Canterbury Regional Council says the end of its clean heat project will reduce the rates burden on Christchurch residents.
The eight year project, designed to improve air quality, will cease in July.
The council says almost 19,000 home owners have used the scheme, which involved upgrading open fires to more efficient forms of heating.
Since it was introduced, high pollution nights in Christchurch are a third of the number they were.
But Commissioner David Bedford says it was expensive and a review has found it's no longer the most cost-effective way of improving air quality in Christchurch.