Commercial HVAC Rebates in Ontario for Businesses

In short

Ontario businesses get HVAC incentives from the Save on Energy Retrofit Program, which covers up to 50% of eligible costs on electricity-saving upgrades, and from Enbridge Gas prescriptive and custom programs for gas-saving equipment. A Retrofit application must be submitted before any purchase order, contract or equipment order, and Enbridge custom projects must be pre-approved. Apply first, buy second.

How much you can get

Save on Energy Retrofit Program, Prescriptive and Custom streams Up to 50% of eligible project costs
Retrofit prescriptive HVAC: unitary AC, unitary air-source heat pumps, advanced rooftop unit controls, demand control ventilation, VFDs Set per-unit incentives; see the program page
Enbridge Prescriptive: hybrid rooftop units By heating capacity, capped at 50 percent of eligible equipment cost; see the program page
Enbridge Prescriptive: condensing make-up air units Per CFM, with a minimum and maximum per unit; see the program page
Enbridge Prescriptive: kitchen and space demand control ventilation, HRVs and ERVs, air curtains, adaptive thermostats Fixed incentives; see the program page
Enbridge Commercial Custom Retrofit Program Based on natural gas saved, up to 75 percent of upgrade costs; pre-approval required
Condensing boilers Not on Enbridge's 2026 prescriptive list; ask an Energy Solutions Advisor about a custom project

Who qualifies

Retrofit is open to owners or lessees of commercial spaces, industrial facilities, institutional and municipal buildings, multi-residential buildings and agricultural facilities.
A lessee needs the building owner's consent or authorization to take part in Retrofit.
No binding commitment may exist before the Retrofit application is submitted: no purchase order, signed contract or equipment order.
Retrofit projects must deliver a sustainable, measurable reduction in electricity use.
Enbridge incentives require an Enbridge Gas account in good standing, held by the customer who owns the equipment.
Enbridge prescriptive claims need the 2026 application form, proof of purchase matched to the installation address, and a quote or acknowledgement showing the incentive, filed by December 31, 2026.
Enbridge custom projects must have eligibility confirmed by an Energy Solutions Advisor and be pre-approved.

Which program applies depends on what the new equipment saves. A rooftop unit touches both: its cooling side saves electricity and its heating side saves gas. That is why one project can involve two applications, and why the order of the paperwork matters more than the size of the incentive.

Pre-approval before buying equipment: the rule that costs businesses the incentive

Save on Energy is blunt about this. A Retrofit application must be submitted, and the Participant Agreement accepted, before you enter a binding commitment, and there is no grace period for a project that has already started. The program gives three examples of a binding commitment:

A purchase order has been issued.
A contract has been signed with a service provider.
Equipment has been purchased, including equipment ordered but not yet paid for.

Once the application is in, you may start at your own risk or wait for pre-approval, which Save on Energy says usually takes two to three weeks. Starting early risks a smaller incentive or a refusal. When a rooftop unit dies in July that wait is the real cost, and it is better to know it before the unit fails.

Enbridge's custom program goes further: all Commercial Custom Retrofit projects must be pre-approved to qualify. Its prescriptive program pays only where the offer influenced the decision, and asks for evidence such as a project quote that shows the Enbridge incentive on it.

HVAC measures in the Save on Energy Retrofit Program

The Prescriptive stream pays a set amount per unit for listed equipment, and the Custom stream pays on verified kWh or peak kW savings for projects that do not fit the list. Both are capped at 50% of eligible project costs. The HVAC section of the prescriptive list covers:

Unitary air conditioning units and unitary air-source heat pumps, the categories a packaged rooftop unit is normally assessed under.
Advanced rooftop unit controls added to existing units.
Demand control ventilation for kitchens, parking garages and interior spaces.
Variable frequency drives, ECM fan motors and ECM circulator pumps.
Packaged terminal air conditioners and heat pumps, chillers, and hotel or in-suite occupancy and temperature controls.

The steps are identical in either stream: portal account, pre-project application, pre-project approval, installation, post-project submission, then payment. Save on Energy revises the measure list twice a year and expects the next update in fall 2026, so check the current list on the day you apply.

Enbridge Gas commercial incentives for gas-heated buildings

Enbridge's 2026 Prescriptive Incentive Program pays fixed amounts on a published list. Its offers run from January 1 to December 31, 2026, applications are due by year end, and an incentive cannot exceed 50 percent of the project cost.

