Homeowner Questions · Costs and decisions
Is a heat pump cheaper to run than a furnace in Ontario?
Usually, yes against oil, propane and electric baseboards. A heat pump moves heat and can deliver roughly two to three units of heat for each unit of electricity through much of the season. Against low-cost natural gas, the answer depends more heavily on gas and electricity prices, the balance point and how the backup is controlled.
Checked October 26, 2026 · Educational guide, not a quote.
Quick answer
Usually, yes against oil, propane and electric baseboards. A heat pump moves heat and can deliver roughly two to three units of heat for each unit of electricity through much of the season. Against low-cost natural gas, the answer depends more heavily on gas and electricity prices, the balance point and how the backup is controlled.
The short version
- Strongest savings case: oil, propane and electric baseboards.
- Natural gas comparison is closer and price-sensitive.
- Backup switchover settings affect annual cost.
- Use a full year of actual bills for a serious estimate.
The comparison starts with delivered heat
Oil and propane carry delivery and price swings, and an older furnace loses part of every fuel dollar through inefficiency. Electric baseboards turn one unit of electricity into one unit of heat. A heat pump's advantage is that it moves existing heat instead of creating all of it.
Backup heat can change the result
In deep cold, a furnace or electric elements may carry the home. If the switchover is set too warm, the cheap heat pump hours are wasted. If it is set without regard to capacity and comfort, the home may struggle. Controls are part of the economics.
Use your actual bills
A useful comparison starts with a year of fuel deliveries or gas bills, a year of electricity use, the local delivery charges and the expected seasonal efficiency of the proposed system. A national average rarely matches a rural Ontario home.
What to do next
Add up last winter's fuel cost.
Separate normal electricity use from heating use where possible.
Ask for the proposed balance point and backup plan.
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.
Compare the fuel you are leaving, not a generic average
Oil, propane, natural gas and electric resistance heat produce very different answers. Start with your current fuel and system size.
Check your rebateQuestions people also ask
Is a heat pump cheaper to run than a furnace in Ontario?
Usually, yes against oil, propane and electric baseboards. A heat pump moves heat and can deliver roughly two to three units of heat for each unit of electricity through much of the season. Against low-cost natural gas, the answer depends more heavily on gas and electricity prices, the balance point and how the backup is controlled.
Will a heat pump always lower my hydro bill?
A home leaving oil or propane will use more electricity and less delivered fuel. The total energy bill is the right comparison, not the hydro bill alone.
Does a heat pump replace air conditioning costs too?
A heat pump also cools. Its cooling efficiency can be better than an older AC, but the main comparison should start with winter heating.