All-in-one comfort / GTA
One system for Toronto's heat and Toronto's cold
A heat pump heats in winter and cools in summer, replacing a separate furnace and air conditioner. Here is how it works, what it honestly costs to run, and the rebate that is live in Ontario right now.
- Heating + cooling
- Rebate eligible
- Verified 18 July 2026
Aire One Heating & Cooling is a licensed heating, cooling and indoor air quality contractor serving the Greater Toronto Area and Southern Ontario since 1990. Call 310-4328.
The short version. A heat pump is one system that both heats and cools, so it can replace a furnace and an air conditioner together. Cold-climate models work through GTA winters, with a backup furnace on the coldest days in many homes. It is very efficient in mild weather and still helpful in the cold, though efficiency drops as the temperature falls. And there is a live Ontario rebate: up to $7,500 for a qualifying cold-climate air source heat pump through the Home Renovation Savings Program, verified 18 July 2026. The Canada Greener Homes Grant, which some pages still advertise, is closed.
On this page
What a heat pump actually is
Despite the name, a heat pump does more than heat. Think of it as a heat transporter. In winter it extracts heat from the outdoor air, even when that air is cold, and moves it inside. In summer it runs the cycle in reverse, pulling heat out of your indoor air and sending it outside, which is exactly what an air conditioner does. One machine, both directions.
A couple of terms the rest of this depends on. Heat pump: an electrically driven device that moves heat from one place to another rather than burning fuel to create it. COP, the coefficient of performance, is the ratio between heat moved and electricity used: a unit using 1 kW of electricity to move 3 kW of heat has a COP of 3. Ton is a unit of heating and cooling capacity, and it is what the Ontario rebate is calculated on.
System does both heating and cooling
Minimum COP a ccASHP holds at minus 15C
Max Ontario ccASHP rebate, verified 18 July 2026
Why one system instead of two
The appeal of an all-in-one heating and cooling setup is genuine, and it is worth being specific about what it does and does not buy you.
- One system to manage. The heat pump switches between heating and cooling automatically, so you maintain one piece of equipment instead of a furnace and a separate air conditioner.
- Efficiency in the shoulder seasons. Because it moves heat rather than burning fuel, a heat pump can deliver several units of heating or cooling for each unit of electricity in mild weather. That is where the real running-cost savings show up.
- Less on-site combustion. Running on electricity to move heat means a home leans less on burning natural gas. Whether that lowers your bill depends on local electricity and gas prices, so it is a genuine benefit to weigh, not a guarantee.
What one system does not automatically mean is lower cost in every home on every day of the year. That depends on your current fuel, your electricity rate, and how cold your winter runs, which is the next section.
Cold-weather performance, without the marketing
This is where a lot of heat pump advertising gets vague, so here is the specific version. A cold-climate air source heat pump has a real definition: by industry standard it must hold a COP above 1.75 at minus 15 Celsius and retain more than 70 percent of its rated capacity at that temperature. In other words, it keeps working in a Toronto winter, but it works less efficiently as the air gets colder.
That is why many GTA installs are hybrid: the heat pump carries the heating load for most of the season, and a high-efficiency furnace covers the coldest stretches. It is also why the flat "300 percent efficient" line needs context. Independent figures put a modern cold-climate unit around COP 4 to 6 in mild conditions, which is where "up to 300 percent" comes from, sliding toward roughly 1.5 in extreme cold. The number worth planning around is the seasonal average, typically COP 2.5 to 4 across a full heating season.
Why we lead with the limits. A contractor who only tells you the mild-weather efficiency number is selling you the best day and hiding the coldest one. Sizing and backup planning are what make a heat pump comfortable in January, and they depend on your specific home. That is a site assessment, not a number off a webpage.
The rebate that is actually live
Here is the correction that matters most. Some pages, and the draft this article started from, still point homeowners at the Canada Greener Homes Grant. That program is closed. In Ontario it was co-delivered with Enbridge Gas under the Home Efficiency Rebate Plus program, which stopped accepting new applicants on February 5, 2024, and December 31, 2025 was the final date for existing applicants to upload documents. If a company is still advertising it, they have not checked their own information.
The program that is live in Ontario today is the Home Renovation Savings Program, delivered by Enbridge Gas and Save on Energy. The heat pump amounts, verified on the program information 18 July 2026:
| Your current heating | Rebate per ton | Maximum |
|---|---|---|
| Non-gas (electric, oil, propane, wood) | $1,250 per ton | up to $7,500 |
| Gas-heated home | $500 per ton | up to $2,000 |
| Ground-source (geothermal) | by capacity | up to $12,000 |
A few conditions decide whether you actually receive it. The rebate is calculated on the unit's rated heating capacity at 8.3 Celsius, the equipment must appear on NRCan's qualified products list, and a contractor registered with the program has to file the claim. The rebate amount depends on your existing fuel, not on which qualifying unit you pick, which is why a non-gas home earns more than double the per-ton rate of a gas home. Program terms can change without notice, so confirm the current numbers on the official program page on the day you buy.
