The Home Renovation Savings Program – Heat Pump Stream, launched in 2025 and continuing through 2026, provides rebates for installing high-efficiency cold climate air source heat pumps (ccASHP).
The program is administered jointly by:
• Enbridge Gas
• Independent Electricity System Operator (IESO)
These systems are designed to deliver reliable heating even in temperatures as low as −15°C or lower, while also providing efficient air conditioning during the summer.
Heat Pump Rebate Amounts
Rebates are calculated based on the heating capacity of the heat pump system.
Ontario Heat Pump Rebate Table
Rebates are calculated using the minimum rated heating capacity at 8.3°C (47°F).
Most homes in Ontario require 2–3 tons of heating capacity, meaning many homeowners receive rebates between $1,000 and $3,750 depending on the system installed.
Only one heat pump rebate can be claimed per eligible home, and the installation must include a complete system (outdoor unit and indoor unit paired with an air handler, approved coil, or furnace).
Rental or lease-to-own equipment does not qualify for the rebate program.
Heat Pump Installation Costs in Ontario
One of the most common questions homeowners ask is how much a heat pump installation costs after rebates.
In most homes across Uxbridge, Durham Region, and York Region, professionally installed heat pump systems typically range between $13,000 and $25,000 depending on system size and installation complexity.
Some homes may require additional electrical upgrades, ductwork modifications, or larger equipment. In those situations installation costs can increase, but most installations fall within the typical range above.
Hybrid Heat Pump Systems (Heat Pump + Existing Furnace)
A common and cost-effective option is installing a cold climate heat pump while keeping the home’s existing natural gas furnace.
In this configuration, the heat pump handles heating during milder outdoor temperatures, while the furnace automatically provides backup heat during extremely cold weather.
This setup typically includes a cold climate heat pump paired with a rated evaporator coil installed on the existing furnace.
Example configuration:
• Panasonic cold climate heat pump
• AHRI rated evaporator coil paired with an existing furnace
These systems can qualify for the Ontario heat pump rebate program when installed as a properly matched system.
Plus HST
This option is often the most cost-effective path for homeowners who already have a 2 stage furnace and want to add high-efficiency heating and cooling.
Hybrid Heat Pump Systems (Heat Pump + Furnace)
Hybrid systems combine a cold climate heat pump with a natural gas furnace, allowing the heat pump to handle most heating while the furnace acts as backup during extreme cold.
Plus HST
Upgrading both systems can improve overall efficiency, comfort, and long-term reliability.
All-Electric Heat Pump Systems
All-electric systems completely replace the home’s existing heating equipment.
These systems are most common in homes currently heated with:
• Electric baseboard heating
• Electric furnaces
• Propane heating systems
• Oil heating systems
Because these homes rely on electricity or delivered fuels, the rebate incentives are significantly higher.
Plus HST
For many homeowners switching away from baseboard heating, propane, or oil, heat pumps can significantly reduce overall heating costs while also providing efficient central air conditioning.
Rebates are available for up to $7,500. However, for an average-sized home, the full rebate amount is not typically applicable. Actual rebate amounts will depend on the system tonnage required, as determined by the home's heat loss calculation.
What Determines Heat Pump Installation Cost?
Several factors influence the final installation price.
These include:
• Home size and heating load requirements
• Electrical panel capacity and potential upgrades
• Existing ductwork condition
• Equipment efficiency and system sizing
• Installation complexity and equipment location
A professional assessment ensures the system is properly sized and configured for your home, which is critical for both comfort and rebate eligibility.
Heat Pump Eligibility Requirements
To qualify for the Ontario heat pump rebate program, homeowners must meet several requirements.
Home Eligibility
The homeowner must:
• Own the home and pay for the installation
• Have lived in the home for at least six months
• Install the first heat pump system in the home
Eligible property types include:
• Single-detached homes
• Semi-detached homes
• Row houses and townhomes
• Mobile homes on permanent foundations
New construction homes are not eligible for this rebate program.
Homes must also be served by either:
• Enbridge Gas
• The IESO-controlled electricity grid
Heat Pump Equipment Requirements
The installed system must be listed in Natural Resources Canada’s database of qualifying cold climate air source heat pumps.
Minimum performance requirements include:
• HSPF2 (Region V): 6.6
• SEER2: 15.2
• COP at −15°C: 1.8
• Minimum 70% capacity maintenance at −15°C
• Variable capacity operation
• Minimum heating capacity 12,000 BTU/hr
The system must also be properly sized using NRCan’s heat pump sizing tool.
Qualifying Heat Pump Systems
Many modern cold climate heat pumps meet the program’s eligibility requirements.
As a Daikin Comfort Pro Partner, Marx Mechanical regularly installs systems that meet the program’s requirements.
Common qualifying whole-home heat pump systems include:
• Panasonic cold climate heat pumps
• Daikin FIT heat pump systems
• Daikin FIT Aurora cold climate systems
• Mitsubishi Zuba cold climate heat pump systems
These systems use inverter technology to provide efficient heating and cooling with strong cold-weather performance.
Typical performance specifications for advanced cold climate systems can include:
These systems maintain strong heating performance even during extreme winter temperatures.
Heat Pump Rebate Application Process
The rebate process typically follows four steps.
1. Select a Participating HVAC Contractor
Your contractor must hold proper licensing, including 313A or 313D certification, and be registered with the program.
2. Pre-Installation Application
Before installation begins, the contractor submits:
• Work order
• Photos of the existing system
• Participant agreement
• Equipment details and AHRI numbers
• Completed NRCan sizing form
Written approval must be received before installation begins.
3. Installation
Once pre-approval is granted, the heat pump system can be installed.
4. Post-Installation Submission
Within 30 days of installation, the contractor submits final documentation and installation photos. Once approved, the rebate is issued.
Frequently Asked Questions About Ontario Heat Pump Rebates
How much is the Ontario heat pump rebate in 2026?
Homeowners can receive up to $7,500 for electrically heated homes or up to $2,000 for homes heated with natural gas. Due to average home size likely rebate amounts will range between 2000 and 5000.
Do you need an energy audit?
No. The Home Renovation Savings Program heat pump stream does not require a home energy assessment, which makes the application process faster.
Can hybrid heat pump systems qualify?
Yes. Hybrid systems that combine a heat pump with a natural gas furnace can qualify when installed as a complete system.
How long does it take to receive the rebate?
Once the installation documents are submitted and approved, rebates are typically issued within several weeks. Because these programs are administered by the government + 3rd parties, processing times can vary and occasional delays may occur. While we cannot control the timing of rebate payments, they are issued directly by the program once your application has been fully processed.
Heat Pump Installers in Uxbridge and Durham Region
If you're considering a heat pump upgrade, our team at Marx Mechanical Heating & Cooling can help confirm eligibility and guide you through the rebate process.
We have proudly served Uxbridge, Durham Region, and York Region since 2017, installing high-efficiency heating and cooling systems designed for Ontario’s climate.
Call (289) 301-0414 to schedule a consultation or request a quote.