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- Home Renovation Savings (HRS) — $250–$7,500 per project depending on equipment. Replaced HER+ in January 2025.
- Canada Greener Homes Loan — Up to $40,000 interest-free over 10 years (financing, not a grant).
- Oil to Heat Pump Affordability (OHPA) — Up to $15,000 for oil-to-heat-pump conversions. Stacks with HRS.
- Local utility incentives — $50–$500 typical (Enbridge, Hydro One, Toronto Hydro). Stack with the major programs.
- Real-world stacks: typical gas-to-heat-pump conversion sees $4,000–$7,500 in combined rebates. Oil-to-heat-pump can exceed $20,000.
Ontario's HVAC rebate landscape changed substantially in early 2025 when the Home Renovation Savings (HRS) program replaced the previous Home Energy Rebate Plus (HER+) program. As of 2026, the rebate ecosystem for Ontario homeowners is the most generous it's been in over a decade — particularly for heat pump conversions and high-efficiency heating upgrades.
This guide walks through every active program: how much, who qualifies, how they stack, and where the common mistakes happen. We'll also work through real-dollar examples for the most common Halton Hills upgrade scenarios, so you can sanity-check whether the rebate math your contractor is showing you is realistic.
The big three programs
Three programs do the heavy lifting on Ontario HVAC rebates. They stack together and apply to most heating-and-cooling projects.
1. Home Renovation Savings (HRS) program
HRS is the provincial rebate program administered through Enbridge Gas (regardless of whether you're an Enbridge customer). It launched on January 27, 2025, replacing the older HER+ program with a simpler, contractor-led application process and updated rebate amounts. HRS is a direct rebate — actual money back to you, paid by cheque or direct deposit after the install is verified.
HRS rebate amounts by equipment
| Equipment | Rebate amount | Notes |
|---|---|---|
| Cold-climate heat pump (ducted) | $4,000–$7,500 | Higher amount for full-electric replacement of gas/oil heat |
| Cold-climate heat pump (ductless) | $3,000–$6,000 | Per outdoor unit; multi-zone systems with one outdoor unit count once |
| High-efficiency furnace (96%+ AFUE) | $250–$1,500 | Typically only applicable when paired with other upgrades |
| Smart thermostat | $75–$200 | ENERGY STAR-certified models only |
| Insulation upgrades | $100–$10,000 | Attic, walls, basement — depends on R-value uplift |
| Air sealing | Up to $200 | Pre-and-post blower door test required |
| Window replacement | $25–$325 per window | Significant minimum performance requirements |
A common 2025–2026 misunderstanding: HRS rebates for furnaces in particular often require the furnace to be installed alongside other upgrades (smart thermostat, ductwork modifications, air sealing) to trigger the higher rebate tiers. A standalone furnace replacement may only qualify for the base $250 rebate, not the headline $1,500. Heat pump rebates are simpler — install a qualifying cold-climate heat pump and the rebate triggers without bundle requirements.
2. Canada Greener Homes Loan
The federal Greener Homes Loan provides up to $40,000 in interest-free financing over a 10-year term for energy-efficient home retrofits — including HVAC equipment that meets the program's criteria. It's not a grant; you pay it back. But at 0% interest over 10 years, the financing terms are dramatically better than any commercial home equity loan or HVAC contractor financing.
The Greener Homes Loan requires a pre-retrofit and post-retrofit EnerGuide assessment performed by a Registered Energy Advisor. The pre-retrofit assessment is required before any work begins; the post-retrofit assessment happens after the project is complete. Both are reimbursable up to $300 through the related Greener Homes Grant initiative.
Greener Homes Loan — qualifying upgrades include:
- Heat pumps (air-source, ground-source, ductless)
- High-efficiency furnaces (95%+ AFUE)
- Hybrid heat pump + furnace systems
- Heat pump water heaters
- Insulation, air sealing, windows, doors (when paired with HVAC)
- Solar PV, solar thermal, battery storage (separate from HVAC scope)
3. Oil to Heat Pump Affordability (OHPA)
OHPA is a separate federal program targeting oil-heated homes converting to electric heat pumps. The rebate is up to $15,000 per home — and it stacks with HRS and the Greener Homes Loan, meaning oil conversions can capture an enormous combined incentive.
