What Happened to the Loan?
The federal government's Canada Greener Homes Loan gave homeowners up to $40,000 to borrow, interest-free, for heat pumps, solar, and other upgrades. It closed on October 1, 2025.
Why? The program ran out of money. Too many people wanted it.
But don't panic. Ontario still has rebate programs in 2026. They're smaller, but they're simpler and they're free.
What's Available in Ontario Right Now
✅ Ontario Home Renovation Savings
What it is: A rebate program. You get 30% of eligible work costs back, up to $7,500.
Who qualifies: Homeowners in Ontario. That's it.
Examples:
- Heat pump install costs $8,000 → You get $2,400 back (30%)
- Solar install costs $20,000 → You get $7,500 back (capped at the max)
How to apply: ontario.ca/homerenvoationsavings
✅ Federal Inflation Reduction Act Credits
What it is: A federal tax credit for heat pumps and energy upgrades. You file it on your taxes.
Who qualifies: Most Canadian homeowners (income limits apply).
How much: Up to 15% of installation costs, depending on the upgrade.
How to claim: Through your tax return or immediately at the time of installation at participating retailers.
Ontario vs The Old Federal Loan
| Old Federal Loan (Closed) | Ontario Home Renovation Savings (Open Now) | |
|---|---|---|
| Max Amount | $40,000 | $7,500 |
| Type | Loan (must repay) | Rebate (free money) |
| Interest | 0% (but still a loan) | N/A (no repayment) |
| When you get it | Upfront (borrow now) | After completion (rebate after) |
| Availability | CLOSED Oct 1, 2025 | Open through 2026 |
Real Numbers: What You Pay
Heat Pump Install in Ontario (after rebates):
- Install cost: $8,000
- Ontario rebate: $2,400 (30% of $8,000)
- Federal tax credit: $800 (varies)
- You actually pay: About $4,800
- You save: $1,200/year on heating
- Pays for itself: In about 4 years
The Honest Truth
The old loan was generous. $40,000 interest-free is hard to beat. The new Ontario rebate is smaller. But it's also simpler: No loan application, no repayment, no interest calculations.
You still come out ahead. A heat pump still saves you money. It just takes a bit longer to break even without the bigger upfront help.
What if You Already Applied for the Old Loan?
If you applied before October 1 and got approved, you're grandfathered in. Finish your work before the deadline (varies by province). If you didn't finish in time, you'll need to pivot to Ontario's rebate program.
Bottom Line
The federal loan is gone. But heat pumps still make financial sense in Ontario. You'll pay a bit more upfront, but the energy savings still pay it back in 4–7 years. Plus 20+ years of free heating after that.