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An electric furnace is usually cheaper to install ($2,000 to $7,500 (RenoQuotes, Sept 2026, installer estimate)) than a high-efficiency gas furnace ($4,000 to $7,000 (RenoQuotes, Sept 2026, installer estimate)). Running costs depend on your gas and electricity rates. Neither gets many rebates; a heat pump does.
Key facts
| Gas furnace | Electric furnace | |
|---|---|---|
| Typical installed cost | $4,000 to $7,000 (RenoQuotes, Sept 2026, installer estimate) | $2,000 to $7,500 (RenoQuotes, Sept 2026, installer estimate) |
| Needs | A gas line and a vent | Enough electrical capacity (often a large circuit) |
| Heat per unit of energy | Burns gas; high-efficiency models vent less heat | One unit of electricity gives about one unit of heat |
| Rebates | Few: e.g. SaskEnergy Residential Equipment Replacement Rebate Program ($325) | None on file |
| Cooling | No | No |
Gas vs electric furnace, from named cost sources and our program database
Program data last verified
RebateHub, “Gas furnace vs electric furnace: cost to buy and run”, https://rebatehub.ca/compare/gas-furnace-vs-electric-furnace#key-facts (last verified October 12, 2026).
Price the third option: a heat pump
Most rebates now go to heat pumps. Pick your province and how you heat today to see what a heat pump would get.
Your rebate stack
Ontario · Heat pumps
1 program
Could add up to
Depends on how you heat
$2,000–$7,500
+ $2,000 when the National Heat Pump Rebate opens
Verified against official sources ·
How it adds up
- National Heat Pump Rebate+ $2,000
Cold-climate air-source heat pump (other eligible homeowners) · Rebate · Not open yet · not in the total
- Home Renovation Savings Programup to $7,500
Cold-climate air-source heat pump (home heated by electricity, oil, propane or wood) · Rebate
Free upgrade · Toronto only
City loans in 7 Ontario cities, from about $53/month per $10,000 · not counted
Program maximums for an air-source heat pump. Ground-source systems can get more. Your amount depends on your home and the equipment. City-only programs aren’t counted in the total.
3 income-qualified programs hidden.
Upfront cost
| System | Typical installed cost | Source |
|---|---|---|
| High-efficiency natural gas furnace | $4,000 to $7,000 | RenoQuotes, Sept 2026 (installer estimate) |
| Electric furnace | $2,000 to $7,500 | RenoQuotes, Sept 2026 (installer estimate) |
| Propane furnace | $6,000 to $8,000 | RenoQuotes, Sept 2026 (installer estimate) |
| Oil furnace | $5,500 to $8,500 | RenoQuotes, Sept 2026 (installer estimate) |
| Natural gas furnace, installed | $4,000 to $6,500 | RBC (citing FurnacePrices.ca), May 2024 |
Furnace installed costs by fuel
Typical ranges before rebates and tax, not quotes. Your price depends on the home, the ductwork and the equipment. Ask for at least two written quotes.
Switching fuel adds cost: a new gas line, or a bigger electrical service. In Québec, an oil furnace can't be replaced with another oil furnace (see Chauffez vert).
Running costs
An electric furnace turns each kilowatt-hour into about one kilowatt-hour of heat, so its cost follows your electricity rate. A gas furnace's cost follows your gas rate and its efficiency. We don't publish a single saving figure because rates differ by province. A heat pump moves heat instead of making it, so it uses less electricity than an electric furnace for the same heat: see heat pump vs furnace.
Rebates for each
Very few programs pay for a new furnace. One exception in our data is SaskEnergy's Equipment Replacement Rebate for high-efficiency gas furnaces. Most money goes to heat pumps instead, such as Home Renovation Savings in Ontario and LogisVert in Québec.
- Last verified October 12, 2026OpenProvincialNunavut
Elders Housing Program
Nunavut homeowners aged 60 or older, or receiving a disability benefit, can get an annual grant of up to $5,000 for preventative maintenance and a one-time grant of up to $30,000 for repairs and aging-in-place changes.
$30,000
max grant
Grant - Last verified October 12, 2026OpenProvincialNorthwest Territories
Renewable Energy Rebates
NWT residents can get up to $20,000 for solar and other renewable energy systems, or up to $30,000 for biomass heating such as wood-pellet boilers, with pre-approval and while funds last.
$30,000
max rebate
Rebate - Last verified October 12, 2026OpenProvincialBritish Columbia
CleanBC Energy Savings Program (ground-oriented homes)
Income-tested rebates, paid directly to registered contractors, that cover up to the full cost of a heat pump or heat pump water heater for lower- and middle-income B.C. households.
$16,500
max rebate, income-qualified
Rebate - Last verified October 12, 2026OpenProvincialYukon
Dependable Grid Program
Yukon rebates of up to $15,000 for electrically heated and new homes that add a dual-fuel heat pump system, a non-electric backup or primary heater, non-electric hot water or a generator transfer switch, to cut winter peak electricity demand.
$15,000
max rebate
Rebate - Last verified October 12, 2026OpenProvincialNunavut
Emergency Repair Program
Income-eligible Nunavut homeowners can get a grant of up to $15,000 for urgent repairs that threaten health or safety, such as a failed heating system or fuel supply.
$15,000
max grant, income-qualified
Grant - Last verified October 12, 2026OpenProvincialNewfoundland and Labrador
Provincial Home Repair Program (including former Home Energy Savings Program)
Low-income Newfoundland and Labrador homeowners can get a forgivable loan of up to $10,000 ($13,000 in Labrador) for repairs, including the energy-efficiency work formerly covered by the Home Energy Savings Program.
$13,000
max grant, income-qualified
Grant
Which one should you choose?
- Gas furnace if you already have gas and venting, and rates in your area favour gas.
- Electric furnace if there is no gas service, the upfront budget is tight, and your panel can take the load.
- Heat pump if you want cooling too, or a rebate. Read what to do if your furnace died first.
Frequently asked questions
Sources
Last updated . Amounts and rules come from the official program pages below. If something has changed, please tell us.