Heat pump rebates in Toronto and Ontario

The provincial rebate: Home Renovation Savings

Across Ontario, heat pump rebates come from the no-assessment stream of Home Renovation Savings. The amount depends on how you heat today and on the kind of heat pump (program page ↗):

How you heat now	Cold-climate air-source	Ground-source
Electricity, oil, propane or wood	$1,250 per ton, up to $7,500	$2,000 per ton, up to $12,000
Enbridge natural gas	$500 per ton, up to $2,000	$3,000
Renting the heat pump (any fuel)	$500 per ton, up to $2,000	$3,000

Worked through: a 3-ton cold-climate heat pump replacing electric baseboards earns 3 × $1,250 = $3,750; the same unit in a gas-heated home earns 3 × $500 = $1,500, and the furnace can stay as backup.

The rules that trip people up:

• Use a participating contractor, and wait for written pre-approval before buying. Anything installed before approval gets nothing.
• Replacing an existing heat pump doesn't qualify, and new homes must have been occupied for at least six months.
• Oil-heated homes must size the new electric heating to replace the oil heat completely.
• The contractor files the completion paperwork within 30 days; the cheque follows within about 60 days of approval (stream requirements ↗).
• If your gas comes from Kitchener Utilities or Utilities Kingston rather than Enbridge, check eligibility first: the program is written for Enbridge Gas customers or homes heated by electricity, oil, propane or wood (program FAQ ↗).

The heat pump page listed no installation deadline or end date when we checked on October 8, 2026.

Toronto's part: HELP financing

The City of Toronto finances rather than rebates. Its Home Energy Loan Program lends up to $125,000, or 10% of your home's assessed value if that's less, repaid on your property tax bill. Projects that include a heat pump qualify for the 20-year term, and a heat-pump-only project doesn't need the EnerGuide assessment: the installer signs an attestation instead. The City resets its fixed rates every quarter; the table valid until September 30, 2026 ran from 3.34% (5 years) to 4.75% (20 years) and was still the one posted on October 8, 2026, so check the City's current rates. A 2% administrative charge applies (toronto.ca ↗).

The City's own HELP incentives, which included heat pumps, ran from July 7, 2022 to January 24, 2025 and are fully subscribed (HELP terms ↗).

Free heat pumps for income-qualified homes

Save on Energy's Energy Affordability Program installs cold-climate air-source heat pumps at no cost in eligible homes heated by electricity or oil, along with insulation and draft proofing. It's for households under its income limits, from $48,220 for one person up to $127,576 for seven or more, or receiving benefits such as ODSP, Ontario Works, LEAP or OESP. Call 1-844-770-3148 or apply online (Save on Energy ↗).

Other Ontario cities that add heat pump money

• Ottawa: Better Homes Ottawa loan participants get $700 per ton for a cold-climate air-source heat pump or $1,000 per ton for ground-source (Better Homes Ottawa ↗); the City says new loan applications are currently waitlisted.
• Waterloo Region: RetrofitWR loans at 2.5% for GrandBridge Energy customers, with up to $2,500 toward eligible heat pumps and $1,000–$3,000 more for income-eligible households (RetrofitWR ↗).
• Guelph: loans are closed, but low-income households can get grants of up to $15,000 for an air-source heat pump (City of Guelph ↗).

What about federal money?

• Coming in 2027: the federal National Heat Pump Rebate, announced October 8, 2026, will pay $2,000, or up to $10,000 for households below the median income, toward an eligible cold-climate air-source heat pump, with no EnerGuide evaluation. The government says it can be combined with provincial programs such as Home Renovation Savings. It is expected to open early in 2027 (Government of Canada ↗).
• The Canada Greener Homes Grant stopped taking applications in February 2024, and December 31, 2025 was the last day to upload documents (NRCan ↗).
• The Oil to Heat Pump Affordability Program closed to new applications on July 31, 2026 (NRCan ↗). Ontario's oil-heated, income-qualified homes are served through the Energy Affordability Program above.
• The Greener Homes Affordability Program isn't delivered in Ontario (NRCan ↗).

For every other province, see heat pump rebates in Canada by province.

Get the size right before you buy

The rebate is the small number; the heat pump is the big one. A CSA F280 heat-loss calculation sizes the system to your house instead of to the old furnace, and air sealing or attic insulation first can shrink the unit you need. That's why an energy assessment is still worth having even though this rebate doesn't require one. Compare running costs with our energy cost calculator, and read switching to a heat pump.