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Heat Pump Grant Ontario: What Programs Are Available in 2026
Jan
Ontario homeowners can access several government programs in 2026 to offset the cost of a heat pump installation. The landscape has changed from 2024 – the Greener Homes Grant closed to new applicants in February 2024 – but there’s still meaningful money available through loans and specific rebate programs depending on your fuel type and income.
Here’s what’s actually available right now.
Canada Greener Homes Loan (up to $40,000)
The Canada Greener Homes Loan is an interest-free loan of up to $40,000 for eligible home energy retrofits, including heat pump installation. Unlike the old grant, you repay this – but with zero interest over 10 years, the carrying cost is essentially nothing. For a heat pump installation that runs $8,000 to $15,000, this covers it.
To qualify you need:
- To own and live in the home as your primary residence
- A pre-retrofit EnerGuide home energy assessment ($300-$600, partially reimbursable)
- The installation to be done by a registered contractor
- A post-retrofit assessment confirming the work was completed
The application process takes a few weeks. The loan is registered against your property and repaid when you sell. If you stay in the house, you make no monthly payments – it comes due on sale or at the 10-year mark, whichever comes first.
Oil to Heat Pump Affordability Program (up to $15,000)
This federal program is specifically for households currently heating with oil, propane, or electric resistance – the goal is to move people off high-cost and high-emission fuels. If you qualify, you can receive up to $15,000 toward a cold climate heat pump installation, with no repayment required.
Income limits apply. As of 2026, the household income threshold is $120,000 per year. The program covers both the equipment and installation costs up to the maximum.
If you’re currently on oil heat and have been on the fence about switching, this program changes the math considerably. A cold climate heat pump eliminates your heating oil costs entirely and provides air conditioning – for a net subsidy of up to $15,000.
What happened to the $7,500 Greener Homes Grant?
The Canada Greener Homes Grant closed to new applicants on February 29, 2024. The program committed the full $2.6 billion budget across its run. If you applied before it closed, you can still complete your retrofit and claim the rebate – but new applications are no longer accepted.
The grant provided up to $5,000 for air source heat pumps and up to $6,000 for ground source heat pumps. For homeowners who got in before the deadline, those funds are still being processed.
Heat pumps in Ontario: what does installation actually cost?
Before rebates, a cold climate air source heat pump installation in Ontario typically runs:
| System Type | Installed Cost (before rebates) |
|---|---|
| Air source heat pump (single unit) | $4,000 – $8,000 |
| Cold climate air source heat pump | $7,000 – $14,000 |
| Ground source (geothermal) heat pump | $20,000 – $40,000 |
| Heat pump + existing gas furnace (dual fuel) | $5,000 – $10,000 |
Most Ontario homeowners doing a standard air source heat pump installation are looking at $8,000 to $12,000 before rebates. With the Greener Homes Loan and potentially the OHPA, the out-of-pocket number drops substantially.
Why consider a heat pump in Ontario?
The case for heat pumps has gotten stronger as the technology improved. Modern cold climate heat pumps work down to -25 or -30 Celsius – which covers everything Ontario throws at them. The efficiency advantage over gas is significant: heat pumps deliver 2-3 units of heat for every unit of electricity consumed. A gas furnace, no matter how efficient, delivers less than one.
The catch in Ontario is electricity pricing. If you’re on time-of-use rates and running a heat pump on peak hours, the savings aren’t as clean as the marketing suggests. Running on off-peak hours (nights, weekends) dramatically changes the economics. Most heat pump thermostats can be programmed to shift load to off-peak automatically.
For homes currently on oil or propane, the calculation is much simpler – those fuels are expensive and volatile, and a heat pump eliminates that exposure entirely.
Book a heat pump assessment
North Wind HVAC installs cold climate air source heat pumps throughout the GTA and Barrie area. We’re registered with the Greener Homes program and can help you navigate which rebates apply to your situation before you commit to anything. Contact us to book a free assessment.
Heat pump grant Ontario – frequently asked questions
Is the Canada Greener Homes Grant still available in 2026?
No. The Canada Greener Homes Grant closed to new applicants on February 29, 2024. The replacement program is the Canada Greener Homes Loan – an interest-free loan up to $40,000 that covers heat pumps and other energy retrofits. If you applied before the grant closed, you can still complete your claim.
How much is the heat pump rebate in Ontario in 2026?
The main programs available in 2026 are: the Canada Greener Homes Loan (up to $40,000 interest-free) and the Oil to Heat Pump Affordability Program (up to $15,000 as a grant for eligible households currently heating with oil or propane). Combined, qualifying households can offset a significant portion of installation costs.
Do I need an energy assessment to get a heat pump rebate in Ontario?
Yes. The Greener Homes Loan requires both a pre-retrofit and post-retrofit EnerGuide home energy assessment. The pre-retrofit assessment identifies what upgrades you’re eligible for; the post-retrofit assessment confirms the work was done. The cost of the assessments ($300-$600 each) is partially reimbursable through the program.
What is a cold climate heat pump?
A cold climate heat pump is an air source heat pump rated to operate efficiently at temperatures of -15 to -30 Celsius. Standard heat pumps lose effectiveness around -10C, which isn’t good enough for Ontario winters. Cold climate models (from brands like Mitsubishi, Bosch, and Carrier) are specifically engineered for Canadian weather and are what the rebate programs require.
Can I keep my gas furnace if I install a heat pump?
Yes, and many Ontario homeowners do exactly this. A “dual fuel” system uses the heat pump as the primary heat source and falls back to the gas furnace when temperatures drop below the heat pump’s optimal range (usually around -10 to -15C). This gives you efficiency benefits in the shoulder seasons without relying entirely on the heat pump in the coldest weeks. Most HVAC contractors in Ontario are comfortable setting up dual-fuel systems.
How long does heat pump installation take?
A standard air source heat pump installation takes 1 day for most homes. If it’s paired with a new furnace or involves electrical panel upgrades, plan for 1 to 2 days. Ground source (geothermal) installations are longer because they require drilling or trenching for the ground loop – typically 3 to 5 days total.
