Heat pumps are very crucial in Ontario for economic and environmental reasons.
As a more sustainable and cost-efficient method of heating and cooling homes compared to fossil fuel-based systems, heat pumps are highly-encouraged by the government.
In fact, the government offers several initiatives via programs and rebates to encourage homeowners to shift to using heat pumps.
If you are looking for options for cooling and heating your home to lower your energy bills, a heat pump is a proven system for heating in the winter and cooling in the summer. In certain cases, it can also provide hot water for the home.
Learn more about the benefits you can obtain from switching to heat pumps in 2025 and how you can reduce your upfront costs with Ontario HVAC rebates and programs.
Would you like to know the potential cost of installing a heat pump in your home?
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How do heat pumps work?
Heat pumps have been used for decades in Canada and elsewhere in the world for heating and cooling. Air-conditioners and refrigerates actually operate using the same technology.
It transfers heat energy instead of generating it to cool or heat a room. With the use of a refrigerant, it absorbs heat from the air or ground to raise its temperature and then release that to the targeted space in the home.
This same process can be reversed to cool the home by transferring heat from inside the home to the exterior.
In Canada, 2 sources of thermal energy are commonly-used for heating homes, air-source and ground-source.
Sources of Heat Pumps: Pros and Cons
Choosing the source of your heat pump will go a long way in its initial cost, operating cost, and performance.
Here is a brief summary of the common sources and sinks for homes in Ontario.
Air-Source: The heat pump extracts heat from the exterior during cold months and rejects heat from outside during the summer season.
You may be surprised to learn that even cold air can provide a lot of energy when extracted and delivered inside the home. For example, the heat content of air at -18°C is about 85% of the heat from 21°C. The heat pump can get much heat even in cold weather.
Ground-Source: A ground-source heat pump uses the earth, water from the ground, or both as heat sources in winter and as a reservoir to reject heat extracted from the home during summer.
While less popular, this type of heat pump is gaining speed. The biggest advantage is that the ground as a temperature source is not affected by extreme temperature fluctuations. This makes it an energy-efficient type of heat pump.
Consult an experienced HVAC contractor and get recommendations on the best heat pump system for your home.
How much to install a Heat Pump in Ontario?
The cost to install a heat pump varies but it ranges from $6,800 to $12,000++ for a ducted system. Prices can increase depending on the model, the size of the home, and the complexity of the installation.
Quotes for ducted systems can range from $12,500 to $20,000 while mini-split systems can range from $3,000 to more than $10,000.
Higher-efficiency units (based on SEER ratings) are more expensive initially but provide significant savings in the long run.
Ductwork modifications, permits, labor costs, and electrical work also affect price.
Fortunately, several programs and rebates are available to Ontario homeowners to make the cost of a heat pump installation more affordable.
Heat Pump Rebates & Programs for Heat Pump Installation
As of May 2025, Ontario has several heat pump rebates and programs that aim to encourage energy-efficient homes and lower heating costs.
Below is a brief overview of these programs:
Home Efficiency Rebate Plus (HER+)
This program offers the highest heat pump rebate, with a maximum of $7,800.
Oil to Heat Pump Affordability Program (OHPA)
This program offers up to $5,000 for homes using oil that switch to heat pumps. This program also covers insulation, windows, and other energy-saving upgrades.
Enbridge Clean Home Heating Initiative
This program offers up to $5,000 for qualified heat pumps.
Canada Greener Homes Grant
This grant offers up to $5,000 for air-source heat pumps and ground-source heat pumps. This federal program can be used together with other provincial programs.
Most programs require an energy audit before and after the installation to qualify for a rebate.
- To take advantage of these funds, check the requirements for each program to see how you can qualify.
- Get the mandatory energy audit. Select a qualified contractor who is accredited under the program you are interested in. Contractors can help you qualify based on your needs.
- After the installation, submit the required documentation to claim your rebate.
Would you like to know the lowest quote for a heat pump installation in your home?
