A Guide to the New 2025 Ontario Home Renovation Savings Program

If you’re a homeowner looking for ways to reduce your energy bill, while reducing also your environmental impact, the 2025 Ontario Home Renovation Savings Program is here to help. Replacing the now-ended Greener Homes Grant, this new program offers attractive rebates to make energy-efficient home upgrades, including heat pump installations, more affordable.

Whether you’re looking to install a heat pump, add solar panels, upgrade the insulation in your home, or even all three, this comprehensive guide will walk you through everything you need to know about the program, its benefits, and how to maximize your savings.

What Is the Home Renovation Savings Program?

The Ontario Home Renovation Savings Program is a new initiative coming into effect January 28, 2025, which provides rebates for energy-efficient upgrades and installations designed to make it more affordable for homeowners to reduce their environmental impact while also reducing energy bills through the more efficient systems. The program is funded by the Government of Ontario and Enbridge.

Replacing the Greener Homes Grant, which ended in 2024, this program offers more streamlined access to benefits. One notable difference? Unlike the Greener Homes Grant, you no longer need a home energy audit to qualify for the heat pump rebate, making it both faster and easier to take advantage of the incentives.

Key Rebates Offered

Here’s what the program offers for two of the most popular upgrades:

• Heat Pumps (Efficient heating and cooling systems): Rebates up to $12,000, depending on the type of heat pump (air source vs. ground source) and energy source (natural gas vs. electric).
• Solar Panels and Battery Storage (Renewable energy options): Rebates up to $5,000 for solar panel installations as well as $5,000 for a battery storage installation, covering up to 50% of total costs.

Now, let’s explore these options in detail.

Heat Pumps – The Star of the Show

Heat pumps are a sustainable and efficient system that can handle heating, cooling, and dehumidifying your home. They work by transferring heat between your home and the outdoors, offering year-round comfort while using less energy than traditional systems.

Air Source Heat Pumps

These are the most common type of heat pumps, which extract heat from the air outside your home and move it indoors. They can work even in colder climates as they have a built-in defrost cycle that allows them to operate efficiently in temperatures as low as -30°C. While the heat pump continues to work at cold temperatures, the efficiency of the heat pump does reduce – essentially meaning that the amount of electricity required to heat your home increases at lower temperatures because of this reduced efficiency. Due to the reduced efficiency, many homeowners will continue to install a furnace in combination with the heat pump installation.

Ground Source Heat Pumps

Also known as geothermal systems, these heat pumps use pipes buried underground to transfer heat between your home and the earth. They are more expensive upfront (upwards of $25,000).

Types of Heat Pumps and Rebates Available:

1. Cold Climate Air Source Heat Pumps

• Designed to function efficiently in temperatures as low as -30°C.
• Rebate up to $2,000 for natural gas heating users or $7,500 for electrically heated homes (calculated at $500/ton or $1,250/ton, respectively). For reference, the most common air source heat pump installed in homes in Chatham-Kent, Sarnia and Windsor is a 2-ton system, resulting in a rebate of $1,000 for natural gas heating users or $2,500 for homes that are electrically heated.

2. Ground Source Heat Pumps

• Use underground temperatures for even greater efficiency.
• Rebate up to $3,000 for natural gas heating users or $12,000 for electrically heated homes (calculated at $2,000/ton).

Why heat pumps?

• They’re versatile (heating, cooling, dehumidifying in one system).
• They’re energy efficient, helping cut costs.
• They’re eligible for significant rebates—with no home energy assessment required!

Want to find out if you qualify? You can complete a short form here to get started.

Solar Panels and Battery Storage

Solar panels have become increasingly efficient over time, allowing homeowners to provide renewable electricity for your home at a cost-efficient method. This sustainable energy source not only reduces homeowners’ carbon footprint but also helps lower electricity bills significantly over time, helping to pay for itself over the long-term. With electricity prices continuing to increase, an investment in solar panels today are expected to drive increasing cost savings for homeowners each year. When paired with a battery storage system, the benefits increase significantly. Battery storage allows you to store excess solar energy generated during the day for use at night or during cloudy periods. This ensures greater energy independence and reliability, especially during power outages or periods of high energy demand.

Postma is proud to provide both solar panel installation services as well as battery storage installation.

Solar Rebates Breakdown:

1. Solar Panel Installation

• Rebates of up to $5,000, covering 50% of total costs.

2. Battery Energy Storage Systems

• Receive a rebate of up to $5,000 when installing a battery storage system with your solar panel installation.

Benefits of Solar Energy:

• Reduces reliance on the grid, lowering energy bills.
• Minimizes your carbon footprint—one of the most impactful ways to go green.
• Adds value to your home.

Homeowners interested in solar rebates can kick-start the process by checking their eligibility through a simple online application here.

Pro Tip: Pair your solar panels with battery storage to fully maximize the benefits during peak energy times or outages.

How Does the New Program Compare to the Greener Homes Grant?

While the Greener Homes Grant, which ended in 2024, also targeted energy efficiency, there are some key differences between the two programs:

• No Energy Audits: Unlike the Greener Homes Grant, which required a home energy audit for all rebates, the new Home Renovation Savings Program allows you to claim rebates for heat pumps and solar installations without an assessment. This change saves both time and upfront costs for homeowners.
• Streamlined Access: The rebate process is quicker and less complex, thanks to program efficiency improvements.
• Focus on Key Upgrades: The new program sharpens its focus on high-impact upgrades like heat pumps and solar energy.

The result is a simpler and faster way for Ontario homeowners to make upgrades to their homes.

How to Get Started

Taking advantage of the Ontario Home Renovation Savings Program is easy. Here’s a step-by-step guide to ensure you don’t miss out on these benefits:

1. Confirm Eligibility

Visit the program’s website to confirm that your home and upgrade plans qualify. For heat pumps, check if your system aligns with the required specifications and whether you’re an Enbridge Gas or Ontario electricity grid customer.

2. Choose Qualified Contractors

Rebates require installation by approved professionals. Make sure to select a contractor from the program’s verified list to ensure your system meets all eligibility criteria. Postma Heating and Cooling is an approved contractor to service homeowners in Chatham-Kent, Sarnia, Windsor, St. Thomas and surrounding areas.

3. Complete Your Upgrades

Coordinate with your contractor to schedule installation. Your contractor will also submit the required paperwork on your behalf.

4. Receive Your Rebates

Once the installation is complete and your application is reviewed, you’ll receive your rebate directly. It’s that simple!

Reminder: Applications are subject to program-specific terms and conditions, so be sure to review these guidelines to avoid any hiccups.

Why Now Is the Best Time to Act

With energy-efficient technology becoming a critical part of modern homeownership, the 2025 Ontario Home Renovation Savings Program makes it easier than ever to upgrade your home. From substantial rebates on heat pumps to solar energy incentives that make significant environmental and financial sense, this program is an opportunity you don’t want to miss.

Not only will these improvements save you money in the long term, but they’ll also add comfort and value to your home—while helping Ontario move toward a sustainable future.

Want to learn more? Give us a call at 519-354-9491 to set up a no-cost, no commitment, appointment with one of our comfort advisor’s who can provide more details on the rebate program and help you determine what system is best for you.