2019 Furnace & Air Conditioner Rebates, and HVAC Upgrade Incentives
IMPORTANT NOTE: This article is for informational purposes only. FurnacePrices.ca is not owned by, operated or affiliated with the Canadian federal or provincial governments.
There are a variety of utility company incentives, HVAC government rebates, grants, and energy credits available for Canadian homeowners to offset the cost of upgrading to a new heating and cooling system. These vary across the country, from province to province, by region or municipality, and can change at any time.
Which brands qualify for rebates?
The brand you choose, whether it’s Carrier, Lennox, Goodman, KeepRite, Amana, Napoleon, or any of the many other manufacturers generally isn’t important. Usually, the most important qualifying factor for the rebates below is that the new system is a high-efficiency model. Often the unit must be ENERGY STAR certified as well.
This article will examine some of the 2019 government and utility company furnace and air conditioner grants, energy tax credits & rebates available to Canadians.
IMPORTANT: To qualify for many of the rebates, you must take certain steps BEFORE installation of your new furnace, A/C, boiler, water heater, etc. This guide assumes you have not yet completed the purchase/installation.
How do you actually get these HVAC rebates?
That depends, as the individual rebate criteria, availability, and conditions vary from one rebate program to the next, depending on who is offering it and where you live, among other things.
That’s why the best way to take advantage of current heating & cooling rebates is to request a free estimate from a licensed local HVAC contractor that is registered to offer them (if applicable), like our FurnacePrices.ca Certified Local Partners.
They’ll provide a custom quote on your new heating & cooling system, and can help you understand which rebates are currently available in your area, what you need to do to qualify for them, how much you’ll save!
Available Rebates Covered Below (May) Include Rebates for:
✔ High-efficiency natural gas furnaces ✔ Propane furnaces ✔ Boilers & combi-boilers ✔ Central air conditioners ✔ Ductless mini-split systems ✔ Heat pumps ✔ Geothermal heating systems ✔ Nest & smart thermostats
The Save On Energy rebate program is now closed, as of April 30th 2019.
Union Gas Rebates
CRITICAL UPDATE: As of November 1, 2018, homeowners who are not customers of Union Gas, and customers who heat their home with a heating source other than natural gas, are no longer eligible to enrol in the program. If you had a pre-renovation assessment completed before this date and will complete the post-renovation assessment within 120 days, you will still be eligible for rebates through the program.
Union Gas customers in Central and Southwestern Ontario can get up to $5000 of their home renovation costs back for certain energy-efficient upgrades to your home, including up to $750 for HVAC systems. The rebate program is available only for natural gas customers of Union Gas.
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 or window sealing.
Home Reno Rebates
Customers who complete more than two upgrades also qualify for a $250 bonus for each additional upgrade installed—up to a maximum of $5,000.
Note: While you can participate in multiple programs, you cannot receive a rebate for the same upgrade through the Home Reno Rebate program and other Government programs.
$750 for replacing a
Less than 95% AFUE natural gas furnace, or;
Less than 90% AFUE natural gas boiler,
95% or higher AFUE condensing natural gas furnace, or;
90% or higher AFUE condensing natural gas boiler.
Note: The combi system qualifies as a boiler and is eligible for the rebate.
Insulation and Sealing
$1,000 – Add at least R23 to 100% of basement
$500 – Add at least R12 to 100% of basement
$800 – Add at least R23 to 100% of crawl space wall
$400 – Add at least R10 to 100% of crawl space wall
$450 – Add at least R24 to 100% of floor above crawl space
Exterior Wall Insulation
$1,500 – Add at least R9 to 100% of building to achieve a minimum of R12
$1,000 – Add at least R3.8 to 100% of building to achieve a minimum of R12
$500 – Increase attic insulation to at least R50 from R12 or less
$250 – Increase attic insulation to at least R50 from R13 to R25
$500 – Increase cathedral/flat roof insulation by at least R14
$150 – Achieve 10% or more above base target identified in the pre-assessment
$100 – Achieve base target identified in the pre-assessment
$40 – For each window, door or skylight replaced with ENERGY STAR® Zone 2 or 3 qualified model.
$200 – Replace water heater with 0.80 EF or higher tanked natural gas water heater or replace water heater with 0.90 EF or higher tankless natural gas water heater.
Note: The combo system qualifies as a water heater and is eligible for the rebate.
