Short answer
A heat pump is typically cheaper to run than a gas furnace in BC, Quebec, New Brunswick and Nova Scotia, and more expensive in Alberta, Saskatchewan, Manitoba and Ontario at current rates. The gap depends on your local gas and electricity prices and how efficient your heat pump is in your climate.
Key takeaways
- Compare the cost of a unit of useful heat, not the price of a unit of fuel.
- At approximate 2026 prices, heat pumps typically win on running cost in BC, Quebec, New Brunswick and Nova Scotia.
- Gas typically stays cheaper to run in Alberta, Saskatchewan, Manitoba and Ontario.
- Running cost is only part of the decision. Rebates, AC replacement and furnace age can change the answer.
- Use your own bills in our calculator for a real comparison.
Heat pump vs gas furnace: which costs less to run? In Canada the answer changes by province. At approximate November 2026 prices, a cold-climate heat pump is typically cheaper to run than a 95% efficient gas furnace in BC, Quebec, New Brunswick and Nova Scotia. In Alberta, Saskatchewan, Manitoba and Ontario, gas is typically cheaper per unit of heat.
That is only the running cost. Upfront price, rebates, whether you also need air conditioning and the age of your current furnace all affect whether switching makes sense for you.
How we compare the two
Gas is sold in cubic metres and electricity in kilowatt-hours, so we convert both to the same thing: the cost of 1,000 kWh of heat actually delivered to your rooms.
The formula is simple. Cost per useful kWh of heat equals the fuel price divided by (kWh of energy per unit of fuel times efficiency).
- Gas furnace: 1 m³ of natural gas holds about 10.35 kWh of energy. A modern high-efficiency furnace is about 95% efficient, so each m³ delivers about 9.83 kWh of heat.
- Heat pump: 1 kWh of electricity delivers COP kWh of heat. Cold-climate air-source heat pumps typically average a seasonal COP of 2.2 to 3.0 in Canada. We use about 2.2 for the Prairies, rising to 3.0 for coastal BC.
For example, in Ontario, gas at about $0.48/m³ gives $0.48 divided by 9.83, or about $0.049 per kWh of heat. Electricity at about $0.17/kWh with a COP of 2.6 gives about $0.065 per kWh of heat.
Heat pump vs gas furnace costs by province
Figures use approximate all-in residential prices including delivery. Prices are rounded and will vary with your utility, rate plan and usage.
| Province | Gas price (approx. $/m³) | Electricity (approx. $/kWh) | Assumed heat pump COP | Gas furnace, per 1,000 kWh of heat | Heat pump, per 1,000 kWh of heat | Typically cheaper to run |
|---|---|---|---|---|---|---|
| British Columbia | 0.75 | 0.135 | 3.0 | About $76 | About $45 | Heat pump |
| Alberta | 0.42 | 0.24 | 2.2 | About $43 | About $109 | Gas |
| Saskatchewan | 0.38 | 0.21 | 2.2 | About $39 | About $95 | Gas |
| Manitoba | 0.42 | 0.115 | 2.2 | About $43 | About $52 | Gas, by a small margin |
| Ontario | 0.48 | 0.17 | 2.6 | About $49 | About $65 | Gas |
| Quebec | 0.62 | 0.085 | 2.4 | About $63 | About $35 | Heat pump |
| New Brunswick | 1.05 | 0.165 | 2.5 | About $107 | About $66 | Heat pump |
| Nova Scotia | 1.25 | 0.195 | 2.7 | About $127 | About $72 | Heat pump |
Prince Edward Island and Newfoundland and Labrador have little residential gas service, so most homes there compare a heat pump against oil, propane or baseboards. See switching from oil heat for that comparison.
What these numbers mean for a year
A typical detached home in a cold part of Canada might need somewhere around 15,000 to 25,000 kWh of heat a year. Multiply the difference in the table by 15 to 25 for a rough annual figure. In Nova Scotia that difference is roughly $800 to $1,400 a year in favour of the heat pump. In Ontario it is roughly $250 to $400 a year in favour of gas.
Things the table leaves out
- Fixed gas charges. If you remove gas service completely, you also stop paying the monthly customer charge. That can tip a close comparison like Manitoba's.
- Air conditioning. A heat pump replaces your AC too. If your AC is due for replacement, part of the heat pump cost is money you would spend anyway. Read replacing your AC with a heat pump.
- Ontario rate plans. Ontario homes can choose Time-of-Use, Tiered or Ultra-Low Overnight pricing. Your plan changes your real electricity cost, especially if you heat overnight.
- Your climate within the province. Thunder Bay and Windsor are very different. Colder regions see lower seasonal COP.
- Rebates. Ontario's Home Renovation Savings Program offers up to $7,500 for a cold-climate air-source heat pump. Other provinces have their own programs. Check our rebates page for current offers.
The hybrid option
If gas wins in your province, you can still use a heat pump for the mild part of the season and let the furnace take over in deep cold. A dual-fuel system picks whichever is cheaper at each outdoor temperature. Our hybrid heating guide explains how to set the switchover point.
Run your own numbers
Province averages hide a lot. Pull your last year of gas bills and enter your usage in our heat pump calculator for an estimate based on your home and your rates.
Frequently asked questions
Is a heat pump cheaper than a gas furnace in Ontario?
At approximate 2026 prices, a gas furnace is typically cheaper to run in Ontario, at about $49 versus $65 per 1,000 kWh of heat. Rebates, AC replacement or a dual-fuel setup can still make a heat pump worthwhile.
Is a heat pump cheaper than gas in BC?
Usually yes. With mild coastal winters and moderate electricity prices, a heat pump typically costs about $45 per 1,000 kWh of heat in BC, compared with about $76 for a gas furnace.
Why is gas cheaper than a heat pump in Alberta?
Alberta has some of the lowest gas prices and highest electricity prices in Canada, and its cold winters lower heat pump efficiency. Together these typically make gas cheaper to run.
How do I compare gas and electric heating costs?
Divide each fuel's price by the useful heat it delivers. For gas, that is about 10.35 kWh per m³ times furnace efficiency, and for a heat pump it is its seasonal COP.
Want numbers for your own home?
Use the heat pump vs. furnace with your province's prices and climate. It takes about two minutes.