Heat pump or gas furnace in Ottawa: how to compare the two

Three setups to price

Most Ottawa houses with ducts and a gas line end up choosing between three setups. Write which ones you want priced in your request.

• Gas furnace. A new high-efficiency furnace replaces the old one; the air conditioner stays or is replaced on its own. See furnace replacement.
• Heat pump on its own. One outdoor unit heats and cools. Backup heat, often electric, covers the coldest stretch.
• Hybrid. A heat pump takes the air conditioner’s place; the furnace stays for deep cold.

Upfront price, side by side

The price list puts the furnace at $4,000–$7,500 installed and an air source heat pump at $6,000–$12,000 on HomeStars’ Canada-wide guides. One Ottawa firm prices a cold-climate unit at $9,000–$22,000; another puts a matched hybrid at $9,000–$14,000 and up.

On a heat pump quote, HomeStars lists the lines that move the total: backup heat at $1,500–$4,000 in colder regions, duct changes at $1,000–$5,000, removal of the old furnace or air conditioner at $500–$1,500. Ask for each one as its own line. The heat pump cost page breaks the figures down further.

What sets the yearly bill

Two numbers decide the running cost: what you pay per unit of energy, and how much heat each unit buys.

A furnace around 95% AFUE turns most of its gas into heat. A heat pump moves heat from outdoor air. Natural Resources Canada measures that with the coefficient of performance (COP): a COP of 3 means 3 kW of heat for 1 kW of electricity. For air source units it gives a COP of 2.0–5.4 at 8°C and 1.1–3.7 at -8°C. The colder the night, the less heat each kilowatt-hour buys.

The rates on 29.10.2026:

• Gas. Enbridge’s residential Rate 1 notice for October 2026 sets the gas supply charge at 9.4741¢/m³, transportation at 5.4818¢/m³, delivery at 12.2850–14.2691¢/m³ by volume, plus $27.69 a month. Check the rate zone on your bill.
• Electricity. From 1 November 2026 the Ontario Energy Board sets Time-of-Use prices at 9.1¢ off-peak, 14.6¢ mid-peak and 18.9¢ on-peak per kWh. Tiered prices are 11.2¢ for the first 1,000 kWh a month in winter and 13.2¢ above it. Hydro delivery charges come on top.
• Carbon. The federal fuel charge on consumers stopped applying on 1 April 2025; gas bills carry no such line.

Savings depend on the gap between the two prices. Hand the installer a year of gas and hydro bills and ask for an estimate built from them.

Where a hybrid fits

Natural Resources Canada describes two switch points. The thermal balance point is the outdoor temperature below which the heat pump can no longer keep up with the house. The economic balance point is where gas becomes cheaper to burn than electricity for the heat pump. A hybrid system switches to the furnace at one of these, and the two take turns, never running at once.

Ask which balance point it uses, the temperature it starts at, and if you can change it when rates change. The hybrid heating page covers the setup in more detail.

Rebates, as of 29.10.2026

Home Renovation Savings pays by the fuel that heats the house today:

• Gas-heated Enbridge customer: $500 per ton, up to $2,000, for a cold-climate air source heat pump; $3,000 for ground source.
• Grid-connected home heated by electricity, oil, propane or wood: $1,250 per ton, up to $7,500; ground source $2,000 per ton, up to $12,000.

The contractor files for pre-approval first; a unit installed before approval gets nothing. Gas furnaces are absent from the program’s list. Detail on the Ottawa rebates page.

The federal rebate announced on 8 October 2026 aims to open in early 2027. Count only what is open on the day you sign.

Lifespan and rules

Natural Resources Canada gives air source heat pumps a 15–20 year service life.

The City of Ottawa exempts heat pump installs from a building permit, heritage properties excepted; the work must still meet the Building Code and Zoning By-law. Gas appliances in Ontario must be serviced by TSSA-registered contractors.

What to put in your request

• How the house is heated now and the furnace’s age, from its label if you can read it.
• Central air in the house or none, and its age.
• Which setups you want priced: furnace, heat pump, hybrid, or all three.
• Type of house and rough floor area.
• Twelve months of gas and hydro bills, or the yearly totals.
• Where an outdoor unit could sit.

Who handles your request

Ottawa Heating Desk takes your request and passes it to one independent local heating company. That company calls you back, looks at the house, prices the setups you asked about and does the install.