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Yes, if you heat with gas, oil or propane now: the heat pump runs on electricity, so that bill rises while the fuel bill falls or ends. If you heat with electric baseboards, your electricity bill usually goes down. Homes with electric baseboards and AC save about $849 a year on average with a heat pump; gas-and-AC homes about $169 (Clean Energy Canada model).
Key facts
| Heated by now | What the study found | Source |
|---|---|---|
| Gas (B.C.) | Running costs are close: about $731 a year for a gas furnace vs about $642 for a heat pump (BC Hydro). | BC Hydro |
| Electric baseboards (B.C. model) | Homes with electric baseboards and AC save about $849 a year on average with a heat pump; gas-and-AC homes about $169 (Clean Energy Canada model). | Clean Energy Canada |
| Gas (cities studied) | 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). | Canadian Climate Institute |
Running-cost findings from neutral studies (averages, not a promise for your home)
Program data last verified
RebateHub, “Will a heat pump increase my electricity bill?”, https://rebatehub.ca/faq/does-a-heat-pump-increase-electricity-bill#key-facts (last verified October 12, 2026).
Add up the rebates that lower the upfront cost
Running costs are one half. The receipt adds up the rebates for your province and heating fuel.
Your rebate stack
British Columbia · Heat pumps
2 programs
Could add up to
if you qualify for each program
$5,000
+ $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
Instant discount
- Home Renovation Rebate Programup to $4,000
Heat pump, whole-home heating (replacing electric heat) · Rebate
Whole-home heat pump (Home Renovation Rebate Program) · Rebate · Closing soon
Rebate · Regional District of Central Kootenay, Nelson, Castlegar, Creston, Kaslo, Nakusp, New Denver, Salmo, Silverton, Slocan only
Free upgrade · Victoria, Saanich only
Plus 4 loan programs, up to $6,500 · 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.
4 income-qualified programs hidden.
If your home is heated by gas
Running costs
Running costs are close: about $731 a year for a gas furnace vs about $642 for a heat pump (BC Hydro). Read the report
Averages from the study, not a promise for your home.
Your electricity bill goes up and your gas bill goes down. If you keep gas for backup or cooking, you keep paying the gas bill's fixed charges. Compare dual fuel and all-electric.
If your home is heated by electricity
Running costs
Homes with electric baseboards and AC save about $849 a year on average with a heat pump; gas-and-AC homes about $169 (Clean Energy Canada model). Read the report
Averages from the study, not a promise for your home.
Electric-heated homes usually see the biggest drop, and in several provinces get the biggest rebates. See heat pump vs baseboard heaters.
How to keep the bill down
- Insulate and air-seal first: see insulation rebates.
- Pick a cold-climate model sized for your home, so backup heat runs less.
- Ask your utility about time-of-use or dual-energy rates, where offered.
Frequently asked questions
Sources
Last updated . Amounts and rules come from the official program pages below. If something has changed, please tell us.
- 1Home Renovation Savings Program · Save on Energyhomerenovationsavings.ca
- 2Home Renovation Rebate Program · BC Hydro and FortisBC, with funding from the Province of B.C.bchydro.com
- 3CleanBC Energy Savings Program (ground-oriented homes) · Province of B.C.betterhomesbc.ca
- 4BC Hydro, Bringing the heatbchydro.com
- 5Clean Energy Canada, More for lesscleanenergycanada.org
- 6Canadian Climate Institute, Heat pumps in Canadaclimateinstitute.ca