Toronto Launches Heat Pump Upgrade Program to Help Homeowners Save Money and Cut Emissions

Toronto, ON – The City of Toronto has announced a new program to help homeowners replace their furnaces with electric heat pumps—an upgrade that can reduce greenhouse gas emissions, cut utility costs, and provide year-round comfort.

Mayor Olivia Chow was joined by Jana Mosley, President and CEO of Toronto Hydro, to launch the initiative under the City’s BetterHomesTO program. The effort provides residents with access to low-interest financing and free energy coaching to guide them through the transition to more sustainable home heating and cooling systems.

Why Heat Pumps?

Buildings account for more than 56 per cent of Toronto’s greenhouse gas emissions, and heating is one of the largest contributors. By switching from natural gas furnaces to electric heat pumps, residents can help Toronto move toward its goal of reaching Net Zero emissions by 2040.

Heat pumps are powered by electricity and provide efficient heating in the winter and cooling in the summer. They can reduce household energy use and offer cleaner indoor air while delivering long-term cost savings on utility bills.

City of Toronto provides low-cost financing and free coaching to help homeowners switch their furnaces to heat pumps.

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— City of Toronto 🇨🇦 (@cityoftoronto) September 26, 2025

Free Energy Coaching

The program includes free energy coaching services in partnership with Toronto Hydro. Coaches will help residents:

• Understand their heating and cooling options.

• Access grants and rebates offered by other levels of government.

• Connect with vetted contractors and professionals listed in Toronto Hydro’s Cleantech Services Directory.

Financial Support

To make the switch affordable, the City offers low-interest loans through the Home Energy Loan Program (HELP). In the 2025 budget, Toronto allocated an additional $20 million in loan funding specifically for heat pump installations.

Beginning in 2026, the program will expand to include direct installation services and targeted financial incentives for low- to moderate-income households, making energy-efficient upgrades more accessible across the city.

What Officials Are Saying

“We’re making it easier for residents to heat and cool their homes with heat pumps, which means smart upgrades that can lower energy bills each month and less environmental impact,” said Mayor Olivia Chow. “I encourage homeowners to take full advantage to save money on heating and cooling, and reduce emissions, when it’s time to replace your furnace.”

Jana Mosley added that Toronto Hydro is committed to supporting residents through energy transition efforts. “By helping residents access clean technologies, we are empowering them to make choices that benefit both their households and the city’s climate goals.”

How to Apply

Residents can learn more about available supports and sign up for updates on the City’s BetterHomesTO webpage. Additional resources, including e-updates on new programs and incentives, are also available through the City’s website.

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