Heat Pump vs. Gas Furnace: Economic Breakdown for Ottawa Homes in 2025
Ottawa’s harsh winters demand dependable heating that keeps your family warm without unexpected bills. For a typical 1,500 sq ft home, we’re comparing high-efficiency gas furnaces, cold-climate heat pumps, and hybrid systems, with costs that can range from $4,000 to $22,000. At Francis Home Environment, we tailor our heating services to your real-world needs.
Upfront Installation Costs for Heat Pumps and Furnaces
Starting with the basics, high-efficiency gas furnaces (around 95% AFUE) remain a cost-effective option, with prices that can range from $4,000 to $6,500 depending on size and complexity. Cold-climate ducted heat pumps, which also provide efficient cooling, tend to carry a premium and can cost between $9,000 and $22,000, including necessary controls and outdoor setup. Hybrids, which blend both, vary but often fall between those figures when upgrading multiple components. When comparing heat pumps, look for cold-climate models and ask about performance at −15 °C. Confirm the model’s minimum operating temperature and capacity retention using the manufacturer’s low-ambient performance data.
Older Ottawa homes might need an electrical panel upgrade; we’ll confirm during the quote. A bonus with heat pumps is built-in air conditioning for summer. We model your options using current Ontario Energy Board (OEB) electricity prices and your current natural gas rate.
Operating Costs in Ottawa’s Cold Climate
Space-heating needs vary by home; to estimate your costs, use current Ontario Energy Board (OEB) electricity rates and Enbridge Gas rates for your area. As of Nov 1, 2025, OEB Time-of-Use prices are Off-Peak 9.8¢/kWh, Mid-Peak 15.7¢/kWh, On-Peak 20.3¢/kWh (delivery/fees/taxes extra). Enbridge’s current gas rate pages list the effective ¢/m³ components approved by the OEB. Illustrative method (energy portion only): estimate annual kWh for a cold-climate heat pump using a representative seasonal COP ~2–3, then multiply by current OEB ¢/kWh (delivery/fees/taxes extra). For gas, convert your annual m³ (or GJ) to bill impact using the current Enbridge rate components; full bills include delivery and other charges approved by the OEB.
Hybrids split the difference, using the pump on milder days and the furnace on extreme days, balancing efficiency and reliability. Full bills include delivery and fees, so relative costs depend on your usage and current rates. Use today’s OEB electricity prices and your gas utility’s current rates to compare options for your home.
Maintenance, Lifespan, and Total Ownership
Both furnaces and heat pumps can serve you well for ~15–20 years with regular maintenance. NRCan recommends annual maintenance by a qualified technician to maintain performance and reliability. Hybrids combine both, so plan accordingly. Costs can cost about $100 to $150 per year for gas, $150 to $300 for heat pumps, and $200 to $300 for hybrids. Our maintenance plans make this easy with priority service and predictable expenses.
Cost Comparison Table
Here’s a quick snapshot (illustrative, energy-only):
| Category | High-Eff. Gas Furnace | Cold-Climate Heat Pump | Hybrid (Heat Pump + Gas) |
| Typical install | Can cost around $4,000–$6,500 | Can cost around $9,000–$22,000 | Varies |
| Annual energy | Use current Enbridge gas rates; totals vary with usage and OEB-approved delivery/fees. | Estimate with your annual kWh × current OEB TOU prices (delivery/fees/taxes extra). | Between: it depends on your heat-pump/furnace runtime split and current rates. |
| Maintenance | Can cost ~$100–$150/yr | Can cost ~$150–$300/yr | Can cost ~$200–$300/yr |
Remember, we model full costs with your specific rates in our quotes. On weekends and statutory holidays, the lowest Time-of-Use or Ultra-Low Overnight price applies all day.
Beyond Costs: Emissions, Comfort, and Future-Proofing
Looking past the dollars, Ontario’s grid is low-carbon, about 35 g CO₂e/kWh in 2022, so heat pumps and hybrids can substantially reduce heating emissions, with further gains as the grid evolves. Comfort-wise, furnaces deliver quick, hot bursts of air, while heat pumps provide steady, even warmth and summer cooling. Hybrids offer the best of both for future-proof flexibility.
Which System Is Best for Your Ottawa Home?
For sheer economics in Ottawa’s cold, a high-efficiency gas furnace can lead to upfront and operating costs, particularly at today’s local gas and electricity rates. Hybrids can add versatility by blending cold-weather reliability with built-in cooling from the heat pump. If you have favourable electricity rates or on-site solar, a cold-climate heat pump can be a strong contender. Confirm duct condition and electrical capacity during your assessment. Book a free assessment with Francis Home, and we’ll crunch the numbers for your home and provide a clear proposal with our expertise.