If you're deciding between a heat pump and a new furnace, the rebate picture is clear: heat pumps get dramatically more rebate money in every province in Canada. Here's the data.
| Province | Heat Pump Rebate | Furnace Rebate |
|---|---|---|
| Ontario | Up to $12,000 (HRS) | $0 — furnaces not covered |
| BC | Up to $19,000 (ESP) | $0 — furnaces not covered |
| Nova Scotia | Up to $15,000 | Limited |
| Quebec | Up to $3,500 (Rénoclimat) | Minimal — heat source switching only |
| New Brunswick | Up to $15,000 | Limited |
| Manitoba | Up to $7,500 | Some high-efficiency rebates available |
| PEI | Up to $12,000 | Some rebates available |
| Saskatchewan | $0 — not covered | Up to $1,000 (SaskEnergy) |
In Ontario and BC, there are zero rebates for new gas furnaces. The entire rebate ecosystem is built around electrification — switching from gas or oil to heat pumps.
Provincial and federal programs are aligned with Canada's emissions reduction goals. Switching from a gas or oil furnace to an electric heat pump reduces greenhouse gas emissions from your home. Installing a new gas furnace does not. Programs fund the outcome they want to see — and right now, that outcome is electrification.
Oil-heated homes get the best deal in Canada. The federal Oil to Heat Pump Affordability Program (OHPA) gives income-qualified homeowners up to $10,000 to switch from oil to a heat pump. Stack that with provincial programs and some homes can access $15,000–$22,000 combined. In Newfoundland, TakeCharge NL's oil-to-electric incentive reaches $22,000.
Beyond rebates, modern cold-climate heat pumps operate efficiently down to -30°C and typically cost 40–60% less to run than gas furnaces in most Canadian markets. With rising natural gas prices, the payback period on a heat pump has dropped significantly since 2022.
In Saskatchewan, where SaskEnergy offers furnace rebates and there are no heat pump programs, a high-efficiency gas furnace may still be the practical choice. In very remote areas without electricity grid access, oil or propane heating remains necessary. And for homeowners replacing a failed furnace urgently in winter, a heat pump installation timeline may not be feasible.
If rebates are a factor in your decision — and they should be, given the amounts available — heat pumps win by a wide margin in every major Canadian province except Saskatchewan. The question is not really heat pump vs furnace anymore. It's which heat pump, and which programs to stack.
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