Heat pump rebates and loans in Ottawa: what is open, and in what order to apply

Four programs on 29.10.2026

The Greener Homes Grant and Loan have closed. Oil to Heat Pump Affordability took its last application on 31 July 2026; files already in upload final receipts by 31 January 2027.

Home Renovation Savings: today’s fuel sets the cap

The rebate is paid per ton of heating capacity at 8.3°C, capped by what heats the house before the install. The program’s own example: two 3-ton units make 6 tons, which pays $2,000 in a gas-heated home and $7,500 in an electric, oil, propane or wood home. One rebate per home.

It goes to the owner who pays, in a detached, semi, row house, townhome, or one unit of a stacked townhome, duplex or triplex with its own heating.

Sizing follows the fuel too. Gas and propane homes may pick any of the four NRCan sizing options; oil, wood and electric homes only C or D, where the heat pump carries most or all of the heating.

What the unit has to meet

The model must be active on the NRCan cold-climate list, with variable capacity, SEER2 of 15.2, HSPF2 (Region V) of 6.6, and a COP of 1.8 at -15°C while keeping 70% of its 8.3°C capacity. Indoor and outdoor parts, and the furnace or air handler, must be matched under one AHRI number.

The City’s incentive sets a higher bar: 80% capacity kept in the cold and 55 dB or less in cooling. A model can clear one program and miss the other, so the quote should name the model. More on unit choice under cold-climate heat pumps and ductless mini-splits.

The order of steps, and where money gets lost

1. Fill in the Home Renovation Savings eligibility form and pick a contractor from its participating list.
2. The contractor files the pre-installation application: an itemized quote with brand, model and AHRI number, nameplate photos of the current furnace or boiler, your signed participant agreement, and an NRCan sizing result per outdoor unit.
3. Written approval comes back. Only then does the install start.
4. Within 30 days the contractor files the final invoice and photos of the new units and thermostat. The cheque should arrive by mail within 60 days of post-installation approval.

For Better Homes Ottawa, nothing paid before the Notice to Proceed counts, and a pre-retrofit EnerGuide assessment comes before quotes. Using both, hold the install date until you have the Notice and the pre-approval.

Better Homes Ottawa: a loan on the tax bill

The loan runs a 20-year term at 4.33% fixed, plus a 4% fee, capped at the lower of $125,000 or 10% of the assessed value. Up to 50% can be advanced for deposits; the balance follows the post-retrofit assessment. Repayment appears as a Local Improvement Charge, starting in June of the year after the work. It stays with the property, and a lump-sum payoff carries no penalty.

Newer owners without five years of City payment history need a credit score of 600. A designated heritage property needs a heritage permit for exterior work, and the City’s permit exemption for heat pumps excludes heritage properties.

Stacking and a rough net figure

Home Renovation Savings pays nothing on a unit that also draws on another Enbridge, Save on Energy or Ontario government program. Funding from other sources, such as the City, may be combined so long as the total stays within 100% of supply and install. The Prime Minister’s release says the federal rebate combines with provincial programs and needs no energy audit.

HomeStars puts an installed air source unit at $6,000 to $12,000. On a 3-ton cold-climate unit in a gas-heated home, Home Renovation Savings pays $1,500, and the City adds $2,100 if the unit meets its criteria and the work runs through the loan. See heat pump cost for installed figures.

Oil homes, low incomes and offers at the door

Save on Energy’s Energy Affordability Program installs a cold-climate heat pump at no cost for income-eligible oil-heated owners; K postal codes go through EnviroCentre. Under Home Renovation Savings, an oil home switches fully to the heat pump and signs a tank attestation; a tank under 2,500 L is emptied, marked and capped by a TSSA-registered contractor.

Ontario bars selling furnaces, air conditioners and similar HVAC equipment at your home unless you started the contact. A contract from an unsolicited door-to-door pitch is void.

Who handles your request

Ottawa Heating Desk passes your request to one independent local heating company. That company calls you back, looks at the house, prices the heat pump and installs it. Ask on that call whether it is on the Home Renovation Savings participating list; the rebate and loan applications stay between you, the installer and each program.