Updated November 1, 2026. Program details are still being finalized and may change.
The federal government has launched a new rebate called the National Heat Pump Rebate, and it already covers heat pump installs done on or after November 1, 2026. It covers geothermal heat pumps too.
Most eligible homeowners can get $2,000. Households at or below the median income for their area can get up to $10,000.
From South Dundas and Morrisburg to Kemptville, Brockville and Cornwall, a lot of homes in Eastern Ontario have a few things in common that make this rebate worth a closer look. Here is how it works, and what it means for homes like yours.
Why this rebate fits Eastern Ontario homes
Many homes here are not on natural gas
Across much of the area we cover, from Winchester and Finch to Spencerville, Prescott and the small hamlets in between, a lot of homes heat with oil, propane, electric baseboard or wood.
The National Heat Pump Rebate accepts all of them. It is open to homes heating with electricity, natural gas, oil, propane, diesel, coal or wood.
Ontario’s Home Renovation Savings program is also open to homes heated with electricity, natural gas, oil, propane or wood, with some conditions.
Older homes need the right system and the right electrical
Farmhouses, century homes and homes with additions do not always have ductwork that reaches every room.
The rebate is meant for systems that can heat the whole home. The exact definition is not out yet, so sizing matters. Depending on the layout, that might be a ducted system, a ductless multi-zone system, or a mix of both.
If you install during the retroactive period, the government suggests confirming with your contractor that the system is sized to heat your whole home.
Check your electrical service too. If you keep your oil, propane or gas furnace as backup, a heat pump usually works on the 100-amp service most older homes have. If you remove the furnace and go all-electric with electric backup heat, you will likely need a 200-amp service. Our electrical division, ATEL Electric, handles panel and service upgrades, so one call covers both.
Keep your backup heat
You do not need to remove your furnace, boiler or wood stove to qualify, and with an air source heat pump you shouldn’t. An air source system should be paired with a furnace or boiler that can heat the whole house on its own. You also do not need to prove your old system broke down.
A heat pump carries your home through most of the winter. If it ever needs a repair, a furnace can usually be fixed in an hour or two, while some heat pump parts can take days or weeks to arrive. Your backup keeps the house warm in the meantime.
Geothermal costs more to install but less to run
Larger lots and acreage give you room for a ground loop, which is what a geothermal system needs.
Geothermal heat pumps are on the eligible list. Ontario’s Home Renovation Savings program also offers up to $12,000 for ground source heat pumps, based on size.
Geothermal is a larger upfront investment compared to an air source heat pump. In return, it is far more efficient. The loop pulls steady heat from the ground, so it does not lose output on a -30°C night the way an outdoor unit can, and it does not need a full-size furnace behind it.
Whether it makes sense depends on your lot, your soil or well, and how long you plan to stay. Loops go in between spring and late fall, before the ground freezes, so this winter is a good time to plan a spring install.
How much you can get, and who qualifies
There are two rebate levels. Households above the median income can get $2,000. Households at or below it can get up to $10,000, depending on what the equipment costs.
To qualify, you need to own the home. It can be a cottage or a rental you own, not just the place you live, but there is only one rebate per household. The heat pump has to be on the eligible product list, bought from and installed by an HVAC contractor, and no federal heat pump money can have been paid out at that address before.
No energy audit is needed, and planned and emergency installs both count. The program has $2 billion behind it and is expected to help up to 820,000 households.
Brands we install that are on the eligible list
Every one of these brands has systems on the federal eligible list. The number shows how many matched system combinations each brand has on the list.
