HeatPumpRebates.ca by AirZone HVAC ServicesCanadian homeowner resource · Ontario rebate information
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PROPANE PATHWAY

Heat pump rebates for propane-heated Ontario homes.

Propane-heated homes use the higher HRS air-source heat-pump rate, but the best mechanical design can still be hybrid or all-electric depending on the home.

Reviewed October 7, 2026Important rules link to the current official source below.

Current HRS rebate for propane-heated homes.

For a qualifying propane-heated Ontario home, HRS currently offers $1,250 per ton for an eligible purchased cold-climate air-source heat pump, up to $7,500. The program calculates the incentive from the minimum rated heating capacity at 8.3°C (47°F), subject to the cap and all other eligibility rules.

The homeowner must use a participating contractor, obtain the required pre-installation approval and install an exact matched system on the current NRCan qualified-products list.

You can keep propane as backup in a hybrid design.

HRS allows a heat pump to operate with backup heating. Where a propane furnace is paired with the heat pump, a new or existing furnace can be used. The propane furnace itself is not the rebated measure.

A hybrid design can reduce propane use while retaining fuel backup. An all-electric design can remove more fuel use but may require a different backup strategy and electrical capacity. Compare both designs against the home’s heating load and the matched system’s low-temperature performance.

Compare fuel economics with actual rates.

Propane prices can vary by supplier, contract and delivery volume. Do not use a generic province-wide propane price to decide whether the heat pump should run at a given temperature. Use your delivered fuel cost and the heat pump’s model-specific COP.

The same economic-balance-point idea used for gas hybrids applies: compare the marginal cost of delivered heat, then decide how the controls should operate.

Use the hybrid operating-cost worksheet

Electrical service still matters.

A hybrid propane system may have modest electrical backup needs if the furnace handles cold-weather backup. An all-electric design with resistance backup can create a larger peak load. Have the proposed equipment checked rather than assuming the panel needs to be replaced.

Read the electrical service guide

Ottawa homeowners can compare municipal financing.

Better Homes Ottawa can finance qualifying heat pumps and associated electrical work for eligible properties. The current loan is 4.33% fixed over 20 years and includes a 4% administrative charge. The program also publishes a separate $700-per-ton cold-climate air-source heat-pump incentive for eligible loan participants.

Financing is repayable. Keep it separate from the HRS rebate when comparing net project cost.

Plan the propane transition, not just the equipment swap.

If propane remains as backup, confirm how the furnace, thermostat and heat pump will coordinate and whether the existing furnace is compatible with the proposed coil and airflow. If the goal is to reduce or eliminate propane use, ask how much of the design load the heat pump carries at low temperature and what backup remains.

Keep propane delivery contracts, tank obligations and fuel-system work separate from the heat-pump rebate calculation. Those items can affect the household decision even when they are not part of the rebated heat-pump measure.

NEXT STEP

Use the result before you request an installation quote.

These guides are useful anywhere in Ontario. If the property is in AirZone’s approved Ottawa service territory, an AirZone assessment is optional and can be requested after you have reviewed the program and project questions.