At a glance
- 01
Cooling and heating in one
A heat pump replaces the air conditioner and takes over much of the heating.
- 02
Built for Ontario winters
Cold-climate models keep heating well below −20 °C.
- 03
Rebates, done in the right order
Home Renovation Savings rebates need the contractor to register the job before it is installed.
- 04
Hybrid or all-electric
Keep the gas furnace as backup, or go fully electric. The contractor should price both.
What a heat pump does
A heat pump works like an air conditioner that can run in both directions. In summer it moves heat out of the house, exactly as central air does. In winter it reverses and pulls heat out of the outdoor air, even cold air, and moves it inside. Because it moves heat rather than making it, a good heat pump delivers two to four units of heat for every unit of electricity it uses. Our guide to how a heat pump works explains the cycle in plain terms.
Older heat pumps struggled below about −5 °C. Cold-climate models built for Canadian winters use variable-speed (inverter) compressors and keep heating at −20 °C and lower, with reduced output and efficiency on the very coldest nights. Heat pump installation in Hamilton now usually means one of these cold-climate units.
Hybrid or all-electric?
- Hybrid (dual fuel): the heat pump replaces your air conditioner and sits on top of your gas furnace. It handles cooling and most of the heating; the furnace takes over below a set outdoor temperature. It is the most common choice for Hamilton homes on natural gas.
- All-electric: the heat pump does all the heating, with an electric backup heater in the air handler for the coldest days. Common for homes heated with oil, propane or electric baseboards, and for owners leaving gas altogether.
- Ductless: for homes without ducts, ductless mini-splits put heads in individual rooms.
Will it save money?
It depends on what you heat with now. Against propane, heating oil or electric baseboard, a cold-climate heat pump is usually much cheaper to run. Against natural gas it is the other way round: since the federal carbon charge on gas ended in April 2025, gas has been the cheaper fuel, and a heat pump usually costs more to run through a Hamilton winter. A hybrid setup lets you choose the outdoor temperature at which the furnace takes over, trading running cost against emissions. Try the heat pump vs gas calculator with your own bills, and read heat pump vs furnace for the full comparison.
The other half of the case is that a heat pump replaces the air conditioner. If your AC is near the end of its life, the extra cost of choosing a heat pump instead is often modest, especially after a rebate.
Rebates
Ontario’s Home Renovation Savings Program, run by Enbridge Gas and Save on Energy, offers rebates on qualifying cold-climate heat pumps listed by Natural Resources Canada. Homes heated with electricity, oil, propane or wood can receive up to $7,500 for an air-source heat pump, sized by capacity; homes heated with natural gas can receive a smaller amount. The program requires a participating contractor and pre-approval before installation, so the order matters. Amounts and rules change: our heat pump rebate guide has the current details and links to the program.
What the installation involves
- A home visit with a heat-loss calculation and a look at the ducts, the electrical panel and where the outdoor unit can go.
- Choosing the unit and, for a hybrid, the outdoor temperature at which the furnace takes over.
- Rebate registration before the work starts, if you are claiming one.
- Installing the outdoor unit on a raised stand or wall bracket, clear of snow and drip lines.
- A new indoor coil, line set, electrical circuit and a compatible thermostat.
- Start-up and commissioning, including the defrost settings and the backup heat.
In Hamilton winters, snow and ice matter. The outdoor unit should sit high enough to clear drifts and let defrost water drain away without freezing into a block under it. Ask the contractor how they mount it.
Electrical capacity
An all-electric heat pump with backup heat can need a large circuit. Older houses with a 60- or 100-amp service sometimes need a panel or service upgrade, which adds cost and time. A hybrid system usually needs no more electrical capacity than the air conditioner it replaces.
How the request works
You request a heat pump quote once, and we pass it to one licensed contractor who installs cold-climate heat pumps in your area. Say how the house is heated now and whether you want to keep gas. Ask the contractor to price both a hybrid and an all-electric option, and to confirm they will handle the rebate registration.
Typical prices
CAD · before GST/HST
- Heat pump with furnace backup (hybrid)Replacing an AC, keeping the gas furnace
- $8,000–$14,000
- All-electric cold-climate ducted heat pumpWith an electric backup air handler
- $12,000–$20,000
- Electrical panel or service upgrade, if needed
- $2,000–$4,500
- Home Renovation Savings rebateHomes not heated with natural gas; smaller for gas homes
- Up to $7,500
Typical 2026 installed prices in Hamilton and the surrounding area, before HST and before any rebate. They are a guide, not a quote: the contractor you are matched with sets the price after seeing the home.
Questions people ask
Do heat pumps work in Hamilton winters?
Yes. Cold-climate heat pumps keep producing heat below −20 °C. On the coldest nights their output falls, which is why they are paired with a gas furnace or an electric backup heater.
How much does a heat pump cost in Hamilton?
A hybrid heat pump that replaces an AC and works with your furnace usually costs $8,000 to $14,000 installed. An all-electric cold-climate system runs $12,000 to $20,000, before rebates and HST.
Can I keep my gas furnace?
Yes. A hybrid system keeps the furnace as backup for the coldest days. Many Hamilton homeowners choose this when their air conditioner needs replacing.
Do I need to apply for the rebate before installing?
Yes. The Home Renovation Savings Program requires a participating contractor and pre-approval before the work is done. Installing first and applying later can disqualify you.
Does a heat pump need a new electrical panel?
Sometimes. All-electric systems with backup heat can need more capacity than an older 100-amp service has. A hybrid system usually fits on the existing AC circuit.