Ontario is launching its largest-ever investment in energy efficiency, featuring substantial rebates for homeowners looking to upgrade their heating systems with modern heat pump technology. The new framework, running from 2025 to 2036, will more than double the province’s annual energy efficiency spending to $900 million.
In Short: The program will cover a range of home energy efficiency upgrades, including heat pumps, windows & doors, thermostats, solar panels & battery systems, insulation improvements, and other appliances, which we detail below.
Under the new Home Renovation Savings Program, homeowners can access significant rebates for heat pump installations:
- Up to $7,500 for cold climate air source heat pumps
- Up to $12,000 for ground source heat pumps
- $500 for heat pump water heaters
These rebates are designed to cover approximately 30% of upgrade costs (check out our Heat Pump Cost Calculator), with payments processed within 30-60 days of approved applications.
To support these heating system upgrades, the program also offers complementary rebates for home efficiency improvements, including up to $8,900 for insulation and $600 for home energy assessments.
How to Qualify
There are some criteria which must be met, including likely getting an energy assessment completed before and after the upgrades are installed.
It’s best to get estimates on your new heating system from Certified HVAC contractors that will be able to help you at every step and ensure you meet the qualification criteria, explain the details, and help you apply.
Beyond Heating: Additional Home Upgrade Rebates
The program covers a comprehensive range of energy-efficient home improvements.
Homeowners can receive:
- $100 per new window and door
- Up to $250 for air sealing improvements
- $75 for smart thermostat installations
For those interested in renewable energy, the program offers up to $5,000 for rooftop solar panels and another $5,000 for battery storage systems.
Starting later in 2025, the program will expand further to include rebates for energy-efficient appliances such as refrigerators and freezers, with specific rebate amounts to be announced.
For income-eligible households, the Energy Affordability Program provides even more comprehensive support, offering free energy-saving upgrades including cold-climate air-source heat pumps along with other appliances and insulation improvements.
The framework represents a major increase from historical spending levels, jumping from an average of $342 million annually between 2011-2024 to $900 million per year under the new program. Over its 12-year span, the initiative is expected to generate $23.1 billion in electricity system benefits while saving ratepayers an estimated $12.2 billion.
These programs aim to help Ontario achieve substantial energy savings of 18,000 GWh by 2036 – equivalent to powering Ottawa twice over, plus London and North Bay. The framework also targets peak demand reduction of 3,000 MW, representing 70% of Toronto’s summer peak electricity demand.
By making heat pumps and other energy-efficient technologies more accessible to homeowners, Ontario is taking a significant step toward reducing energy consumption while helping residents manage their utility costs in the years ahead.
Browse other government rebate programs across Canada.
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Would you know if 4 season cottage is eligible for heat pump subsidy ?
It may, but we don’t have all the details yet. Especially if replacing an old furnace, it may qualify.