At Joe’s Heating and Air Conditioning, we regularly speak with homeowners throughout Durham and Northumberland, including Oshawa, Whitby, Ajax, Pickering, Courtice, Bowmanville, Cobourg, Port Hope, and Clarington, who want clear, reliable information about HVAC grants in Ontario. Many homeowners know incentives exist but are unsure which programs apply to their home, what HVAC upgrades qualify, or how the rebate process works.
In this blog we will be explaining some of the HVAC grants and rebates currently available in Ontario, how they apply to heating and cooling upgrades, and what homeowners should understand before starting a project. When used correctly, these programs can significantly reduce upfront costs while supporting long-term energy efficiency and comfort.
What Are HVAC Grants and Rebates in Ontario?
In Ontario, several government and utility-supported programs offer grants and rebates for energy-efficient HVAC (heating, ventilation, and air conditioning) upgrades. These incentives are primarily focused on encouraging the adoption of high-efficiency heat pumps, while also supporting broader home energy improvements.
HVAC grants and rebates are financial incentives designed to reduce the cost of upgrading residential heating and cooling systems. They are delivered through provincial programs, federal initiatives, and utility-administered partnerships.
Their primary goals are to:
- Reduce household energy consumption
- Lower greenhouse gas emissions
- Encourage adoption of high-efficiency HVAC technology
- Offset the upfront cost of system upgrades
Rather than funding entire projects, most programs provide partial rebates or grants based on verified improvements in energy performance.
Major HVAC Grant and Rebate Programs in Ontario
Ontario homeowners may qualify for different programs depending on household income, existing heating fuel, and the type of HVAC upgrade being completed. As of now, the main active programs include the Home Renovation Savings Program, the Oil to Heat Pump Affordability Program, and the Energy Affordability Program.
It is important to note that the Canada Greener Homes Grant is closed to new applicants in Ontario as of February 5, 2024, though applications submitted before that date continue to be processed.
Home Renovation Savings Program (HRSP)
The Home Renovation Savings Program (HRSP) is currently the primary rebate pathway for most Ontario homeowners. The program is delivered through a partnership between Save on Energy and Enbridge Gas and supports a wide range of energy-efficient home upgrades.
HVAC upgrades supported under HRSP include:
- Heat pump installations
- Insulation and air sealing
- Energy-efficient windows and doors
The program places a strong emphasis on heat pump adoption as part of Ontario’s broader electrification strategy.
Potential savings: Homeowners may be eligible for rebates covering up to 30% of upgrade costs, with maximum incentives reaching:
- Up to $12,000 for a ground-source heat pump
- Up to $7,500 for a cold-climate air-source heat pump
Process: A pre-retrofit energy assessment conducted by an authorized energy advisor is generally required to identify eligible upgrades and confirm rebate eligibility before work begins.
Oil to Heat Pump Affordability (OHPA) Program
The Oil to Heat Pump Affordability Program (OHPA) is a federal initiative designed to help low-to-median-income households transition away from oil-based heating systems.
This program specifically supports homeowners who currently heat their homes with oil and are switching to an efficient electric heat pump system.
Potential savings: Eligible homeowners can receive an upfront grant of up to $10,000. In provinces like Ontario, where the program is co-delivered through income-qualified programs such as the Energy Affordability Program, this funding can result in a fully or nearly fully funded installation.
Process: Eligibility is income-based, and in some cases a pre-retrofit energy assessment may not be required, which helps reduce barriers for qualifying households.
Save on Energy and Energy Affordability Programs
The Save on Energy initiatives support electricity conservation and demand reduction across Ontario. For income-qualified households, these incentives are often delivered through the Energy Affordability Program (EAP).
HVAC-related incentives may include:
- Heat pump rebates
- Smart thermostat incentives
- Regionally targeted efficiency upgrades
These programs play an important role in supporting homeowners transitioning away from fossil fuel–based heating systems.
HVAC Upgrades That Commonly Qualify for Grants
Heat Pumps
Heat pumps are among the most heavily incentivized HVAC systems in Ontario due to their efficiency and ability to provide both heating and cooling using electricity.
