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AC replacement rebates in Ontario (2026)

Last verified October 19, 2026 against official program pages. How we check

As of October 19, 2026, no program open today pays for a like-for-like central air conditioner in Ontario. Replace the AC with a heat pump instead and about $1,500 comes back if your home is heated by natural gas, through Home Renovation Savings Program.

CoolSaver Program (Save on Energy Local Initiatives) has ended. A heat pump is an air conditioner that also heats, so most AC replacement money now comes from heat pump programs.

Every program is also on Ontario home energy rebates and heat pump rebates in Ontario. The biggest typical amount comes from Home Renovation Savings Program. See the full price on heat pump cost in Ontario. Programs often combine: how stacking works.

What are you upgrading?
How do you heat now?

Your rebate stack

Ontario · Heat pumps

1 program

1 program in Ontario add up to $2,000–$7,500. Plus $2,000 when the National Heat Pump Rebate opens. Plus 7 loan programs.

Could add up to

Depends on how you heat

$2,000–$7,500

+ $2,000 when the National Heat Pump Rebate opens

See my full stack

Verified against official sources ·

How it adds up

Federal
  • Cold-climate air-source heat pump (other eligible homeowners) · Rebate · Not open yet · not in the total

Provincial
Municipal

City loans in 7 Ontario cities, from about $53/month per $10,000 · not counted

Program maximums for an air-source heat pump. Ground-source systems can get more. Your amount depends on your home and the equipment. City-only programs aren’t counted in the total.

3 income-qualified programs hidden.

Programs that pay when you replace your AC in Ontario

  • OpenProvincialOntario

    Home Renovation Savings Program

    Ontario's main home-retrofit rebate program. You can claim single upgrades such as a heat pump, attic insulation, solar with a battery, a smart thermostat or ENERGY STAR appliances without an energy assessment, or do an assessment and two or more upgrades for envelope rebates.

    $12,000

    max rebate

    Rebate
    Last verified October 12, 2026
  • UpcomingFederalCanada-wide

    National Heat Pump Rebate

    A new federal rebate announced on October 8, 2026 that will pay $2,000 toward an eligible cold-climate air-source heat pump, or up to $10,000 for households below the median income. Applications are not open yet.

    $2,000

    max rebate

    Up to $10,000 if income-qualified

    Rebate
    Last verified October 12, 2026
  • OpenFederalCanada-wide

    Canada Greener Homes Affordability Program

    Federally funded, no-cost home energy upgrades for low- and median-income homeowners and tenants. You apply through your province's or utility's partner program, not through Ottawa.

    Free

    Free upgrade
    Last verified October 12, 2026
  • OpenProvincialOntario

    Energy Affordability Program

    Income-qualified Ontario electricity customers can get free energy upgrades. These range from free saving kits to a full home visit that can include new appliances, insulation, draft-proofing and, for electric or oil-heated homes, a cold-climate heat pump.

    Free

    Free upgrade
    Last verified October 12, 2026
  • OpenMunicipalOttawa

    Better Homes Ottawa Loan Program

    Ottawa homeowners can borrow $10,000 to $125,000 at a fixed 4.33% over 20 years for energy retrofits, repaid on the property tax bill. The program also offers per-ton heat pump incentives and a limited-time $600 loan reduction for EnerGuide assessments.

    $125,000

    max loan

    Loan
    Last verified October 12, 2026
  • OpenMunicipalDurham Region

    Durham Greener Homes Loan Program

    Durham Region homeowners (outside Pickering) can borrow up to $125,000 at a fixed 2% over 15 years for energy retrofits, repaid on the property tax bill, along with free coaching and a free weather-readiness home assessment.

    $125,000

    max loan

    Loan
    Last verified October 12, 2026
  • OpenMunicipalToronto

    Home Energy Loan Program

    Toronto homeowners can borrow up to $125,000 at a fixed low rate for energy upgrades and repay it on the property tax bill over up to 20 years. Heat pump-only and solar-only projects no longer need an EnerGuide assessment.

    $125,000

    max loan

    Loan
    Last verified October 12, 2026
  • OpenMunicipalPeterborough

    Better Homes Peterborough

    Peterborough homeowners and landlords can finance energy retrofits with a City loan of $10,000 to $50,000 at 4.50% fixed over 15 years, or a Kawartha Credit Union loan, and earn performance incentives of up to $3,600 for large energy savings.

    $50,000

    max loan

    Loan
    Last verified October 12, 2026
  • WaitlistMunicipalGuelph

    Guelph Greener Homes

    Guelph offers 0% interest loans of up to $50,000 for home energy upgrades, but loan funding is nearly used up and new applicants go on a waitlist. Low-income households can still apply for grants of up to $15,000 toward an air-source heat pump.

