How to Compare Contractor Quotes for Home Energy Upgrades in Ontario

To compare contractor quotes for a home energy upgrade, line them up on the same scope (identical or equivalent equipment, capacity, installation work, permits, warranties and payment terms), then compare price. Two quotes that differ by $3,000 are often for two different jobs. A short checklist and a side-by-side table make the real differences obvious.

This guide focuses on heating, cooling and water heating quotes, where the stakes and the price gaps are largest, but the same method works for insulation, windows and other upgrades. Get at least three written quotes for any job over a few thousand dollars.

Before you ask for quotes

A little preparation makes quotes easier to compare and harder to pad.

1. Write down what you want. For example: "Replace 20-year-old furnace and AC; interested in a cold-climate heat pump or hybrid; want to qualify for available rebates."
2. Gather information. Your past 12 months of gas and electricity use, the age and model of existing equipment, any comfort problems (cold rooms, humidity), and electrical panel size.
3. Check rebate rules first. For heat pumps, the Home Renovation Savings Program requires a participating contractor, a qualifying product and pre-installation approval before work starts. Confirm current rules at saveonenergy.ca (opens in a new tab) and in our Home Renovation Savings Program guide.
4. Invite the contractors yourself. Since 1 March 2018, Ontario has banned unsolicited door-to-door contracts for furnaces, air conditioners, water heaters and several other products. Be wary of anyone who shows up uninvited. See our guide to door-to-door energy scams.

What a good quote should include

Item	What to look for	Why it matters
Company details	Legal name, address, HST number, contact	Confirms who you are contracting with
Licences and registrations	TSSA registration for gas work; G2 or G1 technicians; ODP certificate for refrigerant handling; licensed electrical contractor for wiring	Required by law; protects safety and insurance
Sizing basis	A heat loss and heat gain calculation, ideally room by room	Prevents oversized or undersized systems
Equipment	Brand, full model numbers for every component, capacity, efficiency ratings (AFUE, SEER2, HSPF2)	Lets you verify ratings and rebate eligibility
Matched system rating	For heat pumps and AC, the indoor and outdoor units as a rated combination	Mismatched components may not deliver rated efficiency
Scope of work	Removal and disposal, venting, ductwork changes, electrical work, thermostat, line set, pad or stand, condensate drain	Most price gaps hide here
Permits and inspections	Who obtains municipal building permits, ESA permits and TSSA requirements	The contractor should handle these
Warranty	Manufacturer parts warranty, labour warranty, and whether registration is required	Labour coverage varies widely
Price and taxes	Itemized total including HST	Avoids surprise add-ons
Payment schedule	Deposit amount, progress payments, final payment on completion	Limits your risk
Timeline	Start date, duration, what happens if there are delays	Helps you plan
Rebate support	Whether the contractor is a participating contractor and will handle paperwork	Missing a step can cost you the rebate

How to compare contractor quotes side by side

Fill in a table like this for each job. Here is an example for a gas-heated home considering a heat pump.

Item	Quote A	Quote B	Quote C
System	3-ton ducted cold-climate heat pump plus existing furnace (hybrid)	3-ton ducted ccASHP with electric backup, furnace removed	4-ton standard heat pump plus new furnace
Sizing method	Room-by-room heat loss calculation	Rule of thumb from house size	Matched to old AC
Model numbers listed	Yes, all components	Outdoor only	Yes
Electrical work included	Breaker and wiring	Panel upgrade included	Not mentioned
Permits	Included	Included	"Extra if required"
Labour warranty	10 years	2 years	1 year
Rebate support	Participating contractor, handles approval	Participating contractor	Not participating
Price before rebate	$17,500	$21,000	$15,800

At first glance Quote C is cheapest. But it is sized from the old AC, it is not a cold-climate model, it leaves out electrical work and permits, and the contractor is not eligible for the rebate. Quote B includes a panel upgrade, which explains part of its higher price. Quote A shows the most careful design.

For typical price ranges to sanity-check your quotes, see our post on heat pump cost in Ontario.

Ask these questions

1. "How did you size this system? Can I see the calculation?" Our guide to HVAC sizing and load calculations explains what a good answer looks like.
2. "Is this equipment on the qualified-products list for the rebate, and will you apply for pre-approval before starting?"
3. "Who will do the work: your own technicians or subcontractors?"
4. "What permits does this job need, and who arranges inspections?"
5. "What does the labour warranty cover, for how long, and who honours it if the company closes?"
6. "What could change the price once you start?"
7. "Can you give me references from similar jobs in the past year?"

For solar, also compare cost per watt, expected annual production (roughly 1,100–1,250 kWh per kW per year for an ideal southern Ontario roof), and whether net metering or the rebate route is assumed. Our guide to choosing an HVAC contractor has more questions for heating and cooling jobs.

Red flags

Caution: Walk away, or slow down, if you see any of these.

• Pressure to sign today, or a "special price" that expires when the salesperson leaves.
• Claims to be from the government, your utility or a rebate program. Legitimate programs do not send salespeople door to door to sell equipment.
• A diagnosis that conveniently requires replacement, such as a "cracked heat exchanger," with no evidence offered. Get a second opinion.
• Vague scopes like "supply and install heat pump," with no model numbers.
• Large deposits. A modest deposit to order equipment is normal; paying most of the price before work starts is risky.
• Sizing by square footage alone, or simply matching the old equipment.
• Rental, lease-to-own or financing contracts with long terms, escalating payments or buyout costs you have not seen in writing. Ask for the total of all payments.
• Requests to sign a blank or incomplete contract, or to let them "handle the details later."
• No written contract at all.

Ontario's Consumer Protection Act gives you a 10-day cooling-off period for most direct agreements signed in your home. Rules on registering security interests against homes for consumer goods have also changed in recent years. Confirm your rights at ontario.ca (opens in a new tab).

Financing and payment

If you are financing, compare the total cost of credit, not just the monthly payment. A 0% promotion can hide a higher equipment price, and a low monthly rental payment over 15 years can add up to far more than buying. See financing home energy upgrades for options.

Pay the final balance only when the work is complete, the system has been commissioned and tested, permits have passed inspection, and you have the warranty registration and rebate paperwork in hand.

Frequently asked questions

How many quotes should I get?

At least three for a major upgrade. Fewer than three makes it hard to tell what is normal; more than four or five often adds time without new information.

Should I always choose the cheapest quote?

No. Choose the best value for a clearly defined scope. The cheapest quote often leaves out items such as permits, electrical work or a proper load calculation, or uses lower-tier equipment. The most expensive quote is not automatically the best either.

Is it rude to share one contractor's quote with another?

Asking a contractor to match or explain a specific item is reasonable. Sharing another company's full proposal is generally discouraged; describe the scope you want instead and let each contractor price it.

What if a contractor will not do a load calculation?

That is a warning sign for heating and cooling work, especially heat pumps, where correct sizing matters a great deal. Ask another contractor, or use a rough estimate from our sizing tools as a starting point for the conversation.