Is there a rebate for a new air conditioner in Ontario?

An AC-only replacement isn't rebated. But a heat pump is essentially an air conditioner that can also heat — and that does qualify for the rebate. If you were going to replace your AC, a heat pump gives you cooling plus rebate-eligible heating.

How much is the Ontario heat pump rebate?

Up to $7,500 for a cold-climate air-source heat pump and up to $12,000 for a ground-source (geothermal) system. The per-ton amount depends on your current fuel: roughly $1,250/ton for homes not heated by gas, and $500/ton for gas-heated homes. Confirm current figures on the official program page.

Do these rebates cover replacement parts, like a worn-out backup element?

No. The rebates apply to installing qualifying equipment such as a heat pump — not to repair parts. When the electric backup elements wear out later, a replacement heat pump element is a small fraction of the cost of a new system.

Does adding electric backup (auxiliary) heat affect my rebate?

Generally no — auxiliary heat strips are a standard part of a cold-climate heat pump install. Eligibility is based on the heat pump meeting the program's efficiency requirements and being on NRCan's qualified products list. Confirm the current rules before you buy.

Where do I confirm the current rebate amounts?

Amounts and eligibility change often. Treat anything here as general guidance and confirm the latest figures on the official Ontario program page before you plan around them.

My heat pump's backup heat feels weak — is that a rebate problem?

No — that's usually a worn auxiliary heating element, not the system itself. Send us your make and model and we'll match the right replacement and ship it across Canada.

Ontario Heat Pump, Furnace & AC Rebates: What Actually Qualifies

Published June 11, 2026 · UpdatedJuly 12, 2026

If you’re an Ontario homeowner weighing a new furnace, air conditioner, or heat pump, the rebate rules matter — because what qualifies isn’t always what people search for. Here’s a plain-language look at the Home Renovation Savings program, what it does and doesn’t cover, and what it means once that new system is running.

Heads up: rebate amounts, eligibility, and program rules change. The figures below were published by the program as of mid-2026 (funding is currently committed through November 30, 2026) — always confirm the current details on the official Save on Energy website before you plan around them. We’re a heating-element supplier, not a program administrator, and we’re not affiliated with Save on Energy, the IESO, Enbridge Gas, or any utility.

What the program is

The Home Renovation Savings program is delivered by Save on Energy and Enbridge Gas, supported by the Ontario government (through the IESO). It gives homeowners rebates on energy-efficient upgrades — single or bundled — so you can renovate at your own pace.

Is there a rebate for a new furnace in Ontario?

Short answer: not for a gas furnace on its own. The program does not rebate installing or replacing a standard high-efficiency gas furnace. If your search brought you here looking for a “furnace rebate,” that’s the key thing to know — the money is pointed at heat pumps, not furnaces.

The practical move: if you’re replacing a furnace anyway, get a heat pump quote side-by-side. A cold-climate heat pump can qualify for up to $7,500, which often changes the math on which system is actually cheaper after rebates.

What about a new air conditioner?

Same story: an AC-only replacement isn’t rebated. But a heat pump is an air conditioner that also heats — and that qualifies. If you were going to replace your AC this year, a heat pump gets you the same cooling plus rebate-eligible heating.

Heat pump rebates (what actually qualifies)

The headline incentives, with no home energy assessment required on the standard path:

Cold-climate air-source heat pumps — up to $7,500
Ground-source (geothermal) heat pumps — up to $12,000

The per-ton amount depends on how your home is heated today:

Homes not heated by gas (electric, oil, propane, wood) — about $1,250/ton
Gas-heated homes — about $500/ton

Your heat pump must be on Natural Resources Canada’s qualified products list to be eligible.

Other upgrades in the same program

Beyond the heat pump, the program also rebates efficiency work (some of these require a home energy assessment; completing three or more can earn an extra $500 bonus):

Solar panels and battery storage — up to $10,000
Heat pump water heaters — $500
Attic insulation — up to $1,250 (no assessment) / larger insulation jobs up to $7,700 (with assessment)
Windows and doors — $100 per rough opening
Air sealing — up to $250
Smart thermostats — up to $100

Rebate values depend on your fuel source and other terms — see the official site for conditions.

What this means once your heat pump is in

A rebate gets the system installed — but a heat pump is a long-term appliance, and the electric auxiliary (backup) heating elements inside it do wear out, especially after years of hard Canadian winters. When that day comes, you don’t need a whole new system — just the right replacement element.

That’s where we come in. We supply and custom-build heat pump elements and furnace elements matched to your make and model, and ship across Canada. Not sure what size backup heat your system uses? Our heat-strip kW finder reads the rating straight off your model number. If your backup heat ever runs weak or cold, send us your details and we’ll find the right part.

For HVAC contractors

If you install heat pumps, rebate programs like this drive a wave of new systems — and every one is a future service and parts customer. We offer bulk and contractor pricing on heat-strip and furnace elements so you have a single Canadian supplier for replacement parts as those installs age.

Bottom line: the rebate rewards heat pumps, not furnaces or AC on their own. Take the incentive, enjoy the efficient heat — and when the backup elements eventually wear out, keep the system going for a fraction of the cost of replacing it.

Frequently asked questions

Is there a rebate for a new furnace in Ontario?: Not for a gas furnace on its own. Ontario's Home Renovation Savings program does not rebate installing or replacing a standard gas furnace. The incentive is aimed at heat pumps — a cold-climate heat pump can qualify for up to $7,500. If you're replacing a furnace anyway, it's worth pricing a heat pump to see if the rebate closes the gap.
Is there a rebate for a new air conditioner in Ontario?: An AC-only replacement isn't rebated. But a heat pump is essentially an air conditioner that can also heat — and that does qualify for the rebate. If you were going to replace your AC, a heat pump gives you cooling plus rebate-eligible heating.
How much is the Ontario heat pump rebate?: Up to $7,500 for a cold-climate air-source heat pump and up to $12,000 for a ground-source (geothermal) system. The per-ton amount depends on your current fuel: roughly $1,250/ton for homes not heated by gas, and $500/ton for gas-heated homes. Confirm current figures on the official program page.
Do these rebates cover replacement parts, like a worn-out backup element?: No. The rebates apply to installing qualifying equipment such as a heat pump — not to repair parts. When the electric backup elements wear out later, a replacement heat pump element is a small fraction of the cost of a new system.
Does adding electric backup (auxiliary) heat affect my rebate?: Generally no — auxiliary heat strips are a standard part of a cold-climate heat pump install. Eligibility is based on the heat pump meeting the program's efficiency requirements and being on NRCan's qualified products list. Confirm the current rules before you buy.
Where do I confirm the current rebate amounts?: Amounts and eligibility change often. Treat anything here as general guidance and confirm the latest figures on the official Ontario program page before you plan around them.
My heat pump's backup heat feels weak — is that a rebate problem?: No — that's usually a worn auxiliary heating element, not the system itself. Send us your make and model and we'll match the right replacement and ship it across Canada.

Related guides

Related products

Need a replacement element? We ship across Canada and build custom elements for hard-to-find equipment.

Get a quote