Can a Heat Pump Replace a Furnace in Canada? Here’s When It Can
Written by Solenery
4 min read
Can a heat pump replace a furnace in Canada? It’s one of the most common questions homeowners ask when considering a heat pump upgrade. With temperatures dipping below -20°C in many parts of the country, it’s natural to wonder whether a heat pump can fully replace a traditional gas, propane, or electric furnace.
The answer? Yes, in many cases but not all. In this guide, we’ll explain when a cold-climate heat pump can handle your heating solo, when a backup might still be needed, and how to build a system that works year-round in Canada.
When Should I Switch from the Heat Pump to a Furnace?
Most dual-fuel heating systems in Canada automatically switch from the heat pump to the furnace when outdoor temperatures drop below –15°C to –20°C.
At those temperatures, even high-efficiency cold-climate heat pumps lose efficiency, meaning your furnace can provide heat more effectively and at a lower cost.
If you notice your heat pump running constantly without reaching your thermostat setting, that’s a good indicator it’s time to switch over.
Pro Tip: Many modern thermostats, like Ecobee or Nest, can automatically manage the switch between your heat pump and furnace for maximum comfort and efficiency.
Read more: How to Hide Your Heat Pump Without Blocking Airflow
Can a Heat Pump Replace a Furnace in Canada Completely?
Cold-climate heat pumps are designed to work efficiently down to -25°C or lower, making them capable of 100% heating coverage in many parts of Canada.
A heat pump can be your only heat source if:
- You live in Southern Ontario, BC, or coastal Atlantic provinces.
- Your home is well-insulated and energy-efficient.
- You install a cold-climate model with verified low-temperature performance.
- You use ductless mini-splits for zoned heating (efficient in closed-off rooms).
Example: A family in Kingston, Ontario, replaced their gas furnace with a 2-zone Mitsubishi Zuba heat pump and reported year-round comfort—even during a -20°C cold snap.
What Are the Benefits of Switching from a Natural Gas Furnace to a Heat Pump?
Switching from a natural gas furnace to a heat pump offers several key advantages for Canadian homeowners:
- Lower heating costs: Heat pumps can produce up to three times more heat per unit of energy compared to furnaces.
- Year-round comfort: One system provides both heating and cooling.
- Reduced carbon emissions: Running on electricity instead of natural gas helps cut your home’s carbon footprint.
- Eligible rebates: Canada’s Greener Homes Grant and provincial incentives can cover 30–40% of installation costs.
- Future-ready: As gas prices and carbon taxes rise, electric systems will become even more cost-efficient.
Example: A homeowner in Calgary replaced a gas furnace with a cold-climate heat pump and reduced annual heating costs by nearly 40%.
Can a Heat Pump Be Used as a Primary Heat Source in Canada?
Yes, modern cold-climate heat pumps can absolutely be your primary heat source, especially in mild or moderate regions of Canada.
These systems can operate efficiently even at temperatures as low as –25°C, providing steady warmth throughout most of the winter.
In extremely cold areas, many homeowners still rely on their heat pump for 80–90% of the heating season, using a furnace or electric backup only during the coldest days.
Rule of Thumb:
If your winter temperatures rarely drop below –25°C and your home is well insulated, a heat pump can handle nearly all your heating needs.
Read more: Do Heat Pumps Work in Canadian Winters? Results from the Cold Climate Challenge
Consider backup heat if:
- You live in Alberta, Saskatchewan, Manitoba, or Northern Quebec.
- Your home has drafts, poor insulation, or old windows.
- You experience frequent deep freeze events below -25°C.
- You want to reduce upfront system size or cost.
Backup Options:
- Dual-fuel system: Heat pump + high-efficiency gas furnace.
- Electric resistance backup (often built into ducted systems).
- Wood stove or pellet stove for rural/off-grid setups.
Some systems automatically switch to backup when temps fall below a set point (e.g., -20°C).
Key Factors to Consider Before You Replace a Furnace with a Heat Pump
Factors to Consider
| Factor | Why It Matters |
|---|---|
| Climate zone | Colder zones require higher BTU capacity and backup options. |
| Home size and layout | Larger or multi-level homes may need multi-zone setups. |
| Insulation & airtightness | Poor insulation increases heat loss and system load. |
| Window quality | Older windows = more heating demand. |
| Existing ductwork | Central systems work well for full-home coverage. |
Tip: Use Solenery’s postal-code based tool to assess whether your home’s climate zone is heat pump-only ready.
What Kinds of Heating Systems Work with a Heat Pump?
Heat pumps are flexible and can be integrated with different heating setups, depending on your home’s design and existing system.
| Type of System | Compatible with Heat Pump? | Details |
| Forced Air (ducted) | ✅ Yes | Works well for whole-home heating and cooling through existing ducts. |
| Ductless (mini-split) | ✅ Yes | Great for homes without ducts or where zoning control is needed. |
| Hydronic / Radiant Floor | ⚙️ Partial | Some air-to-water models can heat water for radiant systems. |
| Electric Baseboards | 🚫 No | Typically replaced entirely when upgrading to a heat pump. |
Pro Tip: If your home doesn’t have ducts, ductless mini-splits are an efficient and flexible solution.Cost Comparison: Heat Pump vs. Hybrid System
Read more: Do You Need a Permit to Install Solar or Heat Pumps in Canada?
Cost Comparison: Heat Pump vs. Hybrid System
System Cost Comparison
| System Type | Upfront Cost | Energy Savings | Comfort |
|---|---|---|---|
| Heat pump only | $10,000–$16,000 | Highest (if no gas used) | Excellent in mild–moderate climates |
| Hybrid (heat pump + furnace) | $12,000–$18,000 | High | Best for deep cold or variable winters |
| Furnace only | $4,000–$8,000 | Lowest savings | Instant heat, less efficient |
Note: Most Canadians see $800–$1,500/year in heating savings when switching from electric or oil to heat pump-only.
Rebates and Loans to Replace a Furnace with a Heat Pump in Canada
If you plan to remove your furnace entirely, there’s financial support to help.
Federal and Provincial Incentives
- Canada Greener Homes Loan: Up to $40,000 interest-free.
- Ontario (HER+): Up to $10,000 in stackable rebates.
- British Columbia (CleanBC): Up to 100% of cost for income-qualified households.
- Nova Scotia (Efficiency NS): Up to $6,000 for cold-climate mini-splits.
- Manitoba (Efficiency MB): Up to $5,000 for eligible heat pump upgrades.
- Yukon: $0.80/W rebate up to $5,000.
Example: A homeowner in Halifax received $11,000 in combined rebates and loan support to remove oil heat and go all-electric with a ductless mini-split system.
Conclusion
Can a heat pump replace a furnace in Canada? The answer is yes, especially if you choose a cold-climate model and live in a well-insulated home. Even in colder regions, hybrid systems can give you the best of both worlds: high efficiency with reliable backup heating. Either way, replacing your furnace with a heat pump is a smart step toward cleaner, lower-cost comfort.