Heat pumps are having their heyday. Everyone’s talking about them, the Canadian government is offering homeowners thousands of dollars in incentives to encourage adoption, and the International Energy Agency has called them “the central technology in the global transition to secure and sustainable heating.” What was once an unfamiliar and niche technology is now making its way into more and more Canadian homes. In 2019, 936,697 households across Canada were using heat pumps as their main heating source. According to Natural Resources Canada, 260,389 new heat pumps have been installed in the country since 2020. This number is quickly growing. As more Canadians warm up to this new way of home comfort, here’s an ultimate guide into what heat pumps are, how they work, and what kinds of heat pumps exist. What is a heat pump? A heat pump is an energy-efficient device that uses electricity to transfer heat from one place to another. Heat pumps can provide both heating and cooling for residential, commercial and industrial properties, keeping your indoor spaces at a comfortable temperature all year round. They are the most popular alternative to conventional heating systems such as natural gas or oil furnaces and electric baseboards, especially for homeowners looking to reduce their energy bills. Many homes are creating hybrid or “dual-fuel” systems by integrating a heat pump with an existing gas furnace or boiler heating system. Such a system automatically chooses the best option to keep the home warm based on the temperature outside. How do heat pumps work? Air naturally flows from a place of high temperature to low temperature until it attains equilibrium; that is, everything is the same temperature. A heat pump counters this natural flow and extracts heat from a source and transfers it to a sink. Depending upon the weather, your home could be a source (in the summer) or a sink (in the winter). What are the different types of heat pumps? Based on the "source" (where the heat is pulled from) and the “sink” (where it is pushed to), heat pumps are categorized into the following types: Air-source heat pumps These heat pumps extract heat from the air outside during the winter and push heat outside during the summer. These are the most popular heat pumps in Canada, with over 700,000 installed units across Canada. There are two main types of air-source heat pumps: ductless and ducted systems. Ductless heat pumps: A ductless heat pump (also known as a mini-split) does not require ducting within the home to circulate air, making it ideal for retrofits, additions, outbuildings, and homes without existing ductwork. It consists of an outdoor unit that pulls heat from the air and transfers it to one or more heads mounted inside your home. A mini-split with a single indoor head is known as a single-zone mini-split, while a system with two or more indoor heads is called a multi-zone mini-split or a “multi-split.” Pros: Mini-split systems are easier and quicker to install since there is no ductwork involved.You can control the temperature of each room that needs heating or cooling. In some cases, a traditional thermostat can be installed, too. Since these systems do not need ducting in the home to move air around, they are a good alternative to electric baseboards. Cons: While easy to install, ductless heat pumps become less efficient as more heads are added in a multi-split configuration.They are not the best option to heat and cool larger spaces. Ducted heat pumps: Also called central heat pumps, these consist of a central HVAC unit (located outdoors, in a utility closet, or in the basement) that distributes air throughout the home through a series of ducts. Pros:Ducted heat pumps offer whole-home temperature control and provide even distribution of warm or cool air in your rooms.Since the ducts are hidden within your home’s walls, floors, or ceiling, they offer a more visually appealing look. They can also accommodate whole-house air filtration systems, improving indoor air quality. Cons: Installing a ducted heat pump requires more time and could require cutting into walls, ceilings or floors. This typically makes them more expensive to install.As is the case with other ducted systems, the ducts need to be regularly cleaned and maintained to prevent dust and mold buildup. How do air-source heat pumps work? You’ve likely encountered air-source heat pumps without even knowing what they are. The technology behind them is the same that is used in your refrigerator, air conditioners, dishwasher, and washing machine. Unlike traditional heating systems, which produce heat through combustion, an air-source heat pump moves heat from one place to another. In the winter, it collects heat from the cold air outside and transfers it indoors. In the summer, it pulls heat out of your home to cool the air inside. This transfer occurs through a substance called a refrigerant that undergoes continuous evaporation and condensation and cycles between the indoor and outdoor units. In the winter, the fan on the heat pump’s outdoor condenser unit pulls air across a coil which contains cold refrigerant. This refrigerant is kept at a temperature that is colder than the ambient air, allowing the heat pump to transfer heat from the air. Even in freezing temperatures, the coil reaches a point where it absorbs thermal energy from the air. The refrigerant is then compressed, significantly raising its temperature to produce warm air. The heat pump switches modes, and the heated refrigerant moves inside, where the indoor fan circulates the warm air. The refrigerant cools