Energy Efficient Home Improvement Credit: What Canadian Homeowners Can Claim Instead
If you have searched for the energy efficient home improvement credit, you may have landed on a US tax page. That credit was written for American taxpayers, and it has now ended. Canadian homeowners still have real options, though. Ontario's Home Renovation Savings Program offers rebates for eligible upgrades, including heat pumps, insulation, windows and doors, and solar panels with battery storage. Other provinces and utilities run their own programs. This guide explains what is open in 2026, what has closed, and how to apply without losing a rebate on a technicality.
What Is the Energy Efficient Home Improvement Credit?
The name sounds universal, but it belongs to one specific US tax rule. Knowing where it came from helps Canadians avoid chasing a credit they cannot claim. It also shows which upgrades governments tend to reward.
How the US Credit Worked
The energy efficient home improvement credit was a US federal income tax credit, often called section 25C. It covered 30% of eligible costs, up to US$3,200 per tax year. Heat pumps and heat pump water heaters could earn up to US$2,000. Windows, doors, insulation and home energy audits shared a separate US$1,200 limit.
Why It Has Ended
US legislation passed in July 2025 moved the credit's end date forward. The IRS page on the credit now limits it to property placed in service by December 31, 2025.
Why It Never Applied in Canada
The credit was governed by US federal tax law and applied to qualifying improvements under the relevant eligibility rules. Canadians filing with the Canada Revenue Agency could never use it.
Many of these upgrades support electrifying your home's heating and appliances, a goal Canadian programs also favour.
So what can Canadians actually use? Ontario's main program is the best place to start.
Ontario's Home Renovation Savings Program in 2026
Ontario's Home Renovation Savings Program is the closest thing many Canadians have to a home improvement credit. It is offered by Save on Energy and Enbridge Gas, with support from the Ontario government. Eligible homeowners may qualify for rebates regardless of their primary heating fuel, although eligibility and rebate amounts vary by upgrade and heating source.
Single Upgrades (No Energy Assessment Needed)
You can claim one or more of these upgrades without booking an energy assessment first. Amounts below come from the Save on Energy Home Renovation Savings page.
Upgrade | Rebate |
Cold climate air source heat pump | Up to $7,500, based on unit size |
Ground source heat pump | Up to $12,000, based on unit size |
Smart thermostat | $100 |
Attic insulation | $1,250 |
Solar panels and battery storage | Up to $10,000 combined |
Appliances | Up to $200 |
Heat pumps must be on Natural Resources Canada's qualified products list. Checking that list early helps protect heat pump rebates in Ontario before you sign a contract.
Bundled Upgrades (Energy Assessment Required)
The bundle path starts with a home energy assessment, followed by two or more upgrades. Rebates include $600 for the assessment and up to $7,700 for insulation. Windows and doors earn $100 per rough opening. Air sealing earns up to $250, and heat pump water heaters earn $500. Windows, doors and heat pump water heaters must be ENERGY STAR certified.
The Solar and Battery Rules Most Guides Skip
The program's solar and battery rebates have important eligibility conditions to check before purchasing equipment.
Solar rebate: $1,000 per kW, up to 50% of total costs, to a $5,000 maximum.
Battery rebate: $300 per kWh, up to 50% of total costs, to a $5,000 maximum.
Solar pairing: Batteries must be paired with a new solar system and sized for it. Battery-only projects do not qualify.
Utility approval: Your contractor helps you get connection approval from your local electric utility.
No net metering: Rebate recipients cannot also sign a net metering agreement. Projects must be designed for load displacement only.
Pre-approval: Do not buy or install equipment before you receive written pre-approval.
The program also publishes stream requirements for installers and equipment. Read them before you choose a contractor or a battery.
Those battery rules lead to a bigger question. Where does a home battery fit in an energy upgrade plan?
Where a Home Battery Fits in Your Energy Upgrade Plan
Insulation and heat pumps cut how much energy you use. A home battery changes when you use it. In Ontario, that timing can matter as much as the upgrade itself.
Time-of-Use Pricing and the Ultra-Low Overnight Plan
Ontario households on the Ultra-Low Overnight (ULO) plan pay a very low price from 11 p.m. to 7 a.m. every day. The weekday on-peak period runs from 4 p.m. to 9 p.m. and costs far more. Charging a battery overnight and drawing from it at peak can reduce your bill. The gap between Ontario time-of-use rates is what makes this work.
Pairing Storage With Solar
Solar panels make the most power at midday, when many people are away. A battery stores that energy for the evening peak, which is the setup Ontario's program is built around.
Two EcoFlow Options Worth Comparing
The EcoFlow TITAN 5000 Plus and TITAN 5000 are modular home batteries that work with the grid. The Plus model accepts up to 8kW of solar input, so it suits households planning a larger array.
The TITAN 5000 suits homes with a smaller solar setup that still want time-of-use savings. It can also back up selected circuits.
