⚡ Operating Cost
Calculate your monthly and annual heat pump operating cost Ontario to heat and cool your home,
then compare it with your current heating system.
Calculate the estimated monthly operating cost of your heat pump for heating or cooling with this quick quiz.
COP (Coefficient of Performance) measures heating efficiency. Higher = more efficient. Check your manual or use the default.
SEER (Seasonal Energy Efficiency Ratio) measures cooling efficiency. Higher = more efficient.
Check your electricity bill or use the Canadian average.
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IMPORTANT: This is a general estimate for informational purposes only. Actual costs vary based on usage patterns, local weather, thermostat settings, and equipment age.
These are estimates. Get precise quotes from certified contractors — for free.
GET FREE QUOTESHeat pumps are 2–4× more efficient than electric baseboard heating. The Coefficient of Performance (COP) measures this — a COP of 3 means 3 units of heat per 1 unit of electricity. Modern cold-climate heat pumps maintain a COP of 1.5–2.5 even in Ontario’s coldest weather. see our full HVAC equipment sizing guide for how COP affects unit selection.
| Ontario Hydro Rate | Estimated Annual HP Cost (1,500 sq ft) | vs Gas Furnace |
|---|---|---|
| Off-Peak (8.7¢/kWh) | $700 – $1,000/yr | Save $400–800/yr |
| Mid-Peak (11.3¢/kWh) | $900 – $1,300/yr | Save $100–500/yr |
| On-Peak (17.0¢/kWh) | $1,300 – $1,900/yr | Similar or slight increase |
| Tiered Rate (avg. 12.5¢/kWh) | $950 – $1,400/yr | Save $200–600/yr |
| Heating System | Annual Cost (Hamilton/Burlington) | Annual Cost (Toronto GTA) |
|---|---|---|
| Natural Gas Furnace (92% AFUE) | $1,400 – $1,900 | $1,500 – $2,000 |
| Electric Baseboard (100%) | $2,800 – $3,800 | $3,000 – $4,200 |
| Heat Pump (COP 2.5 avg) | $900 – $1,400 | $950 – $1,500 |
| Oil Furnace | $2,500 – $3,500 | $2,600 – $3,600 |
| Propane Furnace | $2,200 – $3,000 | $2,300 – $3,200 |
Not sure which system fits your home? Browse our HVAC resource hub for buying guides and cost breakdowns.
Ontario’s Time-of-Use electricity pricing, set by the IESO, means running your heat pump during off-peak hours (nights, weekends) can save 15–25% vs on-peak rates. a smart thermostat makes this easy to automate.
At –15°C, a cold-climate unit may have a COP of 2.0; at –25°C, COP drops to ~1.5 — still better than electric resistance heating.
A well-insulated, air-sealed Ontario home requires 30–50% less heating energy pair this with our central air conditioner buying guide if you’re upgrading cooling at the same time. Insulation upgrades before installation maximize your savings.
An HSPF2 of 10 is roughly 20% more efficient than HSPF2 of 8, per ENERGY STAR Canada technical specifications. see our guide to choosing the right system size for how ratings affect real-world performance. Each efficiency point translates directly to lower monthly hydro bills.
If switching from natural gas, your hydro bill will increase but your gas bill will drop many Ontario homeowners offset this further with current heat pump rebate programs. and with Ontario’s rising carbon price on gas, the net savings are typically $200–$800/year. If switching from electric baseboards, most homeowners see a significant reduction in electricity costs since heat pumps are 2–3× more efficient.
Yes — heat pumps provide both heating and cooling in a single system, eliminating the need for a separate central AC unit. In Ontario, where you need both heating and cooling, this dual functionality makes the investment especially compelling.
Key strategies: use Ontario’s off-peak TOU rates, and avoid the common heat pump buying mistakes that lead to oversized or undersized systems. clean filters every 1–3 months; schedule annual professional maintenance; improve home insulation and air sealing; and set a consistent thermostat schedule rather than extreme temperature setbacks.
Ontario homeowners may qualify for up to
$6,500
in federal and provincial rebates on qualifying systems.
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