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Upgrade and save. Get up to $850 in rebates

Over 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.

How much can you save?

NEW Get a $600 rebate

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

Get a $250 rebate
ends December 31, 2018

Improve the air quality of your home when you upgrade your old furnace. Must be equipped with an Electronically Commutated Motor (ECM).

NEW Get a $30 rebate

Upgrade your hydronic pump and join the 1% of people with an efficient system. 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?

How do you qualify?


Go with a pro

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


Buy it and install it by December 31, 2018

Your contractor must complete and submit your online incentive form by February 1, 2019. 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, 2018. You should receive your incentive cheque within 4 to 8 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 AtlasCareâ„¢ 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 line 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

If your home has existing ductwork:

Ducted $1,250
Cold Climate Ducted Up to $4,000

If your home does not have existing ductwork:

Ductless $1,000
Ductless Multiport $1,250
(one exterior unit and the first two interior units) plus $250 for each additional interior unit, up to $3,000
Cold Climate Ductless $1,500
Cold Climate Ductless Multiport $1,900
(one exterior unit and the first two interior units) plus $400 for each additional interior unit, up to $4,000

To qualify for rebates, you must have a home or small business with electricity as your primary heating source (70% of total heating load). Must be ENERGY STAR® certified or a CEE Tier-1 level system, minimum SEER 15/HSPF 8.5/EER 12.5 rating. Other qualifications may apply.

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

Seal and insulate

Draft proof ductwork and improve insulation to increase your heating system’s efficiency.

Shelter outdoor units

Keep clear of snow, ice and debris; only use the demand-defrost setting if necessary.

Free up airflow

Keep vents free from furniture, rugs or other objects that can block airflow.

Turn off backup heating

Use baseboard heaters or other backup heating only in extreme cold.

Change air filters

Clean and change air filters regularly, according to the manufacturer’s instructions.

Annual inspection

Follow the manufacturers’ instructions for annual maintenance requirements.

NEW – $50 rebate for an adaptive thermostat

Must be a qualifying model installed in a home or business with ducted electric heating. Must be web-enabled with heat pump lockout temperature control.

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

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.
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