With energy costs continuing to rise, Ontario townhome owners are searching for ways to upgrade efficiency and reduce monthly expenses. The Ontario Home Renovation Savings Program, launched earlier this year, provides an opportunity on both fronts. Unlike other programs that require a home energy assessment, certain rebates under this initiative, such as those for heat pumps, solar panels and smart thermostats, are available without this additional step, making it more accessible.
Heat pumps, smart thermostats, solar panels and battery storage
A key component of this shift toward energy efficiency is the adoption of inverter heat pumps, which provide both heating and cooling in a single system. As a highly efficient alternative to traditional gas furnaces and air conditioning, heat pumps reduce household energy consumption while maintaining indoor comfort year-round. Cold-climate air source and ground-source heat pumps are particularly well-suited for Ontario winters.
Recent advancements in heat pump technology are dispelling the myth that heat pumps aren’t suitable for extremely cold climates. Federal and local governments have taken notice and are propagating the adoption of heat pumps by offering incentives for homeowners to make the upgrade.
The Ontario Home Renovation Savings Program offers rebates that vary based on a home’s heating source: homeowners who primarily heat with electricity can receive up to $7,500 for upgrading to a cold-climate air source heat pump, while those who heat with natural gas can receive up to $2,000. By switching to an energy-efficient heat pump, townhome owners could potentially reduce their energy consumption and lower their monthly utility costs.
Beyond heating and cooling, the program covers modern energy efficiency solutions, including solar panels and battery storage. When solar panels are paired with battery storage, excess solar energy can be stored for later use, ensuring a reliable power supply even during outages or peak demand periods.
Ontario’s rebate program provides financial incentives for homeowners who install solar and storage solutions, with rebates calculated at $1,000 per kilowatt (kW) of installed solar capacity, up to a maximum of $5,000. Battery storage systems qualify for a rebate of $300 per kilowatt-hour (kWh) of storage capacity, also capped at $5,000, but only when installed in combination with a new solar panel system. Standalone battery installations are not eligible for rebates under this program.
Smart thermostats also play a crucial role in enhancing home efficiency by complementing heat pumps. Owners can receive a $75 rebate on the purchase of a qualifying smart thermostat, which optimizes energy use. These devices enable automated temperature adjustments and remote access, allowing users to tailor heating and cooling schedules to their needs.
By integrating features such as real-time energy tracking and compatibility with home automation platforms, smart thermostats ensure that heating and cooling systems operate at peak efficiency.
Owner eligibility and verifying contractor credentials
The Ontario Home Renovation Savings Program is particularly advantageous for townhomes owners. Many of those built in the surge of multi-family housing structures following the Great Recession are due for an HVAC upgrade, making the timing of this rebate program ideal.
To qualify for a heat pump rebate, homeowners must meet specific eligibility criteria, including being an Enbridge Gas customer who primarily heats their home with natural gas or is connected to the Ontario electricity grid and uses electric heating. Additionally, the property must be a single detached, semi-detached, row house, townhouse or mobile home on a permanent foundation. New-build homes, condos, and multi-unit residential buildings do not qualify, and the rebate is applicable only to first-time heat pump installations.
While the financial incentives are compelling, successfully implementing an energy-efficient heat pump system requires careful planning and expertise. Townhome owners should work with certified and experienced contractors to ensure compliance with program requirements and optimal system performance.
Contractors must be registered with the Home Renovation Savings Program to facilitate rebate eligibility for their customers, and owners should verify their contractor’s credentials before proceeding with installation – particularly for older homes with outdated HVAC infrastructure. Also, be sure that the heat pump you select adheres to Natural Resources Canada product lists and guidelines.
Although the Canada Greener Homes Grant has ended, the Ontario Home Renovation Savings Program ensures that residents still have access to energy efficiency incentives. Both programs align with Canada’s broader sustainability objectives by promoting the adoption of energy-efficient technologies, such as insulation, heat pumps, and solar panels. As energy costs continue to rise, these programs provide a practical and cost-effective pathway toward a more sustainable future.
David Rames is the senior product manager for Midea, a global innovator in HVAC solutions. He is responsible for strategy and growth in the unitary system product category. This includes serving as the primary consultant to advise specific products, SKUs and offerings within the North American ducted and ductless HVAC markets. The company manufactures overseas, with distribution across the world, including Canada.
