Ontario HVAC rebates in 2026, explained
The main Ontario incentive for home heating equipment in 2026 is the heat pump stream of the Home Renovation Savings program. A standalone gas furnace or a cooling-only air conditioner is not a heat pump rebate measure, so plan those purchases without a rebate from it.
The short answer
As published at our check on October 4, 2026
- A new gas furnace on its own
- Not a measureA standalone gas furnace is not a heat pump rebate measure.
- A central air conditioner on its own
- Not a measureA cooling-only AC is not a heat pump rebate measure either.
- An eligible heat pump, approved before installation
- Rebate streamPublished caps run from $2,000 to $12,000 by heat pump type and heating fuel. The amount follows rated heating capacity.
- When the money arrives
- About 60 daysPayment guidance is about 60 days after post-installation approval.
- Limited household income
- Direct installIncome-qualified support arrives as work, not cash.
- Canada Greener Homes Loan
- ClosedClosed to new applications on October 1, 2025.
On this page
Every rebate figure here comes from the official program pages, checked on October 4, 2026 and linked at the end; installed prices come from the Ontario Furnace Prices price index. Rebate amounts are published caps, not a promise of payment: eligibility, the exact product and approval before installation decide what is paid.
What qualifies, and what does not
Most people asking about a furnace rebate end up in the same place. The Home Renovation Savings heat pump stream pays toward heat pumps, and its terms treat a furnace kept alongside one as backup heating, not as the measure. Here is how common purchases line up against it.
| Equipment or situation | Heat pump stream | What the rules say |
|---|---|---|
| Gas furnace on its own | Not a measure | A standalone gas furnace is not a heat pump rebate measure, whatever its efficiency or brand. |
| Central air conditioner on its own | Not a measure | A cooling-only AC is not a measure. A heat pump also cools, so it is worth pricing one instead. |
| Air-source heat pump, purchased (ducted or ductless) | Can qualify | A per-ton amount up to a cap set by your heating fuel. The exact product must be eligible. |
| Ground-source heat pump, purchased | Can qualify | $3,000 for natural gas, or $2,000 per ton up to $12,000 otherwise. |
| Heat pump with a gas furnace as backup (dual fuel) | Heat pump only | The terms separate the rebated heat pump from compatible backup heating. The furnace is the backup, not the measure. |
| Rented or leased heat pump | Separate caps | Rentals have their own caps, different from the purchased amounts shown here. |
| Replacing an existing heat pump used for space heating | Excluded | The heat pump stream requirements exclude it. |
| Boiler, water heater or other equipment | Not covered here | Our sources cover the heat pump stream for space heating only. Check the program site directly before counting on any amount. |
Homeownership, home type, product eligibility and pre-approval rules apply to every row.
If your furnace and air conditioner are both near the end, price a heat pump alongside them: it is the only part of the job the stream recognizes. Our furnace and AC price guide shows the like-for-like cost to compare against.
Buying a heat pump: the amount in brief
Three things set the figure: the type of heat pump, how the home is heated and the unit's rated heating capacity. At our October 4, 2026 check, purchased air-source caps were $2,000 for Enbridge natural gas homes and $7,500 for homes heated by electricity, oil, propane or wood, with ground source up to $12,000. The per-ton arithmetic, a cap checker and worked examples are in our guide to heat pump rebates in Ontario.
Rules and the order to apply
Homeownership, home type and the exact product all have to be eligible, and replacing an existing heat pump used for space heating is excluded. Pre-installation approval is mandatory, so apply with the quoted model before any work starts, and plan to pay the installer in full: payment guidance is about 60 days after post-installation approval.
Get a heat pump quote you can take to pre-approval
A free in-home estimate names the model and its rated heating capacity, the two details the application turns on, and gives you a written price.
Free, no obligation. About a minute to request.
The mistake that costs people the rebate
Installing first and applying after. Because approval has to come before installation, a system already in the house is the most common way to lose an otherwise eligible rebate, so treat any push for an early install date as a reason to slow down.
Direct-install support: work, not cash
Two routes deliver work to the home instead of paying a rebate. If your household income is limited, Save on Energy's Energy Affordability Program offers income-qualified support in Ontario: you apply through its official intake, and its delivery agents do the work.
