2018 Furnace & Air Conditioner Rebates, and HVAC Upgrade 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 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.
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. Furthermore, getting rebates AFTER you’ve already replaced your furnace, A/C, water heater, etc is difficult or impossible in most cases.
“How do I actually get these HVAC rebates?”
Check out our FAQ at the bottom of this article for details.
This article will examine some of the 2018 government and utility company furnace and air conditioner grants, energy tax credits & rebates available to Canadians.
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
Jump to a section in this article (rebates by province):
Independent Electricity System Operator (IESO) – formely Ontario Power Authority (OPA) Government Rebates
The ‘Save On Energy’ rebates from the IESO do not require an energy audit, however the new heating and cooling system must be purchased from a participating contractor or company that is registered to provide these rebates. After the installation is complete, the company should file for them on your behalf, and you will receive a cheque in the mail within 6 months.
- Get up to $250 for installing a new ENERGY STAR high-efficiency furnace with an ECM (electronically commutated motor).
- IMPORTANT: Get up to $600 for UPGRADING to a new ENERGY STAR high-efficiency central air conditioning system.In some cases you could qualify even if you’re not replacing an existing central air conditioning unit. IMPORTANT UPDATE: As of July 1st 2017, you must install a minimum 18 SEER model to qualify
Save On Energy
Save on Energy Rebates
Help for Low income Energy Consumers
Emergency financial assistance and targeted conservation programs.
**may be eligible for a window air conditioner, or other energy-efficient items.
Heating and Cooling Incentive Program
- Variable Speed ECM – $250
- Replace your existing furnace with a qualifying furnace
- Circulator Pump – $30
- Install a new circulator pump equipped with a variable speed ECM
- CAC System – $600
- Replace or install a new CAC system that is Energy Star certified and a qualifying model
Receive up to 50% off an energy audit. Available for tenants and owners.
Business Premium Efficiency Motors – Up to $407
Union Gas Rebates
Anyone in the Union Gas franchise territory in Central and Southwestern Ontario can get up to $2500 of their home renovation costs back for certain energy-efficient upgrades to your home, including up to $500 for HVAC systems. The rebate program is available for oil, gas and propane customers even if you’re not a Union Gas customer.
UPDATE: Union Gas has increased the total available rebates to $5000 (per household), including up to $1000 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 or window sealing.
Union Gas Rebates
Home Reno Rebate (Electric) – Up to $5,000
- $250 bonus for each additional upgrade – for customers who completed more than 2 upgrades
- $1,900 ductless ASHP; single head, electric baseboard, no A/C
- $1,900 ductless ASHP; single head, electric baseboard, with A/C
- $2,500 per exterior unit and the first one interior unit; +$250 for each additional interior unit attached or the same exterior unit; ASHP multiple head, electric baseboard, no A/C *4, 250 max
- $2,500 per exterior unit and the first one interior unit; +$250 for each additional interior unit attached or the same exterior unit; ductless ASHP multiple head, electric baseboard, with A/C *$4,250 max
- $2,500 ductless ASHP cold climate single head
- $3,000 per exterior unit and the first one interior unit; +$400 for each additional interior unit attached or the same exterior unit; ductless ASHP cold climate multiple head *$5,800 max
- $3,250 ducted ASHP central furnace, no A/C
- $3,250 ducted ASHP central furnace, with A/C
- $5,500 ducted ASHP cold climate, central furnace, no A/C
- $5,500 ducted ASHP cold climate, central furnace, with A/C
- $600 central air conditioning system; Energy Star qualified, SEER 18 and EER 13
**Air source heat pump and central air conditioning rebates are not limited at $5,000
Home Reno Rebate (Natural Gas, Oil or Propane Heating) – Up to $5,000
- $250 bonus for each additional upgrade – for customers who completed more than 2 upgrades
- $1,000 rebate for replacing a low AFUE furnace/boiler with a high efficiency furnace/boiler
- $250 natural gas or propane forced air furnace with ECM
- $500 ASHP Energy Star certified with minimum 12.5 EER, 15 SEER & 8.5 HSPF
**these two rebates do not have a maximum of $5,000
Home Reno Rebate (Wood) – Up to $5,000
- $250 bonus for each additional upgrade – for customers who completed more than 2 upgrades
- $750 replace a wood-burning system with a qualifying system
- $1,000 replace a wood stove with a 95% or higher AFUE condensing natural gas, propane or oil furnace OR 90% or higher AFUE condensing natural gas, propane or oil boiler.
