Heat pump cost · Ontario · 2026
How much does a heat pump cost in Ontario? (2026)
A ducted cold-climate heat pump costs $12,000–$19,000 installed in a typical 2,000–2,500 sq ft Ontario home, and a single ductless head $4,000–$8,500. Home Renovation Savings takes off $1,250 per ton, up to $7,500, in a home heated by electricity, oil or propane, and $500 per ton, up to $2,000, in an Enbridge gas home. To run, a heat pump costs far less than electric baseboard or oil, but more than a gas furnace at today's Ontario prices.
Heat pump cost in Ontario after rebates, by home size
The rebate depends on what heats the home now. A home on electricity, oil or propane gets the higher rate, usually for a ducted system that takes over the heating. A home on Enbridge gas gets the lower rate, often for dual-fuel: a heat pump that keeps the furnace as backup for the coldest days.
| Heated floor area | Ducted, installed | Ducted after rebate (electric, oil or propane home) | Dual-fuel, installed | Dual-fuel after rebate (Enbridge gas home) |
|---|---|---|---|---|
| Under 1,000 sq ft (1.5 tons) | $9,000–$14,300 | $7,125–$12,425 | $4,500–$7,500 | $3,750–$6,750 |
| 1,000–1,500 sq ft (2 tons) | $9,800–$15,600 | $7,300–$13,100 | $4,900–$8,200 | $3,900–$7,200 |
| 1,500–2,000 sq ft (2.5 tons) | $10,600–$16,700 | $7,475–$13,575 | $5,300–$8,800 | $4,050–$7,550 |
| 2,000–2,500 sq ft (3 tons) | $12,000–$19,000 | $8,250–$15,250 | $6,000–$10,000 | $4,500–$8,500 |
| 2,500–3,000 sq ft (3.5 tons) | $13,200–$20,900 | $8,825–$16,525 | $6,600–$11,000 | $4,850–$9,250 |
| Over 3,000 sq ft (4+ tons) | $14,400–$22,800 | $9,400–$17,800 | $7,200–$12,000 | $5,200–$10,000 |
Installed prices are national ranges: no published source gives a price specific to Ontario. Rebates are worked out on the tonnage shown; the real amount follows the unit's rated capacity. Excludes a panel upgrade ($2,000–$4,000) and, in an oil home, tank removal ($800–$2,000).
What Ontario's heat pump rebates pay
- Home Renovation Savings, from Enbridge Gas and Save on Energy: $1,250 per ton, up to $7,500, for a cold-climate air-source heat pump in a home heated by electricity, oil, propane or wood; $500 per ton, up to $2,000, in a home heated by Enbridge gas. The contractor's application must be approved before work starts, the unit must be on Natural Resources Canada's cold-climate list, and the rebate is paid by cheque after the install.
- Energy Affordability Program, from Save on Energy: a cold-climate heat pump installed at no cost for income-eligible households heated by electricity or oil, through the program's own contractors.
- Separately, the federal National Heat Pump Rebate will add up to $10,000 for households below the median income, or $2,000 for others. It opens in early 2027 and covers eligible installs from November 1, 2026. It is not counted in the figures on this page.
Gas-heated homes served by a utility other than Enbridge, and homes replacing an existing heat pump, do not qualify for Home Renovation Savings. The Ontario heat pump rebate guide lists every condition and the application steps.
What a heat pump costs to run in Ontario
The running cost comes down to the price of energy. These are Ontario's current prices for the next unit of energy a home buys in winter, with delivery and tax included:
- Electricity: 14.0–15.9¢ per kWh, from the Ontario Energy Board's prices for November 1, 2026, after HST and the Ontario Electricity Rebate. The range covers Toronto Hydro, Hydro Ottawa, Alectra, Hydro One (urban and rural), on Time-of-Use and Tiered plans.
- Natural gas: about 30.4¢ per m³ in the Enbridge Gas Distribution zone from October 1, 2026, with HST, on top of a fixed $27.69-a-month customer charge. The federal carbon charge is zero.
- Heating oil: 250–259¢ per litre in Ottawa and Toronto in September 2026, up from 214–218¢ in July.
| Heating system | Per 1,000 kWh of heat | Per year, example home |
|---|---|---|
| Cold-climate heat pump (2.4 to 2.9 units of heat per unit of electricity) | $48–$66 | $950–$1,310 |
| Gas furnace, 95% efficient | $31 | $610 |
| Electric baseboard | $140–$159 | $2,770–$3,140 |
| Oil furnace, 85% efficient | $277–$288 | $5,480–$5,690 |
Example home: a furnace that burns 2,000 m³ of gas a year for heat, which delivers about 19,800 kWh of heat. Enbridge's typical residential customer uses 2,400 m³ a year, water heating included. Gas figures exclude the fixed charge.
Gas wins on running cost. A heat pump would need to deliver about 4.6 to 5.2 units of heat for each unit of electricity to match it, and a cold-climate unit averages about 2.4 to 2.9 by its seasonal rating. In the example home, heat from a heat pump costs about $340–$700 a year more than heat from the furnace.
Where a heat pump saves money in Ontario
- Electric baseboard: the same heat for about $1,610–$2,060 a year less in the example home, because each unit of electricity brings two to three units of heat instead of one.
