Confused by Energy Grants? What It Means for Project Costs
A new report says many Canadians don't know what home-upgrade grants exist. Here's how heat pump, window and solar costs look before any rebate.
Many Canadians don't know which grants cover home energy upgrades, and the cost of those upgrades is what you should check first. A rebate only helps if you know the price it comes off. Below we set out what the report found and what the main projects cost before incentives.
What the report says
According to Financial Post, more than half of Canadians are unaware of the grants and subsidies available for greener home upgrades. It also reports that 43 per cent think too little is being done to support homeowners who make efficiency improvements.
The same report points to worry about winter bills. More than 60 per cent of homeowners are concerned about what their homes cost to run. Nearly a third are anxious about affording heat, and 24 per cent are putting off essential maintenance.
Financial Post also summarises the programs on offer:
- Federal heat pump rebate: a $2-billion program announced this month, worth up to $10,000 per household. The report says homeowners below the median income who buy eligible products get $10,000, and others get $2,000.
- Ontario Home Renovation Savings: rebates of up to $12,000 across upgrades including insulation, windows and solar panels.
- Alberta Clean Energy Improvement Program: financing that can cover up to 100 per cent of certain upgrades, up to $50,000 depending on the municipality. The loans are tied to the property, not the owner.
Program rules change often. Check the current terms with the program itself before you commit to a contract.
What it means for your costs
Our figures are before GST/HST, and they are before any grant. We build them from labour hours × local rates plus materials, then check them against market prices and real quotes. Treat the rebate as a separate step.
Heat pumps
A ducted air-source heat pump typically costs $12,000, with a usual mid-range spread of $9,350 – $15,600. The options change the price a lot:
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Ductless multi-zone (whole home) | $10,900 | $8,450 – $14,100 | – |
| Ducted air-source heat pump | $12,000 | $9,350 – $15,600 | – |
| Dual-fuel hybrid (keeps gas furnace) | $13,000 | $10,100 – $16,900 | – |
The report quotes the government as saying a heat pump can save about $1,400 a year in heating bills. That is the government's figure, not ours, and your savings will depend on your home and the fuel you replace. See our full [heat pump cost guide](Heat pump installation) for the detail.
Furnace replacement
If you're deciding between a new furnace and a heat pump, price both. A mid-range furnace replacement typically costs $5,500, within a range of $4,300 – $7,200. Federal rules require gas furnaces made since July 2019 to be at least 95% efficient. An old 80% unit won't be an option for a normal house. Our [furnace replacement guide](Furnace replacement) covers the choices.
Windows
Windows are the upgrade where the rebate is small next to the bill. A typical window replacement (six windows by default) comes to $5,400, or $4,200 – $7,000 across the mid range. In Ontario the rebate is $100 per opening and needs a home energy assessment. Frame material matters for price:
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Vinyl / uPVC | $4,300 | $3,350 – $5,550 | 25-35 years |
| Hybrid vinyl-aluminium | $5,400 | $4,200 – $7,000 | 30-40 years |
| Aluminium (thermally broken) | $6,550 | $5,100 – $8,500 | 30-45 years |
More in our [window replacement guide](Window replacement).
Solar
A typical 6 kW solar system costs $25,400, with a mid-range spread of $19,800 – $33,000. In Ontario the solar rebate is $1,000 per kW up to $5,000. It can't exceed 50% of the cost, and it doesn't apply with net metering. Our [solar panel cost guide](Solar panels) explains what drives the price.
The Ontario rules in brief
Ontario's program pays up to $7,500 for a cold-climate air-source heat pump in homes heated by electricity, oil, propane or wood. Gas-heated Enbridge customers can get up to $2,000. Insulation can earn up to $7,700.
Two conditions catch people out. You need pre-approval before work starts, and you must use a participating contractor. If you sign a contract first, you may lose the rebate.
The federal Greener Homes Grant and Loan are closed. Don't plan around them.
How to use this before you sign
- Get the price first. Compare the quote with our figures above, then subtract any confirmed rebate.
- Confirm eligibility in writing. Check your home's heating fuel, your income and your municipality against the program rules.
- Check the contractor. Electrical, gas and plumbing work needs licensed trades and usually a permit. For rebate programs, ask whether the contractor is a participating one.
- Don't skip maintenance. The report warns that skipping a furnace service can mean poor heating or dangerous fumes. Delaying essential upkeep to save money can cost more later.
If a quote looks high or low against these figures, our "is my quote fair" tool can show you where it sits. The rebate doesn't change whether the underlying price is reasonable.
Our take
The report suggests the main problem is awareness, not a lack of programs. Start from a realistic price, then find out which incentive applies to your home. A grant can be large, but the right project at a fair price is what saves money over time.