Cost guides › Heat pump installation
Canada
Heat pump installation cost
Replacing an old furnace and central AC with a ducted heat pump of 3 tons, two-stage or variable-speed, typically costs $12,000, with most installs between $9,350 and $15,600 before GST/HST. A basic single-stage system runs about $9,800, while a cold-climate inverter model, the one to price for most Canadian winters, is about $15,800.
Most homeowners pay
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mid-range, typicalCost by region
| Location | Basic | Mid-range | Premium |
|---|---|---|---|
| Alberta | $9,950 | $12,200 | $16,000 |
| Quebec | $9,950 | $12,200 | $16,000 |
| British Columbia | $9,900 | $12,100 | $15,900 |
| Saskatchewan | $9,950 | $12,100 | $15,900 |
| Ontario | $9,800 | $12,000 | $15,800 |
| Manitoba | $9,650 | $11,900 | $15,700 |
| Newfoundland and Labrador | $9,600 | $11,800 | $15,600 |
| Nova Scotia | $9,300 | $11,500 | $15,300 |
| New Brunswick | $9,200 | $11,400 | $15,200 |
What's included
Mid-range
- Removal and haul-away of the old furnace, AC condenser and coil
- Two-stage or variable-speed outdoor heat pump unit, sized to the house
- Matching indoor air handler connected to your existing ductwork
- New refrigerant line set, outdoor pad, disconnect and condensate drain
- Brazing, pressure test, vacuum, refrigerant charge and commissioning
- Dedicated electrical circuit and outdoor disconnect run by an electrician
- Thermostat compatible with the heat pump
- Site cleanup after installation
What affects the cost
Cold-climate performance
A standard heat pump loses heating output as the temperature drops. Cold-climate models keep delivering heat much further into winter and cost more; in most of Canada they are the sensible choice, and the Ontario rebate applies only to cold-climate air-source units.
Backup heat
On the coldest nights a heat pump usually needs help, either electric heat strips in the air handler or a gas furnace kept in a dual-fuel setup. How much backup you need, and which kind, changes both the equipment cost and your winter bills.
System size
Heat pumps are sized in tons, and equipment cost rises with each extra ton. A room-by-room heat loss calculation often shows a smaller system than the old furnace is enough, especially after new windows, air sealing or attic insulation.
Ductwork condition
The estimate reuses existing ducts. A heat pump delivers air at a lower temperature than a furnace, so leaky, undersized or uninsulated ducts are more noticeable; sealing or resizing them is a separate cost.
Electrical capacity
A heat pump plus electric backup strips draws a lot of power. If the panel is full or the service is small, a panel or service upgrade may be needed, and that is not included here.
Installation difficulty
An air handler in a cramped basement corner or attic, a long line set run, or an outdoor unit that needs a wall bracket or a stand to clear the snow line all add labour.
How to save
- Ask for a room-by-room heat loss calculation so you are not paying for more tons than the house needs.
- Check provincial and utility rebates before you sign; programs such as Ontario's require pre-approval and a participating contractor.
- Get quotes in spring or fall, when HVAC contractors are less busy than during the first cold snap or a summer heat wave.
- Seal duct leaks and add attic insulation first, which can let you size the heat pump smaller and lean less on backup heat.
Grants, tax and rules
Canada Greener Homes is closed
The Canada Greener Homes Grant and Loan are closed; the deadline for grant documents was 31 December 2025.
Oil to Heat Pump Affordability
For oil-heated homes, this federal program offers up to $10,000, or up to $25,000 where it is co-delivered with the province. Applications closed on 31 July 2026 in Alberta, Manitoba, the Northwest Territories, Quebec and Saskatchewan, so check whether it is still open where you live.
Ontario Home Renovation Savings
As of September 2026, a cold-climate air-source heat pump qualifies for up to $7,500 in homes heated by electricity, oil, propane or wood, or up to $2,000 for gas-heated Enbridge customers. Pre-approval and a participating contractor are required.
Licensed trades, permits and GST/HST
Electrical, gas and plumbing work needs licensed trades and usually a permit, and permit fees are not in this estimate. GST/HST applies; our figures are before GST/HST (13% HST in Ontario, 5% GST in Alberta).
Frequently asked questions
How much does it cost to replace a furnace and AC with a heat pump in Canada?
For a ducted system of 3 tons reusing the existing ducts, expect around $12,000 before GST/HST. A single-stage system costs about $9,800, and a cold-climate variable-speed system about $15,800.
Do heat pumps work in a Canadian winter?
Yes, if you choose a cold-climate model and plan for backup heat. Cold-climate units keep heating well below freezing, and electric strips or the existing gas furnace cover the coldest days.
Is there still a federal grant for heat pumps?
The Canada Greener Homes Grant is closed. Oil-heated homes may still qualify for Oil to Heat Pump Affordability, which closed on 31 July 2026 in Alberta, Manitoba, the Northwest Territories, Quebec and Saskatchewan. Provinces and utilities run their own programs, such as Ontario Home Renovation Savings.
Should I keep my gas furnace as backup?
A dual-fuel setup lets the heat pump handle most of the season and the furnace take over in deep cold, which some homeowners prefer where gas is cheap. Note that in Ontario the heat pump rebate for gas-heated Enbridge customers is lower, up to $2,000.
What size heat pump do I need?
It depends on the house's heat loss, not just the floor area or the size of the old furnace. A contractor should run a load calculation; many homes end up with a smaller system than the equipment it replaces.
Can I keep my existing ductwork?
Usually, if it is in good condition and sized correctly, and this estimate assumes it is reused. Ask the installer to check airflow and leakage before the new system goes in.
How this estimate is calculated
Work hours: 27.5 · Labour: $2,928 · Materials: $9,061
Sources: Job Bank wages (Employment and Social Development Canada); Regione Toscana, Prezzario dei Lavori 2026 (CC BY 4.0); ECB exchange rates.