Visit UnionGas.com to learn more about rebates for your home.
CRITICAL UPDATE: Homeowners who heat their homes with propane, oil, wood or electricity will no longer be able to participate in the Home Energy Conservation offered by Enbridge Gas after October 31st, 2018. In addition, rebates for electric appliances (fridge, freezer, dehumidifier, window air conditioner, washing machine) will also be discontinued through these programs.
These rebates are for homeowners who use natural gas, residing in the Enbridge Gas territory even if you’re not a customer.
Get up to $2,100 in incentives via their Home Energy Conservation program (including a $150 “instant rebate” on the cost of the first energy audit).
Similar to the Union Gas program, homeowners must be in qualifying areas, and must get an energy assessment by an Enbridge-approved CEA (Certified Energy Advisor) before and after the upgrades (full details here).
There are many qualifying upgrade types (forced-air furnace replacement, boilers, water heaters, insulation improvements, new windows, etc) and the total amount of the incentive varies from $850 to $1950 depending on the percentage of overall fuel-savings achieved.
Opt for ENERGY STAR certified products when upgrading!
Receive up to $5,000 for completing 2 of the upgrades on the website
Replace a less than 95% AFUE furnace (or 89% AFUE boiler) with a higher % AFUE and receive $1,000 – Plus you can get an additional $650 back in electrical incentives for upgrading your furnace and air conditioner.
For a limited time only, receive $250 in electric incentives for upgrading your heating system
Replace a water heater with 0.80 EF or higher tanked (0.82 EF tankless) gas or propane water heater – $500
ASHP installation – Energy Star certified minimum 12.5 EER, 15 SEER, and 8.5 HSPF – $500
$25 for installing an Energy Star window air conditioner
Effective January 1, 2019, Enbridge Gas Distribution Inc. is amalgamating with Union Gas Limited to form Enbridge Gas Inc. For certainty, the Program will only be offered to eligible Participant homes located in the geographic areas served by Enbridge Gas Distribution Inc. prior to its amalgamation with Union Gas Limited on January 1, 2019.
Effective February 1, 2019, the Smart Thermostat incentive will be $75 and only Enbridge Gas residential customers (detached, semi-detached, row townhomes, only) who use the device to control their primary heating source of natural gas will be eligible for the incentive. All applications received on or after this date will qualify for a $75 incentive. https://enbridgesmartsavings.com/smart-thermostats
Smart Thermostats/NEST Rebate
Union Gas: Get a $100 credit towards a new smart thermostat. This incentive is only available as part of the Union Gas Home Reno Rebate program described above.
Enbridge: Get a $100 credit on your Enbridge account when you install a qualifying smart thermostat like a NEST Learning Thermostat or a similar product. If you already installed your NEST Learning Thermostat, click here to apply for the rebate.
Hot Water Heater and Tankless Water Heater Rebates
Replacing your hot water heater with a new energy-efficient hot water heater tank or tankless system is a qualifying upgrade for both Union Gas and Enbridge, as part of their respective home upgrade incentive programs detailed above. That being said, sometimes to get money back for a hot water heater, it must be combined with other products or home energy efficiency upgrades.
In addition, credits and incentives available in other provinces also often include hot water heaters as a qualifying product (continue reading below for more details about other provinces).
Top Rebate Tips!
Inquire about rebates before you make any upgrades
Check if you need an energy audit, and any other conditions
Opt for ENERGY STAR products
Consult a respected local HVAC contractor (see our quote page)
City of Toronto Rebates
Home Energy Loan Program – low interest loan for home energy improvements up to $75,000
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 simply request a quote here. We’ve partnered with local heating and cooling companies across Canada to provide home owners with top-quality products and the best prices.
PLEASE NOTE: Due to the large volume of calls and emails, 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.
Currently Alberta has a very limited amount of rebates available for consumers looking to upgrade their heating or cooling system.
Energy Audit – $100 A home energy audit helps you identify areas in your home where you can make energy efficiency improvements to save energy and money. Watch this short video to see how a home energy audit works.
Furnace – $500
Reduce your annual energy use and heating bill by installing an Energy Star certified furnace.
$500 rebate available for a high-efficiency (Energy Star certified) furnace from the Town of Banff. Application Form (PDF)
Solar Hot Water Heater – $650
Using sunshine to pre-heat your water can cut your annual hot water costs by up to 50%.
