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A heat pump costs more to install than a gas furnace: $10,000 to $19,000 (RBC, May 2024) vs $4,000 to $6,500 (RBC, May 2024). Most provinces pay toward a heat pump and almost none toward a gas furnace. The table below lists each province's heat pump programs. The federal National Heat Pump Rebate ($2,000, or up to $10,000 for households below the median income) was announced on October 8, 2026 but isn't open yet.
Key facts
| Heat pump | Gas furnace | |
|---|---|---|
| Typical installed cost | $10,000 to $19,000 (RBC, May 2024) | $4,000 to $6,500 (RBC, May 2024) |
| Heats and cools | Yes, one system does both | Heats only; AC is separate |
| Rebates in Canada | Programs in most provinces | Very few (see below) |
| Federal rebate | $2,000, or up to $10,000 for households below the median income (not open yet) | None |
| Running costs | Over its life, a heat pump with electric backup costs about 13% less on average than a gas furnace plus AC in the cities studied (Canadian Climate Institute). | Gas and delivery charges, plus electricity for AC |
| Main downside | Higher upfront cost; output drops in deep cold | No cooling, and few or no rebates |
Heat pump vs gas furnace in Canada: installed costs from named sources, rebates from our program database
Program data last verified
RebateHub, “Heat pump vs furnace: cost, rebates and running costs in Canada”, https://rebatehub.ca/compare/heat-pump-vs-furnace#key-facts (last verified October 12, 2026).
Add up your heat pump rebates
Pick how your home is heated now. The receipt adds up every open program, with the federal rebate on its own line until it opens.
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
These are typical installed prices before rebates and tax. No neutral source publishes a province-by-province range, so these are Canada-wide figures; installer estimates are labelled.
| System | Typical installed cost | Source |
|---|---|---|
| Cold-climate air-source heat pump, whole home | $10,000 to $19,000 | RBC (citing CBC), May 2024 |
| Standard air-source heat pump | about $9,000 | RBC (citing the Canadian Climate Institute), May 2024 |
| Natural gas furnace, installed | $4,000 to $6,500 | RBC (citing FurnacePrices.ca), May 2024 |
| High-efficiency natural gas furnace | $4,000 to $7,000 | RenoQuotes, Sept 2026 (installer estimate) |
| Dual-fuel system (heat pump plus furnace) | $9,000 to $18,000 | RenoQuotes, Sept 2026 (installer estimate) |
Typical installed costs, heat pump vs gas furnace
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.
A heat pump replaces both the furnace and the air conditioner, so compare it with the price of both if you would replace your AC too. Put your own quote into the rebate finder to see what you'd pay after rebates.
Rebates: heat pump vs furnace, by province
Most provinces pay toward a heat pump and almost none toward a gas furnace. The table below lists each province's heat pump programs. The federal National Heat Pump Rebate ($2,000, or up to $10,000 for households below the median income) was announced on October 8, 2026 but isn't open yet.
| Province | Program | What it pays |
|---|---|---|
| British Columbia | CleanBC Energy Savings Program (ground-oriented homes) |
|
| CleanBC Energy Savings Program Condo and Apartment Rebate |
| |
| PST Exemption on Heat Pumps |
| |
| Home Renovation Rebate Program |
| |
| FortisBC Heat Pump Rebate for Income-Qualified Customers |
| |
| BC Hydro Community-Based Offers |
| |
| BC Hydro Condo and Apartment Rebate Program |
| |
| Energy Conservation Assistance Program |
| |
| BC Hydro Air Source Heat Pump Bonus Rebate (Fall 2026)Closing soon |
| |
| Manitoba | Efficiency Manitoba Cold Climate Air Source Heat Pump Rebate |
|
| Efficiency Manitoba Energy Efficiency Assistance Program |
| |
| Ontario | Home Renovation Savings Program |
|
| Energy Affordability Program |
| |
| Québec | LogisVert Efficient Homes Program |
|
| Énergir Dual-Energy Grants (heat pump added to a natural gas system) |
| |
| New Brunswick | Total Home Energy Savings Program |
|
| Enhanced Energy Savings ProgramWaitlist |
| |
| Nova Scotia | Home Energy Assessment Program |
|
| Moderate Income Rebate |
| |
| HomeWarming |
| |
| Newfoundland and Labrador | Oil to Electric Incentive Program |
|
| TakeCharge Greener Homes Program |
| |
| Yukon | Dependable Grid Program |
|
| Good Energy Heat Pump Rebate |
| |
| Affordable Heat Pump ProgramWaitlist |
|
Heat pump rebates by province. Generated from our program database, verified October 19, 2026. Loans aren’t included. City programs to check: Better Homes Ottawa Loan Program, Durham Greener Homes Loan Program, Home Energy Loan Program, Saskatoon Home Energy Loan Program.
Running costs
Running costs
Over its life, a heat pump with electric backup costs about 13% less on average than a gas furnace plus AC in the cities studied (Canadian Climate Institute). Read the report
Averages from the study, not a promise for your home.
Running costs swing with gas and electricity prices, your home's insulation and how cold your winters get. Air sealing and insulation lower both bills: see insulation rebates.
Which one should you choose?
- Choose a heat pump if you also want cooling, your AC is old too, or your home is heated by electricity, oil or propane. Those homes usually get the biggest rebates.
- Choose a furnace if your ducts and gas line are in place, you need the lowest upfront price this week, and no heat pump rebate applies to you.
- Choose both (dual fuel) if you want a backup for the coldest days. See dual fuel vs all electric.
Can you use both?
Yes. A heat pump can be added to an existing gas furnace, which then runs only when it's very cold. Rules on keeping a furnace differ by program, so read the rules on the program page before you book. If your furnace has failed, the furnace-died guide covers the order to do things in so you don't lose a rebate.
Honest downsides of each
Heat pump: costs more upfront, its output falls as the temperature drops (most rebate programs require a cold-climate model for that reason), and an older electrical panel may need an upgrade. Rebates often require a registered or participating installer and, for some programs, approval before installation.
Gas furnace: heats only, so you still need an air conditioner for summer. Almost no program pays for one, and you keep paying the fixed monthly charges on a gas bill as well as an electricity bill.
Frequently asked questions
Sources
Last updated . Amounts and rules come from the official program pages below. If something has changed, please tell us.
- 1National Heat Pump Rebate · Government of Canadacanada.ca
- 2Home Renovation Savings Program · Save on Energyhomerenovationsavings.ca
- 3Home Renovation Rebate Program · BC Hydro and FortisBC, with funding from the Province of B.C.bchydro.com
- 4LogisVert Efficient Homes Program · Hydro-Québechydroquebec.com
- 5Efficiency Manitoba Cold Climate Air Source Heat Pump Rebate · Efficiency Manitobaefficiencymb.ca
- 6SaskEnergy Residential Equipment Replacement Rebate Program · SaskEnergysaskenergy.com