Heat Pump Cost in Ontario (2026): Installed Prices, Rebates and Running Costs

A heat pump in Ontario typically costs about $12,000–$25,000 installed for a ducted cold-climate air-source system in 2026, and about $4,500–$8,000 for a single-zone ductless mini-split. Ground-source (geothermal) systems run roughly $30,000–$60,000 or more, and rebates through the Home Renovation Savings Program can take $2,000 to $7,500 off an air-source system depending on how your home is heated now.

These are estimated ranges. The real heat pump cost for an Ontario home depends on its heating load, existing ductwork, electrical capacity and the equipment chosen. Here is how the numbers break down.

How much does a heat pump cost in Ontario in 2026?

System type	Typical installed cost (estimate)	Best fit
Ducted cold-climate air-source (ccASHP)	$12,000–$25,000	Homes with existing ducts, replacing a furnace and AC
Ductless mini-split, single zone	$4,500–$8,000	One open area, an addition, or supplementing baseboards
Ductless multi-zone (2–4 heads)	More than single-zone; often $10,000–$20,000+	Homes without ducts needing several rooms covered
Hybrid (heat pump added to existing gas furnace)	Similar to a ducted heat pump, less the furnace	Gas-heated homes wanting gas backup
Ground-source (geothermal)	$30,000–$60,000+	Larger lots, new builds, long-term owners

Ducted prices vary mainly with capacity (typically 2 to 5 tons for Ontario houses), brand and tier, whether the indoor coil and air handler are replaced, and how much ductwork and electrical work is needed. A proper heating load calculation is essential: oversized systems cost more and often perform worse. Try our heat pump sizing calculator for a rough starting point.

What rebates lower the cost?

The Home Renovation Savings Program (HRS), delivered by Save on Energy and Enbridge Gas, published these heat pump rebates as of mid-2026:

Equipment (owned)	Gas-heated home	Other primary heat (electric, oil, propane)
Cold-climate air-source heat pump	$500/ton, up to $2,000	$1,250/ton, up to $7,500
Ground-source heat pump	$3,000 flat	$2,000/ton, up to $12,000

You need a participating contractor, the equipment must be on the qualified-products list, and you must get pre-installation approval before work starts. A heat pump that has received another Enbridge, IESO or Government of Ontario incentive is not eligible, and total funding cannot exceed 100% of the cost. Confirm current amounts at saveonenergy.ca (opens in a new tab), and see our Home Renovation Savings Program guide.

Income-qualified households heating with oil may be eligible for the Oil to Heat Pump Affordability program in Ontario, which can provide up to $25,000. Intake status changes, so check with Save on Energy.

Net cost examples

Scenario	Installed cost (estimate)	HRS rebate	Net cost
3-ton ducted ccASHP, gas-heated home	$18,000	3 × $500 = $1,500	$16,500
4-ton ducted ccASHP, gas-heated home	$22,000	$2,000 (cap)	$20,000
3-ton ducted ccASHP, oil- or propane-heated home	$18,000	3 × $1,250 = $3,750	$14,250
1.5-ton ductless, electric baseboard home	$6,000	1.5 × $1,250 = $1,875	$4,125
4-ton ground-source, electric or oil home	$45,000	4 × $2,000 = $8,000	$37,000

In a gas-heated home, compare the net cost with what you would otherwise spend: a new furnace typically runs $5,000–$9,000 and a new central AC another $5,000–$9,000. A heat pump replaces the AC, so the true extra cost over "furnace plus AC" can be modest. See our furnace replacement cost post.

What does a heat pump cost to run?

Take a home that needs about 20,000 kWh of delivered heat a year, roughly what 2,000 m³ of gas provides in a 95% AFUE furnace. Using a seasonal COP of 2.75, an all-in electricity price of about 17¢/kWh, and gas at 45¢/m³ (both adjusted for HST, and for the 15.7% Ontario Electricity Rebate on electricity):

Heating system	Energy used	Estimated annual heating cost
Electric baseboard (COP 1.0)	20,000 kWh	about $3,300
Cold-climate heat pump (seasonal COP 2.75)	7,270 kWh	about $1,200
Gas furnace, 95% AFUE	2,034 m³	about $1,030

The takeaway: switching from baseboards, oil or propane, a heat pump usually saves a lot. Switching from gas, running costs are roughly comparable to somewhat higher at current prices, especially since the carbon charge on gas was removed in April 2025. The benefit is often more about replacing aging AC and furnace equipment with one system. Results depend heavily on your home, so run your own numbers with our heat pump vs furnace calculator.

Hidden costs to ask about

• Electrical panel or service upgrade. Many older homes have 100 A service. An upgrade typically costs $2,500–$6,000+ including utility work (estimate), and requires an ESA permit.
• Backup heat. Electric resistance strips in the air handler, or keeping the gas furnace in a hybrid setup.
• Ductwork changes. Undersized returns are common in older Ontario homes and can limit airflow.
• Outdoor unit stand and placement. It should sit above typical snow depth with clear drainage.
• Thermostat compatibility. Heat pumps need controls that manage staging and backup properly.

When you collect quotes, make sure each one lists the same capacity, model numbers and scope. Our guide on how to compare contractor quotes includes a side-by-side checklist, and the complete heat pump guide covers equipment choices in depth.

All prices in this post are estimates and will vary by contractor, region and home.