Heat pumps in Ontario
Heat pumps went from a curiosity to the default upgrade in about five years, helped by rebates worth up to $12,000. Here is what they cost installed in Ontario, and when one is genuinely the right call.
Quick answer
A cold-climate air-source heat pump costs $12,000 to $20,000 installed in Ontario, before rebates of up to $7,500 from the Home Renovation Savings Program. Ground-source (geothermal) runs $30,000 to $45,000 with rebates up to $12,000. Modern cold-climate units heat effectively well below freezing.
$12k to $20k
Air-source installed
Up to $7,500
Air-source rebate
$30k to $45k
Geothermal installed
Up to $12,000
Geothermal rebate
How much does a heat pump cost installed?
A heat pump is an air conditioner that can run backwards. In summer it moves heat out of the house; in winter it moves heat in, harvesting it from outdoor air that still contains plenty of energy even at minus twenty. Because it moves heat rather than making it, it delivers two to four units of heat per unit of electricity, which is why the running cost can beat resistance electric heating outright.
| System | Typical installed cost |
|---|---|
| Ductless mini-split, single zone | $4,500 to $8,000 |
| Ductless multi-split, three to four zones | $12,000 to $20,000 |
| Cold-climate air-source, ducted (ccASHP) | $12,000 to $20,000 |
| Hybrid: heat pump plus existing gas furnace | $10,000 to $16,000 |
| Ground-source / geothermal | $30,000 to $45,000 |
The wide ranges are real. Ducted retrofits depend on whether the existing ductwork can carry the airflow a heat pump needs, which is a different question from whether it carried a furnace’s. Undersized returns are the most common hidden cost in a ducted retrofit.
The rebates, precisely
Under the provincial Home Renovation Savings Program, run by the IESO, heat pumps sit in the single-upgrade stream, which means no home energy assessment is required:
- Cold-climate air-source heat pump: up to $7,500, with the amount scaled by system capacity
- Ground-source (geothermal) heat pump: up to $12,000
- Heat pump water heater: $500
The unit must appear on Natural Resources Canada’s qualified products list, so the model is not a detail you can leave to the end. Rebate amounts scale with the rated heating capacity, and the program has been confirmed to run through November 2026, though it can close earlier if the budget is exhausted.
Check the program before you sign, not after. Rebate programs change, budgets run
out, and eligibility lists get revised. Treat the figures here as a starting point and confirm the current
terms on the Save on Energy site before you commit to a model.
Do they actually work in a Canadian winter?
Yes, with a caveat worth understanding. Older heat pumps lost most of their output near freezing, which is where the folk wisdom comes from. Cold-climate units use variable-speed compressors and rate their performance down to roughly minus 25, which covers the overwhelming majority of Ontario hours.
What changes is the design conversation. Two honest approaches:
- Hybrid. Keep the gas furnace as backup and let the controls switch over on the coldest days. This is the cheapest path, and it caps your risk on the handful of nights per year when a heat pump is least efficient.
- Full electric. Size the heat pump for the design day and add electric backup strips. Cleaner, and it lets you take the gas meter out, but it demands more of the envelope and sometimes the electrical panel.
A ducted heat pump also runs longer and gentler than a furnace, at lower air temperature. Houses feel more even, but people used to a furnace’s hot blast sometimes read that as underheating. It is not; it is how they work.
Heat that costs less to run
Envelope first, then the right sized system, with the rebate paperwork handled. Talk to us.
Talk to ZeybekDo the envelope first
This is the part the rebate marketing skips. A heat pump sized for a leaky house is a bigger, more expensive heat pump that runs harder for the same comfort. Air sealing and attic insulation are the cheapest heat you will ever buy, and doing them first can drop you a full ton of capacity.
The order that saves money: air sealing, then insulation, then windows if they are genuinely finished, then the heat pump sized for the house you now have. We build tight envelopes as a matter of course; see our standards and credentials.
Which system suits which house
- Existing ducts in decent shape: a ducted cold-climate unit, likely hybrid with the furnace you already have.
- Hot water rads, no ducts: ductless mini-splits, one head per zone. Cheaper than retrofitting ductwork into a finished house.
- Oil or propane heat: the strongest case of all, because you are displacing the most expensive fuel. Federal oil-to-heat-pump funding may stack on top.
- Big lot, new build, long horizon: geothermal is worth pricing. High capital, lowest running cost, longest life.
Frequently asked questions
How much does a heat pump cost in Ontario?
A cold-climate air-source heat pump runs $12,000 to $20,000 installed before rebates. Ductless mini-splits start around $4,500 for a single zone. Geothermal runs $30,000 to $45,000.
What heat pump rebates are available in Ontario in 2026?
The Home Renovation Savings Program offers up to $7,500 for a cold-climate air-source heat pump and up to $12,000 for ground-source. No home energy assessment is required for these, but the unit must be on Natural Resources Canada's qualified products list.
Do heat pumps work in Ontario winters?
Cold-climate models are rated to roughly minus 25 and cover almost all Ontario hours. Many homeowners keep the gas furnace as backup in a hybrid setup, which handles the coldest nights and lowers the upfront cost.
Is a heat pump cheaper to run than a gas furnace?
It depends on the gas and electricity rates you pay. A heat pump beats electric resistance heat outright and beats oil or propane comfortably. Against cheap natural gas the running costs are closer, which is why hybrid systems are common in Ontario.
Should I insulate before installing a heat pump?
Yes. Air sealing and attic insulation are cheaper per unit of comfort than heating capacity, and doing them first can let you install a smaller, cheaper heat pump that runs less hard.
Zeybek Construction
General contractors, Ontario
Written by the Zeybek team from more than two decades of renovation and construction work across Ontario, from Toronto and the GTA to Kitchener, Waterloo, and beyond. We build kitchens, bathrooms, whole homes, additions, and commercial spaces, and we handle permits and inspections as part of the job.
Related guides
Last updated July 16, 2026. This guide is general information for Ontario homeowners and is not a substitute for a site-specific quote or municipal advice. Costs, rebate programs, and rules vary by municipality and change over time.
Heat that costs less to run
Envelope first, then the right sized system, with the rebate paperwork handled. Talk to us.