A heat pump is an air conditioner that can run in reverse. In summer the two cool a house the same way; in winter only the heat pump can heat it. That one difference decides most of the choice.
Published Ontario prices put a central air conditioner at $3,200–$10,500 installed and a cold-climate ducted heat pump at $6,500–$20,000, before rebates. Qualifying heat pumps get a Home Renovation Savings rebate; air conditioners don’t.
Installed prices side by side
Every published figure we found for both, from Ontario contractors’ own price guides.
Published prices
CAD · before HST · published prices
- Central AC, standardFrom a GTA HVAC contractor’s price guide
- $3,200–$5,500
- Central AC, high-efficiency (18+ SEER)From a GTA HVAC contractor’s price guide
- $4,500–$7,500
- 2-ton, 14 SEER2From a Halton HVAC contractor’s 2026 price guide
- $4,500–$5,500
- 3-ton, 16 SEER2From a Halton HVAC contractor’s 2026 price guide
- $5,500–$7,500
- 4-ton, 18+ SEER2 variable-speedFrom a Halton HVAC contractor’s 2026 price guide
- $7,500–$10,500
- Cold-climate air-source, rated to −25 °CFrom a Hamilton HVAC contractor’s 2026 price guide
- $14,000–$20,000
- Cold-climate heat pumpFrom a GTA HVAC contractor’s price guide
- $6,500–$14,000
- All-electric heat pump, ductedFrom a Halton HVAC contractor’s 2026 price guide
- $13,000–$20,000
- Hybrid system (heat pump + furnace)From a Hamilton HVAC contractor’s 2026 price guide
- $15,000–$22,000
- Hybrid heat pump + gas furnaceFrom a Halton HVAC contractor’s 2026 price guide
- $11,000–$16,000
Heat pump rebates
Ontario’s Home Renovation Savings Program pays for qualifying cold-climate air-source heat pumps by capacity. If you heat with electricity, oil, propane or wood it’s $1,250 per ton, up to $7,500; on Enbridge natural gas it’s $500 per ton, up to $2,000. A 3-ton system works out to $3,750 or $1,500. Ground-source systems get up to $12,000 ($3,000 on gas).
The unit must be on Natural Resources Canada’s qualified list, a participating contractor applies for you, and pre-approval is required: an install done before approval isn’t eligible.
Which one to choose
Choose an air conditioner if your furnace is newer, you heat with natural gas and you only need cooling: it’s the lower price today.
Choose a heat pump if you heat with propane, oil or electric baseboard, if you want the rebate, or if you’d like to burn less gas. With a gas furnace kept as backup (a hybrid), the furnace takes over on the coldest days.
Running costs
For cooling, an air conditioner and a heat pump of similar efficiency cost about the same to run. For heating, it depends on your fuel and prices: put your own bills into the heat pump vs gas calculator.
Questions people ask
Is a heat pump better than an air conditioner?
It does everything an air conditioner does and heats too, so it’s more useful, but it costs more to install. It’s usually the better buy if you heat with propane, oil or electricity, or want the rebate.
How much more does a heat pump cost than an AC?
Published Ontario prices: $3,200–$10,500 for a central AC and $6,500–$20,000 for a cold-climate ducted heat pump, before the heat pump rebate.
Can a heat pump replace my air conditioner and furnace?
A cold-climate heat pump can heat a house through most of an Ontario winter, and many owners keep the gas furnace as backup for the coldest days (a hybrid system).
Where these prices come from
These figures are from Ontario HVAC contractors’ own published price guides, one of them in Hamilton, checked October 23, 2026. We don’t name them: we’re a referral service and don’t promote individual contractors. They’re ranges, not quotes, before HST and before rebates. Rebates are from the Home Renovation Savings Program’s own page, linked above.