$650 rebate available for an Energy Star certified solar hot water heater from the Town of Banff. Application Form (PDF)
Learn About More Banff Energy Efficiency Rebates here.
Energy Efficiency Alberta Rebates
Beginning in April 2017, this program offers many “no-charge” energy-saving upgrades to homeowners and renters across Alberta. However, for ordinary consumers, these are mostly limited to smaller products like light bulbs and shower heads.
As far as credits and incentives for HVAC systems, these will be limited to businesses, non-profits, and other institutions.
There will however be residential financial incentives and rebates for new solar installations.
Solar Program Incentive of up to $0.75/W for residential (max of the lesser of $10,000 or 30% of eligible system costs)
Commercial or Non-Profit up to $0.75/W (max of the lesser of $500,000 or 25% of eligible system costs) https://www.efficiencyalberta.ca/solar/
Customers in FortisBC’s service area can get up to $1300 when switching from oil, wood, or propane to an ENERGY STAR high-efficiency natural gas heating system like a forced-air furnace (90% AFUE or higher) or boiler system (85% AFUE or higher).
There are a number of other products that qualify for rebates, including water heater upgrades, fireplaces, insulation, and more. You can also get a $750 bonus when you make at least 3 qualifying upgrades.
Full list here available here. (Rebates are provided by BC Hydro and FortisBC, depending on the exact product, region, and other qualifying factors like household income).
NOTE: an energy audit may be required for certain upgrades, and usually must be performed BEFORE the upgrades are initiated.
BC Hyrdo Rebates
BC Hydro Aboriginal Upgrade Program
Aboriginal community members and non-profit housing providers can qualify for upgrades to various residential energy-consuming appliances, including heating and cooling systems. Note that in order to qualify for a furnace, you must be a FortisBC customer and must not reside in a mobile home. Other details, terms & conditions, and application info can be found here.
There are also a number of other commercial incentives, and rebates for new homes or multi-unit construction projects that meet certain energy-efficiency criteria. More details can be found on the FortisBC, and BC Hydro websites.
Receive a free, personalized home energy evaluation and free installation of energy-saving products, including:
Energy-saving light bulbs, kitchen and bathroom faucet aerators, water-efficient showerheads, hot water pipe wrap, exterior door weather stripping, and free energy-efficiency advice to help you create a more comfortable home.
Some homes may qualify for a high-efficiency natural gas furnace or a furnace rebate.
Home Energy Savings Program – up to $5,000 per unit
HESP is a provincial initiative designed to assist households with low income who consume 15,000 kWh of electricity annually in making energy efficient retrofits to their homes.
Newfoundland and Labrador Housing Corporation (NLHC) will provide a pre and post-energy inspection. All repairs will be identified through an energy evaluation, which will determine the best possible solutions for energy efficiency.
For owners of single, row and semi-detached housing, assistance is available in the form of a grant up to $5,000 per unit. Homeowners must have an income of $32,500 or less per year and consume 15,000kWh of electricity annually.
Condo owners are not eligible for HESP assistance. If you have already received REEP assistance you are not eligible.
Home Energy Assessment – up to $5,000 in rebates and low-interest financing (4.99%) up to $25,000 for 5 years
In electrically heated homes, after doing a $99 assessment the advisors will fully evaluate your home and provide you with ways to help you save energy and money. If any recommended upgrades are completed within 12 months, you can qualify for rebates.
Pay $99 for an energy advisor to review your building plans and make recommendations, and you can receive:
$2,000 rebate for 30% better than code for homes less than or equal to 1,200 ft squared, or 45% better than code for homes greater than 1,200 ft squared
$5,000 rebate for 45% better than code for homes less than or equal to 1,200 ft squared, or 65% better than code for homes greater than 1,200 ft squared
$7,000 rebate for 65% better than code for homes less than or equal to 1,200 ft squared, or
75% better than code for homes greater than 1,200 ft squared or CHBA NetZero-Ready, CHBA NetZero, Passive House Certification.
You have one year from your registration date to complete construction of the home and have the final energy assessment performed.
Currently the provinces of Ontario and British Columbia appear to have among the most residential furnace, air conditioner and related HVAC rebates available. Many of the current incentive programs in other provinces are currently mostly targeting either:
businesses, and other larger buildings and energy users
Usually you must pay for the upgrades yourself and you will receive a partial refund in the mail afterwards.
