Amendment 18 to Canada's Energy Efficiency Regulations, 2016, registered as SOR/2025-110, was published in Canada Gazette, Part II on April 9, 2025. Its biggest effect on residential HVAC is that central air conditioners and central heat pumps manufactured on or after January 1, 2026 are generally rated and regulated under the SEER2 and HSPF2 metrics, aligning Canada with U.S. test procedures. The story is from 2025, but the main date landed in January 2026, which is why contractors are still fielding questions about it.
What the regulation changed
The short answer: new test procedures and minimum levels for most cooling and heat pump equipment, tied to U.S. federal rules.
According to the Gazette text, the amendment:
- applies seasonal energy efficiency ratio 2 (SEER2) standards to single-package and split-system central air conditioners, single-phase and three-phase, generally for units made on or after January 1, 2026, including space-constrained and small-duct high-velocity categories;
- applies SEER2 and heating seasonal performance factor 2 (HSPF2, Region V) standards to central heat pumps, with a very low temperature heating test (known as H4), on the same general timeline;
- sets integrated energy efficiency ratio (IEER) requirements for large air conditioners and heat pumps of 19 kW and up, for units made on or after January 1, 2026;
- changes the capacity categories for room air conditioners for units made on or after May 26, 2026;
- adds line voltage thermostats as a new regulated product, with wall-mounted units from July 1, 2026 and built-in units from July 1, 2027.
Many of the test methods now reference the U.S. Code of Federal Regulations "as amended from time to time", which means U.S. changes to those procedures carry through to Canada.
Water heaters and furnaces: later dates
The same amendment set new uniform energy factor standards for electric, gas-fired storage, oil-fired storage and gas-fired instantaneous water heaters, generally for units made on or after May 6, 2029. Space-constrained gas furnaces with integrated cooling must meet at least 90% AFUE for units made from January 1, 2024. Contractors who sell water heaters therefore have a second federal deadline still ahead.
Why a 2025 regulation is still news
The rules were published in spring 2025 but the main manufacturing date was January 1, 2026. That means 2026 is the first year in which homeowners comparing quotes may see SEER2 numbers on some equipment and older SEER numbers on brochures, older listings or online reviews. The two ratings use different test conditions, so a lower SEER2 number does not mean a less efficient unit than the older SEER figure for the same model.
The next round of federal changes, Amendment 19, was proposed in June 2026 and focuses on ventilation, ground-source heat pumps, commercial furnaces and water heaters.
What it means for contractors (analysis)
This section is our analysis, not part of the regulation.
Update every spec sheet and web page that quotes SEER. A website that lists "16 SEER" for a current model next to a competitor quoting SEER2 numbers invites confusion. Use the metric the manufacturer now publishes, and add one plain sentence explaining that SEER2 and SEER are different scales.
Train the office, not just the techs. Homeowners often ask the person who answers the phone. A short script, such as "the new rating uses a tougher test, so the number looks lower but the unit isn't worse", saves time and lost sales.
Rebate pages need the right metric. Several provincial and utility programs set minimum ratings for eligible heat pumps. When a program states requirements in SEER2 or HSPF2, your rebate page should too. Our program pages service keeps those pages dated and consistent.
Search demand follows confusion. Questions like "SEER vs SEER2" are exactly the kind of search a well-built contractor page can answer. One clear explainer on your site, linked from each cooling service page, is often enough. See how we structure that in our websites service.
Related coverage
For the bigger picture on cooling and heat pump adoption, read our report on the Canada Energy Regulator's heat pump market snapshot. All stories are in the newsroom.
HVACNews.ca reports on HVAC regulation and markets and offers marketing to HVAC contractors. We are not a contractor, and this summary is not compliance advice. For product compliance questions, ask NRCan or your manufacturer. To talk about your marketing, visit our contact page.
Frequently asked questions
What are SEER2 and HSPF2?
They are updated seasonal efficiency ratings for cooling (SEER2) and heating (HSPF2) that use revised U.S. test procedures. The ratings are not directly comparable with the older SEER and HSPF numbers for the same unit.
Does Amendment 18 make older equipment illegal to install?
The federal rules apply to products by date of manufacture when they are imported or shipped between provinces. They do not order removal of installed equipment. Questions about selling existing stock belong with NRCan or your supplier.
Which other HVAC products did Amendment 18 touch?
It also covered room and portable air conditioners, large air conditioners and heat pumps of 19 kW and up, line voltage thermostats, space-constrained gas furnaces with integrated cooling, and several water heater classes with later dates.