In Canada\u2019s climate, having a good source of home heating is essential, with most households opting for furnaces, electric baseboards or boilers to keep their spaces warm during the winter.<\/p>\n\n\n\n
A heat pump is another way to heat \u2014 and cool \u2014 your space. According to Natural Resources Canada (NRC), around 7% of Canadian homes reported using heat pumps as their primary heating system in 2023[1]<\/a>, up from 6% two years earlier[2]<\/a>.<\/p>\n\n\n\n Because heat pumps transfer heat rather than generate it, they are more efficient than traditional heating and cooling systems, such as furnaces and air conditioners.<\/p>\n\n\n\n If you\u2019re weighing ways to keep home energy costs under control, installing a heat pump may be an upgrade worth considering. <\/strong><\/p>\n\n\n\n Heat pumps transfer heat from one space to another using electricity. Unlike your furnace or air conditioning unit, a heat pump can be used to both heat and cool your home. <\/p>\n\n\n\n There are several types of heat pumps to choose from. <\/p>\n\n\n\n An air source heat pump uses electricity to take heat from outside, increase the temperature of the air, and move it inside your home. When it comes to cooling, they take the warm air from inside your home and transfer it outside. Air source heat pumps can either be ducted or ductless, if your home doesn\u2019t have ductwork.<\/p>\n\n\n\n Cold climate heat pumps are also air source heat pumps, but built to handle colder winters, delivering more efficiency than traditional air source heat pumps.<\/p>\n\n\n\n A ground source heat pump uses ground water or the earth to create heat during cold months or disperses heat from the home during warm months via loops in the ground.<\/p>\n\n\n\n Because they use electricity to transfer and circulate air rather than using other sources of energy like natural gas, heat pumps are considered to be more energy efficient than other heating and cooling alternatives. <\/p>\n\n\n\n In fact, data from the Canadian Climate Institute (CCI) found that heat pumps are two to five times more efficient than gas furnaces \u2014 making them a more cost effective option[3]<\/a>.<\/p>\n\n\n\n A 2022 Ontario Clean Air Alliance analysis also found that cold climate heat pumps can reduce the energy needed for heating by 57% and the energy required for cooling by 20% compared to conventional electric heating and air conditioning[4]<\/a>. <\/p>\n\n\n\n The upfront cost of a heat pump is steep. <\/p>\n\n\n\n Depending on the type of heat pump you choose, the cost can range between $6,000 and $14,000 and possibly even higher, depending on the modifications you need to make to your property, according to the B.C. Hydro website[5]<\/a>.<\/p>\n\n\n\n Also, in certain areas, as the CCI found, electric heat pumps may not currently perform as well as other heating sources \u2014 and ultimately, their cost competitiveness comes down to climate conditions and regional energy prices.<\/p>\n\n\n\n CCI research discovered standard heat pumps work well in single family homes and townhouses in cities like Vancouver, Toronto, Montreal and Halifax. A heat pump with electric backup may be less cost competitive in Edmonton because of its cold climate and lower gas prices, making heat pumps with gas backup or gas furnaces with A\/C a cheaper option at the moment.<\/p>\n\n\n\n Broadly, heat pumps can provide a decent return on investment. As the Ontario Clean Air Alliance calculated, a homeowner with a detached property switching from central A\/C to an air source heat pump, can expect annual electricity cost savings of $2,676.<\/p>\n\n\n\n Even in a case where a homeowner takes out a low-interest loan of $15,600 to install the heat pump, and annual loan payments are $1,196, they would still realize a net savings of $1,480 each year over central A\/C, the report says.<\/p>\n\n\n\n Ultimately, over its lifetime, the CCI found that the cost of a standard heat pump with electric backup is 13% lower than a gas furnace with A\/C[6]<\/a>. <\/strong><\/p>\n\n\n\n Depending on your region and household income, various loans and grants are available at the federal, provincial and municipal levels to help offset the cost of installing a heat pump in your home.<\/p>\n\n\n\n For example:<\/p>\n\n\n\n Many provinces also offer rebates or incentives to offset the cost of installing heat pumps. For example:<\/p>\n\n\n\n It\u2019s also a good idea to check with your municipality to see if you\u2019re eligible for additional grants or financing opportunities for installing a heat pump.<\/p>\n\n\n\nWhat is a heat pump?<\/strong><\/h2>\n\n\n\n
Air source heat pump<\/h3>\n\n\n\n
Cold climate heat pump<\/h3>\n\n\n\n
Ground source heat pump<\/h3>\n\n\n\n
Why is a heat pump more efficient?<\/strong><\/h2>\n\n\n\n
Are there any downsides to installing a heat pump?<\/strong><\/h2>\n\n\n\n
How much can a heat pump save me on utility costs?<\/strong><\/h2>\n\n\n\n
Are there heat pump rebates?<\/h2>\n\n\n\n
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