Hybrid rooftop units: packaged single-zone units that replace an existing natural gas rooftop unit, paid by heat pump heating capacity. Units serving kitchens are excluded.
Condensing make-up air units: gas-fired, 1,500 to 14,000 CFM, at least 90 percent thermal efficiency, in commercial, multi-residential or long-term care buildings. Enbridge states the retail segment is not eligible.
Demand control kitchen ventilation up to 15,000 CFM, replacing a constant-volume exhaust hood on retrofits.
Demand control ventilation with CO2 sensors on single-zone constant-volume systems.
Heat and energy recovery ventilators, air curtains, destratification fans and adaptive thermostats.

Condensing boilers are not on that prescriptive list. Projects outside it go to the Commercial Custom Retrofit Program, where Enbridge's examples are building automation, ventilation equipment and controls, heat recovery, steam system improvements and variable frequency drives. Ask an Energy Solutions Advisor whether a condensing boiler replacement can be assessed there before you price one.

Custom incentives are based on the natural gas saved and capped at 75 percent of the upgrade cost. Enbridge defines upgrade cost as the difference between the efficient option and the alternative you would otherwise have installed, so the cap applies to the premium, not to the whole project.

The prescriptive page also carries a limited-time offer note tied to equipment purchased by September 30, 2026 and operating by October 31, 2026. Enbridge sets these windows year by year, so confirm the dates for your measure with an advisor.

What this means for a rooftop unit replacement in Burlington or Hamilton

A like-for-like gas rooftop unit earns nothing from Enbridge's prescriptive list, while a hybrid unit that adds a heat pump stage does. The electricity side may qualify under Retrofit if the new unit meets the listed specification. Two programs, two applications, one roof.

Electricity incentives are provincial, so the answer is identical whether the building is served by Burlington Hydro, Oakville Hydro or Alectra. Gas incentives need an Enbridge account held by whoever owns the equipment, which in a leased plaza unit is a question for the lease. Enbridge's own case study for the custom program is a building automation upgrade at a multi-unit residential tower in Burlington.

We install and service packaged rooftop units, and we would sooner lose a week to an application than lose you the incentive. See commercial HVAC and rooftop unit service for the work itself, and our guide to commercial RTU replacement for planning. Kitchen projects start with exhaust and make-up air balancing.

Residential programs are on the rebates hub. For a site visit and an equipment list you can take to either program, contact us.

How ZK Mechanical helps

Check both programs against your equipment list before a purchase order exists.
Supply the specification sheets, capacities and model numbers the applications ask for.
Show the Enbridge incentive on the written quote, which is one of the documents Enbridge accepts as evidence.
Schedule installation after the application is submitted, and after pre-approval where the program requires it.
Say plainly when a unit has failed and waiting for an approval costs more than the incentive is worth.

Frequently asked questions

Can I apply after an emergency rooftop unit replacement?

Not for the Save on Energy Retrofit Program: it has no grace period, and a unit already ordered counts as a binding commitment. Enbridge's prescriptive incentives are paid only where the offer influenced the decision, and its custom projects need pre-approval. If a unit is failing but still running, apply now, while you still have the choice.

Does the tenant or the landlord apply?

For Retrofit, either can: the program accepts owners or lessees, and a lessee must have the owner's consent or authorization. For Enbridge, the customer must own the equipment and hold an account in good standing. In a net lease where the tenant maintains the rooftop unit but the landlord owns it, settle who applies before the equipment is ordered.

How long does it take to be paid?

Save on Energy says a Retrofit incentive takes between eight and twelve weeks after the incentive invoice is approved, and that invoice can only be uploaded once the post-project application has been approved. Enbridge says to expect its incentive within eight weeks once the paperwork that follows commissioning is submitted. Budget for the full equipment cost up front in both cases.

Are condensing boilers eligible for an Enbridge incentive?

Not through the 2026 Prescriptive Incentive Program: the published list has no boiler measure. The custom program assesses projects on the natural gas they save and requires pre-approval, and Enbridge asks that eligibility be confirmed by an Energy Solutions Advisor first. Raise the boiler project with an advisor before you request pricing, not after.

Can one rooftop unit collect from both programs?

Neither program page we read addresses it directly. The two incentives pay for different savings, electricity on one side and natural gas on the other, and each has its own cap of 50 percent of project or equipment cost. Ask the Save on Energy representative and the Enbridge advisor in writing before counting on both.

Official sources

All Ontario HVAC rebates Commercial HVAC services Rooftop unit service Who is responsible for HVAC in a commercial lease?All rebate programs

Commercial HVAC Rebates in Ontario