Ground source (geothermal) heat pumps: what Ontario's rebate pays and what it requires
Home Renovation Savings pays up to $12,000 for a ground source heat pump in a home heated with electricity, oil, propane or wood, and a $3,000 flat rate in an Enbridge gas-heated home. Here are the official rules.
A ground source heat pump, often called geothermal, uses the ground to move heat into and out of your home. Home Renovation Savings, brought to you by Enbridge Gas and Save on Energy, has its own amounts and rules for these systems. Here is what the official program documents say.
How much the rebate is
The amount depends on how your home is heated before the heat pump goes in.
- Electricity, oil, propane or wood: $2,000 per ton, up to $12,000.
- Enbridge natural gas: a $3,000 flat rate.
- Rented system: a $3,000 flat rate, for any of those heating sources.
For homes heated with electricity, oil, propane or wood, the per-ton amount is based on the system's closed loop heating capacity. For a system categorized as open loop only, it is based on the open-loop heating capacity.
For comparison, a cold climate air source heat pump gets up to $7,500 in a home heated with electricity, oil, propane or wood, and up to $2,000 in an Enbridge natural gas heated home.
Which systems qualify
- A water-to-air system must be an active model on Natural Resources Canada's list of eligible ground source heat pumps. A de-listed, inactive or archived model does not qualify.
- A water-to-water system must be on the Energy Star certified geothermal heat pump list and available in Canada. It also needs an AHRI certificate.
- It must be a full system, with both indoor and outdoor components.
- Direct expansion (DX) systems are not eligible.
- The ground loop sizing and heat pump capacity must suit your home's heating load.
- In a home heated with oil, wood or electricity, the system must be sized to meet the full heating load.
The program also highly recommends asking your contractor to sign an attestation that the installation followed the CSA standard for these systems, ANSI/CSA/IGSHPA C448.
Who can install it
You must work with a participating contractor. To install a ground source system in the program, the contractor must hold a valid IGSHPA certification.
The rules every heat pump follows
- Pre-approval is mandatory. Installations done before approval are not eligible.
- You must own the home. It must be a single detached, semi-detached, row house, townhome or mobile home on a permanent foundation.
- It must be the first space heating heat pump in your home. Replacements are not eligible.
- You cannot get this rebate for equipment that has received, or is expected to receive, a rebate from another Enbridge, Save on Energy or Government of Ontario program.
- After installation, your contractor submits the post-installation application. Once it is approved, the cheque should arrive by mail within 60 days.
What about the federal rebate?
The federal National Heat Pump Rebate opens in early 2027. Its official page does not yet say which heat pumps are eligible. It says details, including eligible heat pumps, will be available as of November 1, 2026.
The trade-offs, in the program's words
The program notes that ground source heat pumps operate more efficiently than other types at lower temperatures. It also says they may be best for properties with space for underground loops. How those points weigh against your lot, your budget and your timeline is your call.
For the Ontario steps in full, see Home Renovation Savings, explained.
If you are also weighing an air source heat pump, our free rebate check shows what Home Renovation Savings could mean for your home, and we file the application for you.
This post is based on this article.