How Much Does a Heat Pump Installation Cost in Ontario?

Heat pumps have become one of the most popular home comfort upgrades in Canada — and for good reason. One system handles both heating and cooling, efficiently, which can lower your bills and shrink your carbon footprint. The first question most homeowners ask is simple: how much does it cost to install one? Here is a clear, current breakdown.

Average Heat Pump Installation Cost

In the Greater Toronto Area, a heat pump installation typically runs $6,500 to $12,500+ (CAD), before rebates. That includes:

• The heat pump unit (indoor and outdoor components)
• Labour and professional installation
• Standard ductwork or line set connections
• System testing and commissioning

For large homes, homes without ductwork, or complex jobs, costs can reach $15,000 or more.

What Affects the Cost

Type of system

System	Typical cost
Air-source heat pump (most common)	$6,500 – $10,000
Ductless mini-split	$4,000 – $6,000 per zone
Cold-climate heat pump (CCASHP)	$8,000 – $12,000+
Ground-source (geothermal)	$20,000 – $35,000+

Cold-climate models are engineered for Ontario winters. Field testing by NRCan shows a properly specced cold-climate unit holds a coefficient of performance (COP) near 2.0 even at -25°C — well below Toronto’s typical winter lows. Our cold-winter data guide digs into the numbers.

Size and capacity

• Smaller homes or condos: ~$6,000 – $8,000
• Average homes (1,500–2,500 sq. ft.): ~$8,000 – $11,000
• Large homes (2,500+ sq. ft.): $12,000+

Correct sizing matters — see why bigger isn’t better.

Ducted vs. ductless

If your home already has ductwork, installation is often faster and cheaper. Ductless mini-splits suit homes without ducts but use a wall-mounted unit per zone.

Installation complexity

Costs rise if you need an electrical panel upgrade, duct modifications, or you are switching from a gas furnace or electric baseboard heat.

Will You Save Long-Term?

Yes — heat pumps move heat rather than generate it, making them highly efficient. They can substantially cut heating costs versus oil or electric baseboard, and they replace your AC too. With about 84% of Ontario’s 2024 grid electricity produced without emissions, the running carbon footprint stays low.

Rebates and Incentives (Updated for 2026)

This is where current information is essential. The federal Canada Greener Homes Grant has closed to new applications, so do not budget around it. Instead, Ontario’s live pathway is the Home Renovation Savings Program (Enbridge Gas and Save on Energy), where heat pumps qualify for up to $12,000:

• About $500 per ton for gas-heated homes
• About $1,250 per ton for non-gas homes (electric, oil, propane, wood)

Oil-heated homes can access even more through the OHPA program — up to $25,000 in Ontario. Our full rebate guide and OHPA explainer walk through eligibility. With these incentives, many homeowners cover a large share of the install cost.

The takeaway: budget $6,500 to $12,500+ for a heat pump install, then subtract current Home Renovation Savings Program rebates (up to $12,000) — the closed federal grant no longer applies.

Ready to Make the Switch?

Still deciding between systems? Compare heat pump vs. air conditioner. When you are ready, book a free estimate and rebate consultation or explore our heat pump installation service. We will size it right and install it properly the first time.