Geothermal: Residential Incentives

The Ontario government offers some of the most generous incentives in the world to promote the installation of renewable energy systems.

Wind, Micro-hydro Electric and Geothermal Energy Systems Rebate

This rebate is part of the Ontario government’s Common Retail Sales Tax Rebates and Exemptions for Energy Efficient Goods program. This program returns the retail sales tax paid on geothermal energy systems to homeowners and builders who install these systems into residential buildings, including houses and multi-residential buildings.

For more information, please contact the Ontario Ministry of Revenue, Refund Unit, Retail Sales Tax at 1-800-615-2757 or go to http://www.rev.gov.on.ca/english/taxtips/rst/04.html

Ontario Home Energy Savings Program (HESP)

The Ontario Home Energy Savings Program (HESP) offers home owners rebates for energy audits and retrofits. 

HESP will reimburse 50% of the cost of a home energy audit up to $150 and provides rebates of up to $5,000 for energy efficiency retrofits, including up to $4,375 for a new geothermal system or $1,750 for a new pump.

The program matches the incentives offered by the ecoENERGY Retrofit for Homes program offered by Natural Resources Canada which means that eligible homeowners may receive up to $10,000 for energy retrofits.

For more information about this program, please contact the Ontario Ministry of Energy at 1-888-668-4636 or on the web at http://www.homeenergyontario.ca/

On March 31, 2010, the federal government announced funding cuts to the ecoEnergy Retrofit Homes Program. This means that homeowners who booked a pre-retrofit audit before March 31, 2010 can access grants from both the federal government as well as the Ontario Home Energy Savings program. Until further notice, homeowners who booked an audit after March 31, 2010 can only access grants only from the Ontario Home Energy Savings Program.

The Government of Ontario is committed to encouraging conservation, and will continue efforts to help residents achieve their home energy efficiency goals.

The following information is provided to help answer some of your questions about how the federal announcement might affect you. Please visit this website again in the future for updates.

1. What effect does this announcement have on the Ontario Home Energy Savings Program (HESP)?

Due to the sudden nature of the federal announcement to cancel a partnership program, Ontario is reviewing its options to create and deliver effective conservation programs to Ontarians. Until such time a decision is made and notice given, Ontario will continue to fund new pre-retrofit audits and retrofits. This means we will continue to pay 50% of your home’s audit, up to $150. Audits will qualify you for up to $5,000 in provincial retrofit grants. Please continue to check back here for further information and updates.

2. Can I still enter the federal ecoENERGY-Retrofit program?

No. Effective March 31, 2010, the federal program is not providing grants for new pre-audits that are booked.
Only the homeowners who have already booked or completed a pre-retrofit evaluation by March 31, 2010 remain eligible to apply for a federal retrofit grant.

3. How does the date that I book my pre-retrofit audit affect my ability to access grants?
Homeowners who scheduled pre-retrofit evaluations by March 31, 2010 remain eligible to apply to both the HESP and ecoENERGY programs. Homeowners are reminded that they are required to complete their renovations and follow-up with a post-retrofit evaluation and submit their application by March 31, 2011.

Homeowners who scheduled a pre-retrofit evaluation after March 31, 2010 remain eligible to apply to the HESP program only.

4. How much of a retrofit grant am I eligible for?

Homeowners who scheduled pre-retrofit evaluations by March 31, 2010 remain eligible to apply to both HESP and ecoENERGY for a maximum of up to $10,000. Homeowners who scheduled a pre-retrofit evaluation after March 31, 2010 remain eligible to apply to the HESP program only, with rebates to a maximum of $5,000.

5. I have already had a pre-retrofit energy evaluation. What is the deadline for applying for a grant?

The deadline for applying for a grant is 18 months from the time of the pre-retrofit evaluation or March 31, 2011, whichever comes first. Homeowners who have completed the eligible work under the ecoENERGY Retrofit – Homes program within their 18-month period or before March 31, 2011, (whichever comes first) are eligible for a grant. However, it is suggested that you complete your energy upgrades well in advance of the deadline in order to allow enough time for your post-retrofit evaluation.

6. I have more questions about the recent changes to the federal ecoENERGY Retrofit – Homes program. Who should I contact?

Please call Natural Resources Canada at 1-800-O-CANADA (1-800-622-6232). The call agents from the federal program will be able to provide you with more information.

Cool Savings Rebate Program

The Cool Savings Rebate Program offers home owners rebates for replacing, or increasing the efficiency of,  inefficient heating and cooling systems. The Cool Savings Rebate Program offers a $400 rebate when an existing central air conditioner is replaced with a ground source heat pump.  Participants must use a pre-approved participating contractor.

For more information about this program, please contact the Ontario Power Authority 1-877-797-9473 or on the web at http://everykilowattcounts.ca/residential/coolsavings/

Additional Incentives

There may be additional incentives offered through municipalities and local distribution companies. Please contact them for information about any additional incentives.

In addition, please consult Ontario’s Energy Efficiency Resource and Funding Guide for more information on the programs, resources and financial incentives available in Ontario.