These rebates are for homeowners who reside 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 heatesr, 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!
Commercial Retrofit Incentive Program
Home Energy Upgrades
- Receive $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
Affordable Housing Program
Smart Thermostats – $100
**not required to be an Enbridge customer; must be installed before December 31, 2018
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).
City of Toronto Rebates
Home Energy Loan Program – low interest loan for home energy improvements up to $75,000
- 5 year term – 2%
- 10 year term – 2.75%
- 15 year term – 3.5%
Make sure you get your rebates, and find out which furnace and air conditioner models, products, and other HVAC upgrades qualify!
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.
Get $500 back when you buy a new ENERGY STAR furnace; $100 towards an energy audit; and $50 for buying a programmable thermostat.
Energy Audit – $100 rebate
Furnace – $500
Rebate available for residents who purchase a high-efficiency furnace
Solar Hot Water Heater – $650
Rebate available for residents who install Energy Star certified solar hot water heaters
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.
Tankless Water Heater – Up to $1,000
Natural Gas, existing tank type:
- Conventional – $512.61
- Conventional (Standing Pilot) – $826.67
- Powervent – $467.58
- Induced Draft (Standing Pilot) – $781.64
Water Heating Measures – $2 or $3/1,000 BUT/HR
**For business, non-profits and institutional homes
Many different incentives for boilers and furnaces
**For business, non-profits and institutional homes
Residential and Commercial Solar Program
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)
Smart Thermostats – $100
Furnace with High Efficiency Motor (ECM) – $75
Medicine Hat Rebates
EnerGuide Ratings – up to $10,000
Rebate of $100 per gigajoule below the “typical new house” baseline up to a max of $10,000
Solar Electric – up to $5,000
Receive a rebate of $0.75/watt to a max of $5,000 for utility customers who install solar PV systems in their homes.
Scratch & Win – Up to $100
Save 20-100% off a small energy efficient purchase, to a max of $100
Alberta Municipal Solar Program
Rebate of $0.55/watt to $0.90/watt
Alberta Agriculture and Forestry
On-Farm Solar Photovoltaics Program – savings up to $0.75/W
**For residents with a distribution rate class of farm, irrigation, grain drying or equivalent
Building Energy Benchmarking Program – $5,000/building
SunRidge – City of Lethbridge
BuiltGreen Homeowner Rebate – $2,500 for silver & $3,500 for gold
For residential new construction buildings
FortisBC & BC Hydro
Customers in FortisBC’s service area can get up to $1300 – $1700 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 that an energy audit may be required for certain upgrades, and usually must be performed BEFORE the upgrades are initiated.
BC Hydro & Fortis BC
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.
BC Hydro Low Income Program
Qualifying low-income residents can get a free home energy assessment and potentially, a free energy-efficient home furnace.
There are also a number of other commercial incentives, and rebates for new home or multi-unit construction that meet certain energy-efficiency criteria. More details can be found on the FortisBC, and BC Hydro websites.
Heat Pump Rebate – $800 on select ductless air-source heat pumps
Net Metering 9.99 cents/kWh
Generators connected to the distribution system receive an incentive of 9.99 cents per kWh
Connect To Gas
- Converting heating system from oil, propane or wood to an eligible heating system – $1,300
- Converting heating system from oil, propane or wood to an eligible heating system and hot water system – $1,700
- Installing a natural gas direct vent wall furnace – $700
- Installing a natural gas direct vent wall furnace and hot water system – $1,100
**pre-qualification codes required and available until December 2018 or until quantities last
Energy Conservation Assistance Program (ECAP)
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.
