Toronto HVAC rebates 2026: A homeowner's guide to HRS, HELP, and energy efficiency programs
Key Takeaways:
Homeowners can receive thousands of dollars from province- and city-provided programs for energy-conserving HVAC upgrades.
Some programs require using a licensed and registered contractor; it’s important the homeowner verifies their credentials before work starts.
Many project types require an energy assessment or city inspection before work can begin; the project can be disqualified if this doesn’t happen.
A qualified contractor should be able to provide assistance with the rebate process, and be upfront if it’s not a service they offer.
Are you looking to improve the energy efficiency of your home? Making a few tweaks to your HVAC appliances and systems can help reduce your heating and cooling bills – and they’re especially worth looking into if you live in an older home, as many GTA homeowners do.
Upgrades can be as extensive as replacing your HVAC, or as minimal as sealing up drafty doors and windows. Some of the most common energy retrofit projects include:
Replacing your furnace with a heat pump, or switching to a high-efficiency model
Installing a smart thermostat
Adding or upgrading the insulation in your walls
Air sealing
Fortunately for GTA homeowners, there are a number of programs and financial incentives available that shave down the cost of these projects. Here’s a quick breakdown of some of the most commonly used ones:
HVAC rebates available for Toronto homeowners
All the programs listed below are subject to change. Check with the specific program provider before starting your project for details, and to ensure it’s a fit for you.
Home Renovation Savings (HRS) Program
Eligibility: Ontario residents who own a single/semi-detached, row/townhome, or mobile home on a permanent foundation; Enbridge Gas customers, or connected to the Ontario electricity grid
Eligible jobs: Heat pumps, smart thermostats, insulation, solar panels, energy-efficient appliances
Type of program: Rebate after work is completed
Who applies for it: Application must be submitted by a participating contractor registered with the program — homeowners cannot self-install the projects
Requires an assessment? Bundled (2+) projects require an EnerGuide evaluation with a registered energy advisor before work starts, plus a post-retrofit assessment; standalone projects do not need an assessment
Save on Energy Affordability Program
Eligibility: Ontario residents; must pay an electric bill (or live in eligible social housing or on-reserve); a member of the household receives social assistance; before-tax household income falls below the threshold for household size
Eligible jobs: Energy-saving appliances, lighting, water conservation, weatherproofing and insulation, thermostats, heat pumps
Type of program: Free upgrades for households that financially qualify
Who applies for it: The homeowner or tenant applies directly for the program
Requires an assessment? Yes — a free energy assessment is conducted by a trained energy professional to determine which upgrades will be delivered
Home Energy Loan Program (HELP)
Eligibility: Toronto homeowners (must have an "M" postal code) of detached, semi-detached, row houses, duplexes, triplexes, or low-rise buildings up to three storeys/six units
Eligible jobs: High-efficiency furnaces, boilers, and air conditioners; insulation; air sealing
Type of program: Low-interest financing that can be stacked on other rebates
Who applies for it: The homeowner applies directly for the loan
Requires an assessment? Yes — an EnerGuide evaluation must be conducted by a registered Energy Advisor before the loan is granted; paid for by the homeowner, but the cost can be factored into the overall financing amount
Basement Flooding Protection Subsidy Program
Eligibility: Registered owners of single-family, duplex, triplex, or fourplex residential homes within the City of Toronto
Eligible jobs: Installation of backwater valves and sump pumps/battery backups
Type of program: Subsidy
Who applies for it: The homeowner can apply online, but the permit for work is typically handled by a plumber (permits cost between $130–$250)
Requires an assessment? A permit is required before work can start, and the City must conduct an inspection of the installation before it is re-patched with concrete
How does the Home Renovation Savings (HRS) Program work?
The Home Renovation Savings (HRS) Program is the largest regional rebate initiative, funded by the province of Ontario and run jointly by Save on Energy (part of the Independent Electricity Systems Operator – IESO), and Enbridge Gas. The program covers a wide range of upgrades including the installation of new heat pumps and appliances, insulation work, as well as adding other features like solar panels and storage.
The program can pay out thousands of dollars in rebates depending on the type of upgrade and its scope, but it comes with some nuances that homeowners need to be aware of.
Most do-it-yourself work isn’t eligible; major retrofits must be completed by a licensed contractor or company registered with the program, and they must also submit the paperwork for the rebate on the homeowner’s behalf. It should be noted that the HRS is not accepting new registered contractors at this time, so it’s important for homeowners to verify that their contractor is already participating in the program – the full list can be viewed on the HRS site.
Small updates, such as installing a smart thermostat, can be applied for directly by the homeowner.
Doing two or more upgrades under the program is considered to be a “bundled” project, which requires an EnerGuide evaluation. This must be conducted by a registered energy advisor before and after the work is complete. These audits can cost between $300 - $600, so consider that when determining the size of rebate you’ll receive.