Plug-in devices run directly from either unit. Home circuits, hard-wired appliances and automatic switching need the compatible SHP10, installed by a qualified electrician. The SHP10 covers up to 10 selected circuits, not every appliance at once. Both units are rated IP20 for dry, indoor placement. The savings figures on the cards are modelled Toronto estimates on Ontario's ULO plan only.
Check Rebate Eligibility Before You Buy
Rebate programs set their own battery rules. Always confirm with your program whether a specific battery qualifies before you buy it. Actual savings and runtime depend on your rate plan, solar output and household load.
Ontario is only one piece of the picture. Here is how federal and other provincial programs stand in 2026.
Federal and Provincial Programs: What's Open in 2026
Federal home retrofit support has changed a lot since 2024. Some well-known programs are closed, while newer ones focus on lower-income households.
Federal Programs at a Glance
The table below reflects Natural Resources Canada's Greener Homes Initiative page as of fall 2026.
Program | 2026 Status | Who It Helps |
Canada Greener Homes Grant | Closed. The last day to submit documents was December 31, 2025. | Former applicants only |
Canada Greener Homes Loan | Closed to new applications. Approved loans are unaffected. | Existing loan holders |
Oil to Heat Pump Affordability | Applications in AB, MB, NT, QC and SK closed July 31, 2026. Elsewhere, check your provincial program. | Oil-heated homes with median income or less |
Canada Greener Homes Affordability Program | Open through provincial and territorial partners | Low to median income homeowners and tenants |
The Affordability Program delivers retrofits like insulation and heat pumps at no cost to eligible households. You apply through your provincial or territorial program, not the federal government. The program is moving to Environment and Climate Change Canada, so check for updates.
A Few Provincial and Utility Programs
British Columbia: The Home Renovation Rebate Program is a partnership of the Province, BC Hydro and FortisBC. Replacing electric heat with a whole-home heat pump can earn up to $4,000.
Quebec: Hydro-Québec's LogisVert program offers grants for efficient heat pumps. Hydro-Québec also delivers the federal affordability program in Quebec.
Nova Scotia: The HomeWarming program supports lower-income households with free upgrades.
Manitoba: Efficiency Manitoba is the province's delivery partner for affordability retrofits.
Rules change often, so treat this as a starting point. Comparing solar and battery rebates by province helps if storage is part of your plan.
What About Federal Tax Credits?
Canada does not currently offer a federal personal income tax credit for energy upgrades to existing homes. The Home Accessibility Tax Credit sounds similar, but it covers accessibility renovations for eligible seniors and people with disabilities. Do not claim energy upgrades under it.
Knowing which program fits is half the job. The other half is applying correctly.
How to Apply for an Energy Efficiency Home Improvement Rebate
Incomplete paperwork or missed deadlines can jeopardize an otherwise eligible rebate application. A clear order of steps protects your claim. The details vary by program, but the pattern is similar across Canada.
Step-by-Step Process
Confirm your program. Check your province, utility and income eligibility on the official program site.
Book an energy assessment if needed. An EnerGuide evaluation shows where your home loses energy and is required for some bundles.
Get pre-approval. Many programs, including Ontario's solar and storage stream, require written approval before you buy or install anything.
Hire a qualified contractor. Use a participating or licensed contractor where the program requires one.
Keep every receipt. Save invoices, model numbers, permits and inspection records.
Submit before the deadline. Upload documents on time and keep copies of everything.
An EnerGuide home evaluation can help establish a baseline for your home's energy performance and document changes after eligible upgrades.
Common Mistakes to Avoid
Buying equipment before pre-approval arrives.
Choosing a heat pump that is not on the qualified products list.
Hiring a contractor the program does not recognize.
Missing receipts or model numbers.
Assuming a rebate from a closed program is still available.
Conclusion
The energy efficient home improvement credit is a US tax break, and it has ended. Canadians still have options. Ontario's Home Renovation Savings Program, provincial utility rebates and federal affordability retrofits can all help pay for upgrades. Check eligibility, get pre-approval and keep every receipt. If solar is part of your plan, an EcoFlow TITAN 5000 Plus or EcoFlow TITAN 5000 can help you use more of what you generate. Confirm battery eligibility first.
FAQs
Can Canadians Claim the Energy Efficient Home Improvement Credit?
No. It was a US federal tax credit claimed on a US tax return. It also ended for property placed in service after December 31, 2025.
Is There a Canadian Tax Credit for Energy Efficient Home Upgrades?
Not at the federal level right now. Canadians rely on provincial rebates, utility programs and federal affordability retrofits delivered through provinces.
Does Ontario's Home Renovation Savings Program Cover Home Batteries?
Yes, but only when the battery is paired with a new solar system. It pays $300 per kWh, up to 50% of costs and a $5,000 maximum. Written pre-approval is required.
Is the Canada Greener Homes Grant Still Available?
No. It is closed, and December 31, 2025, was the last day to submit documents. The Canada Greener Homes Loan is also closed to new applications.
Can I Start Work Before My Rebate Is Approved?
It depends on the program, but it is risky. Ontario's solar and storage stream says not to buy or install equipment before written pre-approval.