EnerChoice Fireplace Program – $300 on qualify natural gas fireplaces and $50 contractor incentive
**must be purchased and paid for after May 1, 2016
Home Renovations Rebate Program – $800
Space Heating (Electric) – variable speed, mini-split air source heat pump (ductless heat pump)
Energy Saving Kit
Includes easy to install items, including a furnace filter coupon for homes with natural gas furnaces.
New Home Construction Energy Star Rebates
Home must be built in FortisBC’s electricity and/or natural gas service area and constructed on a permanent foundation to a max of 600 meters in area and four storeys high.
- Province of BC (natural gas space heating) – single family $2,000; duplex $700; townhouse $700; Laneway $250
- Southern Interior (natural gas or electric space heating) – single family $2,000; duplex $700; townhouse $700; laneway $250
- City of Vancouver only (natural gas space heating) – single family $250; duplex $250; townhouse $700; laneway $250
Central Air Source Heat Pumps – $1,200
Must be installed by December 31, 2018
Heat Pump Service Rebate – $50
**Must be serviced by December 31, 2018.
Heat Pump Water Heater – $1,000
Must purchase a qualifying tier 2 or 3 electric heat pump water heater and install by December 31, 2018.
Rental Apartment Efficiency Program
Receive a free energy assessment with ongoing assistance and free water-efficient showerhead and faucets. The building must have a minimum of 9 units and receive natural gas from FortisBC.
Energy-Efficient Housing Program
15% or 25% premium refund on mortgage insurance applications.
15% if the home is built under one of the qualifying energy efficient building programs:
- LEED Canada for Homes (National)
- Built Green Canada (National)
- Novoclimat (Quebec)
- EnergyStar (National)
- Greenhouse (Ontarion)
- Power Smart (Manitoba & BC)
- GreenHome (Yukon)
- 25% for an R-2000 home
- Or have an EnerGuide rating of 82-85 for 15% and 86-100 for 25%
Regional District of Nanaimo
Oil to Heat Pump – $250
A program that encourages homeowners in Nanaimo & Lantzville to transition from oil heating to heat pumps.
VHF Heritage Energy
Retrofit Grant – up to $6,000
This program is designed to complement the rebates available through the Home Renovation Rebate Program and the Oil to Heat Pump Program. Must convert gas or oil to electric air source heat pump.
**Program deadline is October 31, 2018.
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
- other energy consumption areas like lighting
For more information about the current home renovation and heating & cooling rebates available across Canada, including for businesses, please see Natural Resources Canada’s website.
Hydro Manitoba Rebates
Manitoba Hydro programs offering rebates on geothermal heat pumps, cold climate air source heat pumps, solar thermal water heaters, and solar photovoltaic systems.
Energy Finance Plan – up to $5,000 financed on a 5 year term at 6.75%
**The loan covers qualifying upgrades
Heat Recovery Ventilator Control Program – up to $150
Upgrade or install a qualifying advanced control HRV.
Power Smart Affordable Energy Program – for low income households or landlords
Free energy efficiency review – free insulation for attics, walls, basements and crawlspaces. Heating system upgrade to high efficiency natural gas furnace for $9.50/month (5 years; total $570). $3,000 rebate towards high efficiency natural gas boiler *conditions apply. And more energy saving items.
Power Smart PAYS Financing – 4.9% for a max term of 20 years for residential space heating equipment
Can be used on residential space heating equipment and residential water heating equipment & more.
Power Smart Residential Loan – up to $7,500 financing at 4.8% for first 5 years
Can be used on residential space heating equipment and residential water heating equipment & more.
