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Upgrade and save. Get up to $850 in rebates

More than 60% of your annual electricity costs are from heating and cooling your home

Get money-saving rebates to upgrade your HVAC system to the most energy-efficient models on the market.

Available rebates


Save up to


on a furnace


Save up to


on an air conditioner


Save up to


on an air-source
heat pump


Get back


on a smart thermostat


Get back


on a circulator pump

How much can you save?

Save up to $250 on a furnace

Reduce heating costs by up to 25%* per year and improve the air quality of your home when you upgrade your old furnace. Must be equipped with an Electronically Commutated Motor (ECM).

Save up to $600 on an air conditioner

Use up to 20%* less electricity when you install a high-efficiency central air conditioner. Must be ENERGY STAR® certified, SEER 18/EER 13 rating or higher and have an eligible indoor coil.

Get back $30 on a circulator pump

Hot water rads? 99% of systems use an inefficient circulator pump! Consider upgrading to help start saving. Must be equipped with a variable-speed ECM and be installed on an existing hydronic heating system (not on a domestic hot water heater).

Electrically Heated Home?

Get back $50 on a smart thermostat

Control your heating and cooling system remotely and save up to 10%* year with a web-enabled smart thermostat. Must be a qualifying model installed in a home or small business with ducted electric heating. Must be web-enabled with heat pump lockout temperature control. Must be purchased from and installed by a participating contractor.

Save up to $4,000 on an air‑source heat pump

Replace your baseboard heating or central electric furnace with an air-source heat pump – they’re up to 50%* more efficient and provide energy-efficient air conditioning in the summer months. Must be a home or small business with electricity as primary heating source. System must be ENERGY STAR® certified, SEER15/HSP 8.5/EER 12.5 or higher. Additional requirements apply.

Electrically Heated Home? Learn More

How do you qualify?


Go with a pro

Your new system must be purchased and installed by a participating contractor.


Buy and install it by December 31, 2019

Your contractor must complete and submit your online incentive form by February 1, 2020. An email will be sent for you to review and approve.


Send us proof

We need a copy of your proof of purchase and your completed incentive form by February 28, 2020. You should receive your incentive cheque within eight to twelve weeks of receiving your forms.

Save on Energy Incentives
30 Commercial Road
Toronto, ON M4G 1Z4



8 tips for replacing your HVAC system

We ask the experts what you need to know

Roger Grochmal is the CEO of AtlasCare, an active member of the Heating, Refrigeration and Air Conditioning Institute of Canada (HRAI) and a regular contributor to Mechanical Business magazine. Roger and AtlasCare president Michael Grochmal share their top tips.

Spend the time to find a credible HVAC contractor

Purchasing a new furnace or air conditioner isn’t like buying a fridge that simply gets unpacked and plugged in – half the value is what the contractor brings to the table. If a system isn’t designed and sized properly for your home, you won’t be comfortable and you’ll waste energy.

Use this checklist to help choose a contractor

  • Read online reviews or talk to friends and neighbours
  • Make sure the company offers licenced air conditioning or refrigeration technicians
  • Ensure the contractor has general liability insurance, so you’re not on the hook for any damage to your home or personal injury
  • Ask if the company subcontracts installation to another company – if they do, make sure that company also has the necessary insurance
  • Check that they take part in industry associations such as HRAI
  • Get everything in writing

Understand high efficiency vs. standard efficiency

High-efficiency units generally tend to be better units. They’re much quieter, waste less energy, have fewer breakdowns and come with features that aren’t available on standard models. It’s a bit like buying a car – to get the premium features you have to buy the best.

Balance space vs. sound

While the highest-efficiency units tend to be the quietest, they’re also the largest – not everyone has the space in their home to accommodate this. Your contractor can help you weigh the best options for your home.

System sizing is absolutely essential

The right size system is key to your home’s comfort. If your air conditioner’s too large, it may cool the house down quickly but it won’t have enough time to remove the moisture from the air. This will make your home feel cold and clammy and puts your house at risk for mold. If a system is too small, it will run continually and waste energy. This is hard on the equipment and can lead to more breakdowns.

Know what your ducts can handle

A duct system that’s too small for your furnace and AC won’t be able to move the right amount of air to properly heat and cool your home. That’s why it’s so important to have a contractor do a proper evaluation of your system as a whole. If all these things are in line the system will meet your needs for energy efficiency and comfort. This is especially true of older Toronto houses, which generally have smaller ductwork than standard suburban homes.

Don’t wait for an emergency

We recommend that customers change their systems on their own terms. In an emergency, there’s no time to shop around or research contractors. If your system breaks down during peak season, contractors are extremely busy – there’s no incentive for them to offer you a discount.

Upgrade your furnace and central air conditioner at the same time

Your units work in unison as a system. Not every older furnace will work with a new air conditioner and duct system. One of the biggest factors in energy efficiency is the furnace fan. To get the highest level of energy efficiency, everything needs to be compatible.

Replace indoor and outdoor parts together

A central air conditioner is a split system – an outdoor compressor and an indoor coil. If one component breaks down, you should still replace both. Older ACs use different refrigerants and oils than newer systems, and the amount of labour you’ll need to make them compatible just doesn’t make sense.

  See more tips

Heating your home electrically?

Replace your baseboard heating or central electric furnace with an air-source heat pump and you may qualify for rebates up to $4,000. Versatile installation options are available, so it’s important to work closely with a participating contractor to find the best option for your home.

How an air-source heat pump works

Because it moves heat that already exists rather than generating it, an air-source heat pump is up to 50%* more efficient than baseboard heating or a central electric furnace (even at very cold temperatures). Plus, it provides energy-efficient air conditioning in summer months, too.


The air-source heat pump takes in air from outdoors.


It uses electricity to compress the air and change it to a higher temperature.


Fans release the heated air into your home.


In summer, the cycle is reversed to provide energy-efficient cooling and dehumidifying (no need for a separate dehumidifier!).

NEW – Get up to $4,000 in rebates

Upgrade to an air-source heat pump from baseboard heating or central electric furnace and you may qualify for rebates up to $4,000.

See the incentives

How to maximize your air-source heat pump energy savings

Get the most out of your new system with these top tips.

See more tips

Did you know? A heat pump is up to TWICE as efficient as an electric furnace!

PLUS! Get back $50 on smart thermostat

Control your heating and cooling system remotely and save up to 10%* year with a web-enabled smart thermostat for electrically-heated homes.

How to qualify

Already filed your incentive form?

To check your incentive status, use the Claim Status Tool.

For questions or concerns regarding your claim, call 1-877-797-9473
or email heatingandcoolingincentive@powerauthority.on.ca.

*Annual electricity cost savings are estimated based on past program experience. Actual savings may vary.
TMTrademark of the Independent Electricity System Operator. Used under licence. See full terms and conditions.

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