Thinking about getting a heat pump? It’s a smart move if you’re looking for an efficient way to heat and cool your home while being kinder to the environment.
We know our customers like to have a better idea of how much things will cost before they reach out.
So, here’s a straightforward breakdown of what you can expect for a new heat pump in Ontario in 2025 and what factors play into those numbers.
What Does a Heat Pump Cost in Ontario in 2025?
While heat pumps are great value, the price depends on what type and add-ons you need. On average, you’re looking at anywhere from $7,000 to $10,000 including installation.
Heat Pump Costs by Type
Ductless Heat Pumps
If you’ve got a smaller home or no ductwork, a ductless mini-split system might be your best bet. These run between $7,200 and $7,500 installed assuming two “heads” aka units. For more, pricing will be slightly higher.
Ducted Heat pumps
Have ducts already? A ducted system can cost you a bit more than that—anywhere from $8,500 to $9,000. This range can vary a bit as well depending on the need for upgrades.
What’s the difference exactly between ducted and ductless? Read our guide on Ducted vs Ductless Heat Pump Systems for more info.
What Affects Heat Pump Prices?
Efficiency Ratings
Heat pumps come with different efficiency levels. Higher-rated units, like those with a high SEER (Seasonal Energy Efficiency Ratio) or COP (Coefficient of Performance), will cost closer to the higher end of the average range.
However, the higher the SEER the higher the potential long-term savings. Calculating your annual usage to determine the break-even period is something you can discuss with us as part of your free quote.
Cold Weather Performance
If you’re living through an Ontario winter, this one’s a big deal. Standard air-source heat pumps are only rated to about -15°C. That means you either need a cold-climate model or a backup heating system like a high-efficiency furnace. More on that in a bit.
But, first, cold-climate models are designed for this and work even when it’s -25°C. They’re pricier—around $15,000 to $20,000 installed—but they’ll work even through the coldest parts of winter.
System Size
Bigger homes need bigger systems, and that means higher costs. If you’re heating a small space, a 2-ton system might do the trick. For larger homes, you’re looking at least 3 tons, and that’ll push up both the equipment and installation price.
Installation Complexity
How tricky is the install? That depends on your home. If you already have ductwork, great—it’s generally an easier installation process.
If you don’t, ductless systems are likely going to be a better and cheaper option, but the price might be on the higher end of the average depending on a few factors. If you need more indoor units that might also mean electrical upgrades, which could add $1,000 to $2,000 to the bill.
Switch to a heat pump and save!
Are you looking to upgrade your AC? Heat pumps are a 2-in-1 heating and cooling technology. Get in touch with our experts to find out if one makes sense for you.
Heat Pump Performance Features that can cost extra
Heat pumps have all sorts of bells and whistles that can affect the price. Let’s break some of them down:
Variable-Speed Compressors
Variable-speed compressors adjust their output to match what your home needs. This means less energy waste and more consistent temperatures. They’re also quieter and last longer because they don’t cycle on and off as much. Expect to pay $1,000 to $2,000 more for this feature.
Noise Levels and Build Quality
No one wants a noisy heat pump. Premium models are quieter—as low as 50 decibels, about the same as your fridge. Cheaper ones can get up to 70 decibels, which is like having a loud conversation in your living room.
Like anything, premium models and features are going to cost more, but we help you determine what’s really needed and what’s not.
Smart Features and Connectivity
Want to control your heat pump from your phone? Some models come with smart thermostats and energy tracking features. These can add $500 to $1,500 to the price, but they make your life easier and can help you save on energy.
Longevity and Maintenance
Spend more upfront, and you’ll probably save on repairs and replacements down the road. High-quality systems last longer and need less maintenance. Features like corrosion-resistant coils can make a big difference.
total new Heat Pump cost in ontario in 2025?
While the $7200-$7500 range for a typical 2-ton mini-split system with two heads is a more typical job, there are times when other upgrades are needed. The same can go for a ducted system.
So, while it’s good to know the general range and where most of our jobs land in terms of price, it’s important to keep in mind there are times when upgrades are needed.
To give you a better idea of what a heat pump setup might cost when the job is more complex, let’s look at two common scenarios based on the type of heat pump and add-ons required:
Scenario 1: Ductless Mini-Split System for a Small Home
- Home Size: 1,200 sq ft, no existing ductwork.
- System: A 2-ton ductless mini-split heat pump with two indoor heads.
- Add-Ons:
- Electrical panel upgrade: $1,500
- Permits: $300
Total Cost: $7,000 (base system + heads) + $1,500 (upgrade) + $300 (permits) = $8,800
Scenario 2: Ducted Air-Source Heat Pump for a Medium-Sized Home
- Home Size: 2,000 sq ft, existing ductwork in good condition.
- System: A 3-ton air-source heat pump designed for cold climates.
- Add-Ons:
- Variable-speed compressor: $2,000
- Noise-reduced model: $1,000
- Permits: $300
Total Cost: $9,000 (base system) + $2,000 (compressor) + $1,000 (noise reduction) + $300 (permits) = $12,300
Do I still Need a Furnace?
Remember earlier we talked about the role of a high-efficiency furnace in a heat pump system?In Ontario, if you’re going with an air-source heat pump, you’ll need a backup furnace.
No way around it.
When the temperature plummets, most heat pumps can’t keep up on their own. Furnaces fill the gap and make sure your house stays warm no matter what.
The good news? Your furnace won’t have to come on very often meaning you can extend the useful life of it. And remember, your heat pump also replaces your air conditioner, so you aren’t just adding an extra HVAC system to your home.
Efficiency Comparison
Heat pumps are great at cutting energy use, up to 50% less than a traditional furnace. But when it’s really cold, their efficiency drops, and that’s where the furnace steps in.
Cost Considerations
Adding a furnace to the setup does bump up the initial cost. But it’s worth it for the peace of mind and potential for long-term savings.
Practicality
Most Ontario homeowners find that a heat pump paired with a high-efficiency furnace is the best of both worlds. You get energy savings during milder weather and reliable heating when it’s freezing out.
Are there still heat pump rebates in ontario?
The landscape of heat pump rebates in Ontario is always changing, so the best thing to do is to contact us directly to find out what you can qualify for.
Need a Free Quote?
That’s everything for this year’s New Heat Pump Cost Ontario Guide. I hope it’s answered most of your questions.
If you need to talk to a professional, experienced HVAC company please either call us at 289-497-8357 or click the free quote button below to get in contact with us!
