Heat Pump – All in one heating and cooling solution with cashbacks and energy savings

In recent years, the shift towards renewable energy has gained huge momentum in Canada and elsewhere, with the aim of reducing carbon emissions and addressing the effects of climate change. One of the ways this is being achieved is through the use of heat pumps, a hybrid heating system that can offer significant benefits compared to traditional heating systems. Today, we will discuss the new heat pump system and why it is important to upgrade or switch to a hybrid heating system. In addition, we will highlight the Canada Greener Homes Grants, which offer up to $10,600 in rebates and $40,000 in interest free loan for making eligible upgrades.

$6500 Federal Cashback for upgrading to a new hybrid heating system with a heat pump and a 2 stage furnace for backup heat

What is a Heat Pump System?

A heat pump is a hybrid heating system that transfers heat from one location to another, using electricity. It works by taking the heat from the air, ground, or water and transferring it into the building to provide warmth. This system operates on the principle of refrigeration, where the heat is extracted from the outdoor air, then compressed and released into the building.

Heat pumps can be used for both heating and cooling, making them a versatile option for homes and businesses. They are also much more energy-efficient than traditional heating systems such as gas furnace or boilers. This is because heat pumps do not burn fuel to generate heat, but instead rely on the natural warmth in the environment. As a result, they are much cheaper to run and produce fewer carbon emissions.

Why Upgrade to a Heat Pump System?

There are several reasons why upgrading to a heat pump system is a smart choice for Canadian homeowners. Here are some of the benefits:

  • Energy Efficiency

As mentioned earlier, heat pumps are much more energy-efficient than traditional heating systems. They use up to 70% less energy than gas boilers, resulting in significant cost savings on energy bills. This is because they do not generate heat, but rather transfer it from the environment.

  • Lower Carbon Emissions

The use of heat pumps reduces carbon emissions, which is crucial for addressing climate change and global warming. By using a heat pump system, you can significantly reduce your carbon footprint and help to create a more sustainable future for you and your loved ones.

  • Improved Indoor Air Quality

Heat pumps filter and circulate air, resulting in improved indoor air quality. This is especially important for people with allergies or respiratory issues, as the system can remove allergens and pollutants from the air.

  • Versatility

Heat pumps can be used for both heating and cooling, making them a versatile option for homes and businesses. This means that you only need one system to provide year-round comfort. These can also be the only choice for homes or apartments that do not have a central duct system as one outdoor unit can be paired with many indoor ductless units to provide for your heating and cooling needs right up to your bedroom. With proper maintenance they last for long time and offer lower overall cost of ownership than traditional heating systems.

  • Government support

You would get support from the federal government in terms of rebate or cashback and interest-free loan to financially support your upgrade. The cashback covers a major portion of the cost towards your new heat pump thus, leaving only a small portion to be paid out of your pocket. Read further for details.

Canada Greener Homes Grants

To encourage Canadian homeowners to switch to heat pump systems, the federal government has introduced the Canada Greener Homes Grants program. In Ontario, the program, in partnership with Enbridge, offers $7,100 cashback to eligible homeowners for upgrading their heating systems to a heat pump. There are other upgrades which the homeowners can undergo to get up to $10,600 in rebates.

This grant can be used to offset the cost of the heat pump system installation, making it more affordable for homeowners. The program is open to anyone who meets the eligibility criteria, and the application process is straightforward.

Save with rebates for these high-impact upgrades

Home energy assessments

Up to $600
The first step to determine which upgrades are right for your home.

Insulation icon

Home insulation

Up to $10,000
Improve comfort, reduce energy costs and prevent moisture damage with attic, foundation, wall and exposed floor insulation.


Air sealing

Up to $1,300
Eliminate drafts, improve air quality and save energy with draft proofing.


Windows and doors

Up to $325 for each
High-performance windows prevent condensation and eliminate drafts.

Water heater

Space and water heating

Up to $7,800
ENERGY STARĀ® certified hot water heat pumps use up to 70 percent less energy. Ground source, air source and domestic hot water heat pumps qualify.

Smart thermostat

Smart thermostats

Up to $125*
Boost comfort and reduce costs by saving energy automatically.

Solar panel

Solar panels

Up to $5,000
Generate your own power and reduce dependence on the grid. Solar panels and batteries qualify.

Basement insulation


Up to $1,625
Protect your home from climate change events, such as fires and floods.

How to Apply for the Canada Greener Homes Rebates

  • Check your Eligibility
  • Choose a qualified Energy Advisor
  • Apply for the grant

Once you have completed the assessments and upgrades, you or your energy advisor can apply for the grant through the online portal. You will need to provide proof of eligibility and proof of completion of the upgrades.

Once your application has been approved, you will receive your cheque for the rebate money.


Switching to a heat pump system is an excellent way to reduce your energy costs, lower your carbon emissions, and improve indoor air quality. The Canada Greener Homes Grants program provides a great opportunity for Canadian homeowners to make this upgrade more affordable.

With up to $10,600 in grants available, upgrading to a heat pump system is a wise investment that can save you more money in the long run. The program is easy to apply for, and the process is straightforward, so there’s no reason not to take advantage of this opportunity.

As we move towards a more sustainable future, it’s essential to make changes to our homes and businesses that reduce our impact on the environment. Upgrading to a heat pump system is a simple yet effective way to do just that.

So, if you’re considering upgrading your heating system, now is the time to do it. With the Canada Greener Homes Grants program, you can make the switch to a heat pump system at half the regular price and start enjoying the benefits of this innovative technology today.