Heat Pump Installation Prices and Central Air Costs Across Canada
Replacing a furnace or air conditioner is one of the bigger cheques most Canadian homeowners will write. Quotes can vary by thousands of dollars for what looks like the same job. That gap usually comes down to ductwork, electrical work, and the type of system you choose. This guide breaks down typical 2026 heat pump installation prices alongside central air and ductwork costs. You will also see what drives the final number, which rebates are open now, and how to compare quotes before you sign.
What Heat Pumps and Central Air Cost to Install in 2026
Installed prices depend first on the type of system and whether your home already has ducts. The ranges below come from HomeStars' 2026 HVAC installation price guide.
System | Typical installed range (CAD) |
Central AC only (existing ducts) | $3,200 to $8,500 |
Gas furnace and central AC (existing ducts) | $6,500 to $12,500 |
Ducted air-source heat pump (existing ducts) | $4,500 to $10,000 |
Ductless mini-split, single zone | $2,000 to $5,000 |
Ductless mini-split, multi-zone | $8,000 to $15,000 |
Full system with new ductwork | $10,000 to $20,000 |
Geothermal (ground-source) heat pump | $20,000 to $40,000 |
Ducted Air-Source Heat Pumps
A ducted heat pump uses your existing furnace ducts to heat and cool the whole house. RenoQuotes (July 2026) lists about $8,000 to $10,500 for a 3-ton system serving 1,500 to 2,000 square feet.
Ductless Mini-Splits
Mini-splits suit homes with baseboard heat, additions, or no ducts at all. Price depends mostly on how many indoor heads you need.
Cold-Climate and Geothermal Heat Pumps
Cold-climate models keep heating at much lower outdoor temperatures and usually cost more than standard systems. Geothermal costs the most because the ground loop needs drilling or trenching.
Central Air and Furnace Combos
The cost to put in central air is lowest when ducts and a working furnace already exist. HomeStars lists $3,200 to $6,000 for a basic unit in a 1,500 to 2,000 square foot home.
Adding or Replacing Ductwork
The cost to install an HVAC system with ductwork rises sharply in a finished home. HomeStars lists $2,000 to $5,000 for ducts in a new build or unfinished basement. A full retrofit in a finished home runs $9,000 to $12,000 or more.
Winter performance shapes which system is worth the money. Knowing how cold climate heat pumps perform in a real Canadian winter helps you weigh these numbers.
It helps to see why two quotes for the same house can differ.
What Drives HVAC Installation Cost Up or Down
Two homes on the same street can get very different quotes. The gap usually comes from sizing, ducts, and electrical work rather than the equipment brand alone.
Home Size, Tonnage, and BTU
Systems are sized in tons, and one ton equals 12,000 BTU per hour. An oversized system can short-cycle, while an undersized one struggles in extreme weather.
Ductwork Condition
Existing ducts may be too small or leaky for a heat pump, which often moves more air than an old furnace. RenoQuotes notes duct upgrades can add about $1,500 to $3,000 or more.
Electrical Panel and 240V Circuit Work
Central AC units and heat pumps run on a dedicated 240V circuit. Older homes with 100A service or a full panel may need an upgrade first. Planning your home electrification upgrades in one go can save repeat electrician visits.
Efficiency Ratings, Permits, and Region
Higher SEER2 and HSPF2 ratings cost more upfront but can lower running costs. HomeStars says a two-stage or variable-speed upgrade adds about $1,500 to $3,000.
Common add-on (HomeStars, 2026) | Typical cost (CAD) |
Electrical panel upgrade | $1,500 to $4,000 |
Refrigerant line replacement | $500 to $1,500 |
Permits | $100 to $500 |
Planning Backup Power for a 240V Heat Pump or Central Air
A heat pump or central AC is a hard-wired 240V load that stops during an outage. Comparing home battery backup costs in Canada shows whether it fits your budget.
The TITAN 5000 Plus delivers 120V/240V split-phase power. EcoFlow says it can start a compatible 3-ton central AC without a soft starter, if startup needs fall within its limits.
The TITAN 5000 offers the same 7.2kW, 120V/240V battery output with a single solar input.
Plug-in devices run directly from either unit. Home circuits and hard-wired appliances need the compatible SHP10 installed by a qualified electrician. The SHP10 covers up to 10 selected circuits, not every appliance at once. Both units need a dry, indoor location, and runtime depends on the load. Card savings are modelled for a Toronto home on Ontario's ULO plan.
Once you know what pushes the price up, the next question is which system gives better value.
Heat Pump vs Central AC: Upfront Cost and Long-Term Value
A central AC only cools, while a heat pump both heats and cools. The table below uses one installer's published 2026 pricing for both systems.
