Updated 2026
How much does a heat pump cost in Canada?
A quality cold-climate ducted heat pump installs for $14,000–$18,000 nationally, with Ontario quoting the lowest range at $5,000–$9,000. Ductless mini-splits start at $3,500–$6,000. Geothermal is the premium tier at $25,000–$45,000.
Federal and provincial rebates can offset $1,500 to $17,000 of these costs depending on where you live and what you\'re replacing. Use the table below to find pricing in your province.
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Cost by service type
National installed-cost ranges for each heat pump category:
Ducted Heat Pump
$14,000–$18,000
1–2 days
See details →
Ductless Mini-Split
$3,500–$6,000
1 day (single zone)
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Multi-Zone Systems
$8,000–$15,000
2–3 days
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Geothermal
$25,000–$45,000
5–10 days
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Oil-to-Heat-Pump
$10,000–$15,000
2–3 days (including oil-tank decommissioning)
See details →
Cost by province (ducted air-source heat pump)
Provincial pricing varies because of contractor density, equipment wholesale prices, and labour costs. Ontario consistently quotes 30-40% below the national average.
| Province | Ducted ($) | Ductless ($) | Max rebate stack ($) |
|---|---|---|---|
| Ontario | 5,000–9,000 | 4,000–9,000 | 12,000 |
| British Columbia | 14,000–18,000 | 4,500–10,000 | 11,000 |
| Alberta | 14,000–20,000 | 5,000–12,000 | 1,500 |
| Manitoba | 14,000–19,000 | 4,500–11,000 | 1,500 |
| Saskatchewan | 13,000–18,000 | 4,500–10,000 | 1,500 |
| Nova Scotia | 13,000–18,000 | 4,000–10,000 | 15,000 |
| New Brunswick | 13,000–18,000 | 4,000–10,000 | 16,000 |
| Newfoundland and Labrador | 13,000–18,000 | 4,000–10,000 | 14,000 |
| Prince Edward Island | 13,000–18,000 | 4,000–10,000 | 17,000 |
Hidden costs to watch for
Three line items routinely get missed in lower-tier quotes. Make sure your written quote itemizes them:
1. Electrical service upgrade
Heat pumps draw 30-60 amps. Homes with 60A or 100A panels often need an upgrade to 200A service before installation. Cost: $2,000-$4,000. Required in roughly 30% of Canadian retrofits, more in older housing stock.
2. Old equipment removal
Oil tank decommissioning is $800-$2,000 (covered under the Oil-to-Heat-Pump Affordability Program if eligible). Old furnace removal is $300-$500. Don't accept a quote that excludes these line items if you currently have oil or a gas furnace being replaced.
3. Ductwork modifications
Heat pumps need higher airflow than gas furnaces — about 400 CFM per ton of capacity. Existing ducts sized for a 60,000 BTU furnace may be undersized for a 4-ton heat pump. Expect $1,500-$3,500 in duct upgrades if your installer flags this during the assessment.
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Common questions
What is the average cost of heat pump installation in Canada?
The national average installed cost for a quality cold-climate ducted air-source heat pump is $14,000–$18,000. Ductless single-zone mini-splits start around $3,500–$6,000. Geothermal is the premium tier at $25,000–$45,000. Provincial pricing varies significantly — Ontario consistently quotes 30-40% lower than the national average due to higher competition and lower labour costs.
Why is heat pump installation cheaper in Ontario than elsewhere?
Three reasons. First, Ontario has the highest density of HVAC contractors in Canada, so competition is fierce. Second, Ontario homes predominantly have existing forced-air ductwork from natural-gas furnaces — that simplifies the retrofit. Third, equipment prices are lower at the Ontario wholesale level because of the sales volume. Expect $5,000–$9,000 for a ducted install in the GTA and Ottawa, versus $14,000+ in BC and the Prairies.
What hidden costs should I watch for?
Three line items routinely get missed in lower-tier quotes: (1) electrical service upgrade — if your panel is 60-100A, you may need to upgrade to 200A, adding $2,000–$4,000. (2) Old equipment removal and disposal — oil tank decommissioning is $800–$2,000; old furnace removal is $300–$500. (3) Ductwork modifications — if your existing ducts don't meet the heat pump's airflow requirements, expect $1,500–$3,500 in upgrades. A quality quote itemizes all three.
How do federal and provincial rebates reduce my out-of-pocket?
The biggest source of savings in 2026 is the Canada Greener Homes Loan — up to $40,000 interest-free for 10 years. The Oil-to-Heat-Pump Affordability Program adds up to $10,000 (cash, not loan) for oil-conversion households. Provincial top-ups range from $1,500 in Alberta/Saskatchewan/Manitoba up to $17,000 in PEI when stacked. The federal Greener Homes Grant ($5,000) closed January 20, 2026 — many older articles still reference it.
How long does a heat pump installation pay back?
Depends heavily on what you're replacing. Oil-to-heat-pump in the Maritimes: 2-4 years payback after rebates. Natural-gas-to-heat-pump in Ontario: 8-12 years. Electric-baseboard-to-heat-pump anywhere: 5-8 years. Geothermal: 8-15 years. The Canada Greener Homes Loan is interest-free, so financing the upfront cost doesn't change the payback math.