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Funding Announced for Ontario Heat Pump Rebates

By Nordic

May 30, 2016

Heat Pump Industry News

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Learn about the latest updates on Ontario heat pump rebates.

Ontario has always been a strong market for geothermal heat pumps, especially during the most recent round of federal heat pump rebates several years ago. But the expiration of those rebates combined with the rising cost of electricity and natural gas’s increased popularity has left the economic case for a geothermal heat pump less clear-cut than before.

That is about to change as the Government of Ontario’s recently leaked Climate Change Action Plan outlines a renewed commitment to home energy efficiency and a low-carbon future.

According to the Globe and Mail, the Climate Change Action Plan outlines a massive $7-billion in planned spending in all areas of residents’ lives from infrastructure and transportation to home heating and industry. From electric cars and bike lanes to mandatory home energy audits (if you sell your home) and new building code rules, this plan contains 80 different policies grouped into 32 different “actions”.

Here’s the part we’re excited about:

Ontario Heat Pump Rebates (Both Geothermal and Air Source)

The Plan contains, among other things, $3.8-billion earmarked for new grants and rebates to retrofit older and inefficient buildings. The goal is to move off natural gas and onto electrically powered heat sources such as geothermal and air source heat pumps. There will also be incentives for solar power and other forms of electric heat.

These programs are slated to be administered by an organization known as the Green Bank, which is modeled after the NY Green Bank, a financial entity in New York state that specializes in working with the private sector to increase investment in New York’s green energy sector.

New Building Codes To Promote Geothermal and Air Source Heat Pumps

In addition to the grants and rebates for converting to air source and geothermal heat pumps, the Climate Change Action Plan will implement new building codes that will require buildings built in 2030 or later to be heated electrically by geothermal or air source heat pumps or other electric heating systems. The building codes will eventually be amended to include all buildings by 2050. Finally, all homes that are listed for sale in Ontario will have to undergo an energy efficiency audit.

Setting the Course for the Future

The Ontario Government recognizes that this is a massive undertaking and that moving the current housing stock off natural gas (currently 76% of heating in Ontario) will require a mass adoption of green technologies across the province.

Fortunately, Ontario is currently generating more electricity than current demand requires, which means this plan can be put into motion immediately without upgrading existing electricity generation infrastructure.

The plan also promises to subsidize increased electricity costs to homeowners. This and many other new programs will be funded from the revenue from the province’s new cap-and-trade system, which is expected to be approved by the legislature soon.

While more specific details of the Climate Change Action Plan are scheduled to be released in June, it is clear that this ambitious plan is the centerpiece of the province’s strategy to reduce emissions by 15% below 1990 levels by 2020.

Here at Nordic heat pumps, we’re excited to see the provisions for Ontario heat pump rebates laid out in the finalized plan in June.

 

Photo Credit: mariusz kluzniak

Comments

  1. Reply

    mike

    October 21, 2016

    are there any rebates or credits for installing geothremal in northewestern ontario we are replacing an electric furnace this fall

    • Jordann Brown

      October 24, 2016

      Hi Mike,
      The heat pump rebates mentioned in this blog post haven’t been finalized yet, keep checking back for updates!

  2. Reply

    Cliff

    December 26, 2016

    Is there any update on this plan for Ontario? I currently am looking at changing out an electric furnace.

    • Jordann Brown

      January 04, 2017

      Hi Cliff,
      We are still waiting on news about these rebates and expect them to be released soon.

  3. Reply

    James

    February 02, 2017

    Still no news? Would like to get off oil and go geo this summer, incentives would be nice!

    • Jordann Brown

      February 03, 2017

      Hi James, we haven’t heard any updates yet.

  4. Reply

    James

    February 08, 2017

    This was released on 4-Feb-2017.

    http://www.cbc.ca/news/canada/toronto/ontario-home-energy-efficiency-retrofit-rebate-1.3434385

    “Sixty-two per cent of Ontario homes use natural gas for heating, compared with 28 per cent for electricity and just three per cent for oil. About 37,000 Enbridge Gas and Union Gas customers will qualify for home energy audits, and after that can apply for financial help.”

    Hopefully some of this cash will be earmarked for those of us trying to get off oil and onto geo. However, it wouldn’t surprise me in the least if the government left us out altogether.

    • Jordann Brown

      February 08, 2017

      Hi James,

      In the original announcement geothermal heating was mentioned by name, so I would be surprised if it was left out completely. We’ll find out in May either way.

  5. Reply

    Mary Bresett

    February 13, 2017

    We don t have access to natural gas, oil or propane our only options. We are going with geo thermal. At least they should subsidize the heat pump portion for A/C. Any word?

    • Jordann Brown

      February 13, 2017

      Hi Mary,
      We don’t have any updates yet on what the funding will contain. Stay tuned!

  6. Reply

    Melanie

    April 30, 2017

    Hello:
    Just wondering if there have been any updates regarding rebates in Ontario?

    • Jordann Brown

      May 01, 2017

      Hi Melanie,
      The last update we heard was in February and that they were on the way, but as far as we know, no formal announcement has been made yet.

  7. Reply

    Pat Kinner

    May 31, 2017

    We only have access to wood electric or propane on our new home construction. We would like geothermal heating too. Looking for any government incentives or grants to offset the high cost of installation. Any word yet?

    • Jordann Brown

      June 05, 2017

      Hi Pat,
      Besides the assurance that the rebates are on the way, we have not had any information on the release of the actual rebates. I recommend you sign up for our newsletter to stay up to date! http://www.nordicghp.com/newsletter/

  8. Reply

    Rob

    July 10, 2017

    I see Ontario has rebates offered now for air source heat pumps, nothing yet for ground source. Hoping it is being rolled out soon and not forgotten.

  9. Reply

    Jennifer Sedlak

    August 08, 2017

    Hi there,
    Wondering if there’s any additional news on rebates/incentives for installing a new geothermal system? Thanks!

    • Jordann Brown

      August 08, 2017

      Hi Jennifer,

      Unfortunately there have not been any more updates.

  10. Reply

    Rob

    September 19, 2017

    This waiting game sucks, I really wanted to update my furnace and use my existing loop. I’ve been quoted near 20k and I just can’t afford it. Maybe Ontario will come through before winter hits!

  11. Reply

    Roger

    December 04, 2017

    The announcement of the Low Carbon Technologies incentive plan will be made public within the next 10 days and is aimed at covering 50-75% of the installed cost up to $20k. It covers both vertical and horizontal ground source and air source heat pumps.
    https://www.rbheating.com/AboutUs/Blog/tabid/167/EntryId/1019/Geothermal-Rebates.aspx
    At last, geothermal rebates are finally coming to Ontario.

    • Jordann Brown

      December 04, 2017

      At long last!

  12. Reply

    Roger

    December 13, 2017

    The Ontario GreenON geothermal rebates program was formerly announced today. Details of the announcement and what it means to homeowners looking to install Geothermal are in this blog goo.gl/A3NwLT
    Both air source and ground source geothermal is covered, new construction or upgrading existing. A powerful incentive to adopt geothermal.

  13. Reply

    Rob

    December 28, 2017

    Just ordered my 5 ton unit to replace the old. 14.5 grand out the door after all fees including Ontario rebate.

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