Heat Pump Rebates in Ontario: Up to $7,500 Air Source, $12,000 Ground Source
· 6 min read
Cold climate air source heat pumps qualify for up to $7,500 and ground source systems for up to $12,000, with the amount varying by the size installed. Here is what drives the number.
For full program details and to apply, visit the official Home Renovation Savings™ program.
Under the Home Renovation Savings™ program, a cold climate air source heat pump earns up to $7,500 back and a ground source (geothermal) system earns up to $12,000. Both are tiered: the rebate varies by the size and type of the system actually installed, so a small ductless setup will not reach the maximum.
A heat pump moves heat rather than generating it, which is why it can deliver more energy as heat than it consumes as electricity. Cold climate models are specifically rated to hold useful capacity at low outdoor temperatures — and only qualifying cold climate equipment counts toward the $7,500.
Sizing matters more than brand, and it also determines your rebate tier. An oversized unit short-cycles and feels drafty; an undersized one leans on backup heat during cold snaps. Insist on a proper heat-loss calculation for your specific house.
If you're comparing installers or want a sizing walkthrough, Solify's heat pump guide is a good next step.
Hybrid setups are common in Ontario: the heat pump handles most of the season while an existing furnace or electric backup covers the coldest hours. This usually gives the best operating cost without paying for oversized equipment.
Two smaller rebates pair well here. An ENERGY STAR certified heat pump water heater is worth $500, and a smart thermostat is $100 (increased from $75) — both are inexpensive additions alongside a heat pump install.
Run the numbers with your actual local electricity and gas rates. Ground source costs far more upfront than the extra $4,500 of rebate covers, so it usually only makes sense where drilling or loop conditions are favourable.