HVAC Equipment Prices Are Rising in 2025 — Here’s Why
Canada’s HVAC industry is facing major pricing pressure in 2025, with homeowners across the country experiencing the impact firsthand. Due to a combination of federal tariffs, regulatory shifts, and updated refrigerant standards, heat pumps, air conditioners, and high-efficiency systems are now significantly more expensive than they were just one year ago.
Understanding what’s behind these increases — and how you can avoid overpaying — is key if you’re planning any HVAC upgrades this year.
What Are These New Tariffs?
In response to shifting environmental policies and global trade dynamics, Canada has implemented new federal energy and import tariffs that directly affect HVAC equipment. These tariffs apply to a wide range of components and systems, including:
- Heat pumps
- Central air conditioners
- Refrigerant-based systems
- High-efficiency units
Manufacturers, including Carrier and other major brands, are now applying tariff surcharges to new equipment sold in Canada. These surcharges are passed down through suppliers and contractors, ultimately reaching the homeowner in the form of 8–20% price increases.
New Refrigerant and Efficiency Regulations Are Driving Costs Higher
In addition to tariffs, 2025 brings new regulations aimed at reducing the environmental impact of HVAC systems. These include:
Refrigerant phase-downs: Older refrigerants with high global warming potential (GWP) are being replaced with lower-impact alternatives. New systems must meet these stricter standards, increasing production and compliance costs.
Higher energy efficiency minimums: New SEER (Seasonal Energy Efficiency Ratio) requirements mean manufacturers are redesigning systems with more advanced components — at a higher cost.
These regulatory changes, while environmentally beneficial, are putting further upward pressure on prices industry-wide.
Carrier Adds Tariff Surcharge in 2025
Carrier, one of the largest HVAC brands in North America, has officially added a tariff surcharge on most of its residential equipment sold in Canada. This includes:
Ductless and ducted heat pumps
Central air conditioners
Multi-zone systems
For many contractors, including Empower, this has meant a sudden rise in wholesale equipment pricing, with retail prices increasing accordingly.
Why Acting Now Saves You Money
Prices are expected to increase again in Q3 2025, driven by:
Further supplier cost adjustments
Higher freight and shipping rates
Ongoing shortages in high-efficiency components
Contractors across Canada are racing to secure existing inventory before the next round of increases. However, availability is tightening fast, and once pre-tariff stock is gone, the higher pricing will apply to all new installs.
How Empower Is Protecting Customers from Price Hikes
At Empower, we anticipated these industry-wide changes and secured equipment ahead of the tariff rollout. That means we can still offer pre-tariff pricing on select high-efficiency heat pump systems — but only while supplies last.
We’re extending this exclusive pricing to our loyal customers before the next round of hikes hits this summer.
✅ Heat pump systems from $3,999 or $38/month
✅ Up to $2,000 in rebates available
✅ FREE professional installation
✅ 10-Year Protection Plan included
Ready to upgrade your home comfort and save big? For a limited time, get 3 months FREE when you sign up for any of our Maintenance or Protection Plans.
Whether you need coverage for your furnace, A/C, or water heater, Empower Home Comfort has you protected. Enjoy no-charge service calls, 24/7 emergency support, and energy-efficient upgrades that qualify for Ontario rebates.
Don’t wait for a costly breakdown—schedule your call now with the form below, or speak with a Comfort Advisor today.