Why 2025 Is the Year to Upgrade Your HVAC in Toronto
With rising energy prices and a strong push toward home electrification, 2025 is shaping up to be one of the best years for Toronto homeowners to make HVAC upgrades. The federal and provincial governments continue to support residential energy efficiency improvements with rebates, grants, and zero-interest loans.
Whether you’re replacing a gas furnace, installing a cold-climate heat pump, or upgrading your insulation, you could qualify for up to $10,000 or more in rebates and financing options.
Here’s a complete breakdown of what’s available in 2025.
1. Canada Greener Homes Initiative (Updated for 2025)
The Canada Greener Homes Initiative, launched by the federal government, remains one of the most comprehensive rebate programs for homeowners in Ontario and across Canada. While some portions of the program are winding down, major rebates are still available in 2025.
Key Rebates Include:
- Up to $5,000 in rebates for eligible energy-efficient home upgrades
- Up to $600 toward the cost of a pre- and post-retrofit EnerGuide home energy assessment (required to qualify)
- Cold-climate heat pump rebates up to $5,000
- Incentives for:
- Insulation upgrades
- Air sealing
- Smart thermostats
- Windows and doors
Eligibility:
- Must be the primary residence
- EnerGuide evaluation is mandatory before upgrades
- Work must be completed by an approved contractor
Learn more about heat pump eligibility for rebates in Ontario
2. Clean Energy Improvement Program (CEIP)
While not province-wide, some municipalities in Ontario may begin offering the Clean Energy Improvement Program (already in use in Alberta). This program allows homeowners to finance energy efficiency upgrades and repay the cost through their property tax bill.
Although not yet widely available in Toronto, CEIP-like financing programs are expected to expand in 2025 and beyond as cities increase climate-related initiatives.
3. Low-Interest Loans for HVAC Upgrades
In addition to rebates, the federal government’s Greener Homes Loan provides interest-free financing to help cover the cost of your home retrofit.
Greener Homes Loan Details:
- Up to $40,000 available
- 10-year term
- 0% interest
- Must be combined with an eligible Greener Homes rebate
- Available only to homeowners who complete a home energy assessment
This is a great option for those installing full HVAC systems, such as ducted heat pumps or multi-zone ductless systems.
4. Municipal HVAC Incentives in Toronto
In 2025, the City of Toronto continues to invest in green building programs under its TransformTO Net Zero Strategy. While direct HVAC rebates may not be available citywide, incentives may apply through:
- Green Renovation Grants (based on household income and location)
- Climate Action Incentive Funding
- Urban heat resilience and home retrofit pilot programs
Be sure to check with the city or ask your HVAC provider about any localized programs or tax incentives that may be relevant.
What HVAC Systems Qualify for Rebates?
To qualify for most HVAC-related incentives, your new equipment must meet specific energy efficiency standards. In 2025, these include:
- ENERGY STAR® certified air-source heat pumps
- Cold-climate heat pumps with high HSPF and SEER ratings
- High-efficiency furnaces and boilers (in some cases)
- Smart thermostats (paired with eligible systems)
- Whole-home upgrades that improve your EnerGuide score
Rebates in Action: Real Example
A Toronto homeowner replacing an older gas furnace and central AC with a cold-climate ducted heat pump could qualify for:
- $6,500 rebate (HER+)
- $600 toward energy assessments
- $5,000 federal rebate (if eligible through Greener Homes)
- 0% loan to finance the remainder
Total incentives: $12,100+, not including utility bill savings.
How HVAC Near Me Helps You Maximize Rebates
At HVAC Near Me, we make the rebate process simple. Our team handles:
- Pre-qualification support
- Home energy audit referrals
- Paperwork and submission assistance
- Equipment matching to rebate criteria
- Access to financing and flexible payment plans
We’ve helped hundreds of Toronto-area homeowners save money while upgrading to efficient, high-performance heating and cooling systems.
Get a free quote and rebate estimate today
If you’re planning an HVAC upgrade in 2025, Toronto’s current rebate landscape is your opportunity to save thousands, reduce your carbon footprint, and increase your home’s comfort and value.
Whether you’re interested in heat pumps, hybrid systems, or full home retrofits, working with a rebate-savvy HVAC contractor ensures you get maximum return on investment.
Schedule your free consultation with HVAC Near Me and let us help you access every dollar you’re entitled to in 2025.
FAQs About Toronto HVAC Rebates in 2025
Do I need a home energy assessment to qualify?
Yes, for most major rebates, a pre- and post-retrofit energy assessment by a licensed advisor is required.
Can I combine multiple rebate programs?
In many cases, yes. For example, you can combine HER+ with the federal Greener Homes rebate and loan.
Are condo owners eligible?
It depends on the ownership structure and building type. Speak with a qualified advisor to check your eligibility.
How long do rebates take to process?
Timelines vary but typically range from 6 to 16 weeks after documentation is submitted.