Why your Ontario heat pump rebate might be $2,000 or $12,000

Same program, same province — a six-times difference depending on two questions. Here's how to figure out where you land.

Updated August 2026 · 4 min read

Unlike BC, where the heat pump rebate scales with your household income, Ontario's Home Renovation Savings Program scales the rebate by two completely different questions: what fuel are you switching from, and are you installing an air-source or ground-source system? Get the framing right and the number makes sense immediately.

Question 1: What are you switching from?

The program splits homeowners into two groups:

The logic: gas furnaces are already relatively efficient and lower-emission than oil, propane, or electric resistance heat, so the program pushes harder (with a bigger incentive) to get homes off those fuels first.

Question 2: Air-source or ground-source?

Air-source heat pumps (the common wall-mounted or ducted units, pulling heat from outdoor air) are cheaper to install but less efficient in extreme cold. Ground-source (geothermal) systems cost far more upfront but perform consistently regardless of outdoor temperature — and the rebate reflects that cost gap.

Current fuelAir-sourceGround-source
Natural gas (Enbridge)up to $2,000 ($500/ton)$3,000 flat
Electric, oil, propane, or woodup to $7,500 ($1,250/ton)up to $12,000 ($2,000/ton)

✅ What "per ton" means

The rebate is calculated per ton of rated heating capacity at 8.3°C (47°F) — a standard cold-climate rating point. A typical Toronto home needs a 2–3 ton system, so most households land somewhere in the middle of their tier's range, not at the maximum cap.

What about renting a heat pump instead of buying?

Heat pump rentals are eligible too, at the lower rate regardless of your current fuel — up to $2,000 for air-source, $3,000 for ground-source. If you're not ready to commit to ownership, this is worth comparing against a purchase plus the higher-tier rebate.

A worked example

Say you're in a Toronto home currently heating with a gas furnace, and you install a 2.5-ton cold-climate air-source heat pump:

Now compare a household with electric baseboard heat installing the same 2.5-ton system:

Same equipment, same city, 2.5x the rebate — purely because of the current fuel.

How to check which model qualifies

There's no pre-approved brand list. Instead, the heat pump must appear on Natural Resources Canada's qualified products list for either cold-climate air-source or ground-source heat pumps. Ask any participating HVAC contractor to confirm the specific model is listed before you commit — it's a quick check on their end.

See your exact heat pump number

Tell us your current fuel and we'll calculate your Toronto-specific range.

Estimate my rebate →

Source: homerenovationsavings.ca — heat pump rebate details. Confirm current rates there before applying.

Full Toronto heat pump rebate page → · All HRSP categories explained →