Qualifying systems may include:
- Air-source heat pumps
- Cold-climate heat pumps
- Hybrid systems paired with existing heating equipment
High-Efficiency Furnaces and Boilers
Upgrading to high-efficiency gas furnaces or boilers may qualify for rebates under certain programs, particularly when paired with other energy-saving improvements and verified through energy assessments.
Smart Thermostats
Smart thermostats help reduce energy waste by optimizing heating and cooling schedules. They often qualify for smaller rebates, especially when installed alongside qualifying HVAC upgrades.
Insulation and Air Sealing
While not HVAC equipment, insulation and air sealing directly improve HVAC performance and can significantly increase total rebate eligibility under programs like HRSP.
Who Is Eligible for HVAC Grants in Ontario?
Homeownership and Residency
Most programs require:
- Proof of home ownership
- Primary residence status
Rental properties and secondary homes may have limited eligibility depending on the program.
Energy Assessments
EnerGuide energy assessments are required for many programs. These assessments:
- Establish baseline energy performance
- Identify eligible upgrades
- Verify post-upgrade improvements
Installation and Documentation Requirements
Eligibility typically requires:
- Licensed installation
- Approved equipment models
- Complete and accurate documentation
How the HVAC Grant Application Process Works
Understanding the process helps avoid missed rebates.
Step 1: Pre-Upgrade Assessment
An energy advisor evaluates the home and identifies eligible upgrades.
Step 2: Upgrade Installation
Only approved upgrades should be completed after the assessment.
Step 3: Post-Upgrade Assessment
The advisor verifies completed improvements.
Step 4: Rebate Processing
Rebates are issued after documentation review, often within several weeks.
Common Reasons HVAC Rebate Applications Are Denied
Applications may be rejected due to:
- Starting work before the pre-assessment
- Installing non-qualifying equipment
- Missing or incomplete documentation
- Failing to meet efficiency thresholds
Careful planning significantly reduces these risks.
HVAC Grants and Older Homes
Older Ontario homes often benefit the most from HVAC grants because:
- Existing systems are less efficient
- Heat loss is higher
- Upgrade potential is greater
However, additional envelope improvements may be required to qualify for maximum rebates.
HVAC Grants for Newer Homes
Newer homes may still qualify, particularly if:
- Original HVAC systems are inefficient
- Homeowners are switching to heat pumps
- Smart controls and optimization upgrades are added
Timing Your HVAC Upgrade for Maximum Benefit
HVAC grants provide the most value when:
- Systems are nearing end of life
- Energy costs are rising
- Renovations are already planned
Planning during off-peak seasons may also provide logistical advantages.
Long-Term Benefits Beyond Rebates
While rebates reduce upfront costs, energy-efficient HVAC upgrades also provide:
- Lower monthly utility bills
- Improved indoor comfort
- Reduced environmental impact
- Increased home value
Future Outlook for HVAC Incentives in Ontario
Ontario’s energy strategy continues to prioritize:
- Electrification of home heating
- Heat pump adoption
- Whole-home energy efficiency
This suggests HVAC incentives will remain a key tool for homeowners, though program details may evolve.
The Importance of Verifying Program Details Before Proceeding
HVAC grant programs in Ontario are subject to change, including eligibility criteria, rebate amounts, and qualifying equipment lists. Before committing to an upgrade, homeowners should confirm current program requirements and ensure all steps are completed in the correct order.
Final Thoughts
HVAC grants in Ontario are designed to make energy-efficient heating and cooling upgrades more accessible and affordable. Understanding how programs work, what equipment qualifies, and how the application process functions allows homeowners to make informed decisions while maximizing available incentives.
Considering Upgrading Your Water Heater? Visit Joe’s Heating Today!
At Joe’s Heating & Air Conditioning, we take pride in servicing locations throughout the Durham and Northumberland region including Bowmanville, Peterborough, Pickering, Ajax, Whitby, Oshawa, Cobourg, Port Hope and more! We offer high end services for all kinds of heating products such as, furnaces, boilers, water heaters, heat pumps, fireplaces and more. If you want to ensure your family’s warmth and comfort contact Joe’s Heating and Air Conditioning today at (905) 434-6788!
