Rebate update, October 10, 2026: The former HER+ and Canada Greener Homes Grant programs are closed. See our current heat-pump rebates before budgeting for a new installation.
For decades the typical Ottawa home featured a gas furnace in the basement with a standard air conditioner tied into the system for cooling. In the cold winter months, the gas furnace takes care of the heating and when our sweltering summer heat sets in, the air conditioner kicks on and the furnace fan delivers that beautiful cold air throughout the home. As of about 2021, we started seeing more and more homeowners opt to ditch the old air conditioner and install a heat pump instead. Each year that has passed since then has seen the popularity of these heat pumps absolutely skyrocket! As of mid 2023, we are seeing the installation of air conditioners decrease by drastic numbers, with the installation of heat pumps making up nearly 90% of cooling units we install. There are numerous reasons for this that we discuss in this article and explore the big question, are air conditioners a dying technology?
Why are heat pumps so popular in Ottawa?
In 2023, available rebates were a major factor in the growing popularity of heat pumps. The incentive amounts discussed at that time depended on the home, equipment and program requirements. Those former programs are closed, so current heat-pump and air-conditioner quotes should be compared using only incentives for which the proposed installation is currently eligible.
Furthermore, as a whole, society is interested in reducing the collective carbon footprint. Most homeowners now understand the impact of fossil fuels and are interested in doing their part to reduce emissions.
Finally, the technology has advanced so rapidly that heat pumps have become a much more viable option as the primary source of heating in an Ottawa home. They can produce heat at lower temperatures and for less money than ever before. This is giving people the option of installing heat pumps in tandem with their gas furnace or taking the plunge into a fully electric system that eliminates the gas furnace completely.
Are heat pumps better than air conditioners?
Heat pumps are air conditioners! But they can also heat too. Just by design they are more capable than air conditioners. In 2023, many of our Ottawa customers chose higher-end heat pumps when considering the rebates available at that time.
Variable-speed heat pumps can offer quiet operation and efficient heating and cooling. Their installed cost relative to an entry-level air conditioner depends on the selected equipment, installation work and any confirmed current incentives. These entry level air conditioners are generally louder, less efficient and operate as a single stage unit.
In summation, not all air conditioners and heat pumps are created equal, but the equipment Ottawa home owners tend to purchase are: entry level air conditioners or high end heat pumps. Because of this, in our market, heat pumps tend to be “better” than air conditioners.
How expensive is a heat pump in Ottawa?
In 2023, this article reported heat-pump additions to existing furnaces at approximately $5,000–$10,000 before rebates, with the rebate-oriented installations discussed at approximately $8,500–$10,000. These are historical price examples, not current quotes. The former rebate offers are closed; net project costs depend on a current installation quote and confirmed eligibility.
Ottawa homeowners that are transitioning from natural gas to fully electric cold climate heat pumps with electric backup tend to pay a little more. In 2023, this article reported fully electric heat-pump systems at approximately $16,000–$22,000 before rebates. This historical range is not a current quote, and the former rebate offer is closed.
Finally, the very popular hybrid system includes a new furnace and new heat pump. This technology allows homeowners to run the gas furnace when temperatures get very cold and is generally slightly more economical than running electric back up heat. In 2023, this article reported hybrid-system costs of approximately $13,500–$18,000 before rebates. Request a current written quote and review current heat-pump rebates before estimating your net cost.
Can I run my heat pump like an air conditioner(only in cooling)?
We have lots of customers that would like to explore a heat-pump installation but are not looking to increase their energy bills. Any qualifying heat pump system will be very efficient in cooling mode and chances are it will save you money over your current air conditioner. In terms of winter heating, there is something called the economic balance point which determines when it is cheaper to run the heat pump or the gas furnace. Our designers or technicians can help you determine the economic balance point of your system to ensure you are reducing your carbon footprint and saving as much money as possible.
Should I keep my gas furnace?
Many Ottawa homeowners are unsure of the process when switching to a heat pump. It seems to be a common misconception that you need to either remove your furnace completely(convert to electric) or that your heat pump will always run and the furnace will never turn on again. We always explain the pros and cons of keeping your furnace, switching to electricity or replacing the old furnace with a new one. Every house and person is different and determining whether you will eliminate fossil fuels is a very individual decision. Allow our team of experts to help guide you through the process and make a choice that is right for you, your family and your home!
Are Air Conditioners a thing of the past?
Overall, we believe that heat pumps will continue to gain popularity and eventually very few air conditioners will be sold to residential homeowners. That being said, air conditioners will not disappear. There will always be a place for cooling only units and the simplicity of these systems will always be appealing to a certain demographic. Feel free to reach out to our team at 613 592 5770 and determine whether an air conditioner or a heat pump is right for you!
