Heat Pumps Installation

Heat pumps are the most energy-efficient way to heat and cool your home. Unlike furnaces
that burn fuel to create heat, heat pumps move existing heat
from outdoor air into your home – even at -30°C. This makes them 3–4x more efficient
than gas, oil, propane, or electric baseboard heating.

Modern cold-climate heat pumps are engineered specifically for Canadian winters. At 0°C
they operate at 78.5% efficiency; even at -20°C they maintain 43% efficiency – still far
better than resistance heating at any temperature. For extremely cold days, your
existing furnace or baseboard acts as backup.

The best heat pump for cold climate use in Canada is a variable-speed, cold-climate
rated air source heat pump – look for an HSPF of 10 or higher and a published capacity
at -25°C rather than only at 8.3°C. Sizing is quoted in BTU (typically 18,000–60,000 BTU
for a whole home), and an oversized unit short-cycles instead of running efficiently, so
we do a room-by-room load calculation before recommending a model.

Heat Pump vs. Furnace: What Actually Changes

The heat pump vs furnace comparison comes down to how each system makes heat. A furnace
burns gas, oil, or propane, so it can never exceed 100% efficiency. A heat pump moves
heat that already exists, which is why it routinely delivers 300–400% – three to four
units of heat per unit of electricity. That gap is why a heat pump costs less to run in
most Canadian homes, and why it replaces your air conditioner at the same time. A
furnace still wins on peak output in extreme cold, which is exactly why hybrid setups
keep the furnace as backup for the coldest days of the year.

For a full side-by-side breakdown of operating costs, lifespan, and comfort, see our
complete heat pump guide.

Air-Source vs. Ground-Source Heat Pumps

Air-source heat pumps (what Xolar installs) extract heat from outdoor
air. They’re the most cost-effective option for Canadian homes, with installed costs of
$13,997–$14,997 and no excavation required. Ductless mini-splits work without existing
ductwork; central ducted systems integrate with your current HVAC.

Ground-source (geothermal) heat pumps extract heat from underground.
They’re more efficient but cost $20,000–$40,000+ due to ground loop installation. For
most Canadian homeowners, air-source provides the best ROI.

Solar + Heat Pump: The Complete Energy Package

Pairing solar panels with a heat pump can
eliminate your heating costs entirely. Solar generates the electricity
your heat pump uses – meaning your home comfort is powered by free energy from the sun.
In many provinces, excess solar production offsets your heat pump electricity through
net metering.

This combination is especially powerful because heat pump electricity consumption is
highest in winter when utility rates are often at peak (time-of-use pricing). Offsetting
those peak costs with solar maximizes your savings.

Heat Pump Installation Cost in Ontario and Across Canada

Heat pump installation cost depends on the system type, your home’s size, and whether
existing ductwork can be reused. A single-zone ductless mini split starts around $6,490
installed. A multi-zone ductless system runs about $13,997, and a central ducted heat
pump that replaces both furnace and AC is roughly $14,997–$16,800 before rebates and
tax. Heat pump cost in Ontario tracks these national ranges closely, and Ontario
homeowners have the deepest rebate stack in the country to offset them.

Every quote includes the load calculation, permits, installation, and a 12-year
warranty, so the number you see is the number you pay. See
full pricing for system-by-system costs.

Heat Pump Rebates Across Canada

Federal and provincial rebates can cover a significant portion of your heat pump
installation. Programs vary by province but commonly include:

• Ontario’s Home Renovation Savings Program (HRSP) – the main heat pump
  rebate Ontario homeowners claim: up to $7,500 for air-source heat pumps, $12,000 for
  ground-source (max $12,000 total program cap)
• Oil to Heat Pump Affordability (OHPA) – enhanced federal support for
  households moving off oil heating, stackable with provincial programs
• Canada Greener Homes – federal support for efficiency upgrades; see
  our federal programs guide for what’s
  currently open
• Provincial rebates – many provinces offer $1,000–$10,000+ for heat
  pump upgrades
• Utility incentives – local utilities often provide additional rebates
  for switching from fossil fuel heating

Check all available heat pump rebates in your province →

Ductless vs. Central Ducted: Which Is Right for You?

Ductless mini-splits (from $13,997) are ideal if you don’t have
existing ductwork, want zone-by-zone temperature control, or need to heat specific
rooms. You can add up to 4 indoor heads ($3,497 each) on a single outdoor unit.

Central ducted systems (from $14,997) integrate with your existing
furnace ductwork for whole-home heating and cooling. They’re invisible – no wall-mounted
units – and provide even temperature distribution throughout your home.

Explore More

• 
  Solar Panels – pair with heat pump for zero heating costs
  
• 
  Tesla Powerwall – battery backup for heat pump during outages
  
• 
  EV Charging – complete your home electrification
  
• View solar + heat pump pricing →
• Check available rebates →
• Blog: What Is a Heat Pump? Complete Guide
• 
  Blog: 6 Ways Solar + Heat Pumps Supercharge Your Home