Heat Pumps in Ontario: The Complete Homeowner's Guide

A heat pump is an electric heating and cooling system that moves heat instead of making it. In winter it pulls heat out of the outdoor air (or the ground) and moves it inside; in summer it runs in reverse as an air conditioner. Because moving heat takes far less energy than creating it, a heat pump typically delivers two to three units of heat for every unit of electricity it uses over an Ontario heating season.

That efficiency is real, but whether a heat pump saves you money depends on what you heat with now, the condition of your house, electricity and gas prices, and how well the system is designed and installed. This guide walks through each of those factors with Ontario numbers so you can make the decision with clear eyes.

How a heat pump works, and the main types

Every heat pump uses a refrigerant loop, a compressor and two coils. The outdoor coil absorbs heat, the compressor concentrates it, and the indoor coil releases it into your air or water. Even at −15 °C, outdoor air contains usable heat.

Type	How it delivers heat	Typical installed cost (2026, estimate)	Best fit
Ducted air-source (central)	Indoor coil on your furnace or air handler, uses existing ducts	$12,000–$25,000	Homes with ducts in reasonable shape
Ductless mini-split, single zone	Wall-mounted head in one room	$4,500–$8,000	Additions, open-plan main floors, homes with baseboard heat
Ductless multi-zone	One outdoor unit, several indoor heads	More than single zone; varies by number of heads	Homes without ducts that need several rooms covered
Ground-source (geothermal)	Buried loop exchanges heat with the earth	$30,000–$60,000+	Rural lots, new builds, long ownership horizons

All costs above are typical ranges, not quotes. Your price depends on capacity, electrical upgrades, ductwork changes and access.

Note: New heat pumps sold in Canada now use lower-global-warming refrigerants such as R-454B or R-32 (called A2L refrigerants) as R-410A is phased down under federal HFC regulations. Ask your contractor which refrigerant the unit uses and confirm they are trained to handle it.

Will a heat pump work in an Ontario winter?

Yes, if you choose a cold-climate model. Cold-climate air-source heat pumps (often written ccASHP) are designed to keep producing heat down to roughly −25 °C to −30 °C. Their efficiency falls as it gets colder, so on the coldest nights they deliver less heat per unit of electricity and may need help from a backup source.

Ontario climate varies a lot, and that shapes the design:

• Southern Ontario (Toronto, Hamilton, London, Windsor, Niagara): roughly 3,500–4,000 heating degree days. Toronto sits around 3,500–3,600. A well-sized ccASHP can carry most or all of the load.
• Eastern Ontario (Ottawa, Kingston area): Ottawa is about 4,500 heating degree days, with more hours below −20 °C. Backup heat matters more.
• Northern Ontario (Sudbury, Thunder Bay): about 5,000–5,700 heating degree days. Heat pumps still work, but a hybrid system or generous backup is common.

For a full look at cold-weather performance, defrost cycles and backup heat, read our cold-climate heat pump guide.

When comparing models, look at the HSPF2 rating for Region V (the cold-climate region) and the manufacturer's published capacity at −15 °C and −25 °C. A unit that loses half its output at −15 °C is not a cold-climate unit, whatever the brochure says.

What it costs to run compared with what you have now

Your current fuel is the biggest factor in whether a heat pump pays off.

Current heating	Likely change in heating cost with a ccASHP	Comment
Electric baseboard or furnace	Large drop, often half or more	Heat pump uses roughly a third to a half of the electricity
Oil or propane	Usually a large drop	Depends on fuel prices; oil-to-heat-pump programs may apply
Natural gas (high-efficiency furnace)	Roughly break-even to modestly higher or lower	Gas became cheaper when the federal carbon charge was removed on 1 April 2025

These are estimates. Southern Ontario seasonal efficiency (seasonal COP) for a good ccASHP is typically about 2.5–3.0. Ontario electricity under the Regulated Price Plan is 9.1¢ off-peak, 14.6¢ mid-peak and 18.9¢ on-peak on Time-of-Use for 1 November 2026 to 31 October 2027, but delivery, regulatory charges and HST add to that. A typical all-in average for a Toronto-area home is roughly 15–19¢ per kWh before the 15.7% Ontario Electricity Rebate.

