This is an explainer, not a single news event: a snapshot of Ontario's main residential heat pump rebates as installers need to understand them on October 23, 2026. It draws on the Home Renovation Savings heat pump page, Save on Energy's Energy Affordability Program and Toronto Hydro's offers page. Programs change often; confirm the current terms with the administrator before quoting.
The rebate amounts by heating fuel
The amount depends on what heats the home today, not on the heat pump alone.
| Current primary heat | 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 |
| Natural gas (Enbridge Gas customer) | $500 per ton, up to $2,000 | $3,000 flat |
| Rental heat pump (any fuel) | $500 per ton, up to $2,000 | $3,000 flat |
Air source tonnage is based on the minimum rated heating capacity at 8.3 °C (47 °F). Ground source tonnage uses closed-loop capacity. Heat pumps sit in the program's "no home energy assessment required" category.
A worked example
For an oil-heated house, a cold-climate air source system with 4 tons of rated heating capacity at 8.3 °C would come to 4 × $1,250 = $5,000. A 6-ton system reaches the $7,500 cap. The same 4-ton system in an Enbridge gas-heated house would be 4 × $500 = $2,000, which is also that category's cap. These are illustrations based on the published rates, not quotes.
Equipment and home eligibility
The model must be on the right federal list, and the home must fit the program.
Cold-climate air source and water-to-air ground source models must be active on Natural Resources Canada's qualified product list for their type; water-to-water ground source models must be on the ENERGY STAR geothermal list. Our report on NRCan's eligible product lists explains those criteria.
The homeowner must own the home (landlords with tenants apply themselves). Gas-heated homes need an active Enbridge Gas residential account; homes on other fuels need a connection to the Ontario grid. Detached, semi-detached, row, town and mobile homes on a permanent foundation qualify. New builds occupied for six months or less do not, and Cornwall Electric customers are excluded unless the home is primarily heated by Enbridge gas.
The process: pre-approval and the contractor list
The contractor drives the paperwork, from first application to final claim.
- The homeowner chooses a participating HVAC contractor from the program's official list.
- The contractor helps pick the heat pump and submits the pre-installation application.
- Nothing is installed until approval arrives. Work done before approval is not eligible.
- After installation, the contractor submits the post-installation application.
- Once approved, the program says the rebate cheque should arrive by mail within 60 days.
When we checked, the page said new contractor registration was open. Fuels work in Ontario must also be done by a TSSA-registered contractor; we link the regulator for reference only and give no compliance advice.
The no-cost stream for oil-heated homes
Income-eligible oil-heated households have a separate route.
Save on Energy's Energy Affordability Program offers eligible oil-heated homeowners a cold-climate heat pump at no cost, funded by Natural Resources Canada through the Oil to Heat Pump Affordability program. Income limits on the page start at $48,220 for a one-person household and rise to $127,576 for seven or more. Delivery agents are assigned by postal code. Toronto Hydro's page tells customers to "apply by November 30, 2026" for this limited-time offer. Toronto Hydro also lists its own Heat Pump Assistance Program as having reached full capacity.
Analysis: what this means for heat pump contractors
This section is our analysis.
Ontario rewards installers who are organized before the first call.
- Get on the list, then say so. If you are a participating contractor, put it on your service pages with the date you were confirmed. Homeowners are told to use the list, so they will look.
- Lead oil and electric homes, not gas. The gas rate tops out at $2,000. Your best rebate story is for baseboard, oil, propane and wood homes. Segment your pages and ads that way; our Ontario page and Google Ads service show how.
- Warn about scams. Both Save on Energy and Home Renovation Savings warn about people impersonating contractors and program staff. A short "how to check us" note on your site builds trust.
- Mind November 30. If you serve Toronto Hydro customers on oil, autumn is the time to tell them about the no-cost stream.
For more provincial updates, see the newsroom. To set up dated rebate pages like this for your own company, call, text or email us.
Frequently asked questions
How much is the Ontario heat pump rebate?
As of October 23, 2026, Home Renovation Savings lists $1,250 per ton up to $7,500 for a cold-climate air source heat pump and $2,000 per ton up to $12,000 for ground source, in homes heated by electricity, oil, propane or wood. Enbridge gas-heated homes get $500 per ton up to $2,000 for air source or $3,000 for ground source.
Can a homeowner install first and claim later?
No. The program page says pre-approval is mandatory and installations made before approval are not eligible. The participating contractor submits the pre-installation application.
Does the installer have to be on a list?
Yes. Homeowners must use a participating HVAC contractor from the program's official list. The program page said new contractor registration was open when we checked.
Is there a free heat pump option for oil-heated homes?
Save on Energy's Energy Affordability Program offers no-cost cold-climate heat pumps to income-eligible oil-heated homes, funded through the federal Oil to Heat Pump Affordability program. Toronto Hydro's page tells customers to apply by November 30, 2026.
Sources
- Home Renovation Savings: Heat pumps (2026-10-23)
- Save on Energy: Energy Affordability Program (2026-10-23)
- Toronto Hydro: Offers and rebates (2026-10-23)
- TSSA: Contractor Registration and Certification (2026-10-22)