    $50,000

    max 0% loan

    Interest-free loan
    Last verified October 12, 2026
  • OpenMunicipalLondon

    BetterHomes London

    London homeowners can borrow up to $40,000 at a fixed 2.5% rate for energy retrofits and repay it on the property tax bill over 10, 15 or 20 years. Households under the income limits can also get up to $10,000 in incentives that reduce what they repay.

    $40,000

    max loan

    Loan
    Last verified October 12, 2026
  • OpenMunicipalWaterloo Region, Cambridge, North Dumfries

    RetrofitWR

    GrandBridge Energy customers in Cambridge and North Dumfries can borrow up to $40,000 at 2.5% for home energy retrofits, repaid on their monthly hydro bill, plus heat pump and income-qualified incentives. Free energy coaching is open to homeowners across Waterloo Region.

    $40,000

    max loan

    Loan
    Last verified October 12, 2026
  • OpenMunicipalToronto

    BetterHomesTO Furnace Upgrade Program

    Free virtual energy coaching from Toronto Hydro for Toronto residents thinking about replacing a furnace with a heat pump, with help finding rebates, financing and contractors.

    Free

    Free upgrade
    Last verified October 17, 2026
  • OpenMunicipalPeel Region, Mississauga, Brampton, Caledon

    Energy Retrofit Assistance

    Income-qualified households in Mississauga, Brampton and Caledon can get a free EnerGuide home energy audit and selected upgrades such as heat pumps and insulation at no cost. It's a pilot with limited space, and applicants are added to a waitlist once it fills.

    Free

    Free upgrade
    Last verified October 12, 2026

Worked example: AC or heat pump in Ontario

Typical cost before and after rebates
OptionTypical costRebates open todayYou’d pay about
Central AC, like for like$4,760–$4,990None province-wide$4,760–$4,990
Heat pump, gas-heated home$10,000–$19,000− $1,500$8,500–$17,500
Heat pump, electric, oil, propane or wood heat$10,000–$19,000− $3,750$6,250–$15,250

AC cost: Canadian Climate Institute (Dunsky technical report), published February 14, 2024, checked October 17, 2026. Modelled installed cost for a detached house (mid-cost case, 2024 report). Typical, not a quote. Heat pump cost: RBC, published May 30, 2024, checked October 17, 2026. Typical, not a quote. Rebates: program pages, last verified October 19, 2026. City-only programs are not subtracted.

Key facts

Central AC rebates
None open. CoolSaver Program (Save on Energy Local Initiatives) ended; it no longer takes applications.
Heat pump instead, gas-heated home
About $1,500 back from Home Renovation Savings Program, for a typical 3-ton system.
Heat pump instead, other heating fuels
About $3,750 back from Home Renovation Savings Program, for a typical 3-ton system.
Typical central AC cost
$4,760–$4,990 (Canada-wide range). Source: Canadian Climate Institute (Dunsky technical report), published February 14, 2024, checked October 17, 2026. Modelled installed cost for a detached house (mid-cost case, 2024 report). Typical, not a quote.
Typical heat pump cost
$10,000–$19,000 (Canada-wide range). Source: RBC, published May 30, 2024, checked October 17, 2026. Typical, not a quote.
Announced, not open
National Heat Pump Rebate: $2,000 more if it opens before you install. Not counted above.
Last verified
October 19, 2026. Program administrators decide eligibility. Your installer’s quote decides the cost.

Questions people ask

Not for a like-for-like air conditioner, as of October 19, 2026. CoolSaver Program (Save on Energy Local Initiatives) ended. Heat pump programs pay about $1,500 if your home is heated by natural gas when a heat pump replaces it.

Yes. Home Renovation Savings Program pays about $1,500 if your home is heated by natural gas. Check whether you need approval before the work starts.

Yes. An air-source heat pump is an air conditioner that can also run in reverse to heat. Your installer sizes it for the winter heating load, which also covers summer cooling in most homes.

Typical installed prices: about $4,760 to $4,990 for a central AC and $10,000 to $19,000 for a cold-climate heat pump, before rebates. After about $1,500 back, the heat pump comes to about $8,500 to $17,500.

It is announced but not open as of October 19, 2026. If it opens before you install, it adds $2,000 for a heat pump. It doesn’t pay for an air conditioner.

Get up to 3 heat pump quotes in Ontario

Ask for a heat pump and a like-for-like AC price in the same quote. We’ll send your request to up to 3 installers who serve your area.

We’re independent. We never take rebate applications or charge you to apply; always apply through the official program.

Request quotes

Free, no obligation. We pass your request to up to 3 independent installers who serve your area and, where a program requires it, are registered with it.

  1. 1. Your project
  2. 2. Your contact details

Step 1 of 2: your project

What would you like quoted?

We use it to find installers who serve your area.

When would you like to start?
Do you own the home?
What kind of home is it?Optional
How do you heat it today?Optional
  • Installers checked against your program’s contractor list, where it has one
  • Installers pay us, never you
  • Sent to up to 3 installers who serve your area. We don't sell or rent lists.