Ontario homeowners have access to one of the most generous rebate programs in Canada right now. The Home Renovation Savings Program offers up to $7,500 for a cold-climate air-source heat pump, up to $12,000 for ground-source, and up to $5,000 for rooftop solar. This guide explains Ontario home energy rebates and which upgrades actually pay off at Ontario prices.
Electricity and gas prices sit near the middle of the Canadian range, so results depend on how you heat today. Try the heat pump calculator or the solar calculator, then see full details on the Ontario rebates page.
Electricity in Ontario
Ontario homes buy electricity through local distribution companies such as Hydro One, Toronto Hydro and Alectra, and most natural gas comes from Enbridge Gas. The grid runs mainly on nuclear and hydro, with natural gas plants covering peaks. An all-in rate of roughly $0.17 per kWh is close to the Canadian average, and you can choose Time-of-Use, Tiered or Ultra-Low Overnight pricing.
Heating: what pays off
Most Ontario homes heat with natural gas, with electric baseboards, oil and propane common in rural areas. With gas at roughly $0.48 per m³ and power at roughly $0.17 per kWh, a cold-climate heat pump at a typical seasonal COP of 2.2 to 3.0 costs about the same as a high-efficiency gas furnace to run, sometimes a little more or less. Homes on oil, propane or baseboards usually save a lot.
The Ontario rebate of up to $7,500 shortens payback considerably, especially if your furnace or air conditioner is due for replacement anyway. A dual-fuel system is another option for gas homes. Compare options in the heat pump vs gas furnace guide.
Solar outlook
Solar in Ontario is a moderate investment. Yields are roughly in the middle of the Canadian range, and at typical costs of $2.40 to $3.30 per watt, payback often runs well over a decade without rebates. The Home Renovation Savings Program's rooftop solar rebate of up to $5,000, plus up to $5,000 for a battery ($10,000 combined), improves the picture.
Ontario offers net metering through your local distribution company, so you earn credits for power you send to the grid. Check current rules with your utility and see solar payback in Canada and net metering in Canada.
Tips for Ontario homes
- Compare Time-of-Use, Tiered and Ultra-Low Overnight plans each November, since prices reset on November 1 and switching is free.
- If you charge an EV overnight, test the Ultra-Low Overnight plan against your usage history.
- Apply to the Home Renovation Savings Program before starting work, as insulation and window rebates may require an assessment.
- If your furnace or AC is near the end of its life, get quotes for a cold-climate heat pump while the up to $7,500 rebate is available.
- Oil-heated Ontario homes may qualify for the federal Oil to Heat Pump Affordability program as well.