Category: Heat Pumps

Replacing a heating system in Ontario raises more than a simple equipment-price question. A heat pump can provide both heating and cooling; a gas furnace provides heat and may be paired with a separate air conditioner. A hybrid design uses both heat sources. The suitable choice depends on the home’s heating load, existing equipment, electrical and duct capacity, comfort needs and total installed cost.

How each option provides heat

A gas furnace burns fuel to heat air delivered through the ducts. An air-source heat pump transfers heat between outdoors and indoors and reverses the process for cooling. Both need to be sized and installed for the home. A hybrid system combines a heat pump with a gas furnace and uses controls to select the heat source under different conditions.

Compare complete installed quotes

Ask each installer to describe the equipment, sizing, labor, electrical work, duct changes, backup heat, controls and any cooling equipment included. A heat-pump quote and a furnace-only quote may cover different work, so compare the same comfort scope. Do not subtract a rebate until the current program has confirmed that the homeowner, equipment and project meet its rules.

What affects Ontario operating costs?

Electricity and gas prices, equipment efficiency, outdoor conditions and how much heating the home needs all matter. A hybrid home may keep paying a fixed gas-service charge even when the heat pump supplies much of the heat. The electricity-to-gas price relationship and any retained gas connection can change the bill outcome. A percentage or annual-dollar saving from a sample home cannot predict your bill. Ask for a written energy-use comparison based on your home and current tariffs.

Cooling, backup heat and existing equipment

A heat pump also cools the home; a furnace needs a separate cooling system if you want central air conditioning. A cold-climate heat pump may be designed with electric backup, or paired with a gas furnace. The appropriate backup arrangement depends on the home’s heating load and the selected equipment. If your furnace or air conditioner still has useful life, include that fact in the replacement decision.

Check a current Ontario incentive

Ontario’s Home Renovation Savings program has a heat-pump pathway. The official directory lists Furnace King for ductless and centrally ducted cold-climate air-source systems. The former Canada Greener Homes Grant is closed to new applications. Check the current program terms and exact equipment before budgeting any incentive.

Frequently Asked Questions

Which is cheaper to run in Ontario: a heat pump or gas furnace?

Neither has a universal cost advantage. Compare the proposed equipment’s estimated energy use with your current electricity and gas tariffs and fixed charges, including a gas connection you would retain.

Can a heat pump replace a gas furnace?

It can in some homes when the system and backup heat are designed for the home’s load. An installer should assess the equipment, electrical service and comfort requirements before recommending that option.

What happens during very cold weather?

Heat-pump output and efficiency change as outdoor temperatures fall. The selected model and backup design determine how the home is heated in those conditions. Ask for the specific equipment’s performance data.

Which system lasts longer?

Service life varies with equipment, installation, maintenance and usage. Compare the written warranty and maintenance requirements of the systems being quoted rather than relying on one lifespan estimate.

Do I need both a heat pump and furnace?

No. A heat pump can be designed with electric backup or as a hybrid with a gas furnace. The right setup depends on the home’s load, existing equipment and a written cost comparison.

Get a home-specific comparison

Review Furnace King’s heat-pump services and ask for a written quote comparing the suitable options for your home.

The Canada Greener Homes Grant is closed to new applications. If you found an older heat-pump rebate guide, its federal grant amounts and application steps are no longer a basis for planning a new project. Ontario homeowners can check the current Home Renovation Savings program instead. Read the official terms before including any rebate in a budget.

What changed?

Natural Resources Canada stopped accepting new Greener Homes Grant applications. Older articles that describe opening an account, booking evaluations and submitting invoices for a new federal grant are out of date. The program’s closure does not tell you whether a different Ontario program will support your project. That depends on the current program rules and the work being proposed.

Where should Ontario homeowners look now?

Start with the official Home Renovation Savings heat-pump directory and program information. It lists Furnace King for ductless and centrally ducted cold-climate air-source heat pumps. A contractor’s listing is a starting point, not an approval for a particular home, model or installation. Check the equipment and household requirements with the program before ordering work.

Is there a new federal heat pump rebate?

On October 8, 2026, the federal government announced a National Heat Pump Rebate Program. According to the announcement, the rebate is up to $10,000 for households below the median income and $2,000 for other eligible homeowners, toward an electric cold climate air-source heat pump on the program’s Eligible Products List, with applications made through an online portal. The announcement also says no energy audits are required before or after installation, which is a change from the old Greener Homes process described above.

This is a new announcement, not a revival of the closed Greener Homes Grant. The announcement we reviewed does not give an application start date, does not say whether work completed before launch will qualify, and does not explain how the rebate works alongside provincial programs such as Ontario’s Home Renovation Savings. Until those details are confirmed, do not build a federal amount into your budget.

What to confirm before you order a heat pump

• Check the Government of Canada announcement for the application start date and the eligibility rules that apply to your household.
• Ask your contractor in writing whether the exact heat pump you are considering is a cold climate model that appears on the program’s Eligible Products List.
• Read the Home Renovation Savings heat-pump page before work begins. It lists pre-approval as mandatory and says installations completed before approval are not eligible.
• Ask for the full installed price without any rebate, so a delayed or declined rebate does not change whether the project makes sense.

Compare the whole installed project

Ask for a written scope that identifies the heat-pump model, sizing approach, any backup heat, electrical or ductwork changes, and the installed price before an assumed rebate. If you are comparing a heat pump with a gas furnace or a hybrid system, also ask how the proposed setup fits your existing equipment and utility bills. The lowest equipment price is not necessarily the lowest total installed cost.

Questions to settle before signing

• Which current program pathway, if any, is being proposed?
• Is the exact equipment on the program’s current eligible list?
• Which homeowner, home and installation requirements still need confirmation?
• Who will provide the documents required by the program?
• What is the full price if no rebate is approved?

Frequently Asked Questions

Can I apply for the Canada Greener Homes Grant now?

No. The federal grant is closed to new applications. Check current Ontario programs for a new project.

Does Furnace King’s directory listing guarantee a rebate?

No. Furnace King is listed for specified air-source heat-pump categories, but the proposed equipment, home and project must meet the current program rules.

How much will a new heat pump rebate be?

The federal government has announced up to $10,000 or $2,000 depending on household income, but the start date and eligibility details are not yet confirmed. Use the current official program information and confirm the project details before budgeting an amount.

Plan a heat-pump assessment

For a system recommendation and written project scope, review Furnace King’s heat-pump services. Compare any proposed rebate against the official current rules before making a purchase decision.