Heat pump vs furnace
The government's own example (Quebec, electric furnace)
| New electric furnace | ~$6,000 |
| Heat pump | ~$15,000 |
| Difference | $9,000 |
| Annual savings | ~$1,400 |
| Payback, no rebate | over 6 years |
| With $2,000 federal | ~5 years |
| + Hydro-Québec ~$3,000 | ~3 years |
Source: Prime Minister's speech, Oct 8, 2026. Savings average over $1,400/yr for homes heated with oil, propane or electric resistance; savings vs natural gas vary by local rates.
Pros and cons
- Heat pump: heating + air conditioning, lower running cost vs oil/propane/electric, eligible for rebates.
- Furnace: lower upfront cost, familiar; natural gas can still be cheap to run in some provinces.
- Cold climate: choose a cold-climate model; many systems keep a backup heat source.
Sources: www.pm.gc.ca · www.canada.ca
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FAQ
Is a heat pump cheaper than a furnace?
Upfront, usually not; running costs are typically lower than oil, propane or electric resistance heat. Rebates narrow the upfront gap.
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