Air conditioner rebates

Wall-mounted air conditioner above a mushroom-colored sofa, in a windowed living room

If you’ve grown tired of an inefficient AC unit that contributes to higher monthly energy costs, then it’s time to consider upgrading. Even if you don’t have the funds to upgrade your heating, ventilation and air conditioning unit (HVAC) on your own, there are plenty of air conditioning grants, loans and rebates that can help. In Ontario and Quebec, for example, homeowners have access to a decent selection of government rebates and incentive programs–all designed to encourage greener energy choices in the home. In this article, we will cover the details of these air conditioner rebates and provide tips on how you can use them to improve not only your home but also the planet.

Government grants

Woman relaxing in a living room, sitting comfortably on a modular sofa.
Photo: Shutterstock/Fizkes

In Canada, applying for a grant to replace air conditioner units with heat pumps is easier than you might think. All you need to do is search for government grants for AC units in your province. Next, check the criteria to see if your situation qualifies for funding. Then you’ll need to go through any required energy assessments before renovations begin. Once you’ve completed a successful energy audit, you can finally start working toward a greener home.

Unfortunately, one of the most popular air conditioner grants, the Canada Greener Homes Grant for air conditioning, no longer accepts new applicants as of February 2024. But don’t worry, there are other options to help you cut energy costs.

Canada Greener Homes Loan

When government grants for air conditioning aren’t available, homeowners can instead rely on the federal government’s new assistance program: Canada Greener Homes Loan. By applying for the Canada Greener Homes Loan, Canadians can get up to $40,000 to put towards pre-approved, eligible retrofits. This loan also comes with a 10-year interest-free repayment window to make things easier and more accessible. To qualify for the loan, you will need to meet the following criteria:

  • Be a Canadian citizen
  • Own the home in question/use it as your principal residence
  • Have a completed pre-retrofit evaluation
  • Have a good credit history
  • Not currently in a consumer proposal, orderly payment of debt program, bankruptcy or similar program
  • Loan can only be applied to upgrades you haven’t started

Air conditioning rebates and grants in Ontario

You’ll come across a few programs when searching for Ontario air conditioning rebates and financial assistance, including a home energy loan for heat pumps in Toronto. Switching to a heat pump is the best way to increase your home’s energy efficiency when you’re dealing with faulty or outdated AC. Another great AC grant program is Ontario’s Energy Affordability Program which can help participating households save between $100 and $750 on their energy bills each year. Below we will discuss in detail the loans, rebates and air conditioner grants Ontario has to offer.

Home Energy Loan Program for heat pumps in Toronto

Toronto’s Home Energy Loan Program, or HELP for short, doesn’t offer grants for new air conditioner units but it does offer loans. Through HELP, homeowners can borrow up to $125,000 to help cover the cost of various energy-efficient home upgrades. This includes air-source heat pumps and high-efficiency air conditioners, among other improvements.

Energy Affordability Program

While air conditioner rebates and loans are nice, they aren’t always helpful for renters and lower-income households. So if you’re looking for a more accessible air conditioning grant in Ontario, the Energy Affordability Program may be exactly what you need. Available to both homeowners and tenants, this program offers two avenues of support: Comprehensive Support and Energy Saving Kits. Those who qualify for comprehensive support may receive a number of energy-saving upgrades including a window AC unit. The energy-saving kit, on the other hand, comes with the tools you’ll need to make small improvements around the house, think weather stripping, LED lightbulbs and faucet aerators.

maison-chauffage-et-climatisation

Quebec air conditioning rebate

Hand holding remote control of a wall-mounted air conditioner
Photo: Shutterstock/Proxima Studio

When searching for Quebec air conditioner grants and air conditioner rebates, you will come across two prominent financial assistance programs: Rénoclimat and the LogisVert program for heat pumps.

LogisVert (Hydro-Québec) program for heat pumps

The LogisVert financial assistance program is designed to help Quebec homeowners install an energy-efficient heat pump, among other energy-saving upgrades. To qualify for financial assistance with your heat pump purchase, there is a list of qualifications that must be met. Some of the main qualifiers include:

  • Your work must involve the installation of an efficient heat pump for heating and air-conditioning purposes.
  • The contractor you work with must be listed on the Registraire des entreprises du Québec and have all the necessary licensing.
  • The heat pump you’re installing must be new and featured on the list of eligible heat pumps.

The heat pump must be purchased in Quebec and installed on an eligible home.

Previously, homeowners could also find heat pump assistance through Rénoclimat program, however, since May 2024, this program no longer provides financial aid to new applicants for heating systems and this includes heat pumps. 

Air conditioner or heat pump?

Your mailbox is overflowing with promotional flyers touting the benefits of air conditioners and heat pumps. At the same time, you’re being encouraged to reduce your energy consumption. What are the characteristics of each device?

An air conditioner has two functions: to cool and dehumidify the air inside the home, especially during the summer period. To put it simply, the air conditioner expels the heat from the house to the outside, thus cooling the home.

A heat pump is a dual-purpose device that, thanks to a reversible valve, can cool the air as well as heat it. It thus provides comfort all year round. In some cases, it can even provide hot water. An air-source heat pump (the most common type) removes heat from the house when in cooling mode. In winter, it captures the heat present in the outdoor air, which is then increased by a compressor, and distributed inside the house. In other words, it moves heat instead of generating it. The heat pump is more expensive than an air conditioner, but it allows for savings on energy bills.

Do you wish to have your air conditioning system installed or cleaned, or perhaps have a wall heat pump repaired? The specialized and verified contractors of HomeExpress, the new online referral service from RenoAssistance, are here to make your life easier.

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Amber VanWort is a freelance content writer with a degree in journalism from Durham College. Amber’s work has been published in Narcity, Chicago Tribune, The Belleville Intelligencer, Best Reviews, and more. Her passions include food, travel, and real estate. When she’s not busy meeting her client’s expectations, you can find Amber in the kitchen, elbow-deep in a bag of flour.