If you’ve been researching heat pump rebates in Ontario, you’ve probably run into a mess of outdated information: programs that are closed, dollar figures that no longer apply and articles that somehow make the whole thing more confusing than when you started.
We deal with these questions with homeowners across Barrie, Orillia, Gravenhurst and Muskoka all the time.
So this page is meant to give you the straight answer.
In 2026, the Ontario heat pump rebate comes from the Home Renovation Savings program, and the amount depends mostly on how your home is heated today:
| Current heat source | Cold-climate air-source heat pump | Geothermal (ground-source) |
|---|---|---|
| Electric, oil, propane or woodNon-gas homes | Up to $7,500$1,250 per ton | Up to $12,000$2,000 per ton |
| Natural gasEnbridge Gas customers | Up to $2,000$500 per ton | $3,000Flat rebate |
$1,250 per ton, up to $7,500.
For illustration only. This estimator is here to help you visualize what's possible. Your actual rebate potential will be determined with Simcoe Muskoka Home Comfort, based on your home, a proper heat-loss assessment, and program eligibility.
However, getting the maximum rebate isn't as simple as choosing a larger system. Proper heat pump sizing depends on your home's heat loss, size, existing ductwork, layout and heating requirements. A qualified contractor should assess the home and design a system that is properly sized, performs well and qualifies for the available rebate.
The maximum is easy to advertise. The amount that actually applies to your house is more useful.
Three federal and Enbridge programs still show up in older heat pump rebate articles, and none of them are open to new applicants:
If you're reading a rebate guide that still tells you to start a new Greener Homes Grant or HER+ application, you're looking at outdated information.
The current Ontario heat pump rebates are available through the Home Renovation Savings program, brought to you by Enbridge Gas and Save on Energy. A home energy assessment is not required for the heat pump stream.
For a heat pump, two things have a major effect on the amount available:
| Current primary heating source | Cold-climate air-source heat pump | Ground-source (geothermal) heat pump |
| Electricity, oil, propane or wood | $1,250 per ton, up to $7,500 | $2,000 per ton |
| Natural gas (active Enbridge Gas customer) | $500 per ton | $3,000 flat rate |
The difference between those tiers matters in our area.
We regularly work in homes that aren’t heated with natural gas. Propane, oil and electric heating aren’t unusual once you get outside some of the gas-served areas in Simcoe County and farther into Muskoka.
Those homeowners can be looking at a very different rebate from someone with an otherwise similar home in Barrie heated by natural gas. On the same 3-ton system, that can be the difference between $3,750 and $1,500.
That’s why “What do you heat with now?” is one of the first questions worth answering.
For air-source heat pumps, the rebate is calculated from the system’s rated heating capacity at 8.3°C (47°F), not the size printed in the ad or the cooling capacity. One ton equals 12,000 BTU/hr.
If a home needs more than one unit to heat the whole house (for example, two ductless mini-split outdoor units), up to three eligible units can be added together toward one rebate, still capped at the tier maximum. For geothermal in electric, oil, propane or wood-heated homes, the rebate is based on the closed-loop heating capacity.
That’s why we check the specific system before telling a homeowner what rebate to expect.
We’d rather give you the right number than the exciting number.
This is the part worth checking before you start planning the project around a rebate.
Under the current Home Renovation Savings heat pump stream, you generally need to:
Eligibility checklist
To be eligible for a heat pump rebate, you'll need to:
No. If your home already has a heat pump providing space heating and you’re replacing it with another heat pump, you would not qualify.
That’s much better to know while you’re researching the project than after you’ve built the rebate into your budget.
Central ducted, partially ducted and ductless mini-split or multi-split cold-climate systems can all qualify. Air-to-water heat pumps and direct-expansion (DX) geothermal systems do not.
You don’t need a traditional EnerGuide home energy audit, but an HRSP-participating contractor still needs to assess your home and existing heating system.
Not every HVAC contractor can offer the Home Renovation Savings Program. Participating contractors must complete program-specific training and understand the eligibility, equipment, sizing, documentation and installation requirements. As part of the application, the contractor submits photos of your existing heating system, an itemized work order and a sizing report using Natural Resources Canada’s heat pump sizing tool.
Every home is different, and some applications can be more complicated than others. Your existing heating system, ductwork, heat loss, equipment selection and other factors can all affect eligibility and the rebate amount.
At SMHC, we complete the required assessment and confirm program approval before starting the work, so you know what you qualify for before moving ahead.
This one is important.
Pre-approval is mandatory.
If you install the heat pump before the pre-installation application is approved, you can’t simply go back afterward and make the installation eligible.
From pre-installation application to cheque, plan on roughly 2 to 3 months, depending on how quickly the installation is scheduled after approval.
If you remember one thing from this section, make it this:
Don’t install first and assume you can sort out the rebate afterward.
That’s an expensive way to learn how the program works.
How we approach heat pumps
We don't start withHow do we get you the biggest rebate?