For a Halton Hills home currently heated by oil, OHPA + HRS + Greener Homes Loan often covers 90–100% of total conversion cost. We've done conversions in Glen Williams, Acton, and the Halton Hills rural areas where the homeowner's net out-of-pocket cost was effectively zero.
OHPA eligibility key points:
- Home must currently use heating oil as its primary heat source
- Must convert to a qualifying cold-climate electric heat pump (gas furnace backups in hybrid setups disqualify the OHPA portion specifically)
- Existing oil tank decommissioning is included in scope
- Income testing applies — household income thresholds determine the exact rebate amount
Local utility incentives
On top of the big three, local utilities run smaller incentive programs that stack:
- Enbridge Gas — administers HRS and runs separate smart thermostat rebates ($75–$100 typical)
- Hydro One / Toronto Hydro / Alectra — heat pump and electric water heater incentives, $250–$500 typical, varies by utility and program year
- Save on Energy — Independent Electricity System Operator program offering instant discounts on smart thermostats and heat pump water heaters
Utility incentives change frequently. Always confirm current amounts directly with the utility or your contractor at quote time, not based on year-old blog posts (including this one — programs can change at any time).
Real-world rebate stacks
How does this actually look on a typical Halton Hills project? Three common scenarios:
Scenario A: Gas furnace replacement (96% AFUE)
| Item | Amount |
|---|---|
| Project cost (96% AFUE furnace + smart thermostat installed) | $6,800 |
| HRS rebate (furnace + thermostat bundle) | −$1,250 |
| Enbridge smart thermostat rebate | −$100 |
| Net cost | $5,450 |
Greener Homes Loan can finance the $5,450 over 10 years interest-free if desired.
Scenario B: Hybrid heat pump + gas furnace conversion
| Item | Amount |
|---|---|
| Project cost (cold-climate heat pump + 96% AFUE furnace + smart thermostat) | $13,500 |
| HRS rebate (heat pump tier) | −$5,500 |
| Smart thermostat rebate | −$100 |
| Local utility heat pump incentive (varies) | −$300 |
| Net cost | $7,600 |
Plus: 15–25% reduction in heating bills going forward, and you're set up for whatever the next decade of energy pricing looks like.
Scenario C: Oil-to-heat-pump conversion
| Item | Amount |
|---|---|
| Project cost (full electric heat pump install + oil tank decommissioning) | $19,500 |
| HRS rebate (heat pump) | −$5,500 |
| OHPA rebate (oil-to-HP) | −$13,000 |
| Local utility incentive | −$400 |
| Net cost | $600 |
Plus: ~60% reduction in annual heating costs versus oil heat. For most oil-heated Halton Hills homes, this is the highest-ROI HVAC investment available — by a wide margin.
How the application process actually works
- Contractor reservation (HRS only) — Before the work begins, your contractor reserves the rebate by submitting your project to HRS. This locks in the current program rules and amounts.
- Pre-retrofit EnerGuide (Greener Homes Loan only) — A Registered Energy Advisor visits, conducts a blower door test and documents your home's current state. ~$300 cost, reimbursable up to $300 by the program.
- Project work — Equipment installed, paperwork completed, TSSA inspection coordinated for gas appliances.
- Post-retrofit EnerGuide (Greener Homes Loan only) — Second assessment after the work is complete, documenting the energy improvement. ~$300 cost, also reimbursable.
- Rebate submission — Contractor submits HRS paperwork; you submit Greener Homes Loan and (if applicable) OHPA paperwork.
- Payment — HRS: 6–10 weeks. OHPA: 6–10 weeks. Greener Homes Loan: 4–8 weeks after post-retrofit assessment.
Common mistakes that cost real money
- Starting work before reserving HRS. The contractor must reserve the rebate before equipment is installed. If the install starts first, the application is rejected. Always confirm reservation in writing before signing.
- Skipping the pre-retrofit EnerGuide assessment. Without a pre-retrofit assessment, the Greener Homes Loan is unavailable for the project. Schedule it first.
