What the government has said about gas homes
Nothing yet. The National Heat Pump Rebate release names an average saving of more than $1,400 a year for households that use oil, propane or electric resistance heat. It does not give a saving for natural gas homes, and it does not say whether gas homes qualify. The program pays up to $10,000 below the median income and $2,000 above, but the eligibility rules come out before the early 2027 launch. We keep the confirmed facts on the federal rebate page.
Why gas is a harder case
A heat pump moves heat instead of making it, so it delivers more heat than the electricity it uses. Natural Resources Canada tested cold-climate heat pumps in real homes and measured an average coefficient of performance of about 3.0 at +4.9 C and about 1.5 at -21.1 C. A reading of 3.0 means three units of heat for every unit of electricity. At 1.5 it is one and a half. Gas furnaces turn most of their fuel into heat, so the gap is smaller than the gap against oil or baseboards. Whether you win depends on your two prices.
Run your own numbers in five minutes
- Find your electricity price per kWh on your bill, including delivery charges that rise with use.
- Find your gas price per gigajoule and divide by 277.8 to get cents per kWh of gas energy.
- Divide your gas price per kWh by your furnace efficiency (for example 0.96 for a high-efficiency furnace).
- Divide your electricity price by the heat pump's COP (3.0 on a mild day, 1.5 in deep cold).
- Whichever number is lower is the cheaper heat at that temperature.
Here is an example with made-up prices, not your rates: electricity at 12 cents per kWh with a COP of 3.0 costs 4 cents per kWh of heat. Gas at 3 cents per kWh at 96 percent efficiency costs about 3.1 cents. In that example gas still wins on a mild day, and wins by more at -20 C. If your electricity were 7 cents, the heat pump would win. Your prices decide.
Who should still consider a heat pump on gas
- You need air conditioning anyway. A cold-climate heat pump cools and heats, so replacing a dying air conditioner can cost less extra than adding a second system.
- You want to drop the gas bill's fixed charges. That works only if the heat pump and a backup can cover the whole house.
- You are in a place with cheap clean electricity. The numbers above will show you.
For many gas homes the best answer is a dual-fuel system: the heat pump runs most of the year and the furnace takes over in the coldest hours. A smart thermostat can switch between them at a set outdoor temperature.
Rebates a gas home can use today
In Ontario, Home Renovation Savings pays $500 per ton up to $2,000 for an air-source heat pump in a home heated by Enbridge gas. See the Enbridge Gas page and the Ontario hub. In BC, income-qualified gas homes can use CleanBC, which pays $13,000, $7,000 or $3,500 by income level for a central or three-head heat pump. See the BC hub. Outside those programs, a gas home may find that the rebate does not make up the extra cost. We would rather tell you that than sell you a system.
Common questions
Does a natural gas home qualify for the federal heat pump rebate?
Not stated. The government has published savings only for homes using oil, propane or electric resistance heat.
Will a heat pump lower my bill if I heat with gas?
It depends on your gas and electricity prices. Compare the cost per kWh of heat using the steps above.
What is the best setup for a gas home?
Often a cold-climate heat pump with the existing furnace as backup, if you need cooling or your electricity is cheap.
Should I replace a working gas furnace?
Usually not for savings alone. Wait for the federal rules and run your own numbers first.
How much does Ontario pay a gas home?
$500 per ton up to $2,000 for an air-source heat pump in an Enbridge gas home.
More on the federal heat pump rebate
- National Heat Pump Rebate: everything confirmed so far
- Should you wait for the federal rebate?
- What stacks: federal and provincial rebates
- Heat pumps in Alberta and Saskatchewan cold
- How to get a fair heat pump quote
- Renters, condos and landlords
Sources, read October 9, 2026: Prime Minister of Canada: news release, Environment and Climate Change Canada: news release, Natural Resources Canada: cold-climate heat pump field test, Home Renovation Savings.