The city of Toronto is offering some homeowners a rebate of up to $1,000 if they upgrade the insulation in their homes.

The rebate program, dubbed Home Energy Assistance Toronto (HEAT), is available to people who own detached and semi-detached homes, as well as townhouses.

To qualify for the maximum rebate, people will have to upgrade the insulation in their ceilings, walls and foundation. People must also conduct a home energy assessment before and after any potential upgrades.

People who retrofit their insulation and use electricity to heat and cool their homes could save an average of $150 a year on their electricity bills every year, the city said in a release. Those who use gas will save an average of $250 annually.

The program runs until March 2012. The city has budgeted $9 million for the program.

The federal and provincial governments have also offered rebates to people who upgrade home insulation.

Under the federal program, homeowners can receive a maximum rebate of $5,000 for making upgrades to insulation. A provincial program grants homeowners up to $2,750.