For gas-heated homes, the honest picture is that operating savings are now small or negative in many cases. The stronger arguments are that a heat pump replaces your air conditioner, provides efficient cooling, cuts household emissions, and protects you from future gas price changes. Our heat pump vs gas furnace cost comparison shows a worked example, and the heat pump vs furnace calculator lets you plug in your own bills.

Heat pump homes use more electricity: an all-electric home often uses 12,000–20,000+ kWh a year compared with about 7,000–9,000 kWh for a home with gas heat. That makes your electricity price plan choice more important than before.

Rebates and programs in 2026

The main program is the Home Renovation Savings Program (HRS), jointly delivered by Save on Energy and Enbridge Gas. According to figures published by Save on Energy in mid-2026:

Equipment (owned, not rented)	Gas-heated home	Home with other primary heat (electric, oil, propane)
Cold-climate air-source heat pump	$500 per ton, up to $2,000	$1,250 per ton, up to $7,500
Ground-source heat pump	$3,000 flat	$2,000 per ton, up to $12,000

Key rules:

• You must use a participating contractor and get pre-installation approval before work starts.
• The equipment must be on the program's qualified-products list.
• The home must be owner-occupied, low-rise residential and occupied at least six months a year.
• A heat pump that received another Enbridge, IESO or Government of Ontario incentive is not eligible, and total funding can't exceed 100% of the cost.

Income-qualified households heating with oil may be eligible for the Oil to Heat Pump Affordability program in Ontario, delivered through Save on Energy, which was announced at up to $25,000 plus $250 upfront. Intake status can change, so confirm before you plan around it.

The federal Canada Greener Homes Grant and Loan are both closed to new applicants. Programs change often; always check https://saveonenergy.ca (opens in a new tab) and our rebates directory before you sign a contract.

Is a heat pump right for your home? A checklist

A heat pump is usually a strong choice if most of these apply:

• You heat with electric resistance, oil or propane.
• Your air conditioner is more than 12–15 years old or failing.
• Your furnace is nearing the end of its life and you would otherwise replace both.
• Your attic insulation and air sealing are in decent shape, or you plan to improve them first.
• Your electrical panel has room (often 200 A service is comfortable; many 100 A homes can still manage with load calculations).
• You plan to stay in the home long enough to benefit, typically 7–10+ years.

It may be not worth it right now if your gas furnace and AC are both under about 8 years old and working well, your home is very leaky, or your panel would need a costly service upgrade with no other reason to do it. In that case, fix the envelope first; see our home energy assessment guide.

Tip: If you keep your existing gas furnace as backup, a hybrid or dual-fuel setup can be a low-risk first step. See hybrid heating explained.

Getting the installation right

Performance problems with heat pumps are usually design or installation problems, not technology problems.

• Insist on a room-by-room heat loss calculation (CSA F280 or equivalent), not a rule-of-thumb sizing. See our sizing guide.
• Check the ducts. Heat pumps deliver air at lower temperatures than a gas furnace, so undersized or leaky ducts cause comfort complaints.
• Plan the outdoor unit location: raised on a stand above snow level, clear of roof drip lines, with room for defrost water to drain and freeze safely.
• Confirm permits. Electrical work needs an ESA permit; any gas work requires a TSSA-licensed G2 or G1 gas technician.
• Ask about controls. The thermostat must be compatible with variable-speed equipment and should limit when backup heat runs.

Choose an installer with cold-climate heat pump experience, HRAI membership or equivalent training, refrigerant handling certification (ODP card), and participating-contractor status if you want the rebate. Our contractor selection guide has a full question list.

Frequently asked questions

Do I need to remove my gas furnace?

No. Many Ontario homeowners keep the furnace as backup heat in a hybrid system, which is often the lowest-risk option in colder regions. If you remove gas completely, you also stop paying Enbridge's fixed monthly customer charge, which improves the economics.

How long does a heat pump last?

A well-installed air-source heat pump typically lasts about 15–20 years, similar to a central air conditioner. Ground-source loops can last 50 years or more, while the indoor unit lasts about 20–25 years. Annual maintenance helps; see our maintenance checklist.

Will my electricity bill go up?

Yes, your electricity bill will rise because heating moves from gas or oil to electricity. What matters is the combined energy cost. For gas-heated homes the total is often similar; for oil, propane or electric-resistance homes, it usually drops.

Can a heat pump heat my water too?

A standard air-source heat pump heats air only. Heat pump water heaters are separate appliances and qualify for their own rebate in the HRS assessment stream. See water heater options in Ontario.