Enercare Water Heater Buyout: Rent or Own in Ontario

How does an Enercare water heater buyout work?

An Enercare water heater buyout works by paying a single lump sum, looked up by your tank's model and age, after which the tank is yours and so are its repairs. Enercare's water heater support page puts it plainly: "You pay a single lump sum buyout fee and assume ongoing costs of maintenance and repair."

Enercare publishes its buyout schedules by installation year, from 2026 back through earlier contract periods. The amounts sit in linked tables such as the 2026 Water Heater Buyout Table, which lists conventional vent, power vent, direct vent, electric, tankless and combination units in yearly age bands.

To use it, find three things on your bill or the tank's rating plate: the model code (CV40, PV50, Electric 40 and so on), the installation date, and which schedule your contract follows. Then ask Enercare to confirm the figure in writing before you pay, since the table page itself carries no conditions, tax notes or effective dates.

Enercare also adds a warning that cuts against a quick decision. For water heaters eight years old or more, its support page says "buying out could actually end up costing you more", because repairs then fall on you; the same page notes "a single service call could cost several hundred dollars".

How are water heater buyout prices calculated?

Water heater buyout prices are calculated from the tank's original value, reduced each year it has been in service, with the method set by your own contract. Enercare publishes the resulting prices as a table; Reliance's agreement describes a formula.

The table above is a selection of rows from Enercare's 2026 schedule, checked October 2026. Power vent, direct vent and tankless units start much higher: a PV40 is $2,430 and a DV40 $3,730 in the first year, and every model on the schedule reaches $100 at 15 years or more.

For older Enercare contracts (installations from September 2010 to March 2015), the contract terms refer to "the age-reduced price shown on the Buyout Schedule". The calculation clause in Enercare's current contract is a scanned document and was not verified for this guide, so ask for the figure in writing.

Reliance's 84-month rental agreement (a 2021 Ontario form) sets the price at the tank's "depreciated fair market retail value", worked out "on a straight-line basis", plus all other amounts owing. You must give written notice at least 30 days before the date you want to buy, and once you pay, "title to the water heater will be transferred to you". Contracts change over time, so read the one you actually signed.

What rights do Ontario rental contracts give you?

Ontario rental contracts come with three main protections: a ban on door-to-door selling, a 10-day cooling-off period, and void contracts when the rules are broken. Since March 1, 2018, Ontario's rules for water heater suppliers (updated September 25, 2024) say water heaters, furnaces, water softeners, water filters and similar products can no longer be sold "at a consumer's home unless the consumer initiated the transaction".

If you invite a business in and sign, you can cancel within 10 days without a reason or penalty; the period "begins on the date the consumer receives a written copy of the agreement". If a contract came from unsolicited door-to-door marketing or misleading materials, Ontario says "the contract will be void and the consumer will be able to keep these products or services without any obligation", and the business must repay costs such as removal or return charges. The rules come from the Consumer Protection Act, 2002 and its regulation.

Federal competition law has also shaped returns. The Competition Bureau registered an agreement with Reliance on November 6, 2014, including a $5 million penalty and $500,000 toward costs, over "anti-competitive water heater return policies and procedures"; Direct Energy agreed to a $1 million penalty in 2015. In 2019 the Bureau closed its Enercare investigation, saying "the evidence did not establish that Enercare's return practices are anti-competitive".

Is it cheaper to rent or own a water heater?

Owning a water heater is usually cheaper over its whole life than renting, according to Natural Resources Canada, but the answer for one tank depends on its age and repair risk. NRCan's Water Heater Guide (revised October 2012) lists renting's main drawback: "over the life of the water heater, this option will be more costly than purchasing one."

Two numbers on Enercare's support page show the trade-off for an existing tank. Its 2026 monthly rate for a CV40 is listed at $25.87 plus HST, and the 2026 buyout for a CV40 aged 10 to 11 years is $787. Simple division puts that buyout at about 30 months of rent, before tax; it does not include any repair the tank needs after you own it.

Enercare's own caution about tanks eight years old or more points the other way, and NRCan reminds buyers that a water heater has a "second price tag": its operating costs "will be greater than the purchase or rental price". Compare a buyout with the cost of replacing the tank outright, not only with the rent.

What fees apply when you return a rental tank?

Return fees depend on the provider and your contract. Reliance's 2021 agreement lists a "drain and disconnect charge (currently $125)" if Reliance removes the tank, or a pick-up charge of "$65 for a gas water heater or $125 for an electric" one if your own contractor disconnects it but does not return it, plus the cost of repairing damage beyond normal wear and tear. That agreement has a minimum rental term of 84 months unless you buy the tank.

Enercare's support page lists no removal or drop-off fee. It says the account holder (or an authorized agent with a signed appointment) must contact Enercare before removal to confirm the account and tank details, that the manufacturer's rating plate must stay on the unit, and that termination is "completed in accordance with the terms and conditions of that contract".

Buying a house with a rental tank is where many owners first meet these fees. The Competition Bureau's 2016 warning told buyers to look for a clause taking over a rental agreement and to "check the terms of the contract before you sign".

How do you switch to an owned water heater?

You switch to an owned water heater either by buying out the tank you have or by returning it and installing a new one you own. A buyout keeps the same tank in place and moves the repair risk to you; a replacement means choosing a new tank or a tankless water heater.

Installing a gas water heater is regulated work. The Technical Standards and Safety Authority says fuel-fired appliances must be maintained by TSSA-registered contractors, who must employ certified gas technicians; check the contractor on TSSA's lookup tool. Toronto's 311 guidance says a building permit is not required to install hot water tanks in a house; see the plumbing permit guide.

Set the new tank at 60 °C to limit bacteria such as Legionella, with mixing valves keeping tap water at 49 °C, as the Public Health Agency of Canada advises. Ask for a written, itemized quote that lists the model, venting, removal of the old tank and the return of any rental unit.

Common questions

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