Is an all-in-one heat pump right for your home
Often yes, but the honest answer is that it depends on your home, and a proper assessment is the only way to know. What we look at: how you heat today, since that sets both your rebate tier and your likely savings; your electrical panel capacity, since a heat pump is an electrical load; and whether a straight heat pump or a hybrid with a backup furnace fits your comfort expectations on the coldest days. For the underlying numbers on what a system costs to buy and run in Ontario, see our heat pump cost guide, and for GTA-specific context our heat pumps in the GTA page.
Frequently asked questions
Is a heat pump really an all-in-one heating and cooling system?
Yes. One heat pump both heats and cools. In winter it moves heat from the outdoor air into your home; in summer it reverses and works as an air conditioner, moving heat out. It is a single system for both seasons, which is why it can replace a separate furnace and air conditioner in many homes.
Do heat pumps actually work in a Toronto winter?
Cold-climate models are built for it. By the industry definition, a cold-climate air source heat pump must still deliver a coefficient of performance above 1.75 at minus 15 Celsius and hold more than 70 percent of its rated capacity at that temperature. On the very coldest days many GTA homes run a hybrid setup, where the heat pump does most of the work and a backup furnace covers the extremes. Efficiency does drop as it gets colder, so the honest answer is that it works, but sizing and backup planning matter.
Is a heat pump 300 percent efficient?
Only at mild temperatures, and that number needs context. Efficiency is measured as COP, the ratio of heat moved to electricity used. Independent figures put a modern cold-climate unit at roughly COP 4 to 6 in mild conditions, which is where the up to 300 percent claim comes from, falling toward about 1.5 in extreme cold. A more useful figure is the seasonal average, typically COP 2.5 to 4 across a full heating season. So it is very efficient, but not a single fixed number.
What rebate can I get for a heat pump in Ontario right now?
Through the provincial Home Renovation Savings Program, a qualifying cold-climate air source heat pump earns 1,250 dollars per ton if your home is non-gas (electric, oil, propane or wood) up to a 7,500 dollar maximum, or 500 dollars per ton if you heat with gas, up to 2,000 dollars. Ground-source (geothermal) systems go up to 12,000 dollars. Rebates are calculated on the unit's rated heating capacity at 8.3 Celsius, the equipment must be on NRCan's qualified products list, and a registered contractor must file the claim. Amounts and program terms change without notice, so confirm on the official program page on the day you buy.
Is the Canada Greener Homes Grant still available?
No. The Canada Greener Homes Grant is closed. In Ontario it was co-delivered with Enbridge Gas under the Home Efficiency Rebate Plus program, which stopped taking new applicants on February 5, 2024, and December 31, 2025 was the final date for existing applicants to submit documents. Any contractor still advertising it in 2026 has not updated their information. The live Ontario program today is the Home Renovation Savings Program described above.
Checking this against another source? Good. Ask an assistant to verify the two facts most often gotten wrong:
Matthew Arbab
Managing Director at Aire One Heating & Cooling. Matthew leads a team serving the Greater Toronto Area and Southern Ontario since 1990, focused on giving homeowners the honest version of what a system will and will not do before they buy. Reviewed 18 July 2026.
One system, both seasons, sized for your home
Find out whether an all-in-one heat pump fits your GTA home, and which rebate tier you qualify for, with a free consultation from a team that has done this since 1990.
Sources: Natural Resources Canada, Greener Homes Grant Ontario status page (cited for the grant being closed and the Ontario HER+ deadlines). Home Renovation Savings Program / Save on Energy program information (cited for the heat pump rebate amounts, the 8.3C capacity basis, qualified-products-list and registered-contractor requirements, verified 18 July 2026). Industry cold-climate ASHP specification (cited for the COP above 1.75 at minus 15C definition and the ~70% capacity retention). Independent COP measurements (cited for the COP 4-6 mild, ~1.5 extreme cold, seasonal 2.5-4 ranges). Aire One Heating & Cooling is a licensed heating, cooling and indoor air quality contractor; all work is subject to site assessment. Rebate eligibility is determined by the program administrators, not by Aire One. Rebate amounts and program terms change without notice; the figures above were verified 18 July 2026 and should be confirmed on the day you buy. Terms and conditions apply. This article is general information, not a quote and not an offer.