Separately, Natural Resources Canada lists Ontario as an IESO co-delivery province, with a direct-install project valued up to $25,000. That value is work done in the home, not cash paid to the applicant. National news about the federal Greener Homes portal does not settle what is available here, so check NRCan's participating provinces page rather than a headline.
Closed: the Canada Greener Homes Loan
New applications for the Canada Greener Homes Loan closed on October 1, 2025. If an older article or a sales pitch builds a payment plan around it, that plan no longer works. Weigh other financing against renting versus buying if that is the alternative on the table.
What the equipment costs before any rebate
Price the system first, then treat any approved rebate as a later refund on part of it. A furnace or an air conditioner on its own gets no heat pump rebate, so its installed price is what you pay. These are typical Ontario installed prices, before 13% HST:
Installed prices before any rebate
Heating$3,800to$20,000
Typical installed price, Ontario 2026, all options shown
- Gas furnace, single-stage95 to 96% AFUE $4,000 to $6,500
- Central AC, standard1.5 to 3 ton, about 14.3 SEER2 $3,800 to $7,000
- Cold-climate heat pump, ductedwhole home, air source $9,000 to $18,000
- Dual fuel systemheat pump with gas furnace backup $11,000 to $20,000
Installed price in Ontario, before 13% HST ($4,294 to $22,600 with HST). Standard replacement in a detached home with usable ductwork and venting.
Ground-source systems typically run $25,000 to $45,000 (see the geothermal cost guide). For your own home, try the heat pump cost calculator, then compare running costs against gas in the heating cost calculator.
Programs change: confirm before you buy
This page reflects the official program pages as we found them on October 4, 2026. Rates, caps, eligible products and rules can change without notice. Confirm the current terms with the program, and get your pre-approval, before you sign a contract or book an install. We never promise a rebate amount.
Primary sources, checked October 4, 2026
- Home Renovation Savings: heat pumps per-ton amounts, caps, rentals, eligibility, pre-approval and payment timing
- Home Renovation Savings: terms and requirements rebated heat pump versus backup heating; a standalone gas furnace or cooling-only AC is not a measure
- Natural Resources Canada: participating provinces and territories Ontario IESO co-delivery, direct-install project valued up to $25,000
- Save on Energy: Energy Affordability Program income-qualified support through official intake and delivery agents
- Natural Resources Canada: how the Greener Homes grant process works new Canada Greener Homes Loan applications closed October 1, 2025
Questions people ask
Is there a rebate for a new gas furnace in Ontario in 2026?
Not from the Home Renovation Savings heat pump stream: a standalone gas furnace is not a heat pump rebate measure, however efficient. In a dual fuel system the heat pump is the rebated equipment and the furnace is the backup. Manufacturer or dealer promotions are separate, so ask for any on the written quote. Our furnace price guide shows typical costs.
Can I get a rebate on a new central air conditioner?
Not on its own. A cooling-only air conditioner is not a heat pump rebate measure. A heat pump cools exactly like an AC and also heats, which is why it is the equipment the program recognizes. If your AC is failing, compare its price on our air conditioner price guide with a heat pump before deciding.
Is there a rebate for a new water heater or boiler?
Our sources cover the Home Renovation Savings heat pump stream for space heating only, so we cannot confirm any amount for a water heater or a boiler. Check the program site directly before you count on one, rather than relying on a dealer's word. Programs change, so confirm the rules before you buy.
Do I need approval before the installer starts?
Yes. Pre-installation approval is mandatory for the heat pump stream, so apply first and let the installer start only once you have it. If anyone pushes for an install date before approval arrives, treat that as a reason to slow down, not a reason to sign.
Is the Canada Greener Homes Loan still available?
No. New applications for the Canada Greener Homes Loan closed on October 1, 2025, so a payment plan built around it does not apply to a new application. Compare any other financing on its interest rate, term and total cost before you agree to it.
What is the $25,000 Greener Homes figure for Ontario?
Natural Resources Canada lists Ontario as an IESO co-delivery province, with a direct-install project valued up to $25,000. That is the value of work delivered through the program, not cash, and it will not reimburse equipment you buy privately. Income-qualified households can start with Save on Energy's Energy Affordability Program.