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My Old Furnace is Dying: Should I Replace It with a New Furnace or a Heat Pump?

As an Ottawa HVAC company, we see this scenario play out every single day. A customer calls us about their “furnace from 2006” that’s “breaking down” or another customer with an old oil furnace is ready to “switch to a heat pump with electric back up.”

If your furnace is 15-20 years old, you’ve reached a critical (and expensive) fork in the road.

Do you go with the tried-and-true replacement: a new, high-efficiency gas furnace?

Or do you make the switch to the new technology everyone is talking about: a cold-climate heat pump?

Here is our honest, local breakdown to help you make the right choice for your Ottawa home.

The 2025 “Default” Choice: A New High-Efficiency Furnace

For decades, this was the only choice. Your old furnace died, you got a new one. Today, it’s still a fantastic option for many homeowners.

Who is this for? The homeowner who prioritizes reliability, a lower upfront cost, and isn’t replacing their air conditioner at the same time.

The Pros:

  • Lower Upfront Cost: A new, high-efficiency gas furnace is almost always the most affordable replacement option (installation-wise).
  • Proven Technology: You know it works. A furnace is not bothered by a -30°C Ottawa night. It just works.
  • “Plug-and-Play” Replacement: In most cases, it’s a straightforward replacement, using your existing ductwork and gas line.

The Cons:

  • No Rebates (or very small ones): Most significant government HVAC rebates are designed to incentivize switching off fossil fuels.
  • Volatile Fuel Costs: You are still tied to the fluctuating price of natural gas (or oil/propane, which are even more expensive).
  • It Only Does Heat: It does not provide summer air conditioning. You will still need a separate A/C unit.

A new furnace is a safe, reliable, and solid investment. You can find more information in our 2025 Ottawa Furnace Guide.

The “Future-Proof” Choice: A Cold-Climate Heat Pump

This is the technology that customers with 2006-era furnaces are asking about. A heat pump is an all-in-one system that provides high-efficiency heating in the winter and high-efficiency air conditioning in the summer.

Who is this for? The homeowner who wants to lower their long-term energy bills, get access to large rebates, and is looking for a single, all-in-one system for heating and cooling.

The Pros:

  • Massive Rebates: This is the big one. Government programs are built around heat pumps, with rebates that can significantly reduce the upfront cost.
  • Incredible Efficiency: A heat pump doesn’t burn fuel to create heat; it moves heat. This makes it 300-400% efficient, slashing your monthly energy bills.
  • All-in-One Comfort: It’s your heater and air conditioner in one sleek, efficient unit.

The Cons:

  • Higher Upfront Cost: Even with rebates, a high-quality cold-climate system is a larger investment than a furnace.
  • Requires a Qualified Installer: This is critical. A heat pump must be sized and installed by a team that understands how to make them work in Ottawa’s climate.

The Big Ottawa Question: What About -30°C?

This is the #1 question we get, and it’s the right one to ask. Yes, modern cold-climate heat pumps (like the Moovair or Mitsubishi models we install) are designed to provide heat efficiently down to -25°C or -30°C.

However, for ultimate peace of mind, we often recommend a Hybrid “Best-of-Both-Worlds” System:

This is the premium solution: a new cold-climate heat pump paired with a new high-efficiency furnace.

  • The heat pump does 95% of the work all year, saving you money.
  • The furnace acts as the backup, seamlessly taking over on the 5-10 absolute coldest days of the year.

You get the efficiency and rebates of the heat pump, with the unmatched power and reliability of a gas furnace.

The No-Brainer: If You’re on Oil or Propane

If you are the customer looking to “switch from oil,” your decision is easy. Do it.

The cost of heating with oil is so high that a new heat pump system will provide a spectacular return on investment. The monthly savings alone are often enough to justify the switch, and the rebates make it an absolute no-brainer. You will get a system that is cheaper to run, safer, and far better for the environment.

Our Honest Recommendation

  • If your budget is tight and your A/C is new: A new, high-efficiency furnace is a great, reliable choice.
  • If you are on oil/propane or your A/C is also old: A full cold-climate heat pump system is your best long-term investment.
  • If you want the ultimate in efficiency and peace of mind: A hybrid (heat pump + furnace) system is the top-tier solution for Ottawa.

Don’t guess what’s right. The most important step is an in-home consultation with an expert who can give you hard numbers for all three scenarios. We can provide a free, no-obligation quote for a new furnace, a full heat pump system, and a hybrid system, so you can see the costs and rebates side-by-side.

Bryant Modulating Furnace Ottawa

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