- Choosing equipment that just misses the eligibility threshold. A 95% AFUE furnace doesn't qualify for the same tier as a 96% AFUE — and the price difference is often $200, while the rebate difference can be $500+. Ask your contractor to confirm the equipment model number qualifies before purchase.
- Assuming the contractor handles every program. They typically handle HRS and OHPA. Greener Homes Loan is your responsibility (with their coordination on EnerGuide timing).
- Letting paperwork sit. Submission deadlines apply — typically 90 days post-installation for HRS. Don't let receipts and forms accumulate; submit immediately after the work is complete.
- Forgetting the post-retrofit assessment for the Greener Homes Loan. The loan funds only after the post-retrofit EnerGuide is filed. Many homeowners complete the work, intend to schedule the second assessment, and let it slide for months — losing access to the funding.
Frequently asked questions
Can I stack Ontario HVAC rebates?
Yes, the major programs stack. The Home Renovation Savings (HRS) rebate combines with the Canada Greener Homes Loan, and oil-heated homes can add the Oil to Heat Pump Affordability (OHPA) program on top. Local utility incentives (Enbridge, Hydro One, Toronto Hydro) often stack as well. A typical heat pump install in Ontario captures $4,000–$7,500 in combined rebate value; oil-to-heat-pump conversions can clear $20,000+.
What's the difference between HRS and the Greener Homes Loan?
HRS (Home Renovation Savings) is a provincial rebate — actual money back to you, no repayment. The Canada Greener Homes Loan is interest-free financing of up to $40,000 over 10 years, repayable through your mortgage or as a separate loan. They're complementary: HRS reduces the project's net cost, and the Greener Homes Loan finances whatever's left interest-free.
Do I need an EnerGuide audit to qualify for rebates?
For HRS alone, no — the application is direct, and your contractor files most of the paperwork. For the Canada Greener Homes Loan, yes — both a pre-retrofit and post-retrofit EnerGuide assessment by a Registered Energy Advisor are required. The pre-retrofit assessment cost is reimbursable up to $300 through the program. The two assessments together typically run $400–$600 out of pocket before the rebate.
What furnaces qualify for HRS rebates?
Natural gas furnaces with 96% AFUE or higher generally qualify. Mid-efficiency (80% AFUE) furnaces do not qualify under current HRS rules. The exact rebate amount depends on the equipment and what you're replacing — $250–$1,500 is the typical range for furnaces. Heat pumps qualify for substantially higher amounts ($4,000–$7,500).
How long does it take to actually receive the rebate money?
HRS typically processes within 6–10 weeks of submission, with payment by cheque or direct deposit. The Greener Homes Loan funds 4–8 weeks after the post-retrofit assessment. OHPA timing is similar to HRS — 6–10 weeks. Plan your project cash flow assuming you'll be carrying the full cost upfront for 2–3 months before rebates arrive.
Can my contractor apply for the rebates on my behalf?
For HRS, yes — registered contractors handle the application directly, and the rebate flows to the homeowner after processing. For OHPA, contractors handle the bulk of the paperwork as well. For the Canada Greener Homes Loan, the homeowner handles the application directly through Natural Resources Canada — your contractor coordinates the EnerGuide assessment timing but doesn't apply for the loan itself.
What happens if rebate program rules change mid-project?
The application date typically locks in the rules that apply to your project, but it varies by program. HRS uses the date the rebate is reserved (which a contractor can do at quote time). The Greener Homes Loan uses the date the loan is approved. Get rebate reservations in writing before you commit to a project — programs do change, and you don't want to discover the rebate amount has dropped after you've signed the contract.
The numbers and rules above were current as of the article's last update. Programs can change with little notice — especially around year-end and provincial budget cycles. Always confirm exact current amounts and eligibility with the program (HRS via Enbridge Gas Home Renovation Savings, Greener Homes via Natural Resources Canada) or with your contractor at quote time.
If you're considering an HVAC upgrade in Halton Hills, we handle every rebate application on every eligible install. Book a free in-home assessment and we'll work through your specific stack — what applies, what the math looks like, and what the realistic post-rebate cost would be.