If you’re considering replacing any HVAC equipment in 2026—whether an AC unit or a new furnace installation in Calgary—take time to understand the rebates and incentives that may be available.
With rising energy costs, it’s never been more important to install an energy-efficient HVAC system in your home. However, that can involve a heavy investment.
So, many Calgary homeowners still ask about eligibility for the Alberta Rebate Incentive when looking to upgrade HVAC equipment.
In this post, we review the programs that you may be eligible for in 2026. This will help you make informed decisions about whether to upgrade your furnace, water heater, or other essential home equipment.
Are You Eligible for the Alberta Rebate Incentive in 2026?
The Alberta Rebate Incentive was never a distinct provincial program. Most people referring to this were talking about the federal Canada Greener Homes Grant initiative, which closed to new applications in 2024. However, Alberta homeowners may be eligible for other rebates and incentives if they upgrade furnaces, heat pumps, water heaters, or home insulation.
Let’s take a closer look at the relevant programs…
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What was the Alberta Rebate Incentive?
Alberta lacks a standalone provincial HVAC rebate program like some other provinces. The “Alberta Rebate Incentive” program usually refers to the Canada Greener Homes Grant, which was a federal rather than provincial initiative.
Before the program closed to new applicants in 2024, Alberta households were often able to access substantial grants to help make energy-efficient retrofits to homes. Homeowners paid for EnerGuide evaluations (these costs could be reimbursed), which recommended eligible retrofits to improve energy usage within the home.
The program provided:
- Grants from $125 to $5,000 to claim part of the costs for eligible home retrofits.
- Up to $600 toward the total costs of a pre- and post-retrofit EnerGuide evaluation.
- Interest-free loans of up to $40,000, with a repayment term of 10 years, to help homeowners undertake major home retrofits.
If you submitted any documentation before December 31st, 2025, it will still be processed but no new applications have been accepted since 2024.
Homeowners should seek advice from their HVAC contractor about other federal and provincial programs and utility incentives, a few of which we review below.
What Types of Products Qualified for the Grant?
Under the Canada Greener Homes Grant, help was primarily available for funding the following:
- Space heaters, such as energy-efficient and cold climate heat pumps (furnaces weren’t generally included).
- Water heaters.
- Programmable and smart thermostats.
What Rebates and Incentives are Available in 2026?
The rebates and incentives available for Alberta homeowners change quite regularly. It’s best to check with your HVAC professional about the latest programs available.
As of early 2026, Alberta homeowners looking to upgrade HVAC equipment may be able to access:
- The Oil to Heat Pump Affordability program: This provides up to $10,000 for qualifying homes that switch from oil-fired furnaces to heat pumps (designed for low-to-median income owners able to verify income). The program continues to be offered, even after the applications for the Canada Greener Homes Grant closed.
- Local utilities rebates of $500-$2,000 may be available if you select high-efficiency ENERGY STAR certified HVAC equipment, such as two-stage furnaces, heat pumps, or efficient AC units. Some local Alberta utility companies to check include ATCO, EPCOR, ENMAX, and Fortis Alberta.
- Calgary’s Residential Clean Energy Improvement Program (CEIP) offers homeowners help with energy-efficient and renewable energy upgrades (HVAC, water heating, and insulation) with flexible financing, so that homeowners don’t have to cover the full cost upfront. Repayment is made via property taxes.
How to Check Eligibility & Apply for Energy Rebates or Incentives in Alberta
Eligibility checks and application processes vary with the specific incentive or rebate being claimed in Alberta.
Your HVAC contractor can advise whether you’re likely to qualify and what you’ll need. Generally, you can check federal programs and their eligibility criteria at the Natural Resources Canada portal, while provincial programs can be checked at the Alberta government website.
Depending on the claim, you may require:
- Proof of ownership of your property (with property tax bill number).
- Proof that the property is your primary residence.
- Proof of purchase documents for items already bought.
- Proof of energy efficiency ratings.
- HVAC contractor invoices.
- Any other documentation requested.
Should You Upgrade HVAC Even Without Any Incentives or Rebates?
