Local guide

Lowering energy bills in Toronto

Older brick homes, semis and townhouses with limited roof space make envelope upgrades and ductless heat pumps especially relevant.

Last reviewed November 2, 2026
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Toronto at a glance

Electricity distributor: Toronto Hydro
Natural gas: Enbridge Gas
Heating degree days: about 3,520 per year
Winter design temperature: about -18 °C
Solar potential: about 1,150 kWh per kW per year
Electricity prices: Province-wide RPP, effective November 1, 2026

Typical annual heating cost in Toronto

Estimated for a 2,000 sq ft existing detached home. Your costs depend on insulation, airtightness and thermostat settings.

Natural gas furnace (95%)	$1,010
Cold-climate heat pump	$1,260
Propane (92%)	$3,210
Electric baseboard	$3,520
Heating oil (80%)	$4,150

Assumes gas at $0.45/m³, electricity at $0.16/kWh all-in, oil at $1.6/L, propane at $0.95/L and a seasonal heat pump COP of 2.8. Run it with your own numbers.

Heat pump sizing in Toronto

A typical 2,000 sq ft existing home here needs roughly 35k BTU/h of heat at -18 °C. Ask contractors for capacity at that temperature, not just the nominal tonnage.

Estimate your home's load

Choosing a price plan

Toronto Hydro customers can choose Time-of-Use, Tiered or — where offered — Ultra-Low Overnight at 3.7¢/kWh from 11 p.m. to 7 a.m. Households with an EV or flexible loads often save on ULO.

Compare plans

Where to start

Air seal and insulate the attic
Set thermostat schedules and check your price plan
Replace end-of-life heating with a heat pump or hybrid
Swap remaining bulbs for LEDs

Take the home energy checkup

Common questions in Toronto

Who supplies electricity in Toronto?

Toronto Hydro delivers electricity to most homes in Toronto. Commodity prices are set province-wide by the Ontario Energy Board; delivery charges are set for each utility. You can choose Time-of-Use, Ultra-Low Overnight (where offered) or Tiered pricing by contacting your utility.

Do heat pumps work in Toronto winters?

Yes. Toronto's design temperature is about -18 °C, and cold-climate air-source heat pumps are rated to operate around −25 °C to −30 °C with reduced capacity at the coldest temperatures. Most homes here can be heated by a well-sized heat pump with modest backup heat.

What rebates are available in Toronto?

Homeowners in Toronto can use Ontario's Home Renovation Savings Program for heat pumps, insulation, windows, smart thermostats and more, along with income-qualified programs from Save on Energy and Enbridge Gas. Some municipalities also offer home energy loans — check with the City of Toronto.

Roofs in Toronto can produce about 1,150 kWh per installed kW each year. Estimate it for your roof