Heat Pump Cost in Canada: What a Full Quote Includes
A ducted heat pump typically costs about {cost:heat-pump-ducted:mid} installed; here is what separates a complete quote from a low bid.
A ducted heat pump in Canada typically costs $12,000 installed, before GST/HST, with most mid-range quotes landing between $9,350 – $15,600. The gap between a low bid and a high one is rarely the equipment alone: it is usually the line items one contractor included and another left out.
Our figures come from labour hours × local rates plus materials, checked against market prices and real quotes. For the full breakdown, see our Heat pump installation guide. This article covers something that page can't: how to read two quotes side by side.
The quick answer by tier
- Basic: $9,800, usually a like-for-like swap into good existing ducts with no electrical work.
- Mid-range: $12,000, the typical complete job.
- Premium: $15,800, typically a higher-capacity or more efficient system with extra upgrades.
If one bid sits well under the others, check which of the items below it leaves out.
Line items that separate a complete quote from a low one
1. Electrical work
A heat pump needs a dedicated circuit and a disconnect. Older homes may also need a panel upgrade if the service is already near capacity. Ask whether the quote includes:
- the new circuit and wiring from the panel
- a panel or service upgrade, or a clear statement that none is needed
- the electrical permit
Electrical work needs a licensed tradesperson and usually a permit. In Ontario, a licensed electrical contractor files the notification or permit with the Electrical Safety Authority (ESA). If a bidder suggests skipping the permit, treat that as a red flag.
2. Ductwork
This is the biggest swing factor. Heat pumps move more air at lower temperatures than a gas furnace, so ducts that were fine for a furnace can be undersized, leaky or badly sealed. A complete quote says what will happen to the ducts: no changes, sealing and plenum changes, or partial replacement. "Ductwork not included" without an inspection is an incomplete quote.
3. Sizing
A proper quote is based on a heat-loss calculation for your house, not a rule of thumb or the size of the old unit. Ask to see it. An oversized or undersized unit costs more to run, and in Canadian winters an undersized unit leans on backup heat.
4. Removal and disposal
Old equipment has to be disconnected, removed and disposed of. Refrigerant must be recovered by a qualified technician. Confirm that removal of the old furnace or air conditioner is in the price, particularly if the old unit is oil-fired and a tank must be dealt with.
5. Permits and commissioning
Gas, electrical and plumbing-related work needs licensed trades and usually permits. Check who pulls them and whether the quote lists commissioning: refrigerant charge checks, airflow, controls setup and a walkthrough of the thermostat.
6. Backup heat and system type
Decide whether you are replacing your furnace or keeping it. The system you choose shifts the price noticeably.
| Material | Typical | Usual range | Lifespan |
|---|---|---|---|
| Ductless multi-zone (whole home) | $10,900 | $8,450 – $14,100 | – |
| Ducted air-source heat pump | $12,000 | $9,350 – $15,600 | – |
| Dual-fuel hybrid (keeps gas furnace) | $13,000 | $10,100 – $16,900 | – |
shows the options side by side. A dual-fuel hybrid that keeps your gas furnace has a typical mid-range cost of $13,000, against $12,000 for a fully ducted air-source system and $10,900 for a whole-home ductless multi-zone setup.
Extras that are often priced separately
- Thermostat or smart controls
- Condensate lines and pads or wall brackets for the outdoor unit
- Drywall and painting after any new openings
- Extended labour and parts warranties
- Disposal of an oil tank
None of these is unreasonable to charge for. The point is to see them written down.
Grants and GST/HST
The federal Greener Homes Grant and Loan are closed. The federal Oil to Heat Pump Affordability programme offers up to $10,000, or up to $25,000 where co-delivered with the province, for oil-heated homes; applications closed on 31 Jul 2026 in AB, MB, NWT, QC and SK. In Ontario, the Home Renovation Savings programme offers up to $7,500 for a cold-climate air-source heat pump in electric, oil, propane or wood-heated homes, or up to $2,000 for gas-heated Enbridge customers. Pre-approval and a participating contractor are required, so confirm both before signing.
Our figures are before GST/HST (ON 13% HST, AB 5% GST), so add tax when comparing to your quotes.
A simple way to compare bids
- Ask each contractor to itemize: equipment, electrical, ductwork, removal, permits, commissioning.
- Mark every line one bid includes and another omits.
- Add a realistic allowance for the missing items to the lower bid.
- Compare totals, then warranties and references.
Heat pumps often replace or work alongside other systems, so it is worth reading our Furnace replacement and Ductless mini-split guides to see what a like-for-like swap would cost. If you are not sure whether a number is reasonable, run it through our "is my quote fair" tool before you sign.