Residential Earth Power Loan – up to $20,000 loan at 4.9% for first 5 years
Can be used on geothermal heat pumps, cold climate air source heat pumps, solar thermal water heaters, or solar photovoltaic systems.
- $20,000 geothermal
- $10,000 air source
- $7,500 solar thermal water heaters
- $30,000 solar photovoltaic panels
Commercial Geothermal Program
Commercial Bioenergy Optimization Program
Commercial Custom Measures Program
Commercial HVAC Program
Commercial & Industrial Natural Gas Optimization Program
New Buildings Program
Commercial & Industrial Performance Optimization Program
Energy Efficiency Screening Studies
Take Charge! Rebates
- Programmable thermostat – $10/unit
- Electronic thermostat – $5/unit
HRV Rebate – $175
Business Programmable Thermostat – Rebate is customized for each business
Rooftop Air Source Heat Pump Rebate – $300/ton
ECM Motor – Free automatic upgrade to an energy efficient ECM motor for each motor you need replaced
Government of Newfoundland & Take Charge!
60 Month Financing Plans – 4.7% interest rate through EELP program
Primary heating must be electric, must have one year history with Newfoundland Power, property must have 12 months history with Newfoundland Power, and homes must meet minimum insulation levels.
- Electric Water Heater – $1000 for most models; $1425 for long-life heaters with 15yrs minimum warranty – 36 months
- R-2000 Upgrades – $10,000 – 60 months
- Electric Heating Systems & Heat Pumps – $10,000 – 60 months
- Heat Recovery Ventilation Systems – $5,000 – 60 months
- Service Upgrades – $10,000 – 60 months
- Home Energy Assessment – $750 – 36 months
Newfoundland & Labrador Housing Rebates
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.
Many rebates available for geothermal, heat pumps, furnaces, boilers, water heaters and solar upgrades.
An initial home energy evaluation must be booked and paid for ($99+HST)
**conditions apply on each incentive.
Clean Foundation Rebates
Clean Energy Financing – Low Interest Financing at 4%
**Available in District of Lunenburg, Shelburne, Digby, Barrington and the Town of Bridgewater
Interest rates are subject to change after March 31, 2018
Maximum financing amounts:
- Barrington $10,000
- Digby $15,000
- Shelburne $15,000
- Lunenburg $10,000
- Bridgwater $15,000-20,000
Financing is available for a variety of clean energy upgrades and certain conditions & fees will apply.
Efficiency Nova Scotia Rebates
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.
- Ductless mini-split heat pump – good $400; better $500; best $700
- Central ducted air source heat pump – good $1,500; better $1,600; best $1,750
- Air to water heat pump – good $1,500; better $1,600; best $1,750
- Geothermal heat pump – good $600; better $700; best $800
- Heat pump water heater – good $250; better $300; best $350
- Solar water heater – good $1,100; better $1,200; best $1,250
Good = 0-1 green upgrades
Better = 2 green upgrades
Best = 3+ green upgrades
Instead of rebates, you can choose 4.99% financing: Good $2,500-$15,000; better up to $20,000; best up to $25,000. https://www.efficiencyns.ca/service/home-energy-assessment/
Instant Savings – $2-75
Receive instant savings in-store on dozens of easy to install products, including programmable thermostats.
Drain Water Heat Recovery – $100
You can receive $100 for upgrading to a drain water heat recovery system, after a Home Energy Assessment.
Heat Recovery Ventilation – $300
You can receive $300 for upgrading to heat recovery ventilation after a Home Energy Assessment.
Programmable Thermostats – $12-36 instant in-store discount
$12 per 1-2 pack OR $36 per pack of 3 or more
HomeWarming – No-Charge Energy Assessment & Possible Free Home Upgrades
Available to low income households who have not taken advantage of the HomeWarming or Low Income Homeowner Service before.