Any equipment model or heat pump used in the project must be included on the Natural Resources Canada’s qualified retrofit product list.
What other home retrofit requirements should I be aware of?
The HRS isn’t the only program with specific requirements. Other retrofit programs may have income thresholds for eligibility or require permits before any work can start. These include:
The Save on Energy Affordability Program: Funded by the province and delivered by local utilities, this program offers qualifying homeowners free HVAC and energy efficiency upgrades. Households are eligible based on their size and before-tax income. An energy assessment must be conducted before work starts to determine exactly what upgrades will be included, the cost of which is covered by the program.
The Home Energy Loan Program (HELP): Offered through the City of Toronto, this is a low-interest financing program that provides loans of up to $125,000 for high-efficiency appliances like furnaces, boilers, and air conditioners, air sealing the home, and insulation installation. The loan is paid off via property taxes and remains attached to the property, meaning it can be assumed by a new owner if the home is sold. Because of this, applicants who have a mortgage must get written approval from their lender before getting a HELP loan. Like the HRS, an EnerGuide assessment must be completed before work can start, and the cost of this is rolled into the overall financing amount.
Basement Flooding Protections Subsidy: While technically a plumbing upgrade and not an HVAC project, basement flooding prevention is important to protect your overall HVAC system from water damage. This City of Toronto subsidy offsets 80% of the invoiced cost of installing a backwater valve, sump pump, and battery backup, up to a capped cost per device. The subsidy applies per property and not to the homeowner, meaning if a previous owner of your home has already claimed and used it, you cannot apply.
The work must be completed by a plumber who holds a valid City of Toronto license, and a permit is also required before the work can begin; your plumber will usually pull this on your behalf, so be sure to confirm this as part of the project scope when hiring them. You can confirm your contractor is properly licensed using the City of Toronto’s lookup tool. After the installation is complete, a city inspection is required before the site is resealed with concrete.
Read more about the City of Toronto Basement Flooding Subsidy Program
Frequently asked questions when hiring a contractor for an HVAC retrofit
If you’re undertaking a project that requires working with a licensed contractor, it’s important to be clear on expectations around the work, what exactly the contractor will do on your behalf, and whether there’s associated costs they’ll build into their quote. Any qualified contractor should be able to walk you through the process. Here are some good questions to ask when selecting one for the job.
Are you registered with the province or city in regards to this rebate? Your contractor should be able to provide written proof, and be searchable in program databases. Confirm this detail before signing any contracts, and before work begins.
Robert Colonna of Top Tier Heating Cooling and Mechanical Inc. says this is a crucial step, as homeowners can get burned by unscrupulous or inexperienced professionals. “A lot of them will charge you, and then maybe they don't actually file it, or you never get it, or you don't actually qualify,” he says. “So if they're filing for it, you want to verify that you're actually going to get it before you put this product in.”
Will you coordinate any required audits and inspections? “A lot of [the rebates] have an audit where the auditor will come out, assess your home, figure out if you qualify, and then they'll tell you, ‘We'll give you so much money towards this system or this system,” says Colonna. He adds that the assessment can also let homeowners know if they need to satisfy any other requirements before the work starts. “They’ll say, ‘If you want to go and get the rebate, you actually have to do all these things with it to qualify,’” he says.
Can you give me assistance on whether my desired upgrade is eligible for a rebate, and which program would be best for me? Is this part of your service? Is there a fee? Not all contractors provide rebate assistance, and there’s usually a reason why – and an honest one will be upfront on whether or not they can take on the job.
“We don't normally get involved in the rebate process, there's a little bit too much administration involved,” says Steve Brito of Superior Air Duct Cleaning. “In keeping our cost down, to provide lower cost to consumers, we don't have the resources to be on top of that and do that for our clients.”
“We find that it's forever changing and resource consuming to be on top of it all the time, so we typically just refer our clients to do their own due diligence.”
Brito is correct in that the rebate landscape – and rules – frequently change. For example, the HRS was rolled out in 2025 to replace the Home Efficiency Rebate Plus (HER+) program, while the previously popular Canada Greener Homes Grant shuttered in February 2024.
Will these costs be built into my quote? Can you tell me what the all-in cost will be once the rebate is factored in?
What is a clear timeline breakdown of this project, including the pre-approval and inspection stages?
Is the equipment being used part of the approved list for this rebate?
Do your due diligence before the retrofit starts
Homeowners have lots to gain financially from the various province and city-provided retrofit rebates and programs, but it’s important to be informed of the requirements before jumping into the work; the most common reason these projects fall through is due to incorrect products being used, or not getting the required inspection ahead of time.
Asking the right questions ensures you’ve got the right Pro on the job, the right permits in place, and the right equipment – and will soon be enjoying those lower heating bills.