation must be done by a participating company or contractor, and they will usually apply for the rebate on your behalf after installation. Note this rebate only applies if you are replacing an old air conditioner, not simply adding a new one to a home where there was none previously.

Union Gas Rebates

Certain Union Gas customers in Central and Southwestern Ontario can get up to $2500 of their home renovation costs back for certain energy-efficient upgrades to your home and/or HVAC systems (up to $500).

UPDATE: Union Gas has increased the total available rebates to $5000 (per household), including up to $1000 (instead of $500) for a new natural gas furnace or boiler. Note that you must complete an energy assessment of your home by a certified energy advisor before AND after the renovations, and they must include at least two “eligible” upgrades (other criteria also must be met). This includes things like upgrading your furnace, boiler, hot water heater, or windows/doors/skylights with Energy Star models, and/or upgrading your insulation.

Enbridge Rebates
  • Get up to $2,100 via their Home Energy Conservation program. Similar to the Union Gas program, homeowners must be in qualifying areas, must first get an energy audit done by an approved certified energy auditor, and then must complete a minimum of two qualifying upgrades (full details here).
  • Install a qualifying Smart Thermostat and get a $100 credit on your Enbridge account.

Are Rebates Worth It?

With the use of a high efficiency furnace you can cut down on the energy consumption of your home while also keeping the comfort at the same level. These furnaces are around thirty percent more efficient than the older models, and they operate at above 90% efficiency. If you want to lower your home’s energy consumption, a furnace is one of the best investments that you can make.  With the higher cost of natural gas and oil and the price constantly rising, you can save yourself a great deal of money with purchasing a furnace.

Despite the energy savings there are a lot of people who are unable to afford a high-efficiency furnace because the relatively high initial cost. The average cost of a high efficiency furnace can be anywhere from $1,500 to $13,000 or more at the high end with installation. Fortunately there are both provincial and federal government rebates, grants, and tax credits that you can use in order to supplement the costs of a furnace and get one at a more affordable price.

With the grants and rebates that you can get for a new furnace, you will be paying a much lower amount than you thought to improve the quality of your home. Lower energy bills can also further offset these costs, as you can save close to $800 a year in heating costs just from upgrading from an older sub-80% AFUE furnace to a new 95+ % AFUE model.


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