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.
Your rebate stack
Ontario · Heat pumps
1 program
Could add up to
Depends on how you heat
$2,000–$7,500
+ $2,000 when the National Heat Pump Rebate opens
Verified against official sources ·
How it adds up
- National Heat Pump Rebate+ $2,000
Cold-climate air-source heat pump (other eligible homeowners) · Rebate · Not open yet · not in the total
- Home Renovation Savings Programup to $7,500
Cold-climate air-source heat pump (home heated by electricity, oil, propane or wood) · Rebate
Free upgrade · Toronto only
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
- Last verified October 12, 2026OpenProvincialOntario
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, 2026UpcomingFederalCanada-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, 2026OpenFederalCanada-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, 2026OpenProvincialOntario
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, 2026OpenMunicipalOttawa
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, 2026OpenMunicipalDurham 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, 2026OpenMunicipalToronto
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, 2026OpenMunicipalPeterborough
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, 2026WaitlistMunicipalGuelph
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, 2026OpenMunicipalLondon
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, 2026OpenMunicipalWaterloo 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 17, 2026OpenMunicipalToronto
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 12, 2026OpenMunicipalPeel 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
Worked example: AC or heat pump in Ontario
| Option | Typical cost | Rebates open today | You’d pay about |
|---|---|---|---|
| Central AC, like for like | $4,760–$4,990 | None 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
Get up to 3 heat pump quotes in Ontario
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