Rising energy costs, concerns about the environment, and a desire for more efficient heating and cooling solutions are just a few reasons why heat pumps are gaining popularity across Canada. But are heat pumps worth it in Ontario? The answer is a resounding yes, especially when you factor in their energy efficiency and the significant heat pump rebate Ontario is offering in 2025.
What is a Heat Pump?
Don’t let the name “heat pump” fool you. A heat pump is a high-efficiency system that provides both heating and cooling by transferring heat energy in and out of your home. This means you stay cozy in the winter and cool in the summer, all while reducing your energy use and lowering your utility bills.
How Does a Heat Pump Work?
Heat pumps don’t generate heat like traditional furnaces; instead, they move heat from one place to another. In the winter, they pull heat from the outdoor air (or ground) and transfer it inside. In the summer, they do the opposite, expelling heat from your home to keep it cool. There are two main types:
- Cold Climate Air Source Heat Pumps: These are the most popular type of heat pump in Canada because they’re designed to work in freezing temperatures as low as -30°C. Cold climate heat pumps use the air to move heat into and out of your home.
- Ground Source Heat Pumps: Also known as geothermal heat pumps, ground source heat pumps transfer heat from the ground into your home. Because they leverage the consistent temperature underground, they’re the most efficient option. However, ground source heat pumps cost more upfront and require more space.
7 Benefits of Upgrading to a Heat Pump
- Lower Energy Bills – According to the International Energy Agency, heat pumps are three to five times more efficient than gas boilers. The Canadian Climate Institute notes that heat pumps use up to 65% less energy than standard electric baseboard heating and are two to five times more efficient than “even the most modern and efficient gas furnaces.” This all adds up to significant savings on your utility bills.
- Year-Round Comfort – Heat pumps provide reliable heating in winter and cooling in summer with a single system.
- Reduced Carbon Footprint – Heat pumps use electricity instead of fossil fuels, helping you lower your home’s greenhouse gas emissions.
- Available Rebates – Heat pumps offer the best lifetime value when it comes to heating and cooling systems. Additionally, Ontario homeowners can access thousands of dollars in rebates to make upgrading to a heat pump even more affordable.
- Quiet Operation – Modern heat pumps operate quietly. There are even ultra-quiet models available that have sound ratings between 18 and 30 decibels, which is equivalent to whispering or the rustling of leaves.
- Increased Home Value – Energy-efficient upgrades like heat pumps can boost your property’s value and appeal.
- Better Indoor Air Quality – Heat pumps help regulate humidity and filter the air, reducing allergens and pollutants.
Heat Pump vs. Furnace: Which One is Better?
Comparing a heat pump vs. furnace, heat pumps are more efficient and have lower operating costs. Traditional gas furnaces burn fuel to create heat, whereas heat pumps simply transfer existing heat, which reduces energy consumption. Heat pumps also provide cooling, so you don’t need a separate air conditioning unit. That said, furnaces can be more effective in cold climates.
How Much Does a Heat Pump Cost in Ontario?
The heat pump cost in Ontario depends on the type and size of the system. On average, including installation:
- Mini split heat pump (ductless air source): $6,000–$12,000 (before rebates), according to FurnacePrices.ca
- Cold climate air source heat pump (ducted): $10,000–$19,000 (before rebates), according to CBC
- Ground source heat pump: $15,000–$40,000 (before rebates), according to FurnacePrices.ca
While the upfront costs might seem high, government rebates and energy savings make heat pumps a smart long-term investment.
Heat Pump Rebate Ontario 2025: How Much Can You Get Back?
Ontario homeowners can take advantage of generous rebates to make upgrading more affordable. Here’s what you can get through the new Home Renovation Savings™ program launched by Save on Energy, Enbridge Gas, and the Ontario government:
If You Heat with Natural Gas (Enbridge Gas Customer)
- Cold climate air source heat pump: Up to $2,000 back ($500 per ton)
- Ground source heat pump: Up to $3,000 back
If You Heat with Electricity
- Cold climate air source heat pump: Up to $7,500 back ($1,250 per ton)
- Ground source heat pump: Up to $12,000 back ($2,000 per ton)
How to Qualify for a Heat Pump Rebate in Ontario
To qualify for these rebates, you must:
- Own a home in Ontario
- Be an Enbridge Gas customer (for natural gas rebates) or heat your home with electricity
- Install a heat pump from Natural Resources Canada’s qualified products list
- Live in a single, detached, semi-detached, row house, townhouse, or mobile home on a permanent foundation
How to Apply for Your Heat Pump Rebate
- Check Your Eligibility: Fill out a form on the Home Renovation Savings website to confirm your eligibility.
- Install a Qualified Heat Pump: Choose a certified contractor to install your system.
- Receive Your Rebate: Your contractor will submit the necessary documents, and once approved, you’ll receive your rebate.
What About a Heat Pump Water Heater?
The new Ontario incentives extend beyond standard heat pumps to include heat pump hot water heaters. Homeowners can qualify for $500 in savings on a heat pump water heater by completing a home energy assessment and at least one other energy-saving upgrade (two total), such as air sealing, exterior wall insulation, foundation insulation, exposed floor insulation, or upgrading to energy-efficient windows and doors.
Final Thoughts: Are Heat Pumps Worth It in Ontario?
If you’re looking for an energy-efficient, all-in-one heating and cooling solution, heat pumps are absolutely worth it. With the significant 2025 Ontario heat pump rebate, it’s a great time to upgrade your home’s HVAC system.
Ready to make the switch? Comfort Zone Services can help! Our Ontario heat pump contractors will recommend the best option for your home and needs. We honour government rebates and retrofit, install, and repair all makes and models of equipment.
Call us at 226-210-6252 to schedule a free in-home estimate today!