Guide · Updated June 2026
Heat Pump Water Heater Rebate in Ontario
A heat pump water heater is one of the easiest energy upgrades to qualify for — and Ontario's Home Renovation Savings program pays a flat rebate toward it. Here is what you get and how it works.
HRS rebate
$500
on a unit that costs about $2,000–$4,000 installed
What it is
A heat pump water heater (sometimes called a hybrid water heater) uses the same heat-moving technology as a heat pump: it pulls warmth from the surrounding air to heat your water instead of relying on direct electric elements. That makes it roughly 2–3x more efficient than a standard electric tank, lowering your hot-water energy use.
The rebate
Through the Home Renovation Savings program you receive a fixed $500 rebate for an eligible heat pump water heater. With typical installed costs of $2,000–$4,000, the rebate offsets a meaningful share of the upgrade — and the ongoing efficiency savings continue after that.
Which water heaters qualify?
This trips people up: only a heat pump (hybrid) water heater earns the rebate. A new tankless unit or a standard high-efficiency tank — however good — does not qualify under Home Renovation Savings.
Why only heat pump models? The program rewards the efficiency leap — a heat pump water heater uses roughly a third of the electricity of a standard electric tank by moving heat instead of generating it. Tankless saves energy too, but isn't on the HRS list.
Who qualifies
- •You own the home and it is your primary residence in Ontario
- •The water heater is an eligible heat pump / hybrid model
- •It is installed by an HRS-registered contractor who submits the rebate
- •You have not already claimed this upgrade through another program
Stacks with the heat pump rebate. The water heater rebate is separate from the space-heating heat pump rebate (up to $7,500 for a non-gas home), so you can claim both if you install both.
Find your rebate
See every rebate your home qualifies for
Answer 5 quick questions and see your personalized estimate in 30 seconds. Free, no signup.
Start the free calculator →Independent homeowner tool. Not affiliated with the Government of Ontario.
Related guides
- Heat pump rebate Ontario — up to $7,500
- All Ontario energy rebates (HRS overview)
- How to stack Ontario rebates
- What a heat pump costs in Ontario
Common questions
How much is the heat pump water heater rebate?
Ontario’s Home Renovation Savings program pays a fixed $500 rebate for an eligible heat pump (hybrid) water heater.
What does a heat pump water heater cost?
Typically $2,000–$4,000 installed in Ontario, so the $500 rebate offsets a meaningful share of the price.
How is it different from a regular tank?
A heat pump water heater pulls heat from the surrounding air to heat the water instead of using direct electric elements, so it uses roughly 2–3x less electricity than a standard electric tank.
Can I claim it with the heat pump rebate?
Yes — the water heater rebate is separate from the space-heating heat pump rebate, so you can claim both on the same home if you install both.
Do I need an energy audit?
No energy audit is required for the standalone water heater rebate. An HRS-registered contractor installs the unit and submits the rebate.
Is there a rebate for a tankless water heater in Ontario?
No. Tankless (on-demand) water heaters, gas or electric, are not on the Home Renovation Savings list — only heat pump (hybrid) tank models qualify for the $500 rebate.
Is there a rebate for a regular gas or electric water heater?
No. Standard storage tanks don’t qualify, however efficient. The rebate specifically targets the switch to a heat pump water heater.
Is a heat pump water heater worth it after the rebate?
The $500 rebate plus much lower running costs (roughly a third of a standard electric tank’s electricity) usually makes the payback reasonable — strongest if you currently heat water with electric resistance. Confirm sizing and placement with a contractor, since they need adequate air space.
Rebate and cost figures reflect the Ontario Home Renovation Savings Program, verified June 2026. Programs can change without notice — confirm current terms with your registered contractor. ClaimRebate.ca is independent and not affiliated with the Government of Ontario.