Geothermal vs air source heat pump

On this page

Key facts
Compare ground-source and air-source rebates
What each costs
Rebates for geothermal
Which one should you choose?
Frequently asked questions
Sources

Short answer

Geothermal costs much more to install: $15,000 to $30,000 or more (RBC, May 2024) vs $10,000 to $19,000 (RBC, May 2024) for a cold-climate air-source system. Some rebates are bigger for it, such as $2,000 per ton, up to $12,000 from Home Renovation Savings in non-gas Ontario homes.

Key facts

Geothermal vs air-source heat pumps, from named cost sources and our program database
	Geothermal (ground-source)	Air-source
Typical installed cost	$15,000 to $30,000 or more (RBC, May 2024)	$10,000 to $19,000 (RBC, May 2024)
Home Renovation Savings (Ontario, not gas-heated)	$2,000 per ton, up to $12,000	$1,250 per ton, up to $7,500
LogisVert (Québec)	$750 per 1,000 BTU/h	$120 per 1,000 BTU/h at -8°C (advertised up to $6,700)
NB Power Total Home	$2,000	$1,500
Manitoba	No upfront cost; $75/month for 15 years, interest-free	$1,500 to $2,000
Main downside	Drilling or trenching; high upfront cost	Output drops in deep cold

Geothermal vs air-source heat pumps, from named cost sources and our program database

Program data last verified October 12, 2026

Compare ground-source and air-source rebates

See the geothermal rate for your home

The finder has a heat pump type question. Pick ground-source to see programs that pay for geothermal in your province.

Heat pumps

Check my rebates

About a minute · no account · independent, not the government

What each costs

Geothermal and air-source installed costs
System	Typical installed cost	Source
Ground-source (geothermal) heat pump	$15,000 to $30,000 or more	RBC, May 2024
Cold-climate air-source heat pump, whole home	$10,000 to $19,000	RBC (citing CBC), May 2024

Geothermal and air-source installed costs

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.

The loop field is most of the extra cost. A vertical (drilled) loop costs more than a horizontal (trenched) one.

Rebates for geothermal

Home Renovation Savings: $2,000 per ton, up to $12,000 in homes not heated by gas, or $3,000 flat for gas-heated homes. LogisVert: $750 per 1,000 BTU/h. Manitoba's ground-source offer: no upfront cost; $75/month for 15 years, interest-free.

The National Heat Pump Rebate, as announced, is for cold-climate air-source heat pumps. See the National Heat Pump Rebate guide.

Which one should you choose?

Geothermal if you have the land, plan to stay a long time, and a program pays its higher rate.
Air-source for most homes: lower cost, no digging, and the federal rebate once it opens.

Frequently asked questions

It can be when a program pays the higher geothermal rate and you plan to stay for many years. RBC puts the installed cost at $15,000 to $30,000 or more, so get several quotes.

As announced on October 8, 2026, it is for eligible cold-climate air-source heat pumps. Detailed rules aren't published yet.

Sources

Last updated October 17, 2026. Amounts and rules come from the official program pages below. If something has changed, please tell us.