down and cycles back outside, repeating the heating cycle. In the summer, the heat pump uses a component known as a reverse valve to reverse this process, capturing thermal energy from inside your home and releasing it outdoors. Since heat pumps can provide both heating and cooling with this principle, they eliminate the need to install separate systems to heat and cool your home. Ground-source heat pumps Also known as a geothermal heat pump, a ground-source heat pump absorbs heat from the earth in the winter and pushes it into your home. In the summer, the ground is used as a sink into which the heat pump deposits the heat removed from the house. While these are less commonly used in Canada, they are becoming more popular as homeowners turn to more energy-efficient and environmentally-friendly solutions. Pros: Since these use the ground as a constant temperature source, ground-source heat pumps can operate efficiently regardless of the weather conditions. They are highly efficient and have the longest lifespan out of all the different kinds of heat pumps, typically lasting up to 25 years. Cons: Installation can be expensive and require significant landscape alterations. A significant amount of property is required to install a ground-source heat pump if using a horizontal ground loop configuration.They can be noisy, especially when operating at higher fan speeds. Water-source heat pumps These heat pumps use the energy stored in ground water, surface water, or sea water to extract heat. Pros: They are efficient, environmentally-friendly, and have lower operational costs. Being available in a variety of sizes and configurations means they can be fitted in virtually any location within a building. Cons: You need to live near a sustainable source of water to use these heat pumps. The installation can be expensive and complex. Can heat pumps work in cold climates? Cold is not the absence of heat. Even when the mercury dips to freezing temperatures, there's still some heat energy in the air. In fact, the air at -18°C contains about 85% of the heat it would contain at 21°C. A heat pump’s job is to extract this energy and bring it into your home. Modern cold-climate heat pumps can continue to provide heating even when the outdoor temperature reaches -25°C, with some models rated for use in -30°C weather. In parts of the country that regularly experience extreme cold, a supplementary heating system may need to be used to ensure comfort through the most frigid parts of the winter. Don’t heat pumps consume more electricity, then? No, heat pumps do not require a lot of energy to function. Heat pumps only transfer heat instead of generating it, making them an extremely energy-efficient solution for home heating. In fact, they end up releasing much more energy as heat than they consume in the form of electricity, providing 2 to 5.4 kWh of heat for every 1 kWh of electricity they consume. How many Canadians are using heat pumps? In 2023, 7% of all Canadian households used a heat pump in the prior 12 months. This is expected to rise to 10% by 2030 and 99% by 2050. Heat pumps are already the primary heating source for over 20% of all households in New Brunswick (32%), Prince Edward Island (27%), and Nova Scotia (21%). This could primarily be due to milder winters in these provinces, rising oil prices, and generous grants and rebates available for those looking to transition away from oil. Is a heat pump right for your home? Having all these options makes heat pumps a great choice for both new homes and retrofits of existing HVAC systems in older homes. Chances are, you can find a heat pump that will work for your home. If your home does not have ducts, mini-splits are your best bet. If you are replacing a central air conditioning system or furnace, heat pumps can work with the existing ducting in your home. In certain cases, the incremental cost to move from a traditional central air-conditioning system to a heat pump is quite low, making it a smart choice. What are the benefits of using a heat pump? Heating and cooling costs are skyrocketing. A staggering 14% of Canadian households admitted to keeping their home temperatures at an unsafe or uncomfortable level for at least a month in 2023 because of unaffordable heating or cooling costs. That same year, 26% of households revealed that they did not even have any type of air conditioning or cooling equipment to combat the heat. This is alarming, especially as cases of heat-related illnesses continue to rise. Because they only move heat around instead of creating it from scratch, heat pumps use 70% less energy to warm your home than most traditional HVAC systems, often resulting in massive savings. They run on electricity instead of fossil fuels, making them a key tool in facilitating Canada’s switch to clean electricity and achieving the country’s net zero goals. The bottom line As energy costs continue to rise, switching to a heat pump is the smart, practical choice for Canadian homeowners looking to save money, reduce their carbon footprint, and stay comfortable year-round. Generous government incentives, growing adoption rates, and proven energy efficiency are making this process easier. With the variety of choices available, there’s a heat pump option for nearly every situation. Considering a heating or cooling upgrade? Browse through our selection of mini-split heat pumps or central ducted systems as well as available rebates and grants to see the most cost-effective way for you to switch today. Or try our three-minute pricing tool to get a recommendation that’s perfect for you.
