Ontario HVAC Rebate Stacking Guide 2026

The 2026 Ontario Rebate Landscape

The HVAC rebate landscape in Ontario has changed significantly over the past two years. Several major programs have closed, and new ones have launched. Before you plan your upgrade, you need to know exactly what is available right now.

Programs That Are CLOSED

These programs are no longer accepting new applications. You may see them referenced on other websites, but they are not available:

Why this matters: Many contractor websites and online guides still advertise these programs. Do not count on them when budgeting your project.

Programs That Are ACTIVE

The Home Renovation Savings Program (HRS) in Detail

The HRS program is currently Ontario's most significant HVAC rebate program. Administered through Save on Energy (IESO), it offers substantial rebates for energy-efficient home upgrades.[2]

What Qualifies

• Heat pumps (air-source, ground-source, and mini-splits): up to $7,500 for eligible installations in electrically heated homes.
• Insulation upgrades: rebates for attic, wall, and basement insulation improvements.
• Air sealing: weatherstripping, caulking, and draft reduction work.
• Windows and doors: energy-efficient replacements may qualify for partial rebates.

How to Apply

1. Book an EnerGuide evaluation through a registered service organization. This pre-retrofit evaluation establishes your home's baseline energy performance.[6]
2. Review the evaluation report. The evaluator will recommend upgrades ranked by energy savings potential.
3. Register for the HRS program through saveonenergy.ca before starting work.
4. Complete the work using a qualified contractor. Keep all invoices and permits.
5. Book a post-retrofit evaluation to verify the improvements.
6. Submit your rebate application with all required documentation.

Critical timing note: You must register for the program and complete the pre-retrofit evaluation before starting work. If you install equipment first and then apply, you will not qualify.

Federal Tax Credits You Can Stack

Federal tax credits work differently from rebates. Instead of a direct payment, they reduce your income tax owing. This is important because most rebate programs do not prohibit you from also claiming eligible tax credits on the same project.

Home Accessibility Tax Credit (HATC)

The HATC provides a 15% non-refundable tax credit on up to $20,000 in eligible home renovation expenses.[3] To qualify:

• You must be 65 or older, or qualify for the disability tax credit.
• The renovation must improve accessibility or help you live more safely and independently in your home.
• HVAC modifications that improve accessibility (such as relocating thermostats, adding accessible controls, or modifying ductwork for a main-floor living arrangement) may qualify.

Multigenerational Home Renovation Tax Credit (MHRTC)

The MHRTC provides a 15% refundable tax credit on up to $50,000 in renovation expenses to create a secondary dwelling unit for a senior or a person with a disability.[4] If your HVAC upgrade is part of a qualifying multigenerational renovation (for example, adding HVAC to a new in-law suite), these costs may be eligible.

Step-by-Step Stacking Strategy

Here is the optimal order for maximizing your total rebate and credit value:

1. Book your EnerGuide pre-retrofit evaluation first. This is required for the HRS program and takes 2 to 4 weeks to schedule.[6]
2. Register for the HRS program on saveonenergy.ca.[2]
3. Check your municipality for local programs. Some offer additional rebates or interest-free financing for energy upgrades. Toronto's Home Energy Loan Program (HELP), for example, provides financing that can be combined with provincial rebates.
4. Check Enbridge for current equipment-specific rebates. While HER+ is closed, Enbridge may offer smaller rebates for specific high-efficiency equipment.[5]
5. Get three contractor quotes. Ensure they specify equipment models so you can verify eligibility for each program.
6. Complete the work and keep every receipt. You will need itemized invoices for both the rebate application and tax credits.
7. Book your post-retrofit evaluation and submit your HRS rebate application.
8. At tax time, claim eligible federal credits (HATC or MHRTC if you qualify).[3][4]
9. If applying for a new mortgage or refinancing, ask your lender about the CMHC Green Home premium refund.[8]

Example: Heat Pump Installation in an Electrically Heated Home

Here is a realistic stacking example for a cold-climate air-source heat pump installation:

If you also qualify for a federal tax credit (HATC for seniors), your net cost drops further. And if you are refinancing, the CMHC Green Home premium refund could save additional hundreds on mortgage insurance.

Common Mistakes That Cost You Money

These are the most frequent errors homeowners make when trying to access HVAC rebates:

1. Starting Work Before Registering

This is the most expensive mistake. If you install new equipment before completing the pre-retrofit evaluation and registering for the program, you are almost certainly disqualified. Book the EnerGuide evaluation first, every time.[6]

2. Assuming Closed Programs Are Still Active

The Canada Greener Homes Grant and Enbridge HER+ are closed.[1][5] Do not plan your budget around rebates from programs that no longer exist. Verify current program status directly on the program website before committing.

3. Not Checking Equipment Eligibility

Not every furnace, heat pump, or air conditioner qualifies for rebates. Programs specify minimum efficiency ratings (such as HSPF, SEER2, or AFUE). Confirm the specific make and model you are purchasing meets the program requirements before installation.

4. Missing the Stacking Opportunity

Many homeowners apply for one program and miss others they qualify for. Provincial rebates, municipal programs, and federal tax credits often cover the same project. Check all three levels before starting work.

5. Not Keeping Receipts

Both rebate programs and tax credits require detailed, itemized invoices. A generic receipt that says "HVAC installation: $12,000" is not sufficient. Ensure your contractor provides an invoice that breaks down equipment costs, labour, permits, and materials separately.

6. Choosing a Contractor Who Is Not Program-Registered

Some programs require work to be performed by contractors who are registered with the program or who meet specific certification requirements. Confirm this with the program before hiring.

Municipal Programs Worth Checking

Several Ontario municipalities offer their own energy efficiency programs that can be combined with provincial rebates:

• Toronto: Home Energy Loan Program (HELP) provides interest-free financing for energy improvements, repaid through your property tax bill.
• Ottawa: Better Homes Ottawa offers rebates and financing for qualifying retrofits.
• Hamilton: Home Energy Retrofit Program provides grants for lower-income homeowners.
• Other municipalities: Check your local government's website for energy efficiency programs. Many municipalities have introduced or expanded programs in recent years.

Municipal programs change frequently. Verify availability and terms directly with your municipal government before planning around them.

The CMHC Green Home Advantage

If you are buying a home, refinancing, or renewing your mortgage, the CMHC offers a partial premium refund for energy-efficient homes.[8] After completing your HVAC and insulation upgrades:

• Get a post-retrofit EnerGuide evaluation showing improved performance.
• Ask your mortgage lender about the CMHC Energy-Efficient Housing premium refund.
• You may qualify for a refund of up to 25% of your mortgage insurance premium.

This is often overlooked because it happens at the mortgage level, not through a separate rebate application. But the savings can be significant, especially on a new purchase.

OESP: Ongoing Electricity Bill Savings

If you switch from natural gas heating to a heat pump, your electricity costs will increase. The Ontario Electricity Support Program (OESP) provides monthly on-bill credits to lower-income households to offset electricity costs.[7]

OESP is not a one-time rebate. It is an ongoing monthly credit that can help make heat pump operation more affordable. If your household income qualifies, apply through the OESP portal at oeb.ca.

Frequently Asked Questions