- Oil: about $4,170–$4,740 a year less at September's oil prices. Oil prices swing more than electricity: they rose 17–19% between July and September 2026.
- Propane: usually a saving too, but propane prices are not in the Statistics Canada survey, so check your own price per litre.
If you heat with gas
A heat pump is still worth pricing when the furnace or air conditioner is near the end of its life: a heat pump also cools, so one install replaces both, and Home Renovation Savings covers part of it. Dual-fuel keeps the furnace for the coldest days. The fixed gas charge, about $332 a year, goes away only if the gas meter does, which also means replacing a gas water heater or stove. The heat pump vs. furnace guide compares ten-year costs.
Ontario heat pump cost questions
How much does a heat pump cost in Ontario?
A ducted cold-climate heat pump costs $12,000–$19,000 installed in a typical 2,000–2,500 sq ft Ontario home, before rebates. Home Renovation Savings then pays $1,250 per ton, up to $7,500, in a home heated by electricity, oil or propane, which brings a 3-ton system to about $8,250–$15,250. In an Enbridge gas home the rebate is $500 per ton, up to $2,000. The table by home size shows every size.
How much does it cost to install a heat pump in Ontario?
The installed price covers the equipment, labour, line set, electrical hookup and commissioning: $12,000–$19,000 for a ducted system and $4,000–$8,500 for a single ductless head. Two extras come up often: an electrical panel upgrade ($2,000–$4,000) and ductwork changes ($1,500–$3,500). An oil-heated home adds tank removal ($800–$2,000).
How much does a ductless heat pump cost in Ontario?
A single ductless head costs $4,000–$8,500 installed and a multi-zone system, with several heads on one outdoor unit, $8,000–$15,000. Home Renovation Savings pays per ton of capacity, so a small single-head system earns much less than the cap. Both the indoor and outdoor units must be new to qualify.
How much does a heat pump cost to run in Ontario?
At Ontario's prices from November 1, 2026, a cold-climate heat pump costs about $950–$1,310 a year to heat a home that would otherwise burn 2,000 m³ of gas. The same heat costs about $610 from a gas furnace, $2,770–$3,140 from electric baseboard and $5,480–$5,690 from an oil furnace. Running costs shows the prices behind each figure.
Is a heat pump cheaper to run than gas in Ontario?
Not at current prices. Gas from Enbridge costs about 30.4¢ per m³ with tax, and electricity 14.0–15.9¢ per kWh. A heat pump would need to deliver about 4.6 to 5.2 units of heat per unit of electricity to match gas, and cold-climate units average about 2.4 to 2.9 by their seasonal rating. In a gas home, the case for a heat pump rests on replacing the air conditioner at the same time, the rebate, and lower emissions.
How much is a heat pump in Ontario per month?
To run, about $80–$110 a month averaged over the year for a home that would burn 2,000 m³ of gas, with most of it billed in winter. That replaces about $51 a month of gas, and much more where it takes over from electric baseboard or oil.
Does Ontario have a heat pump rebate?
Yes. Home Renovation Savings, run by Enbridge Gas and Save on Energy, pays $1,250 per ton up to $7,500 in a home heated by electricity, oil or propane, and $500 per ton up to $2,000 in an Enbridge gas home. Lower-income households can get a heat pump installed at no cost through the Energy Affordability Program. The Ontario rebate guide covers who qualifies and how to apply. Separately, the federal National Heat Pump Rebate will add up to $10,000 for households below the median income, or $2,000 for others. It opens in early 2027 and covers eligible installs from November 1, 2026.
How these numbers are built
Installed prices come from the same cost model as the national heat pump cost guide, which lists its sources. No source supports a provincial price factor, so Ontario uses the national ranges.
Rebates were checked on the Home Renovation Savings pages on 2026-10-22.
Electricity is the cost of one more kWh in winter, with delivery, regulatory charges and HST, less the Ontario Electricity Rebate. It is the Ontario Energy Board bill calculator's winter bill at 2,000 kWh a month minus its bill at 1,000 kWh, read on 2026-10-28 for each utility listed above. Delivery charges are mostly fixed in Ontario, so the extra kWh costs less than the average on a bill.
Natural gas adds Enbridge's per-m³ delivery charge for use above 170 m³ a month (the rate most winter use falls under), transportation, gas supply and the facility carbon charge, plus 13% HST.
Conversions: 10.4 kWh of energy per m³ of gas, 10.6 kWh per litre of heating oil, a 95% gas furnace (the minimum for a new one in Canada) and an 85% oil furnace. The heat pump range is the seasonal rating of a cold-climate unit: ENERGY STAR's floor of 8.1 HSPF2 for a ducted unit works out to 2.4, and a 10 HSPF2 unit to 2.9. Real results vary with the home, the weather and the installation.
- Ontario Energy Board: electricity prices from November 1, 2026
- Ontario Energy Board: residential bill calculator (all-in cost per extra kWh, five utilities)
- Ontario Energy Board: natural gas rates from October 1, 2026
- Ontario Energy Board: Enbridge Gas Rate 1 charges from October 1, 2026 (PDF)
- Ontario Energy Board: Enbridge Gas bill backgrounder, October 2026 (PDF)
- Statistics Canada: household heating fuel prices, Toronto and Ottawa (table 18-10-0001-01)
- ENERGY STAR: air-source heat pump criteria, including the cold-climate HSPF2 floors