Heat pump vs. air conditioner: What’s best for Ontario homeowners?

Learn the tradeoffs between heat pumps vs air conditioner systems, and how to measure the cost and efficiency of your home upgrades.

Thinking about upgrading your home’s cooling system?

You might not need a cooling system every day in Ontario, but when the humidity hits, you definitely notice if it’s missing. Whether it’s a particularly sticky July or an early September heat wave, having a reliable way to cool your home is a must.

The only question: is a heat pump or an air conditioner the better option? This article will help explain the difference so you can decide which is right for your home.

 

How Each System Works

Air Conditioner

Air conditioner cooling

  • Indoor Heat Capture: Air conditioners draw warm indoor air over evaporator coils filled with a cold refrigerant, which absorbs the heat.​
  • Heat Dispersion: The now-warmed refrigerant is compressed and moved to the outdoor unit, where it releases the absorbed heat into the outside air.​
  • Continuous Cooling: The refrigerant cycles back indoors to absorb more heat, while the system blows the cooled air back into your home, lowering the indoor temperature.​

Heat Pump

Heat pumps provide both heating and cooling by reversing their operation.

 

Heat pump cooling

  • Heat Absorption: They absorb heat from the indoor air via the refrigerant.​
  • Heat Release: The refrigerant, now carrying the indoor heat, is compressed and sent outside, where it releases the heat into the outdoor air.​
  • Cool Air Circulation: The cooled refrigerant cycles back indoors, absorbing more heat, while the system circulates cool air throughout your home.​

Heat pump heating

  • Heat Extraction: The refrigerant in the outdoor coil absorbs heat from the outside air (even during winter), causing it to evaporate into a low-pressure gas.​
  • Compression: This gas is compressed by the compressor, increasing its pressure and temperature.​
  • Heat Release: The now-hot, high-pressure gas flows through the indoor coil, releasing its heat into the indoor air.​
  • Cycle Continuation: The refrigerant, having released its heat, condenses back into a liquid and returns to the outdoor coil to repeat the cycle.​

 

Energy Efficiency of Air Conditioner vs Heat Pump

About Energy Efficiency Ratings

Seasonal Energy Efficiency Ratio (SEER): Both air conditioners and heat pumps have a SEER rating that indicates how energy efficiently they cool your home. The higher the rating, the more efficient. In Canada, the minimum SEER rating for modern cooling systems is 13.

Heating Seasonal Performance Factor 2 (HSPF2): HSPF2 measures how efficiently a heat pump heats your home. Higher HSPF2 ratings = more efficient.

Air Conditioner

  • Energy Source: Electricity
  • Cooling Only: Air conditioners provide cooling but require a separate heating system (like a furnace), potentially leading to higher overall energy consumption.​
  • SEER Ratings: Modern units in Canada typically have SEER (Seasonal Energy Efficiency Ratio) ratings ranging from 13 (minimum standard) to 26 (high efficiency).
  • ENERGY STAR® Certification: Certified central air conditioners use approximately 8% less energy than standard models.
    • To Qualify For ENERGY STAR® Certification: Certified central air conditioners must meet or exceed specific SEER2 ratings. For split systems, the minimum requirement is SEER2 ≥ 15.2.
  • Efficiency Dependence: Overall efficiency depends on the SEER rating and the efficiency of the accompanying heating system.​

Heat Pump

  • Energy Source: Electricity
  • High Efficiency: Air-source heat pumps (ASHP) can be up to 370% efficient even at -8°C. That means for every unit of electricity used, you get 2 to 4 units of heat.
  • Impact of Cold Weather: The efficiency of heat pumps degrades rapidly at lower temperatures (-20°C and below) and may become operational in extreme cold.
  • ENERGY STAR® Certification*: Certified ASHPs use approximately 5% less energy than conventional models.
    • To Qualify For ENERGY STAR® Certification: Heat pumps must achieve a minimum of 15.2 SEER2 and 7.8 HSPF2 (split-system) or 8.5 HSPF2 (cold climate).
  • Environmental Impact: Reduce greenhouse gas emissions by utilizing electricity instead of burning fossil fuels for heating.

Cost of Air Conditioner vs Heat Pump

Installation Costs

 

Installation Cost

(Ontario)

Notes
Heat Pump$6,000–15,000Higher upfront cost, but saves more money annually
Air Conditioner$3,000–5,000Lower cost initially, but doesn’t offset heating costs

Maintenance & Parts Checks

 

Heat PumpAnnual Maintenance Check

(Ontario)

Notes
Heat Pump$200–250A basic tune-up includes inspection, cleaning, and performance checks.
Air Conditioner$100–200Annual maintenance plans are often available through HVAC.
  • The cost to maintain heat pumps is typically higher because the ability to reverse flow increases mechanical complexity.
  • Annual duct cleaning and furnace tune-ups will be an additional cost on top of the equipment maintenance costs.

 

Total Operating Costs Estimate

 

System SetupAnnual Electricity UseAnnual Heating

Fuel Use

Total Approx

Cost Per Year*

Notes
Heat Pump + Furnace Backup5,300–5,700 kWh500–1,000 m³ natural gas (only in extreme cold)$1,020–1,305Most heating handled by the heat pump. Furnace kicks in at -20°C
Central A/C + furnace600–1,000 kWh2,000–2,800 m³ natural gas (all winter heating)$900–1,410Furnace does all winter heating; higher gas use overall
*Estimate calculated using following data: Electricity rate: $0.15/kWh, Natural gas rate: $0.45/m³, Home size: 2,000 sq. ft., Usage patterns: typical for southern Ontario
  • In summer, running a heat pump for cooling will cost about the same as a high-efficiency A/C.
  • Because both systems run on electricity, the price of electricity will determine total operating costs when using these systems to cool your home.
  • You’ll experience the biggest cost differences during winter months. With A/C, you’ll be entirely dependent on your furnace in winter, whereas with a heat pump you can choose which one you want to run based on whether natural gas or electricity is cheaper.

Rebates Can Help

Ontario’s Home Efficiency Rebate Plus (HER+) offers up to $7,500 back for eligible cold climate air source heat pump and up to $12,000 for eligible ground source heat pump upgrades. This can make the cost of a high-efficiency heat pump competitive with an A/C + furnace combo.

Key Takeaway

While many sources claim that the annual energy costs are typically lower for a heat pump + furnace backup setup compared to a central A/C + furnace combo, this varies significantly based on the costs of electricity, natural gas, temperatures in your location, equipment efficiency, and usage patterns. Even when true, the difference may not be large enough to offset higher upfront installation costs and annual maintenance costs for your household.

 

Why Tracking Energy Usage Matters

Before you spend thousands on a new heating and cooling system, you want to know it’ll pay off. That’s where Jotson comes in. Jotson helps Ontario homeowners get clear on:

  • How much energy you’re actually using — no guesswork, just real data pulled from your utility account using Ontario’s Green Button standard.
  • Where your biggest costs come from — identify changing costs month by month to figure out if heating, cooling, or something else is driving your bills.
  • How well your upgrades are performing — track energy and cost savings month by month to make sure your investment is delivering.

Instead of relying on estimates or installer claims, you’ll have hard numbers. Jotson puts you in control so you can make smarter, more confident home upgrade decisions.

Browse more articles

Make the most informed energy decisions for your home

Dark Apps

Apple App Store Google App Store Apple App Store Google App Store