Factor | Central AC | Air-source heat pump |
Installed price, 3-ton (Reliance, 2026) | $4,199 to $13,499 | $7,399 to $17,899 |
Heat pump rebates | Not eligible | May qualify if the model is on the eligible list |
Best fit | Homes keeping a newer furnace | Homes replacing AC, furnace, or both |
When Central AC Still Makes Sense
If your furnace is fairly new, replacing only the AC keeps the cost of installing central air low. The trade-off is that you miss out on heat pump rebates.
When a Heat Pump Pays Off
A heat pump takes over much of your heating, which can lower bills compared with oil or propane. Heat pumps run year-round, so knowing how much electricity cooling uses helps you estimate summer costs.
Rebates can narrow the price gap quite a bit, but program rules changed a lot in 2026.
Rebates That Can Lower Heat Pump Installation Prices in 2026
Rebates can take thousands off the final bill. However, several federal programs closed or changed in 2026.
Federal National Heat Pump Rebate
The government's One Million Home Energy Retrofits page says the portal should open in early 2027 and close in March 2034.
Amounts: Up to $10,000 for households at or below the provincial income threshold, or $2,000 above it.
Timing: Cold-climate heat pumps installed from November 1, 2026 may qualify once the program opens.
Rules: The model must be on the federal eligible product list, and an HVAC contractor must install it.
Rules are still being finalized, so the federal heat pump rebate details are worth rechecking before you buy.
Oil to Heat Pump Affordability Program
Federal intake for Alberta, Manitoba, Saskatchewan, Quebec, and the Northwest Territories closed on July 31, 2026. Approved applicants must upload receipts by January 31, 2027. The Oil to Heat Pump Affordability page sends other provinces to their delivery partners.
Canada Greener Homes Affordability Program
This program offers no-cost retrofits, including heat pumps, to low- and median-income homeowners and tenants. You apply through a provincial partner in British Columbia, Manitoba, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, or Quebec.
Provincial and Utility Programs
Ontario: Under the Home Renovation Savings program, eligible homeowners who heat with electricity, oil, propane or wood may receive up to $7,500 for a qualifying cold-climate air-source heat pump or up to $12,000 for a ground-source system. Enbridge Gas customers have different rebate limits, currently up to $2,000 for an air-source heat pump or $3,000 for a ground-source system. Eligibility depends on the home's primary heating source and other program requirements.
British Columbia: Eligible households replacing electric heating with a qualifying heat pump may receive up to $4,000 for whole-home heating or $1,500 for partial-home heating. Rebate availability and equipment requirements should be confirmed before installation.
Quebec: Hydro-Québec's LogisVert program offers $50 per 1,000 BTU/h at -8°C for qualifying ENERGY STAR heat pumps, increasing to $120 per 1,000 BTU/h for qualifying ENERGY STAR cold-climate models. Eligibility, installation requirements and the applicable rebate amount depend on the program rules in effect on the installation date.
The Canada Greener Homes Grant and Loan are both closed.
With rebates in mind, the last step is getting quotes you can compare line by line.
How to Get Accurate Quotes for a Heat Pump or Central Air
A good quote tells you exactly what you are paying for. Comparing at least three quotes is the easiest way to spot an outlier.
Ask for a load calculation. In Canada, room-by-room sizing is often based on the CSA F280 standard.
Get itemized pricing. Equipment, labour, ducts, electrical work, permits, and disposal should be listed separately.
Confirm the model and AHRI number. You need both to check rebate eligibility.
Compare warranties. Get parts and labour coverage in writing.
Natural Resources Canada's warning about deceptive sales tactics notes that Ontario and Alberta have banned most door-to-door sales of heating and cooling equipment. Understanding how to choose a home heating system also helps you ask contractors sharper questions.
Conclusion
Heat pump installation prices in Canada vary widely because ducts, electrical work, and system type matter as much as the equipment. Central AC costs less upfront, while a heat pump covers both heating and cooling. New federal and provincial rebates can narrow that gap. Get itemized quotes and confirm rebate rules first. If outages are a concern, an EcoFlow TITAN 5000 Plus can back up selected 240V circuits through the compatible SHP10.
FAQs
How much does it cost to install central air in Canada?
With existing ducts, HomeStars puts central AC at $3,200 to $8,500 installed. Larger homes and higher-efficiency units sit at the upper end.
What is the cost to install an HVAC system with ductwork?
A full system with new ductwork usually runs $10,000 to $20,000. Finished homes cost more because walls and ceilings need opening.
Is a heat pump more expensive to install than central AC?
Usually, yes. However, a heat pump also handles much of your heating, and many models qualify for rebates.
Can I still apply for the Oil to Heat Pump grant?
Not through the federal intake, which closed July 31, 2026. Elsewhere, check your provincial partner. The upcoming National Heat Pump Rebate accepts oil-heated homes too.
Can a home battery run my central AC or heat pump during an outage?
Only on selected circuits, and only if the battery meets the unit's startup and running power. Ask your electrician to confirm your system's requirements, because runtime depends on the load.