Homeowner Questions · Costs and decisions
How much does it cost to install a heat pump in Ontario?
For many Ontario homes, a full ducted furnace and heat pump switch is typically about $12,500 to $19,500 installed before rebates. A heat pump with an electric air handler is often about $11,500 to $17,500. Ductless starts lower for one zone but rises with each additional indoor head.
Checked October 26, 2026 · Educational guide, not a quote.
Quick answer
For many Ontario homes, a full ducted furnace and heat pump switch is typically about $12,500 to $19,500 installed before rebates. A heat pump with an electric air handler is often about $11,500 to $17,500. Ductless starts lower for one zone but rises with each additional indoor head.
The short version
- Furnace + heat pump switch: typically $12,500 to $19,500.
- Heat pump + electric air handler: typically $11,500 to $17,500.
- Ductless: priced by outdoor unit and number of heads.
- Ranges are planning figures, not quotes.
Why quotes vary so much
One quote may include a new furnace, backup heat, duct changes, electrical work, a thermostat, permits and old-equipment removal, while another prices only part of the system. Compare the complete scope, not the headline total.
The main cost drivers
System tonnage, cold-climate model, duct condition, panel capacity, fuel conversion, line-set distance, condensate drainage and whether the oil tank or old furnace must be removed all affect labour and materials.
How rebates change the net cost
Ontario pays by ton and current fuel. A 3-ton non-gas example at $16,000 could receive $3,750 from Ontario and $2,000 federally, for a $10,250 net before any conditional higher federal amount. The rebate does not change the contractor's gross installed price.
What to do next
Decide whether ducts will be used.
Price backup heat and electrical work in the same scope.
Subtract only the rebates you have confirmed.
Read the full guide
This answer connects to Heat Pump Cost in Ontario, where the full topic is covered with the current Ontario figures and the next checker.
Price the whole switch, not just the outdoor unit
Ductwork, backup heat, panel capacity and tonnage move the installed number. Start with a rebate and cost check.
Check your rebateQuestions people also ask
How much does it cost to install a heat pump in Ontario?
For many Ontario homes, a full ducted furnace and heat pump switch is typically about $12,500 to $19,500 installed before rebates. A heat pump with an electric air handler is often about $11,500 to $17,500. Ductless starts lower for one zone but rises with each additional indoor head.
Why is a heat pump quote higher than a furnace-only quote?
The heat pump provides heating and cooling and may be paired with a new furnace or air handler, controls, electrical work and backup heat. It is a larger system scope.
Should I choose the lowest quote?
Only after checking that equipment size, cold-climate rating, warranty, backup heat, permits, duct and electrical work are actually included.