Air source heat pumps
| Brand | Eligible systems |
|---|---|
| Ameristar | 44 |
| Continental | 88 |
| Fujitsu | 268 |
| GE | 1,254 |
| Goodman | 623 |
| Gree | 716 |
| KeepRite | 10,568 |
| KingHome | 215 |
| LG | 252 |
| Luxaire | 2,154 |
| Mammoth | 4 |
| Midea | 2,013 |
| Mitsubishi Electric | 226 |
| Moovair | 193 |
| Napoleon | 139 |
| Navien | 8 |
| RunTru | 44 |
| Trane | 3,152 |
Geothermal heat pumps
| Brand | Eligible systems |
|---|---|
| AAON | 610 |
| Bosch-Geo | 165 |
| Bryant | 124 |
| Carrier | 1,053 |
| ClimateMaster | 354 |
| Enertech | 97 |
| Geo-Thermal Split | 40 |
| GeoComfort | 483 |
| GeoExcel | 350 |
| GeoSmart Energy | 754 |
| GeoStar | 1,021 |
| Gree | 2 |
| HydroTech | 217 |
| KeepRite | 94 |
| KingHome | 2 |
| Nordic | 55 |
| TETCO | 443 |
| WaterFurnace | 982 |
Not every model in a brand’s lineup qualifies. We will confirm the exact AHRI number before you buy.
Before you sign a quote
Ask your contractor to confirm the exact model and AHRI number is on the eligible list before you sign. Then make sure your invoice shows everything you will need to apply. You have 6 months from the install to send it in:
- Your name and the address of the home
- The installing company’s name
- The brand, model and AHRI number
- How many heat pumps were installed
- The full project cost, including any ductwork or electrical work
Does the $10,000 level apply to you?
The higher rebate uses your household’s after-tax income. For Ontario, the thresholds are:
| Household size | After-tax household income |
|---|---|
| 1 person | $46,981 |
| 2 people | $92,884 |
| 3 people | $119,850 |
| 4 people | $146,217 |
| 5 or more | $158,202 |
Your after-tax income is your 2025 net income (line 23600) minus your total taxes payable (line 43500). If you have a spouse or common-law partner, add theirs to yours.
If you apply for the higher level, you will be asked for your Social Insurance Number so the Canada Revenue Agency can confirm your income.
When you can apply
Installs done on or after November 1, 2026 count. The online application portal is expected to open in early 2027, and the program is expected to run until March 2034. No rebate is paid until the program launches and your application is approved.
Watch out for rebate scams
Rebate programs bring out door-to-door sellers, and calls out of the blue, often from companies based in Toronto or Ottawa that don’t normally work in your area. Before you sign, ask yourself: will they still be around to help you after the install is paid for? A heat pump needs service and support for years, so it pays to choose a contractor close to home.
The government does not knock on doors or call to sell heating equipment, so anyone who says they are from the rebate program is not.
Book your quote with a contractor you chose yourself, and look at their reviews and past work first.
Frequently asked questions
Can I add a heat pump to my oil or propane furnace?
Yes, and for a lot of homes here it is the best setup. The heat pump does most of the heating and the furnace backs it up on the coldest days. You keep your backup, and it usually works on the electrical service you already have.
Do I need a bigger electrical panel?
Only if you are going all-electric. Removing your furnace and relying on electric backup heat usually means upgrading to a 200-amp service. ATEL Electric can look after that.
What if my home has no ductwork?
Ductless and multi-zone heat pumps are on the eligible list too. They are a good fit for homes heated with baseboards, wood or a boiler.
Does geothermal qualify?
Yes. Ground source heat pumps are on the eligible product list. Check the exact model and AHRI number with your installer.
Will a heat pump keep up when it is -30°C outside?
A properly sized and designed cold-climate heat pump keeps heating well below freezing, and only cold-climate models qualify for this rebate. On the coldest nights, your backup heat takes over. Geothermal is not affected by the outdoor temperature at all. A qualified contractor will size and design the right system for your home.
Does it matter who installs it?
Yes. The rebate requires an HVAC contractor, and the install is what decides whether a heat pump keeps you comfortable. Ask how many they have put in, and ask to see their work.
Thinking about a heat pump or geothermal system?
We install air source and geothermal heat pumps in South Dundas, Morrisburg, Kemptville, Prescott, Brockville, Cornwall and across Eastern Ontario.
We can look at your home, your lot and how you heat today, and tell you which system fits and what rebates you may be eligible for.
Give us a call at 613-535-2720 or request a quote today.