Tankless Water Heater Rebates in Ontario

In short

There is no Enbridge or Save on Energy rebate for a gas tankless water heater in Ontario in 2026. The Home Renovation Savings Program pays $500 for an ENERGY STAR heat pump water heater instead, and only after a home energy assessment and alongside at least one other listed upgrade. Budget a tankless conversion at $3,500–$6,500 with no rebate, and ignore offers that cite the closed HER+ program.

How much you can get

Gas tankless water heater, residential No rebate
ENERGY STAR heat pump water heater (assessment stream, two or more upgrades) $500
Home energy assessments, repaid after two upgrades are completed $600
Rented tankless unit Nothing to claim
ThermWise tankless rebate shown on enbridgegas.com Utah, Idaho and Wyoming only — not Ontario
City of Toronto Home Energy Loan Program Loan only — tankless is a listed improvement

Who qualifies

No residential tankless measure exists, so there are no eligibility conditions to meet and no form to file.
The heat pump water heater rebate requires an initial home energy assessment by a registered energy advisor before any work begins.
At least two assessment-stream upgrades must be completed, chosen from heat pump water heater, insulation, windows and doors, and air sealing.
The new unit has to be an ENERGY STAR certified heat pump water heater replacing a natural gas, electric, propane or oil water heater, and a professional contractor must install it.
You must own the home, and it must be a detached or semi-detached house, a row or townhouse, or a mobile home on a permanent foundation.
A follow-up assessment with the same energy advisor closes the file before any money is paid.

People usually reach this question with a tank that has started leaking or a rental contract they want out of. The answer changes the budget, not the urgency: a leaking tank should be replaced now, whichever type you choose.

Does Enbridge pay a rebate for a tankless water heater?

Not in Ontario. Enbridge's Ontario residential page lists a smart thermostat offer, the Home Renovation Savings Program and the income-qualified Home Winterproofing Program, and none of them includes a gas water heater of any kind. The Home Efficiency Rebate Plus program that some older articles cite has ended.

One source of confusion is the Enbridge website itself. It also serves the company's American gas utilities, and a page called ThermWise Appliance Rebates describes a tankless rebate for customers in Utah, Idaho and Wyoming. If a search result shows an Enbridge tankless rebate with a dollar figure, check the location selector at the top of the page before you count on it.

What does qualify: a heat pump water heater, with conditions

The Home Renovation Savings Program pays $500 for replacing a gas, electric, propane or oil water heater with an ENERGY STAR certified heat pump water heater. It sits in the stream that requires a home energy assessment before any work starts, and the program requires at least two upgrades from that stream. Homeowners pay for the assessments up front and receive $600 back after two upgrades are complete.

That makes it a poor fit for an emergency. A heat pump water heater is a tank, it needs air volume, a condensate drain and usually a dedicated 240-volt circuit, and the assessment has to happen first. Our heat pump water heater rebate page covers that route, and the broader picture is on water heater rebates in Ontario.

What a tankless conversion costs with no rebate

Tankless conversion, full range: $3,500–$6,500 installed, including gas-line and venting work.
Most common job, a 199,000 BTU gas unit replacing a tank: $4,200–$5,000 installed.
Upsizing a gas line that was sized for the old tank: +$400–$1,200.
Annual descale flush on hard Halton and Hamilton water: $150–$300.
Straight tank-for-tank swap, for comparison: $1,200–$2,500 installed.
Running-cost saving of tankless over a standing tank: $80–$200 a year.

Those figures explain why the missing rebate matters less than it first seems. The decision turns on how long you will stay in the house and how much hot water the household uses. Full pricing detail is on our pricing page.

Why the gas line and venting decide the quote

A tankless unit burns several times more gas at full fire than the tank it replaces, in exchange for burning none while idle. The half-inch branch that fed the old tank often cannot deliver that flow, so the line is re-run or upsized to the appliance under CSA B149.1. This is licensed gas work and the reason the same model can be quoted at two different prices in two houses.

Venting changes too. A condensing tankless unit vents through sealed plastic pipe out a side wall and produces condensate that needs a drain. If the old tank shared a chimney with a furnace, removing it leaves that flue oversized for what remains, and the chimney has to be addressed in the same quote.

Rented tanks, Toronto's loan, and commercial buildings

A rented water heater belongs to the rental company, so there is no purchase in your name for any program to rebate. In the City of Toronto, the Home Energy Loan Program lists tankless water heaters as an eligible improvement, but that is financing repaid on the property tax bill and not a rebate. Business incentives run under separate rules, and our commercial rebates page deals with those.

When you call, we size the unit from your fixtures and incoming water temperature, measure the gas line, and give you a written price before any work. See tankless water heater installation for what the job includes, the rebates hub for every program we track, or request a quote.

How ZK Mechanical helps

Say plainly that no tankless rebate exists, so a failing tank is not left in service while you wait for money that is not coming.
Measure the existing gas line and meter capacity before quoting, so the line upsizing cost is in the first number you see.
Lay out tank, tankless and heat pump water heater options with installed prices from our published bands.
Deal with the shared chimney or vent when the old tank comes off it.
Set up the descale service valves at install so the annual flush is a short visit.

Frequently asked questions

Is there an Enbridge tankless water heater rebate in Ontario?

No. Enbridge Gas offers Ontario homeowners the Home Renovation Savings Program, a smart thermostat rebate and the Home Winterproofing Program, and none of them pays for a gas tankless water heater. The tankless rebate that appears on the Enbridge website belongs to ThermWise, a program for its customers in Utah, Idaho and Wyoming, and cannot be claimed here.

Does Save on Energy offer anything for a tankless water heater?

Not for a gas tankless unit, and not for an electric one either. Save on Energy co-delivers the Home Renovation Savings Program, whose only water heating measure is an ENERGY STAR heat pump water heater at $500. Its income-qualified Energy Affordability Program provides showerheads and faucet aerators for homes with electric water heating, not a new water heater.

Should I wait to replace my water heater in case a tankless rebate comes back?

No. Nothing on the official pages suggests one is planned, and a tank that is leaking, rusting at the base or more than twelve years old can fail without further warning and flood the basement. Replace it on the tank's schedule. If a rebate appears later it will apply to future purchases, not to yours.

Is a heat pump water heater a better choice than tankless because of the rebate?

Only if the house suits it. The $500 comes with an assessment, a second upgrade and a wait, and the unit needs space, a drain and a 240-volt circuit. It cools the room it sits in. A household that wants endless hot water and wall space back is still better served by gas tankless at full price.

Can I finance a tankless water heater instead?

Yes. We offer financing through lending partners with no prepayment penalty, and Toronto homeowners can also look at the city's Home Energy Loan Program, which lists tankless water heaters. Compare the total interest against the rental fee you would otherwise pay, since renting a water heater typically costs several times the purchase price over its life.

Official sources

All Ontario HVAC rebates Water heater rebates in Ontario Heat pump water heater rebates Tankless water heater installation All rebate programs