Guides · Cost
Heat Pump Cost in Ontario: What Each System Actually Costs
Real installed ranges for Ontario homes in 2026 — before rebates, and what the rebates do to them.
What does a heat pump cost in Ontario, installed?
It depends on the system type. For rural homes switching off oil or propane, the relevant number is usually the full furnace + heat pump switch: typically $12,500 to $19,500 installed, depending on size. Here's how the options compare.
| System | Typical installed range | Ontario rebate | Best for |
|---|---|---|---|
| Furnace + heat pump (dual-fuel) | $12,500 – $19,500 | Up to $7,500 | Oil, propane and gas homes with ducts — the full switch |
| Heat pump + electric air handler | $11,500 – $17,500 | Up to $7,500 | Electric homes, or oil/propane homes going fully electric |
| Ductless mini-split (per zone) | $5,500 – $9,000 for the first head | Varies by tonnage | Homes without ducts, additions, workshops — see the ductless guide |
| Heat pump added to a newer furnace | $8,500 – $13,500 | Up to $7,500 | Homes whose furnace has real life left in it |
Ranges are typical Ontario figures for 2026, not quotes. Your home's ductwork, electrical panel and system size move the number — the in-home visit pins it down in writing before you commit to anything.
What does the rebate do to the real cost?
A typical 3-ton switch at $16,000 for an oil-heated home: Ontario pays $3,750 (3 tons × $1,250), the federal rebate adds $2,000 — or up to $10,000 if your household is below the median income. Net cost lands between roughly $2,250 and $10,250. Spread over time, the example monthly figure on a net cost like that works out to about $50–$70 a month — less than one month of winter oil.
What else should be in the budget?
Three things honest quotes mention up front: an electrical panel upgrade if yours is at capacity (common in older rural homes), oil tank removal if you're leaving oil, and any duct repairs. All three are confirmed at the in-home visit — there should be no surprises after you sign.
Heat pump cost — common questions
Is the rebate taken off the price up front?
No. You pay the installed price, and the Ontario rebate comes back as a cheque about 60 days after the install is approved. Anyone quoting you a "net price" as if the rebate were instant is skipping a step — ask how the cash flow actually works.
Can I finance it?
Yes — many homeowners finance it as one monthly payment. The calculator shows an example monthly figure so you can compare it against what a single fuel fill costs you now. When your rebate cheque arrives, you can put it straight onto the financing — at typical monthly numbers it covers about two years of payments by itself — and then add what you save on fuel each year, so the system is paid off years early.
Why do quotes vary so much between companies?
Equipment tier, whether tank removal and panel work are included, and whether the quote assumes your rebate correctly. Compare written, itemized quotes — and check that the company can actually file HRS pre-approvals.
Get your net number
Cost minus both rebates, sized for your home and your fuel. About a minute.
See your rebate AND your monthly number