How Much Does a Heat Pump Cost in Canada (2025 Guide)
Heat pumps have become an increasingly popular choice for heating and cooling homes across Canada, offering energy-efficient climate control all year round. If you're considering installing a heat pump in 2025, understanding the costs involved is essential to make an informed decision. This guide provides an overview of the typical costs associated with heat pumps in Canada, including equipment, installation, and additional expenses.
Average Cost of Heat Pumps in Canada (2025)
The cost of a heat pump can vary significantly based on factors such as the type of heat pump, the size of the property, and the complexity of installation. Below is a breakdown of expected costs:
1. Equipment Costs
Air Source Heat Pumps: These are the most common and generally less expensive. Prices for residential units typically range from $3,500 to $7,000.
Ductless Mini-Split Heat Pumps: These are ideal for homes without existing ductwork. Units generally cost between $2,500 and $6,000.
Ground Source (Geothermal) Heat Pumps: These provide excellent efficiency and longevity but come with higher upfront costs, generally $15,000 to $30,000 or more.
2. Installation Costs
Installation costs can vary based on factors like home size, existing infrastructure, and labour rates in your region:
Air Source Heat Pumps: Installation fees typically range from $1,500 to $4,000.
Ductless Mini-Split Systems: Installation generally costs around $800 to $2,500 per zone.
Geothermal Heat Pumps: Installation is complex, involving ground loop installation, and usually costs between $10,000 and $20,000.
3. Additional Costs
Ductwork Modifications: If your home requires ductwork modifications or upgrades, expect to pay an additional $1,000 to $5,000.
Electrical Upgrades: Some homes may need electrical system updates to handle the heat pump, possibly adding $500 to $2,000.
Permits and Inspections: Municipal permits may add several hundred dollars depending on the location.
Factors Affecting Heat Pump Costs
Climate Zone: Homes in colder Canadian provinces might require more robust or dual-fuel heat pump systems, slightly increasing costs.
Home Size and Insulation: Larger or poorly insulated homes require more powerful systems.
Brand and Features: Premium brands or models with enhanced features such as Wi-Fi controls or variable speed compressors may cost more.
Rebates and Incentives: Various provincial and federal programs can significantly offset costs.
Rebates and Incentives in 2025
Canadian homeowners may be eligible for government rebates, which vary by province. These incentives can reduce upfront costs by several thousand dollars. Checking with local utilities and government websites is recommended before purchasing.
Estimated Total Costs by Heat Pump Type
Heat Pump Type Equipment Cost Installation Cost Total Estimated Cost Air Source Heat Pump $3,500 - $7,000 $1,500 - $4,000 $5,000 - $11,000 Ductless Mini-Split $2,500 - $6,000 $800 - $2,500 $3,300 - $8,500 Ground Source (Geothermal) $15,000 - $30,000 $10,000 - $20,000 $25,000 - $50,000+
Conclusion
In 2025, heat pump costs in Canada range widely depending on the system type and installation needs. Air source heat pumps are usually the most affordable option, while geothermal systems, though costly up front, offer excellent long-term savings and performance. Factoring in potential rebates and incentives can also make heat pumps more financially accessible.
For precise estimates, homeowners should obtain quotes from certified HVAC professionals who can assess specific needs and site conditions. This ensures the selection of a heat pump system that balances upfront costs with long-term efficiency and comfort benefits.