It’s only in the last few years that consumers have begun to familiarize themselves with heat pumps as an option for their homes, despite the fact this technology has been around since 1856. And myths surrounding heat pumps remain, including the belief that they don’t work in cold weather. In one recent survey, 35% of respondents believed that “heat pumps will leave you frozen out when you need (heating) the most.”
However, the reality is very different. Heat pumps are 300% more efficient than baseboard heaters and furnaces, and 50% more efficient than AC units. And, unlike most furnaces, they run on electricity, not gas (unless it’s a hybrid heat pump). Speaking of gas, a recent study found that heat pumps are more efficient than gas heating, even in cold weather. And here’s another consideration that could convince you to transition to a heat pump sooner rather than later: some parts of Canada have banned fossil-fuel heating systems in new homes.
Despite the growing body of good news surrounding heat pumps as a product category “set to explode,” Canadians have still been slow to embrace them as an HVAC (heating, venting and air conditioning) solution, compared to the rest of the world. In 2023, only 7% of Canadian homes had used heat pumps in the past 12 months. That’s far lower than in Europe. In Norway, 60% of homes use heat pumps, followed by Sweden at 43% and Finland at 41%. In 2022, heat pump sales in Europe grew nearly 40% year-over-year (including both air-heating and water-heating heat pumps), compared to 11% for the rest of the world, according to the International Energy Agency.
So, why aren’t Canadians jumping on board, recognizing the potential energy savings of heat pump solutions? “When discussing the differences between Canada and Europe, one of the main drivers that impacts the uptake of home heating electrification is energy prices,” says Robin Librach, the communications officer for Natural Resources Canada (NRCan). The cost of gas, electricity and natural gas have skyrocketed in many parts of Europe since Russia invaded Ukraine, so European consumers are understandably searching for more cost-efficient ways to heat and cool their homes.
As heat pump demand heats up, government support cools
Few Canadian households have a heat pump, but NRCan numbers suggest that the tide may finally be turning. Since the federal government launched the Canada Greener Homes initiative in May 2021, more than 47,000 home owners have received grants for heat pumps. And heat pumps are the most frequent retrofit undertaken by those participating in the program, followed by windows and doors, home insulation, air sealing and solar panels.
Overall, the good news is that one-third of Canadians home owners say they are willing to transition to heat pumps. Unfortunately, the Canada Greener Homes Grant—which previously provided financial incentives from $2,500 to $5,000 for home owners switching over to a heat pump—is now closed to new applicants.
The explanation given by the federal government is that the $2.6-billion program was so popular that the funds ran out, leading it to pull the plug early. The initiative was originally slated to run through to March 2027. If you’re a home owner who managed to get in under the wire, and your pre-retrofit evaluation by a certified technician recommends installing a heat pump, you can still apply for the grant, provided you have at least one cost estimate.
New for 2024: The Oil to Heat Pump Affordability Program
Launched by the federal government in March of this year, the Oil to Heat Pump Affordability Program (OHPA) presents another opportunity to get funding for a heat pump, with grants of up to $10,000. The program will run for the next four years, with a budget of $750 million.
To qualify, your home must currently be heated by oil, and your after-tax household income must be equal to or less than the amounts listed on NRCan’s websites, which also vary from province to province. And you must have purchased at least 1,000 litres of heating oil in the last 12 months. The provinces of Alberta, B.C., Manitoba, New Brunswick, Ontario, Quebec and Saskatchewan, as well as the Northwest Territories and Yukon territory, are all participating in this program. You can check your eligibility for the OHPA online.