In most cases, the process is as follows:
you check for available rebates in your area and carefully study the terms and requirements (you may try speaking to a trusted local contractor for help). You may have to fill out an application first.
if required, you have an energy audit done by a Certified Energy Auditor (CEA) that’s approved by the entity offering the rebate
you have the upgrades done by a reputable local HVAC contractor (remember, in some cases the company must be registered with the rebate-providing entity. We get contacted daily by people who don’t qualify for the available rebates because they went with the cheapest company they could find or a well-meaning relative. Do your research and ideally opt for an established HVAC contractor)
in some cases the contractor is responsible for applying for the rebates after the work is done, or it may be up to you. Sometimes a final energy audit is required
you’ll typically receive a reimbursement cheque in the mail
The process outlined here is just a general guideline and the details will obviously vary in your case. That’s why it can be a good idea to enlist the help of a local HVAC expert ahead of time to help you through the process of replacing your furnace and getting the rebates.
Note that in certain cases (e.g. specific programs for aboriginals) may pay for the upgrades directly but this is relatively rare.
Typically anywhere from a few hundred dollars to $1000 or more, depending on the rebate program, how many eligible upgrades are completed (furnace, thermostat, insulation, etc). Remember that you must usually pay for the upgrades first and then receive a cheque afterwards.
It varies by rebate program, so it is best to check the exact rebate deadlines in your area for each program. Generally the sooner you can replace your furnace or other upgrade the better to ensure you make the cut.
In many cases, an energy audit by an approved and Certified Energy Auditor must be completed before AND after the work is done. However certain programs like the Ontario Power Authority/Save on Energy rebates do not require an energy audit (though other conditions do apply).
The catch is you must meet a specific list of criteria and other requirements to receive the rebates. And in almost all cases, you must verify that you meet the criteria BEFORE replacing your furnace, A/C or other system. And you must usually pay for the upgrades yourself and be reimbursed afterwards.
This varies by rebate program, however the most common products covered are high-efficiency forced-air furnaces, hot water heaters and tankless water heaters, boilers, smart thermostats, and somewhat less commonly central air conditioner replacements, ductless mini-split heat pumps, and HRVs/ERVs.
Note that the rebates often also cover various other home energy efficiency upgrades like insulation, windows, etc however this particular rebate guide focuses on HVAC-related rebates.
Sometimes a portion of the required energy audit is also covered.
Even if there are no rebates available, it may still very well be worth upgrading your furnace, A/C or water heater. Especially if your current system is older than 10-15 years, you may achieve considerable savings on your utility bills/heating/electricity costs, as well as improvements in your home’s comfort level, heating & cooling performance, temperature consistency, fewer repair and maintenance costs, even a reduction in unit noise levels, as well as improving the value of your home.
Check out our current deals page to find out about other current offers in your area that can help you save on a new HVAC system!
Unfortunately, you must often apply for or meet certain criteria BEFORE the work is done in order to qualify so it’s always best to do your research prior to starting any renovations or removing your old furnace or air conditioner. WE CANNOT HELP YOU IF YOU HAVE ALREADY REPLACED YOUR FURNACE OR OTHER SYSTEM. PLEASE CONTACT THE COMPANY THAT YOU DEALT WITH DIRECTLY.
Getting heating and cooling rebates does take some additional work and time. If you are pressed for time, like if your furnace broke down in the middle of winter, you may not have the luxury of going through the additional steps of applying for rebates, for example.
However if you do have the time and inclination, you can often get at least a partial refund of the cost, sometimes over $1000. So if you’re considering upgrading your HVAC system, it is often worth it to at least look into it and ask a trusted local contractor about prior to investing in a new home furnace.
With the use of a high efficiency furnace you can cut down on the energy consumption of your home while potentially also improving the comfort level. New ENERGY STAR furnaces, boilers, hot water heaters and other systems are often significantly more energy-efficient than older units. If you want to lower your home’s energy consumption, a furnace is one of the best investments that you can make.
Replacing your furnace or making other home renovations can obviously require a costly initial investment. Fortunately there are sometimes provincial government rebates, grants, and tax credits or rebates from your utility company that you can use in order to supplement the cost of a new furnace and recoup some of the money.