Even if you are ineligible for any current incentive or rebate programs, the benefits of upgrading your HVAC system to a more energy-efficient model are many:
- Long-term cost savings: Modern furnaces, heat pumps, and AC units are more energy efficient than those even from the last decade—and modern equipment cuts natural gas usage by 20-40% compared to 1980s-2000s models. So, if your furnace is 15-20 years old, you can make significant savings on monthly bills by upgrading, helping to repay the cost of a new furnace.
- Greater reliability and comfort: Newer systems are less likely to break down and require expensive AC or furnace repairs, and provide greater peace of mind for homeowners in the unpredictable Calgary climate.
- Financing plans available: Many reputable HVAC companies, including Alberta Mountain Air, offer competitive payment plans that can help to spread the cost of purchasing new HVAC equipment over several months.
- Longer lifespans: Variable-speed technology minimizes wear and tear on parts, often extending the lifespan of the best, high-efficiency equipment (look for furnaces with AFUE 95%+ or AC units with SEER 16+).
- Improved indoor air quality: Modern HVAC equipment is more likely to maintain good indoor air quality and humidity control, while also improving temperature control and zoning through more advanced thermostats.
- Improved home value: High stock is placed on Alberta homes’ indoor climate control, so an advanced, high-efficiency HVAC system can boost home value by up to 5-10 %.
Other Tips to Optimize Energy-Efficiency in the Home
Besides upgrading your HVAC equipment to more modern heating and cooling equipment, consider the following ways to optimize your home for efficient energy usage:
- Follow a regular HVAC maintenance schedule to keep the system in balance and working at peak performance.
- Improve insulation by caulking or weatherstripping doors and windows.
- Have your ductwork inspected and, if there are any leaks, have them sealed.
- Close blinds, curtains, drapes, or shades in summer and open windows in spring and the fall to improve ventilation.
- Upgrade to a programmable or smart thermostat (if your HVAC system supports it), so that temperatures adjust automatically according to the weather, time of day, household habits, etc.
- Replace HVAC filters regularly (every 1-2 months) to maintain good airflow, efficiency, and indoor air quality.
- Install ceiling fans to supplement the HVAC system, and learn the optimal way for ceiling fans to turn in summer (counter-clockwise) and winter (clockwise).
These low-cost actions can reduce utility bills by 10-30% in Alberta’s extreme climate, without any major renovations.
Check this post for more tips on how to make the most out of a new furnace.
FAQs
No, grants for furnace upgrades are not currently available to new applicants in Alberta, as the Canada Greener Homes Grant is closed to new participants. However, you may qualify for local utilities rebates with certain suppliers or 100 percent financing via the Residential Clean Energy Improvement Program (CEIP). Ask your HVAC contractor for further details.
Grants are no longer available but you may qualify for financing via the Residential Clean Energy Improvement Program (CEIP) or local utilities rebates with ATCO, EPCOR, ENMAX, Fortis Alberta, etc.
No direct grants or rebates for standalone thermostat upgrades are available in Alberta but the Residential Clean Energy Improvement Program (CEIP) provides interest-free loans for HVAC upgrades that may include a new smart or programmable thermostat.
Yes, getting a home energy assessment before upgrading HVAC equipment is highly recommended. It identifies inefficiencies like duct leaks, poor insulation, or improper sizing that could waste 20-30% of your system’s potential. Your upgrade will likely be more effective and efficient in Alberta’s extreme climate after an energy assessment.
The Natural Gas Rebate Program offers direct monthly payments to Albertans to offset natural gas bills amid carbon policy changes. However, it does not fund HVAC equipment purchases or installations.
Upgrade Your HVAC With Confidence
If you decide to upgrade—with or without a loan, incentive, or rebate—work with our licensed HVAC professionals to select and install your new furnace, heat pump, or AC unit.
Our team members are SAIT-certified and can help you make the right heating and cooling decisions with seasoned local advice for your Calgary home.
We will advise you of any rebates, incentives, or loans available and offer competitive financing plans to ease the upfront financial burden.
Contact us online to arrange a quote.














