Heat Pump vs. Electric Furnace: Heating Costs in Canada
If you heat with electricity in Canada, the choice between a heat pump and an electric furnace makes a big difference to your bill. Here’s the short version.
The efficiency gap
- Electric furnace: ~100% efficient. Every unit of electricity becomes one unit of heat.
- Heat pump: 200–400% efficient in moderate weather. It moves heat rather than generating it, delivering 2–4 units of heat per unit of electricity.
That gap is why a heat pump typically costs far less to run.
Where cold weather changes things
Heat pump efficiency drops as it gets colder. In a deep Canadian cold snap, it leans on auxiliary electric heat — the same resistance heating an electric furnace uses — so the savings shrink at extreme lows. Modern cold-climate heat pumps hold efficiency much further down than older units.
The bottom line
For most of Canada, a heat pump is cheaper to run for the bulk of the heating season, with electric backup covering the coldest days. An electric furnace is simpler and cheaper to install, but pricier to run.
Either way, elements wear out
Both systems rely on electric heating elements — a furnace for primary heat, a heat pump for backup. When one fails, send us the make and model and we’ll ship a replacement across Canada.
Related guides
- 240V vs. 208V Heating Elements: Why Voltage Matters
- DIY vs. Hiring an HVAC Contractor for Element Replacement
- How to Read Your Heating Element's Data Tag
Need a replacement element? We ship across Canada and build custom elements for hard-to-find equipment.