How Much Do Heat Pumps Cost?

On a very basic level, a heat pump is just a piece of equipment that controls the interior temperature of a building through heat exchange with the outside environment. Heat naturally tends to move from warmer areas to cooler areas, and heat pumps work by reversing this flow—the same way water pumps work by reversing water’s natural tendency to flow to the lowest point (See How Do Heat Pumps Work? for more information).

Beyond that, there are a large amount of heat pumps that meet this basic definition, but work differently. There are ducted heat pumps that push warm air through a central air system, mini-split systems that manage the temperature in a single room, hybrid systems that work together with a furnace to heat your home, and other models.

With all of these variables, the costs of the different models can cover a very wide range. The cost of an installed ductless heat pump with one indoor heating/cooling zone will be significantly lower than the cost of a more complex system with a number of independent heating/cooling zones.

But the cost of the heat pump itself doesn’t tell the whole story. While the upfront cost is often slightly higher than some other methods of home heating, there are a number of other factors to consider.

The short answer is yes. The combination of your home’s layout, construction, and your heating needs determine the kind of heat pump installation you’ll need.

Like with any other heat source, the specifics and costs of maintaining a comfortable temperature throughout your home depend on the number of rooms, the layout, and exactly how warm or cool you want to make it.

Some factors that can affect the cost of your installation are:

• Existing ductwork (or lack thereof)
• Square footage of your home
• Number of rooms
• Age of your home
• Layout of your home
• Your family’s personal comfort preferences

Heat pumps are significantly more energy-efficient than most other forms of home heating. Because heat pumps are powered by electricity, they’re most easily compared to electric furnaces or electric baseboard heating.

Most heat pumps are around three times more energy-efficient than other electric heating methods. This means that a 12,000 BTU heat pump costs approximately the same amount of money to run as a single 1000 watt electric baseboard heater, but can produce enough heat to replace 4-6 baseboards in your home.

Heat pumps are also significantly more efficient than other common heating sources in Atlantic Canada. For example, if you are currently heating your home with an oil furnace, you can expect significant monthly savings when you switch to a heat pump. The exact numbers will vary and will depend on the construction and layout of your home.

An authorized Daikin Atlantic dealer can perform a no-obligation heat pump consultation and give you the most accurate estimate of what you can save. If you’re not ready to speak to a dealer yet, we have created a Savings Calculator to help you determine what you could save with a heat pump.

Do Heat Pumps Really Save Money? Read more here to see how heat pumps stack up to the most popular traditional home heating solutions.

Since they are more energy efficient than alternatives such as oil-based furnaces, heat pumps are a much more environmentally friendly method of home heating and they qualify for a variety of green rebates and subsidies.

No matter where you live in Atlantic Canada, there are government programs you can access that will make installing a new heat pump more affordable.

Yes, Efficiency Nova Scotia provides rebates on heat pumps through two programs. The Home Energy Assessment is for homeowners looking to purchase a heat pump. If your household is moderate income, you may qualify for $1,000 to $3,000 per ton on heat pumps.

Heating System Rebates are for homeowners who have already purchased an eligible heat pump with the help of a contractor. Eligible centrally-ducted heat pumps have a potential rebate of up to $1,600, and eligible ductless mini-split heat pumps have a potential rebate of up to $800.

Yes, New Brunswick offers several programs to help homeowners save.

Yes, efficiencyPEI offers rebates for the installation of Northeast Energy Efficiency Partnerships Cold Climate Air-Source Heat Pump Specification (NEEP ccASHP) air source heat pumps, ENERGY STAR® certified heating equipment including geothermal heat pumps, and other energy-saving products.

Homeowners can see regular rebate savings of up to $2,500 when they purchase a central (air-to-air or air-to-water) air source heat pump, and up to $4,500 with the low-income rebate.

Ground source (geothermal) heat pumps can receive up to $4,000 with the regular rebate rate, and up to $7,500 with the low-income rate.

Mini-split air source heat pumps can see regular rebate savings of up to $1,200, and up to $2,400 with the low-income rebate

Yes, the Oil to Electric Incentive Program in Newfoundland and Labrador can help you save when replacing your oil tank with a heat pump. Incentives are determined by the technology you’re installing, your income, and the number of people living in your household. You can save up to $9,000 (general stream) or up to $22,000 (income-qualified stream) on a central heat pump. You can also save up to $6,500 (general stream) or up to $18,000 (income-qualified stream) when switching to multiple mini-split heat pumps or a multi-split heat pump.

Regardless of your initial investment, in most cases the cost of heat pump installation is quickly offset by the immediate monthly savings that homeowners will experience with a more energy-efficient heating system.

The variety of rebates, financing, and other programs available also help to reduce the initial investment costs, making heat pumps an affordable choice for any homeowners in Atlantic Canada who want to reap the benefits of a more energy-efficient home. For more information about rebates available in your province, be sure to download our Guide to Heat Pump Rebates in Atlantic Canada.