Heat Pump Rebates in Ontario (2026): What Durham Region Homeowners Actually Need to Know

Written by Zack Laundrie | Licensed HVAC Technician, Durham Region | Updated on July 31, 2026

Ontario’s heat pump rebate program is one of the better financial incentives available to homeowners right now — but it has a few rules that catch people off guard, and one of them can cost you the entire rebate if you miss it. This guide covers the current program, the real numbers, who qualifies, and what the process actually looks like when you work with a registered contractor.

The program: Ontario's Home Renovation Savings Program (HRS)

The HRS program is a joint initiative between Enbridge Gas and the Independent Electricity System Operator (IESO). It replaced the previous Home Efficiency Rebate Plus (HER+) program in January 2025 and is the main provincial rebate available to Ontario homeowners in 2026.

What it pays:

– Up to $7,500 for a qualifying cold-climate air-source heat pump

– Up to $12,000 for a ground-source (geothermal) heat pump

– Additional amounts available for insulation, windows, and other upgrades done at the same time

The air-source figure — $7,500 — is what most Durham Region homeowners are working with. The exact amount you receive depends on the system’s capacity and your current heating fuel. Homes switching from oil, propane, or electric baseboards typically receive higher rebate amounts than homes switching from natural gas, because the emissions reduction is greater.

The rule that catches people: pre-approval must happen before installation

This is the one that matters most and the one that trips people up.

You cannot install the heat pump first and apply for the rebate after. The HRS program requires pre-approval before any work begins. If you book an installation without going through the pre-approval process first — even with a registered contractor — you will not qualify for the rebate on that installation.

As a registered HRS contractor, I handle the pre-approval process for every heat pump installation I do. It’s part of how I work, not an add-on. But if you’re getting quotes from multiple contractors, make sure whoever you go with is registered and initiates pre-approval before scheduling the install date.

Who qualifies

The HRS program is available to homeowners who meet the following criteria:

– You own a residential property in Ontario (detached, semi-detached, townhouse, or eligible multi-unit)
– The property is your primary residence
– You are replacing an existing heating system — not adding a heat pump to a home that already has a heat pump
– The heat pump installed meets the program’s efficiency requirements (this is where brand and model selection matters — not every unit on the market qualifies)
– Installation is completed by a registered HRS contractor

Rental properties and new construction are generally not eligible. If you’re unsure whether your situation qualifies, call me and I’ll tell you straight.

What the process looks like in practice

Here’s how it works when you go through a registered contractor:

1. Free quote and eligibility check
We come to your home, assess your space, confirm your current heating system, and determine which heat pump is right for your home and which rebate tier you qualify for. No charge, no obligation.

2. Pre-approval submission
Before any installation is booked, I submit the pre-approval application on your behalf. This establishes your eligibility with the program and locks in your rebate amount.

3. Installation
Once pre-approval is confirmed, we schedule and complete the installation. Most ducted air-source installs take one day. I provide the AHRI certification number for your system as part of the documentation package.

4. Final application and rebate
After installation, I submit the final documentation. The rebate is paid directly to you by cheque or direct deposit, typically within 60 to 90 days of the final submission.

I handle all the paperwork on both ends — pre-approval and final submission. You don’t need to deal with the program portal or track down documentation. That’s part of what working with a registered contractor means.

The federal program: Oil to Heat Pump Affordability Program

If your home currently heats with oil, there’s a second program running in parallel. The federal Oil to Heat Pump Affordability Program offers up to $10,000 for homeowners switching from oil to a qualifying cold-climate heat pump.

This is the strongest incentive currently available, and rural Durham Region properties that haven’t converted from oil are the ones most likely to benefit. The two programs can be combined in some cases — if you’re an oil-heated home, the conversation about total net cost looks very different than it does for a gas-heated home.

What the rebate actually does to the numbers

To make this concrete: a typical ducted cold-climate heat pump installation in Durham Region runs between $8,000 and $14,000 depending on the home size, system spec, and whether any electrical or ductwork upgrades are needed.

After a $7,500 HRS rebate, a $10,500 installation nets out at $3,000. After a $5,500 rebate on a more modest system, a $8,000 install nets out at $2,500.

Those are not ballpark numbers — they’re illustrative of how dramatically the rebate changes the conversation. The only way to know your specific number is a quote based on your actual home.

A note on timing

The HRS program is funded and running in 2026, but rebate programs can change. Funding caps, eligibility rule updates, and program restructuring have all happened with previous Ontario programs. I’m not saying the HRS is going away — I have no reason to think it is — but the homeowners who’ve benefited most are the ones who didn’t wait to find out.

If you’ve been thinking about a heat pump for next year, the rebate math argues for doing it this year.

Frequently asked questions

Do I need a home energy assessment to qualify?

Not for the HRS program in most cases. A pre-installation assessment by a licensed energy advisor is no longer required for the basic heat pump rebate under HRS — this changed from the previous HER+ program. Some upgrades bundled with the heat pump may require an assessment, but for a standalone heat pump install, you generally don’t need one. I’ll confirm this for your specific situation during the quote.

Can I apply for the rebate myself without a registered contractor?

No. The HRS program requires installation by a registered contractor. The contractor initiates the pre-approval and submits the final documentation. It’s not a program you can access independently.

What if I already had a heat pump installed this year without pre-approval?

Unfortunately, if pre-approval wasn’t completed before installation, the installation is not eligible for the HRS rebate. There are no exceptions to this rule that I’m aware of. This is exactly why I bring up pre-approval on the first call.

Does the rebate affect my taxes?

The HRS rebate is generally not considered taxable income for personal homeowners, but tax situations vary. If you’re uncertain, check with your accountant.

How do I know if the heat pump you’re recommending qualifies?

Every system I spec for HRS installations meets the program’s efficiency requirements. I won’t propose a system that doesn’t qualify if the goal is to capture the rebate — that would be a waste of everyone’s time.

Get a quote and start the rebate process

Pre-approval has to happen before installation, so the earlier you start the conversation, the better. The quote is free, there’s no obligation, and I’ll tell you upfront what rebate amount your home is likely to qualify for.

Get a free quote | Call (705) 344-3124

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