Carbon Tax

Natural Gas

Federal Carbon Charge

The federal government has had a carbon pricing program in Ontario since 2019. Carbon charges are applied to all fossil fuels you use, including Natural Gas, Propane and Home Heating Oil.

The charge gradually increases every year on April 1.

Natural Gas Carbon Tax:

April 1, 2019
3.91¢ per cubic metre
April 1, 2020
5.87¢ per cubic metre
April 1, 2021
7.83¢ per cubic metre
April 1, 2022
9.79¢ per cubic metre

Enbridge Gas estimates that this will cost the typical homeowner an additional $141.00 in 2020. Actual cost will vary depending on the amount of gas your home uses in a year.*

In 2022 the typical homeowner using natural gas to heat their home will be paying an additional $235.00 per year in carbon tax.

If you own a larger home (over 1,200 sq. ft.) or an older home, your yearly costs could be significantly higher.

If you are using propane or heating oil, you can see the tax rates below.

Propane Carbon Tax:

April 1, 2019
3.10¢ per litre
April 1, 2020
4.64¢ per litre
April 1, 2021
6.19¢ per litre
April 1, 2022
7.74¢ per litre

Light Fuel Oil Carbon Tax:

April 1, 2019
5.37¢ per litre
April 1, 2020
8.05¢ per litre
April 1, 2021
10.73¢ per litre
April 1, 2022
13.41¢ per litre

What Can You Do?

The carbon tax is not going to go away. The best way to avoid it is to reduce your use of fossil fuels. The payoff for energy efficient equipment will increase over time.

High Efficiency Furnaces

New gas, propane and oil furnaces are up to 98% efficient. Older equipment can be as low as 60% efficient. A new furnace reduces the amount of fuel you use to heat your home.

Tankless Water Heaters

Tankless water heaters provide hot water only when it’s needed, they can save you up to 40% on your energy bill. They feature Energy Factors of 0.82 up to 0.96, while tanks are typically 0.60.

Heat Pumps

In comparison to an ordinary heating and air conditioning unit, a geothermal energy system delivers five units of energy per every one unit of electrical energy used. That’s a 500% efficiency rating! Many homeowners who combine stored earth energy with safe electric power see a savings of 70% for heating, cooling, and hot water.

Some homeowners may want to consider an air source heat pump, like Zuba Central. Zuba-Central is a heat pump which provides heating and cooling to your home through existing ductwork. It is ranked among the most energy-efficient and cost-effective ways to keep your home comfortable.