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Electricity prices updated November 1, 2026
Heating & cooling
Space heating is the largest share of energy use in most Ontario homes. Understand your options — heat pumps, hybrid systems, high-efficiency furnaces and air conditioning — what they cost to install and run here, and which rebates apply.
Quotes are provided by independent contractors, not by Energy Efficiency Ontario. How we're funded
~60%
of a typical Ontario home's energy goes to space heating
−25 °C
or colder: rated operating range of cold-climate heat pumps
2–3×
more heat delivered per unit of electricity than baseboards
Up to $7,500
provincial rebate for an air-source heat pump (non-gas homes)
Your options
Typical installed costs for Ontario in 2026. Your price depends on home size, ductwork, electrical capacity and equipment choice.
| System | Heats | Cools | Installed cost | Efficiency | Often best for | Provincial rebate |
|---|---|---|---|---|---|---|
| Cold-climate air-source heat pump (ducted) | $12,000–$25,000 | COP ~2.5–3.0 seasonal | Homes with ductwork replacing a furnace and AC together; oil, propane or electric homes | Up to $7,500 (non-gas) / $2,000 (gas) | ||
| Hybrid / dual-fuel (heat pump + gas furnace) | $9,000–$18,000 | Heat pump most of the season; gas on the coldest days | Gas-heated homes wanting lower emissions without higher bills | Heat pump portion may qualify | ||
| Ductless mini-split | $4,500–$8,000 per single zone | Very high; zone control | Homes with baseboard heat, additions, or no ducts | Up to $7,500 (non-gas) | ||
| Ground-source (geothermal) heat pump | $30,000–$60,000+ | COP ~3.0–4.0, steady in winter | Rural homes with land, long ownership horizon | Up to $12,000 (non-gas) / $3,000 (gas) | ||
| High-efficiency gas furnace (95%+ AFUE) | $5,000–$9,000 | 95–98% AFUE | Gas homes with a failing furnace and a working AC | Generally none | ||
| Central air conditioner | $5,000–$9,000 | SEER2 14.3+ | When replacing an AC — consider a heat pump instead for similar cost | Generally none |
Cost ranges are estimates for typical low-rise homes and exclude electrical panel upgrades. Rebates via the Home Renovation Savings Program; confirm current terms at saveonenergy.ca.
Quick guidance
A cold-climate heat pump will usually cut heating costs substantially and qualifies for the largest rebates. Oil homes may qualify for income-based programs too.
Learn moreReplace the AC with a heat pump and keep your furnace as backup. Similar cost to a new AC, with lower emissions and no comfort risk.
Learn moreA new 95%+ AFUE furnace is the quick fix. If time allows, get a heat pump quote too and compare total 15-year cost.
Learn moreDuctless mini-splits heat and cool individual zones efficiently without ducts — common for older homes, additions and basements.
Learn moreStep by step
Ask for a room-by-room load calculation (CSA F280). Oversized systems cost more, short-cycle and are less comfortable.
Heat pump rebates require pre-approval and a participating contractor. Work started early is often ineligible.
Compare equipment model numbers, capacity at −15 °C, warranty terms, permits and what's included.
Gas work requires TSSA-registered contractors; refrigerant handlers need an ODP card; electrical work needs an ESA permit.
Ask for refrigerant charge, airflow and static-pressure readings at start-up — and a copy for your records.
Annual maintenance keeps efficiency up and warranties valid. Change filters every 1–3 months.
Rebate timing matters
Questions to ask every contractor
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