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Update: The Canada Greener Homes Grant closed to new applicants in February 2024, so it can no longer be claimed for new projects. We have left this guide up as background on how the program worked. For what is open now, see our guide to heat pump rebates in Ontario.
Upgrade your Home’s Heating and Water Systems Today!
The Canada Greener Homes Grant gave Canadian homeowners financial incentives for energy-efficient upgrades. It helped households improve comfort, cut utility bills and reduce their environmental footprint. Here is how the program worked.
Space and Water Heating
The Canada Greener Homes Grant offered homeowners rebates for upgrading HVAC systems and water heaters to more energy-efficient options. Installing an ENERGY STAR® certified heat pump can save up to 70 percent on your heating costs, and that saving does not depend on the grant.
Smart Thermostats
Enhance your comfort and save money on energy bills by replacing your old thermostat with a smart thermostat. Smart thermostats automatically adjust temperature settings based on occupancy patterns and preferences, optimizing energy usage. When combined with another energy efficiency retrofit, homeowners were eligible for a rebate of up to $125 under the grant.
How the Program Worked
To be eligible for the Canada Greener Homes Grant, a home had to be the owner’s primary residence, and the owner had to work with an NRCan-approved Energy Advisor. Pre- and post-energy assessments were required to evaluate the home’s energy efficiency.
The process started with choosing a service organization, then prioritizing renovations based on the Energy Advisor’s recommendations. After the retrofit, a post-retrofit evaluation determined the grant and any applicable rebates.
Upgrade your home’s heating and water systems with North Wind HVAC. Energy-efficient heat pumps for space and water heating, together with a smart thermostat, still deliver significant cost savings and a more comfortable, sustainable home.
Contact us today for a free quote!
✓ Expert Note — Our team has helped hundreds of Ontario homeowners reduce heating and cooling costs through equipment upgrades and operational changes. The figures below reflect current Ontario energy rates, equipment specs, and rebate programs.
Frequently Asked Questions About HVAC Energy Efficiency in Ontario
How can I reduce my heating bills in Ontario?
The biggest wins: upgrade to a high-efficiency furnace (96%+ AFUE saves 20–30% over an 80% AFUE unit), add or upgrade attic insulation, seal air leaks around doors/windows/penetrations, install a smart or programmable thermostat (saves 10–15% with proper setback schedules), and service your furnace annually to maintain peak efficiency. For homes heating with oil or propane, converting to natural gas or adding a heat pump can dramatically reduce operating costs.
Is the Canada Greener Homes Grant still available?
No. The Canada Greener Homes Grant closed to new applicants in February 2024. Rebate programs change often, so ask our team which incentives are currently open for your home before you commit to a project.
Is a smart thermostat worth it for Ontario homeowners?
Yes – typically pays back within 1–2 years. A smart thermostat like an ecobee or Nest can reduce heating and cooling costs by 10–23% annually through learning your schedule, automatic setbacks, and demand response participation (in Ontario, some utilities pay you to allow brief setbacks during peak demand events). Installation is straightforward on most forced-air systems, though multi-stage, heat pump, or radiant systems may need a C-wire or adapter.
What is the most energy-efficient heating system for Ontario in 2025?
In terms of operating efficiency, a cold-climate heat pump paired with a gas furnace backup (dual-fuel) is currently the most efficient option for most Ontario homes. Heat pumps move 2–4 units of heat per unit of electricity consumed (COP of 2–4), making them far more efficient than electric resistance heating. For homes on natural gas only, a 96%+ AFUE modulating condensing furnace is the peak of gas heating efficiency. Radiant hydronic systems (in-floor heating) are highly efficient for the right building type.
How much does it cost to run central air conditioning in Ontario per month?
Running a 3-ton, 14 SEER2 central AC in Ontario for a typical summer month (July or August) costs roughly $60–$120 depending on usage hours, local electricity rate, and home insulation. Ontario electricity rates average about $0.10–$0.13/kWh off-peak. A 3-ton unit draws about 3–4 kW when running. Using a programmable thermostat to raise the setpoint by 4–5°C during working hours saves 10–15% on cooling costs with almost no comfort impact.
What are Enbridge Gas rebates available for HVAC in Ontario in 2025?
Enbridge Gas (formerly Union Gas and Enbridge merger) currently offers rebates for: high-efficiency furnaces ($250–$1,000 depending on AFUE rating), smart thermostats ($75–$100), home energy assessments, and commercial equipment upgrades. Rebate amounts and eligibility change annually. Check enbridgegas.com/saveenergy for current programs or ask your HVAC contractor – they typically apply for rebates on your behalf as part of the installation process.
Does a dirty air filter really affect my energy bill?
Yes, significantly. A clogged filter forces your blower motor to work harder to pull air through, increasing electricity consumption by 10–15% or more. Restricted airflow can also cause the heat exchanger to overheat and trigger the high-limit safety switch, causing the furnace to short cycle – burning more gas for less heat output. In summer, restricted airflow causes the evaporator coil to freeze, eventually shutting down the AC entirely. Changing your filter every 1–3 months is one of the highest-ROI maintenance tasks you can do.