- 1 person – $21,487 max
- 2-4 people – $39,926 max
- 5 or more – $56,861 max
**condos, multi-unit buildings and rentals do not qualify
New Home Construction – up to $5,000
Pay $99 for an energy advisor to review your building plans and make recommendations, and you can receive:
- $2,000 rebate for Energy Star certification or 30% better than code on homes less than or equal to 1,200 sq ft. OR 45% better than code for homes greater than 1,200 sq ft.
- $5,000 rebate for R2000 certification or 45% better than code on homes less than or equal to 1,200 sq ft. OR 60% better than code for homes greater than 1,200 sq ft.
**you have one year from your registration date to complete construction of the home and have the final energy assessment performed. https://www.efficiencyns.ca/service/new-home-construction/#tab-get-started
Business High Efficiency Air Source Heat Pumps – Up to $725/ton
Business Ground/Water Source Heat Pumps – Up to $750/ton
Business Natural Gas Water Heating – Up to $800
Business Heat Pump Water Heating – Up to $800
Green Heat Rebates
Heat Pump Rebates – Up to $500/ton
- Ductless mini-split heat pump – $200/ton (open to all homes)
- Centrally ducted heat pump – $400/ton (electrically heated homes)
- Air to water heat pump – $400/ton (electrically heated homes)
- Geothermal heat pump – $500/ton (electrically heated homes)
- Heat pump water heater – $150/unit (must replace/supplement electric domestic hot water heating)
Prince Edward Island
Home Energy Audit Program – Rebate up to $100
Pay for an energy audit cost ($99+HST) and rebates valued at $150 or more will be enhanced by $50 per upgrade, for a maximum of $100.
**Contact efficiencyPEI to be sure your equipment qualifies before you purchase.
Energy Efficient Equipment Rebates
- Equipment Upgrade Rebate – up to $1,700
- Energy Star certified oil boilers – regular $500; lvl 1 $850; lvl 2 $1700
- Energy Star oil furnaces – regular $500; lvl 1 $850; lvl 2 $1700
- Energy Star most efficient gas boilers– regular $500; lvl 1 $850; lvl 2 $1700
- Energy Star most efficient gas furnaces – regular $500; lvl 1 $850; lvl 2 $1700
- Thermal electric storage space heater – regular $250; lvl 1 $425; lvl 2 $850
- Thermal electric storage furnace– regular $500; lvl 1 $850; lvl 2 $1700
- Solar domestic water heater – regular $500; lvl 1 $850; lvl 2 $1700
- Energy Star certified gas instantaneous water heater – regular $250; lvl 1 $425; lvl 2 $850
- Energy Star certified heat pump water heater – regular $250; lvl 1 $425; lvl 2 $850
- In-direct water heater – regular $150; lvl 1 $250; lvl 2 $500
- Thermal electric storage water heater – regular $150; lvl 1 $250; lvl 2 $500
- Drain water heat recovery system – regular $100; lvl 1 $175; lvl 2 $300
- Programmable thermostat – $10
- Energy Star certified heat recovery/energy recovery ventilator – regular $300; lvl 1 $500; lvl 2 $1,000
- EPA biomass heater – regular $300; lvl 1 $500; lvl 2 $1,000
**conditions apply on each system
Lvl 1 = low income $20,001-$35,000
Lvl 2 = low income $20,000 and under
Home Energy Low-Income Program
For residents with a total household income of $50,000 or less. Program provides installation of a programmable thermostat, low flow showerhead, voucher for a free furnace cleaning and a quantity of Energy Star LED light bulbs.
New Home Construction Incentives – up to $5,000
Pay for an energy assessment ($99+HST) and after having your plans reviewed and building your home, a follow-up assessment will be conducted to determine its efficiency. You will receive either:
- Energy Star for new homes OR EnerGuide rating of 20% better than code – $2,000 rebate
- R2000 OR EnerGuide rating of 50% better than code – $5,000 rebate
Commercial Energy Audit Program – up to $1,000
Renovert Tax Credit – Up to $10,000 (20% of qualified expenditures)
- Single family home, mobile home, condo, apartment, or cottage that is normally occupied.
