🌡️ How Much Does a Heat Pump Installation Cost in 2025?
- Andrew, Technician.
- May 21
- 2 min read
Heat pumps are quickly becoming one of the most popular home comfort upgrades in Canada—and for good reason. They offer energy-efficient heating and cooling in one system, which can help lower utility bills and reduce your carbon footprint.
But before making the switch, most homeowners want to know:"How much does it cost to install a heat pump?"
Here’s what you need to know.
💰 Average Heat Pump Installation Cost (2025)
In the Greater Toronto Area (GTA), the total cost to install a heat pump typically ranges between:
$6,500 and $12,500+ (CAD)
This includes:
The heat pump unit (indoor and outdoor components)
Labour and professional installation
Standard ductwork or line set connections
System testing and commissioning
👉 For more advanced systems, large homes, or homes without ductwork, prices can reach $15,000 or more.
🔍 What Factors Affect Heat Pump Installation Cost?
1. Type of Heat Pump System
Air-Source Heat Pump (most common): $6,500 – $10,000
Ductless Mini-Split System: $4,000 – $6,000 per zone
Cold Climate Heat Pump (CCASHP): $8,000 – $12,000+
Ground-Source (Geothermal): $20,000 – $35,000+
✅ Cold-climate models are designed to operate efficiently in winter temperatures as low as -25°C, making them ideal for Ontario homeowners.
2. Size & Capacity of the System
Larger homes or multi-zone systems require more powerful (and more expensive) equipment.
Smaller homes or condos: ~$6,000 – $8,000
Average homes (1,500–2,500 sq. ft.): ~$8,000 – $11,000
Large homes (2,500+ sq. ft.): $12,000+
3. Ducted vs. Ductless Setup
If your home already has ductwork, installation is often faster and cheaper.
Ductless mini-splits are great for homes without ducts but require separate wall-mounted units per zone.
4. Installation Complexity
Costs may increase if:
Your home requires electrical panel upgrades
You need duct modifications
You are switching from a gas furnace or electric baseboard heat
🔁 Will You Save Money Long-Term?
Yes—heat pumps are very efficient because they move heat rather than generate it.
Up to 3x more efficient than electric baseboards or oil heating
Can significantly reduce your heating costs if switching from gas or oil
Offers both heating and cooling in one system (replacing your AC too)
💸 Rebates & Incentives
Great news—government rebates can dramatically reduce your upfront cost!
As of 2025, homeowners in Ontario may be eligible for:
Up to $5,000 through the Canada Greener Homes Initiative
Enbridge Home Efficiency Rebate Plus (HER+)
Local utility or municipal programs
➡️ Many homeowners pay half the cost or less after incentives.
🧰 What’s Included in a Professional Heat Pump Installation?
A reputable HVAC contractor should include:
In-home assessment and heat load calculation
Supply and installation of the system
Duct or line set connections
Electrical work (if needed)
Startup, testing, and warranty support
🏡 Final Thoughts
While the cost of a heat pump installation ranges from $6,500 to $12,500+, the long-term savings, year-round comfort, and energy efficiency often make it a smart investment—especially with current rebates.
📞 Ready to Make the Switch?
If you’re thinking about installing a heat pump in your home, contact our team today for a free estimate and rebate consultation. We’ll help you choose the right system for your space and make sure it’s installed right—the first time.
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