Ontario Edition

Heat Pump or Solar First? The Real Answer for Ontario

The federal loan is gone. But Ontario still has money. Here's what makes sense in 2026.

The Short Answer

Heat pump wins. A heat pump pays for itself in 6–8 years. Solar takes 9–17 years. If you want to save money as fast as possible, get a heat pump first.

Important note: The Canada Greener Homes Loan closed October 1, 2025. But Ontario's Home Renovation Savings program gives up to $7,500 back. It's a rebate, not a loan—no repayment required.

Heat Pump Path: The Faster Win

What you pay: About $8,000 after Ontario's $7,500 rebate. (Install costs $6,000–$18,000. Ontario covers up to $7,500.)

What you save per year: $1,200.

When it pays for itself: In about 7 years.

After that: Free heating for 20+ years.

Real example: A Toronto homeowner switched from gas heat to a heat pump. Their bill dropped from $1,800/year to $600/year. They saved $1,200 in year one. In 7 years, that savings pays for the whole system.

Solar Path: The Longer Wait

What you pay: About $20,000 after rebates. (Install costs $17,500–$27,500. Rebates cover $1,000–$5,000.)

What you save per year: $1,400.

When it pays for itself: In about 14 years.

After that: Free electricity for 20+ years.

Real example: A London homeowner installed solar. Their bill went down $1,400/year. But they had to wait 14 years before the system paid for itself.

Side-by-Side Comparison

Heat Pump Solar
Cost after rebate $8,000 $20,000
You save per year $1,200 $1,400
Pays for itself in 7 years 14 years
Free energy after 20+ years 20+ years

What About the Closed Loan?

You might have heard about the Canada Greener Homes Loan. It was interest-free and gave homeowners up to $40,000 to borrow. It closed October 1, 2025.

But don't panic. Ontario's Home Renovation Savings program is still open. You get up to $7,500 back—no loan, no repayment. It's free money.

The rebate is smaller than the old loan, but it's simpler: No paperwork, no repayment, no interest.

Will a Heat Pump Heat My Ontario Home in Winter?

Yes. Ontario winters are similar to BC's. New heat pumps work down to -20°C. Most Ontario winters don't hit -20°C for long. When they do, a backup heat source kicks in automatically.

Toronto averages -5°C in January. That's perfect for heat pumps. Northern Ontario (like Sudbury) gets colder. But even there, modern heat pumps handle it.

Your Next Step

Want to know your exact rebate amount? Go to the Ontario hub to see your city's rebate details. Or take our 20-second assessment to see exactly how much money you can get.