Heat pump basics

An electric heat pump is a heating and cooling system. It is fully reversible, meaning that it can both heat and cool your home.

An electric heat pump uses less energy to heat and cool the space in your home than traditional equipment does and is an excellent choice for both new homes and retrofits of existing heating and cooling systems.

On this page

• How does a heat pump work?
• Benefits of using an electric heat pump
• Types of heat pumps
• Which heat pump is right for you?
• When to install a heat pump
• Working with contractors
• Available grants and rebates
• Related information

How does a heat pump work?

During the cooler months, a heat pump extracts heat from the outside air, using electricity to increase the temperature of the heat and transfer it inside your home. The heat pump’s advanced technology enables it, even during Canada’s cold winter days, to extract heat from the outside air to heat your home. Although heat pumps are best known for heating, they also provide cooling by transferring heat from warm indoor air to the outside of your home. In fact, if you have an air conditioner at home, you are already familiar with heat pump technology – they work in the same way.

Heat pumps transfer heat rather than generate heat, making them energy-efficient while they provide comfortable temperatures for your home year-round.

Benefits of using an electric heat pump in your home

Types of heat pumps

Air source heat pumps

Air source heat pumps (ASHP) are the most common heat pump on the Canadian market. They use air as their source to provide heating.

Compared to oil

• Heats space up to 2.5 times more efficiently than an oil furnace or boiler, with up to $4,000 in annual heating savings.^{Footnote *}
• Reduces emissions by up to 10 tonnes of carbon dioxide equivalent (CO₂e) per year!

Compared to electrical resistance

• Heats space up to 2 times more efficiently than electric furnaces or baseboards, with up to $2,000 in annual heating savings.^{Footnote *}

Compared to gas

• Heats space up to 2.5 times more efficiently than a gas furnace, with up to $500 in annual heating savings in some regions.^{Footnote *}
• Reduces emissions by up to 6 tonnes of CO₂e per year!

Read more about air source heat pumps

Cold climate air source heat pumps

Cold climate air source heat pumps (ccASHP) are a type of ASHP. They are better adapted to the colder Canadian climate and can work in lower temperatures, well below freezing down to -30°C.

Compared to oil

• Heats space up to 3 times more efficiently than an oil furnace or boiler, with up $4,500 in annual heating savings.^{Footnote *}
• Reduces emissions by up to 10 tonnes of CO₂e per year!

Compared to electrical resistance

• Heats space up to 2.5 times more efficiently than electric furnaces or baseboards, with up to $2,500 in annual heating savings.^{Footnote *}

Compared to gas

• Heats space up to 3 times more efficiently than a gas furnace, with up to $1,000 in annual heating savings in some regions.^{Footnote *}
• Reduces emissions by up to 6 tonnes of CO₂e per year!

Why use a cold climate air source heat pump?

Ground source heat pumps

Ground source heat pumps (GSHP) use the earth and/or ground water as their source to provide heating. GSHPs can provide more heat during the winter than ASHPs because the system is not subject to extreme fluctuations in outdoor air temperature.

Compared to oil

• Heats space up to 3.5 times more efficiently than an oil furnace or boiler, with up to $5,000 in annual heating savings.^{Footnote *}
• Reduces emissions by up to 10 tonnes of CO₂e per year!

Compared to electrical resistance

• Heats space up to 3.5 times more efficiently than electric furnaces or baseboards, with up to $3,500 in annual heating savings.^{Footnote *}

Compared to gas

• Heats space up to 3.5 times more efficiently than a gas furnace, with up to $1,500 in annual heating savings in some regions.^{Footnote *}
• Reduces emissions by up to 6 tonnes of CO₂e per year!

Read more about ground source heat pumps

Save even more money by participating in financial incentive programs such as grants and rebates.

Access to natural gas? Learn more about gas-heat pump hybrid systems.

Which heat pump is right for you?

When to install a heat pump

Don’t wait until you need an emergency replacement! Proactively ask your contractor when you will need a new air conditioning or heating system. You may need as much as a year to complete electrical upgrades and other renovations for optimal performance of the electric heat pump you install.

Working with contractors

Use a skilled contractor

Your contractor will be able to design, install and service the equipment to meet the requirements of your home while complying with local by-laws and any related building codes, legislation and guidelines.

Improper sizing or installation of a heat pump can result in financial consequences and reduced efficiency. That’s why it’s important to choose a certified contractor to complete your heat pump installation.

Questions to ask your contractor

• What type of heat pump is best to upgrade my heating and/or cooling system?
• How are you ensuring that the heat pump is properly sized for my home?
• What maintenance schedule should be followed?
• What is the warranty on the equipment? Is there a warranty certificate?

Available grants and rebates

The Canada Greener Homes Initiative includes programs that provide incentives for the purchase and installation of energy efficiency retrofits, including heat pumps. Check if your province, territory, municipality, or utility provider is offering additional rebates for heat pump installations. For more information, visit canada.ca/greenerhomesinitiative.

Related information

Download our printable brochures:

• Heat pump basics: Transitioning from oil heating (PDF, 1.5 MB)
• Heat pump basics: Transitioning from gas heating (PDF, 1.6 MB)