We are comparing the cost of buying a new gas furnace and conventional AC to the cost of a heat pump conversion (e.g., a cold weather air source heat pumps that provides space heating, water heating and AC).
We assume full federal Greener Homes rebate will be put toward cost of heat pump system ($5000).
We have included a $2,000 charge in the cost of the heat pump system for upgrading electrical service to 200 Amps.
We assume an increase in carbon pricing to 2030 as set out under current federal legislation. While we assume the price remains constant after that date, it is possible the price will increase to meet climate targets.
We are using an average cooling load of 20.7 Gigajoules per year. Your actual cooling usage may be higher or lower. Cooling cost using this average is about $3450 (over 15 years) with a conventional AC unit and about $3000 with a heat pump.
Costs are projected over 15 years, which should be the minimum to average lifespan of the equipment.
We are using averaged Ontario prices for electricity and natural gas. These prices are currently 12 cents per kWh for electricity and 49.45 cents per cubic meter for gas, plus a fixed annual gas service charge of roughly $265 per year. Customers signing on to Enbridge’s gas expansion program will pay an additional surcharge of 26 cents per cubic meter, which we have factored into this calculator. These costs include HST.
We have held gas and electricity prices constant (no increase) over 15 years.This is a rough estimate calculator and should not be relied on for making financial decisions. You need a proper quotation from a contractor to fully understand costs. But this will help you get a sense of the benefits of converting to a heat pump system rather than connecting to gas.