- Tax credit is extended until March 31, 2019
- Credits are available for heating systems, air conditioning systems, water heating systems, and other renewable energy devices.
Financial Assistance for Novoclimat Homes – up to $4,000
- $2,000 for first time owner of a Novoclimat certified home.
- Additional $2,000 for persons buying their first home.
Supplement for Low-Income Household
Financial assistance available for boilers, water heaters, programmable thermostats, and smart thermostats.
Programmable Thermostat – $25
Smart Thermostat Grant – $100
**cannot exceed 75% of the cost of the device
- $1,200 for installation and purchase when adding a natural gas hot water boiler
- $1,275 Blue Heating Rebate towards converting your oil-fired system to a new natural gas one
- $900 extra for choosing a condensing boiler
Quebec Government Rebates
Renoclimat – Financial Assistance up to $5,365
Dwellings (single family, mobile, rooming houses, etc.), duplexes, triplexes, multi-unit buildings with 4-20 units. **some conditions apply
Heat recovery ventilator – $490 for new installation only
Drain water heat recovery unit – $80-165 for new installation only and based on efficiency of the unit
- $5,365 for complete installation
- $2,115 for replacement of a heat pump
Air-source heat pump – $650 for installation or complete replacement
Amounts for multi-unit housing can be found here:
Chauffez Vert – Financial assistance up to $1,275 for single home and more for multi-unit homes
Extended until March 31, 2021
For replacement of a heating system:
- Single family home: heating oil $1,275; propane $850
- Semi-detached or row: heating oil $875; propane $650
- Mobile home: heating oil $1,075; propane $600
Multi-unit homes replacement of heating system:
- Duplex/triplex: heating oil $875x # of units; propane $650x #of units
- Multi-unit residential building: heating oil $550x # of units; propane $225x # of units
Water heater conversion:
- Single family home: heating oil $250; propane $200
- Duplex/triplex: heating oil $250; propane $200
- Multi-unit: heating oil $250x # of units OR # of water heaters installed; propane $200x # of units OR # of water heaters installed
Province of Saskatchewan
All Energy Star certified furnaces, boilers, ground and air source heat pumps are exempt from PST
Commercial Boiler Program – up to $40,200
Program is valid until November 30, 2019 **conditions apply
Commercial HVAC Program **on eligible equipment only
Frequently Asked Questions
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.
You must almost always apply prior or meet certain pre-installation criteria to qualify. Here some criteria that you may be required to meet (varies by rebate program, obviously):
- work done by a registered company
- pre and post renovation/furnace upgrade energy audit(s)
- purchase of an ENERGY STAR models or other specific model requriements
- certain level of energy consumption decrease achieved
- sometimes more than one upgrade must be done (e.g. new furnace AND water heater)
- must live in eligible region (specific city, province, or be a customer of the gas utility offering the rebate)
- if the rebate is being offered by a utility company, your account must most likely be in good standing
- certain programs are geared to low-income homeowners for example, so specific income or other criteria may apply
These are just examples; every program will have its own requirements that must be met.
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.
In the majority of cases, no. (A limited number of programs may offer “no charge” upgrades but this will be stipulated clearly in the program description.)
Assuming you met all the criteria, you will typically receive the money within a few months of the renovations or HVAC system upgrades being completed.
Often it comes in the form of a cheque in the mail, though in some cases you may get a credit on your natural gas utility company account, for example (e.g. your Enbridge account).
Many of them are offered either by government entities, or by utility companies (e.g. Union Gas, BC Hydro, etc), sometimes with funding from the government.
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.
Because your utility company is mean. Just kidding, the availability of rebates will vary over time, and is most often tied to funding by provincial or local governments.
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.
You can more information or a free quote including applicable local rebates from local contractors in your area here.
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.