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Switch from oil-based heating to Heat Pump Systems in Ontario
Switching from oil-based heating to a heat pump system in Ontario can provide you with significant advantages from savings, higher level of comfort, and environmental benefits.
Heat pumps are cheaper to run than oil furnaces, protecting you from fluctuating fuel prices and reducing your energy bills.
You can use heat pumps all-year-round for heating and cooling, a feature you can’t find in conventional oil furnaces.
Help combat climate change by reducing greenhouse gas emissions with a heat pump installation!
Start today by comparing free quotes from our reliable HVAC partners by filling up our short online form.
Is it easy to maintain heat pumps?
Heat pumps are easier to maintain than oil furnaces and require less servicing. Thus, you save on operational costs and maintenance costs.
A heat pump can be installed in different configurations such as a mini-split system. It is more pleasing to the eye than conventional oil furnaces.
You can also combine the use of a heat pump with other renewable energy sources such as solar panels to further reduce energy bills and environmental impact.
What is the life expectancy and warranties of a heat pump?
Air-source heat pumps typically last from 15 to 20 years. The most critical component is the compressor.
Most heat pumps have a 1-year warranty on parts and labour, and an additional 5 to 10 years warranty on the compressor’s parts.
Please note that warranties among the different manufacturers vary so it is best to check the fine print or verify with your HVAC contractor.
When to replace a Heat Pump in Ontario
Knowing when to repair or replace a heat pump can help prevent high energy bills, poor heating or cooling in the home, and costly emergency repairs. Here are the key signs to watch out for:
- Your System’s Age: Heat pumps last around 10 to 15 years. If your system is nearing or has exceeded this age, consider a replacement with a newer and more efficient model.
- Increasing Energy Bills: A steady rise in heating and cooling costs may be an indicator that your system is no longer working efficiently.
- Frequent Repairs: Are you calling a repairman frequently? The cost of repairs may soon exceed the price of a new unit.
- Inconsistent Temperatures: Uneven heating or cooling in the home can indicate a failing system.
- Strange Noises or Odors: Musty smells and strange noises are red flags that your system is not in good condition.
- Outdated Features: Older systems don’t have smart controls and energy-efficient technology that can now be found in newer models of heat pumps.
By replacing your heat pump, you can enjoy more comfort, avoid untimely breakdowns, and take advantage of various incentives and rebates for HVAC upgrades in Ontario.
Improve Home Value with a New Heat Pump
Energy-efficient upgrades such as the installation of a heat pump increase home value. Many modern homebuyers look for features that promote greener living.
You can increase the resale value of your home by investing in a heat pump installation.
Lower energy bills, increased comfort, environmental benefits, and higher home value all point towards one important project in 2025 – the installation of the best heat pump in Ontario.
Explore your options and take advantage of rebates and grants for a heat pump by filling out the short online form on this page.
Comparing Heat Pump Brands Popular in Ontario
Not all heat pumps are the same – especially in terms of efficiency, cold-climate performance, price, and warranty.
When choosing the best heat pump, consider the following factors:
- Top Brands: Mitsubishi Electric, Fujitsu, Daikin, Lennox, Bosch, Napoleon, Trane, Goodman
- Efficiency Ratings: SEER and HSPF comparisons.
- Warranty Coverage: Check what is included and for how long.
- Cold Weather Reliability: Choose a model that performs best in Ontario’s winter.
- Smart Features: Integration with smart thermostats or remote access.
When asking for quotes for a heat pump installation, make sure to get a cold-weather heat pump with high energy efficiency.
Ask for free quotes with no obligation from our reputable HVAC partners using our short online form.
Save now with a Heat Pump Installation with Rebates
Grants and rebates for heat pump installation don’t last forever. Some programs end at some point although new programs and incentives arise.
Don’t wait until it is too late to make the switch to heat pump for heating and cooling to start saving on your energy bills.
Compare free quotes today from our reliable HVAC partners and ask for more information regarding heat pump rebates and grants.
Please fill out the short online form below – it takes less than 2 minutes – and connect with reputable HVAC contractors for a heat pump installation.
