Guide · Updated June 2026
Propane to Heat Pump Rebate Ontario — Up to $7,500
Propane is one of the most expensive ways to heat a home in Ontario. Because a propane-heated home counts as a non-gas home, switching to a cold-climate heat pump qualifies you for the higher Home Renovation Savings rate — and can sharply cut your heating bill at the same time.
propane homes qualify for
$1,250/ton
up to $7,500 — about 2.5× the gas rate. A typical 3-ton system earns ~$3,750.
Why switch from propane to a heat pump
- ✓Propane usually costs far more per unit of heat than the electricity a heat pump uses.
- ✓A cold-climate heat pump heats efficiently well below freezing — you can keep propane as backup if you want.
- ✓You also get central air conditioning in summer, with no separate AC system to buy.
- ✓No more propane deliveries, tank rental, or exposure to fuel price spikes.
Your Home Renovation Savings rebate
Because a propane home is a non-gas home, you qualify for the higher Home Renovation Savings rate of $1,250 per ton, up to $7,500 for an air-source heat pump — roughly 2.5× what gas-heated homes receive. Going geothermal (ground-source) can reach up to $12,000. The exact amount depends on the system size your contractor specifies. A typical air-source install runs about $10,000–$18,000 before rebates.
$1,250/ton non-gas · $500/ton gas
$2,000/ton non-gas · $3,000 flat for gas homes
Depends on existing R-value · no assessment
Attic + walls + foundation · assessment required
Minimum 3 windows or 1 door
Up to $5,000 solar + $5,000 battery
Official Home Renovation Savings Program rates, verified May 2026. Exact amounts for ranges are confirmed during your application.
Find your rebate
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Rebates you can stack
Canada Greener Homes Affordability (CGHAP)
Federal program for low-to-median income households; stacks on top of the HRS rebate.
Municipal loans
Toronto HELP, Ottawa Better Homes Loan and similar low-interest loans can finance the balance after rebates.
Heating with oil instead?
Oil-heated homes can add the federal OHPA program (up to $10,000) on top of HRS — see the oil-to-heat-pump guide.
Who qualifies
- •You own the home and it is your primary residence
- •You are connected to the Ontario electricity grid and heat primarily with propane
- •The home is a detached, semi-detached, row house, townhome, or mobile home on a permanent foundation
- •The heat pump is on the NRCan approved product list and installed by an HRS-registered contractor
- •You have not already claimed this upgrade through a previous program (Greener Homes / HER+)
Don't lose your rebate
- ⚠️Starting work before pre-approval when you bundle upgrades — the #1 reason rebates get rejected.
- ⚠️Using a contractor who is not HRS-registered — only registered contractors can submit the rebate.
- ⚠️Choosing a heat pump that is not on the NRCan approved product list.
Common questions
How much is the rebate for switching from propane?
As a propane (non-gas) home you qualify for the HRS rate of $1,250 per ton, up to $7,500 — about 2.5x what gas-heated homes receive. A typical 3-ton system earns roughly $3,750.
Do I need an energy audit?
No — not for the standalone heat pump rebate. An assessment is only required if you bundle the heat pump with insulation, windows or air sealing under the bundled path.
Can I keep my propane furnace as backup?
Yes. Many homeowners keep propane as a backup or supplemental source. The rebate is based on installing the qualifying heat pump.
Who installs it?
An HRS-registered contractor must install the heat pump and submit the rebate. A registered contractor confirms eligibility, sizing and the paperwork.
Related guides
Rebate amounts reflect the Ontario Home Renovation Savings Program (active through November 2026), verified June 2026. Programs can change without notice — confirm current rates with your registered contractor. ClaimRebate.ca is independent and not affiliated with the Government of Ontario.