Prices, Price Factors and 2026 Programs
What drives heat pump, furnace and boiler prices in Canada, which rebate programs are open or closed in 2026, and how GST/HST and PST apply.
heat pump installation cost Canada
Heat pump and furnace replacement costs in Canada, worked out for your winter
A heating quote is a sizing calculation, an equipment choice, a set of provincial rules and a running-cost bet on the next fifteen winters. These guides show how each part is priced, which 2026 programs are still open and how to avoid the contracts that cost the most later.
- Rebuild a heat pump, furnace or boiler quote from heat loss, capacity and installation extras
- Check which federal and provincial programs are open in 2026, and how sales tax applies
- Compare running costs, then avoid rental, door-to-door and lien traps on heating equipment
Explore by topic
Worked Quotes and Choosing a System
Sizing, running-cost comparisons, oil conversions, hybrid systems, ducted versus ductless, financing, permits and licensed trades, with the arithmetic shown.
Contract Traps, Failures and Official Sources
Rental and door-to-door contract traps, liens on title, warranties, installation failures, complaints and where to check the rules in each province.
Start here
Prices, Price Factors and 2026 Programs
Cold-climate air-source heat pump prices: the ratings that change the quote
Why cold-climate heat pumps cost more than standard models, how to read capacity at −15 °C, COP and HSPF2, and which choices move a Canadian quote up or down.
Worked Quotes and Choosing a System
How to compare HVAC and heat pump quotes in Canada: a line-by-line method
A step-by-step method to compare heat pump, furnace and boiler quotes in Canada on the same scope, with a worked example, red flags and the documents to request.
Prices, Price Factors and 2026 Programs
Heat pump installation cost in Canada: what drives the price in 2026
How Canadian heat pump quotes are built, from heat loss and capacity to electrical work, ducts and programs, with an illustrative price range you can rebuild.
Prices, Price Factors and 2026 Programs
Heat pump rebates in Canada 2026: what is closed, what is open and how to check
The 2026 status of Canada Greener Homes, the Oil to Heat Pump Affordability program, Ontario Home Renovation Savings, Quebec LogisVert and BC and Nova Scotia programs.
Worked Quotes and Choosing a System
Heat pump vs gas furnace running cost in Canada: compare with your own bills
A worked running-cost comparison of heat pumps, gas, oil, propane and electric heat in Canada, with energy conversions, a break-even electricity price and fixed charges.
Contract Traps, Failures and Official Sources
Rent or buy a water heater, furnace or heat pump? Ontario rental contract traps
How water heater and HVAC rental contracts work in Ontario, the true cost of renting versus buying, buy-out and removal fees, and the consumer law that protects you.
Tools
Heating system cost estimator
Turn your home's heating capacity in tons into an illustrative installed price range for a heat pump, furnace or boiler, plus one-time extras.
Heat pump payback calculator
Estimate how many winters it takes for a heat pump's lower running cost to repay its extra price over a furnace, after rebates.
HVAC financing calculator
Compare the monthly payment and total interest of financing a heat pump, furnace or boiler through a contractor plan, personal loan or line of credit.
HVAC quote and contract checklist
Tick off what a written heat pump, furnace or boiler quote and contract should cover before you sign, pay a deposit or let work start.
Home heating systems compared
| Option | How it is usually priced | Good for | Watch out for |
|---|---|---|---|
| Cold-climate ducted air-source heat pump | Per installed system, scaled by capacity; electrical work and duct changes often extra | Homes with existing ducts replacing a furnace or central air; heating and cooling in one unit | Capacity at −15 °C to −25 °C matters more than nominal tons; backup heat and defrost need planning |
| Standard (non cold-climate) air-source heat pump | Lower equipment price than cold-climate models | Milder coastal climates or hybrid systems with a furnace for the coldest days | Output drops sharply in deep cold; may not qualify for programs that require cold-climate units |
| Ductless mini-split (single or multi-zone) | Per indoor head plus outdoor unit; multi-zone systems cost more per room | Homes without ducts, electric baseboard homes, additions and older houses with radiators | Rooms without a head get little heat; line-set routes and wall heads need planning |
| Ground-source (geothermal) heat pump | System price plus a large ground loop cost (drilled boreholes or trenches) | Large lots or new builds, long ownership horizons, very cold climates | Highest upfront cost; drilling rules, loop design (CSA C448) and installer experience are critical |
Frequently asked questions
How much does a heat pump cost to install in Canada?
It depends mostly on the capacity your home needs, whether you have ducts, how cold your winters are and what electrical work is required. As an illustration only, a 3-ton cold-climate ducted system at $4,200–$6,500 per ton plus $1,500 of extras would be $14,100–$21,000 before tax and rebates. The heat pump installation cost overview shows how to build your own range.
Is the Canada Greener Homes Grant still available?
No. Natural Resources Canada lists the grant as closed, with 31 December 2025 the last day to submit documents, and the Greener Homes Loan is closed to new applications. The Oil to Heat Pump Affordability program stopped taking applications on 31 July 2026 in the provinces it delivers directly. A new National Heat Pump Rebate was announced in October 2026, with its portal expected in early 2027. See the 2026 program guide.
Will a heat pump save me money compared with a gas furnace?
It depends on your electricity and gas prices, your climate and the heat pump's seasonal efficiency. Against oil, propane or electric baseboard heat, a heat pump usually costs much less to run; against natural gas, savings can be small or negative in some provinces. Work through the running-cost comparison with your own bills.
Who is allowed to install a gas furnace or heat pump?
Gas work must be done by a certified gas technician or gas fitter (for example a TSSA-certified technician employed by a registered contractor in Ontario). Refrigerant work requires a certified refrigeration technician, and electrical work needs a licensed electrician or a permit. Rules differ by province; see permits and licensed technicians.
Can someone sell me a furnace at my door in Ontario?
Since 1 March 2018 Ontario's Consumer Protection Act bars suppliers from soliciting or signing direct agreements at your home for furnaces, air conditioners, water heaters, air and water treatment devices and duct cleaning unless you first contacted them and asked them to come. A contract made in breach is void. See the door-to-door ban guide.
Is GST/HST charged on a new furnace or heat pump?
Yes, supply and installation are generally taxable at the GST or HST rate of your province, and Quebec adds QST. In British Columbia, heat pumps have been exempt from PST since 1 April 2022, while fossil fuel heating systems carry 12% PST. See GST/HST and PST on HVAC installation.
Should I rent or buy my water heater or furnace?
Buying usually costs less over the life of the equipment, while renting spreads the cost and moves repairs to the provider. The catch is in the contract: buy-out formulas, removal fees and long terms. Compare the total of all rental payments with a purchase price before you sign, as shown in the rental contracts guide.
How this site is made
Degree Day Dollars is an independent information project. Guides are drafted with the help of AI writing tools and checked against official and primary sources before publication; see our Editorial Policy. We are not affiliated with any provider mentioned on the site and do not sell products or services.