Heat Pumps are Lowest-Cost Option for Heating and Cooling Most Households, New Research Finds

September 28, 2023

New research by the Canadian Climate Institute finds that heat pumps are already the lowest-cost way for most households across Canada to heat and cool their homes. 

The new report, Heat pumps pay off: Unlocking lower cost heating and cooling in Canada, examines the cost of heating and cooling options across building types in Vancouver, Edmonton, Toronto, Montréal, and Halifax. It compares the costs of different heat pump configurations against gas furnaces and air conditioning.

The research finds that heat pumps beat gas furnaces and air conditioners on cost in most cases. On average, the lifetime cost of a standard heat pump with electric backup is 13 per cent less than a gas furnace with air conditioning. This is in part driven by the high energy-efficiency of heat pumps, which are up to five times as efficient as gas furnaces, providing significant savings on energy bills.

In addition, those in the market for new heating or cooling appliances can use a new online calculator developed by the Institute (www.heatpumpcalculator.ca) to find out the lowest-cost option for their situation. The calculator provides detailed information that shows how heat pumps stack up against alternatives in each of the five cities modelled—both in terms of costs and emissions impact. 

Heat pumps are a vital technology for reducing climate pollution in Canada’s buildings and protecting people from extreme heat. They are highly energy efficient, run without burning fossil fuels, and double as a cooling technology, which will become increasingly important as extreme summer heat becomes more frequent.

The new report includes policy recommendations targeting barriers that are holding households back from installing a heat pump. These recommendations include maintaining existing government policies and rebates, streamlining supports for consumers, establishing maximum indoor temperature limits and cooling requirements, and requiring non-polluting, high-efficiency heating and cooling technologies in new buildings in regions where they are already cost-competitive. 

Source

Related Articles


Latest Articles

  • Statement by ECAO Executive Director, Graeme Aitken on Tariffs

    Statement by ECAO Executive Director, Graeme Aitken on Tariffs

    February 7, 2025 ECAO posted the following statement from Executive Director, Graeme Aitken on their website regarding potential U.S. Tariffs: For almost 80 years, the Electrical Contractors’ Association of Ontario (ECAO) has served and represented the interests of Ontario’s industry-leading, unionized electrical contractors. Over those many decades, ECAO has stepped up during times of challenge… Read More…

  • Rigid PVC Conduit vs. ENT in High-Rise and Multi-Use Applications

    Rigid PVC Conduit vs. ENT in High-Rise and Multi-Use Applications

    February 7, 2025 By Phil Crangi Choosing the right high-rise construction conduit can significantly impact project efficiency and costs. While rigid PVC (Polyvinyl Chloride) conduit may have a lower upfront cost, ENT (Electrical Nonmetallic Tubing) offers more significant advantages due to its long-term labor savings and installation efficiency. ENT and fittings form an integrated system… Read More…

  • EFC Tariff Response: Advocating for Free Trade

    EFC Tariff Response: Advocating for Free Trade

    February 7, 2025 STATEMENT FROM CAROL MCGLOGAN, PRESIDENT & CEO, ELECTRO-FEDERATION CANADA ON U.S. TARIFFS Electro-Federation Canada (EFC), representing Canada’s electrical and automation industry, strongly opposes the recent tariffs announced (an subsequently delayed) by President Trump on Canadian imports. These tariffs threaten to disrupt North American supply chains, increase costs for businesses and consumers, and… Read More…

  • The ‘Prosumer’: Taking an Active Role in Electricity Management & Generation

    The ‘Prosumer’: Taking an Active Role in Electricity Management & Generation

     “For us, a prosumer is an active homeowner or building owner who manages and distributes their electrical load to optimize energy use in their home or business,” explains Schneider Electric’s David O’Reilly, Vice President of the Home & Commercial Solutions Division. Read More…


Changing Scene

  • Westburne Canada Announces Promotion of Anshul Mathur to President

    Westburne Canada Announces Promotion of Anshul Mathur to President

    February 7, 2025 Rexel has announced the promotion of Anshul Mathur to the position of President, Westburne Canada, effective March 31, 2025. This transition will include a two-month handover period to ensure a seamless transfer of responsibilities. Anshul joined the Rexel Canada team on July 18, 2011, as a Business Development Account Manager at Westburne…. Read More…

  • Leviton Announces Extended Partnership with Salex for the Ottawa Market

    Leviton Announces Extended Partnership with Salex for the Ottawa Market

    February 7, 2025 Levtion are excited to announce the expansion of their long-standing partnership with Salex into the Ottawa region. “I’m very excited to bring our expertise and solutions to the Ottawa market with Salex. Together, we have demonstrated that our mutual capabilities, solutions, and experience are unrivalled. I look forward to supporting and growing… Read More…

  • AEA Congratulates Leanne Walker for Emerging Leader Award at 2024 AEA Industry Awards

    AEA Congratulates Leanne Walker for Emerging Leader Award at 2024 AEA Industry Awards

    February 7, 2025 Congratulations to Leanne Walker at EECOL Electric for receiving Alberta Electrical Alliance’s Emerging Leader award at their 2024 AEA Industry Awards. View the AEA LinkedIn post on the announcement: Read More…

  • EB Horsman Campbell River’s New Building is Now Open

    EB Horsman Campbell River’s New Building is Now Open

    February 7, 2025 EB Horsman & Son is thrilled to announce that EB Horsman & Son Campbell River has officially opened the doors to it’s new building at 904 Ironwood Street, Campbell River, B.C. V9W 5K7. This move represents an exciting new chapter as EB celebrates 55 years of dedicated service to the community. Located just across the… Read More…