We start withWhat does this house actually need?
That distinction matters.
No two homes in Simcoe County and Muskoka heat the same way.
A gas-heated home in Barrie can have a completely different heating setup from a rural home running on propane outside Orillia.
An older house and a newer, tightly built home won't necessarily need the same equipment.
A seasonal property in Muskoka can bring another set of considerations again.
Doing things the right way, not the easy way.™
So before we get too excited about an incentive, we're looking at things like:
The rebate is part of the decision. It shouldn’t make the decision for you.
An oversized heat pump can short-cycle, struggle with humidity in summer and cost more to run. The program itself requires the system and ductwork to be properly sized for comfort and performance. Installing a system that isn’t right for the house just because it qualifies for a larger incentive isn’t a win.
If you’re still figuring out whether the equipment itself makes sense for your home, see our heat pump installation guide
Oil-heated homes fall into the higher Home Renovation Savings heat pump rebate tier.
For a qualifying cold-climate air-source heat pump, that currently means:
$1,250 per ton, up to $7,500
There are also additional system-design and paperwork requirements:
That’s exactly the kind of detail we don’t want to assume from a rebate chart.
If you’re specifically considering moving away from oil, see our guide to moving from oil to a heat pump.
Propane-heated homes also fall into the higher tier: $1,250 per ton, up to $7,500 for a cold-climate air-source heat pump. Propane is common in rural Simcoe County and Muskoka, where natural gas lines don’t reach. Propane-heated homes also sign the Oil/Propane Tank Removal Attestation Form, so we’ll confirm what that means for your existing system before we submit the application.
Homes heated with electric baseboards or an electric furnace qualify for the same higher tier. You’re allowed to keep your existing electric heat as backup, but the backup itself isn’t part of the rebate. Wood-heated homes can likewise keep the wood stove as backup.
If you’re an Enbridge Gas customer heating with a natural gas furnace or boiler, the rebate is $500 per ton for a cold-climate air-source heat pump. Many gas-heated homes pair the heat pump with a new or existing gas furnace as backup (often called a hybrid or dual-fuel system). The rebate doesn’t cover the furnace.
Ground-source heat pumps have a separate rebate structure:
Geothermal is a different type of project from a standard air-source heat pump, and whether it makes sense depends heavily on the property and system design. As boiler, hydronic, and geothermal specialists, we do this work regularly.
If you’re considering that route, our geothermal systems guide covers the equipment and installation side properly.
Potentially, but don’t assume you can stack every incentive you’ve found online.
You can’t receive the Home Renovation Savings rebate for equipment that has already received (or is expected to receive) an incentive from another Enbridge Gas, Save on Energy or Government of Ontario program.
Funding from other sources may still be possible, but combined eligible funding cannot exceed the cost of supplying and installing the heat pump.
If another grant or incentive is part of the numbers you’re using to make the decision, confirm it before the work begins.
This is another area where we’d rather check than tell you:
“It should be fine.”
FAQ
Some secondary properties can qualify, but eligibility depends on the home, heating source and current program requirements. This is something worth confirming before assuming the property is eligible.
Yes, if they're on the cold-climate qualified products list and the system can heat the whole home, including the basement. Single-head and multi-head mini-splits both qualify, and up to three outdoor units can be counted toward one rebate.
Only at the top of the range. $7,500 is the maximum for electric, oil, propane or wood-heated homes, and it applies to a 6-ton or larger rated heating capacity. A smaller home with a 3-ton system would be closer to $3,750. Natural gas homes top out at $2,000.
No. Pre-approval is mandatory. Installations completed before the pre-installation application is approved aren't eligible.
For eligible installations completed through SMHC, we help homeowners work through the applicable rebate process and required documentation.
We still confirm the project and program requirements first. A rebate application shouldn't begin with a promise about a dollar amount we haven't actually verified.
Yes, SMHC is an approved contractor for the HRSP program serving Barrie, Orillia, Gravenhurst, Muskoka and surrounding communities.
The rebate matters.
But it shouldn’t be the thing that decides what equipment goes into your home.
We’d rather start by figuring out what your house actually needs, look at the equipment that makes sense and then work out what rebate applies to that system.
That’s especially important around Simcoe County and Muskoka because the homes and heating systems we work with aren’t all the same. Natural gas, propane, oil, wood and electric heat all show up here, and what makes sense for one house can make absolutely no sense for the next.
So if you’ve seen “up to $7,500” and you’re trying to figure out what that actually means for your home, that’s where we start.
We'll look at your current heating system, your home and the equipment options that actually make sense before giving you a rebate number.
No guessing from the maximum.
No designing the system around the incentive.
Just a clear answer about what fits the home and what you actually qualify for.
If the remaining project cost is part of your decision, you can also review SMHC's financing options.
Program information reviewed October 8, 2026 using current information from:
Rebate amounts and eligibility requirements can change. SMHC confirms current program requirements before an eligible installation moves forward.
