Can a Heat Pump Replace a Furnace?

Yes, heat pumps can--and are often used to replace furnaces across Canadian homes, provided that they have been properly sized and installed. In regions with milder winter temperatures, like parts of Southern Ontario, a heat pump system can seamlessly upgrade your indoor heating comfort with a replacement. In colder regions with average temperatures falling around -30°C, many homeowners choose a hybrid heat pump system that combines a heat pump with a furnace for optimized heating and savings during extremely frigid temperatures.

Learn more about how heat pumps perform during Canadian winters, what impact these performance levels have, how to determine whether replacing your furnace with a heat pump is right for your home, and more, below.

From local climate conditions, insulation quality, the presence of ductwork, electrical systems, to individual heating needs, all Canadian homes are different, and these factors all influence whether a heat pump can fully replace your home's current furnace, or whether a hybrid system is a better option. Take a closer look at some different scenarios below.

Works well

A cold-climate, variable-speed heat pump system can fully replace a furnace in many homes across Canada, specifically in coastal regions of British Columbia, Southern Ontario, and parts of Quebec, where average winter temperatures remain mild and rarely fall below zero. When properly sized by professional technicians using a heat-loss calculation unique to your property, these energy-efficient appliances deliver optimal heating and cooling throughout the year.

Works with a backup

For homes located across the Prairies, or inland, where the temperature drops well below freezing, a hybrid heat pump and furnace system is more ideal. With a hybrid system, the heat pump is designed to provide optimal, cost-effective indoor heating during periods where outdoor temperatures are milder. Then, as temperatures drop below freezing, the natural gas furnace will automatically activate to deliver powerful heating to your home.

The goal of a hybrid heat pump system is to enable homeowners to maximize their energy-efficiency levels while maintaining reliable heating throughout the wintertime, even during extremely cold periods.

Not ideal for a full replacement

One thing to note is that a complete furnace replacement may not be practical for every home. Oftentimes, properties that benefit from maintaining a supplemental heat source include:

• Older homes with poor insulation quality.

• Homes with high heat-loss calculations.

• Houses with older/undersized ductwork.

• Properties with older electrical systems that require upgrades.

• Northern communities with extended cold temperatures.

Ultimately, for furnace replacements to be considered, upgrading insulation and air sealing is often recommended.

Modern air source heat pumps are durably designed to perform well across Canadian winter conditions. Here's a closer look at the different types of technology used.

Cold climate technology

Unlike older, traditional HVAC systems, cold-climate heat pumps employ several technologies that aid in maintaining their heat performance levels during freezing temperatures. Some of these technologies include:

• Variable-speed inverter compressors

• Defrost controls

• Outdoor heat exchangers

• Modern refrigerant

Capacity at low temperatures

Even though heat pumps can still transfer thermal energy during cold weather periods, as outdoor temperatures drop, so does their capacity to heat your interior. That said, this doesn't mean that heat pumps stop working, but rather that they'll take longer to heat your home, as the extraction process is lengthened. This is why supplemental heating may be necessary if you're located in a colder region.

If you're unsure whether a backup heating system will be required in your home, a professional HVAC technician will perform a heat-loss calculation before recommending which equipment will work best in your home. This calculation is specifically designed to determine the required heating capacity of your future heat pump, indoor comfort requirements, and whether a backup heating system is needed.

Proper sizing is absolutely necessary and should only be performed by a certified technician, as oversized heat pumps can cycle on and off excessively, causing more wear and tear, along with higher energy costs. On the other hand, an undersized unit will struggle to heat your interior, which, again, will lead to excessive wear and tear and higher energy bills.

Defrost cycles and comfort

When heat pumps operate in the winter, they naturally accumulate frost. To avoid freezing entirely, the heat pump will periodically enter a defrost cycle. During this cycle, the following will occur:

Replacing your furnace with a heat pump does more than change the type of heating equipment that's present in your home. Energy consumption, airflow controls, and overall comfort are just some of the factors that will be impacted by this upgrade.

Efficiency and operating cost

One of the most notable differences between a furnace and a heat pump is how each system produces heat. A gas furnace, for example, burns fuel to generate heat, while an air source heat pump transfers thermal energy from the outdoor air into your home. Because moving heat requires less energy than producing it, heat pumps can achieve greater energy-efficiency levels, which is why they have become popular alternatives for homeowners looking to cut back on their energy costs.

That being said, it should be noted that your annual operating costs will depend on numerous factors, including:

• Local electricity rates

• Natural gas prices

• Outdoor temperatures

• The energy efficiency ratings of your unit

• Whether a backup heating system is also used

Airflow and ducts

Heat pumps and furnaces distribute heat differently. While furnaces are designed to quickly produce hot air over short heating systems, heat pumps typically deliver a consistent flow of warm air over a longer period of time. Because the supply of air isn't as hot, heat pumps can move a greater volume of air than furnaces, which is why having the right ductwork system is key to ensuring you're able to heat your home efficiently.

Leaky, undersized, or poorly insulated ducts can reduce your indoor comfort levels, increase your energy usage, and make it more difficult for your system to maintain a consistent indoor temperature. During your initial assessment, a certified technician will inspect your home's ductwork and recommend any improvements that may be required before your new heat pump is installed, to ensure it operates at optimal performance levels.

Thermostat and controls

Modern heat pumps require advanced controls compared to traditional furnaces. Thermostats used with heat pumps are specifically designed to continuously monitor outdoor and indoor temperatures to keep your home comfortable while using as little energy as possible. Specifically, their controls can:

• Set a balance point, which is the outdoor temperature where heat pumps become less efficient, prompting a backup heating system to activate.

• Coordinate defrost cycles to remove frost from outdoor coils while minimizing the impact on your indoor comfort levels.

• Optimize system performance levels by adjusting heating output based on your changing comfort needs.

Noise and placement

Another notable feature of modern heat pumps is their ability to operate significantly quieter than older, conventional HVAC systems. To ensure your new heat pump's performance levels are maximized:

• The outdoor unit should be installed in an area with sufficient airflow clearance around all sides to ensure there are no blockages.

• The outdoor unit should also be installed on an elevated, sturdy platform to prevent snow accumulation around the appliance.

• There should also be sufficient space around the unit to ensure access for maintenance and repairs.

• Technicians can install vibration-isolating pads to reduce noise.

Again, deciding between a full replacement vs. a hybrid model isn't a universal answer. The best choice will depend on your home's overall heat loss levels, local winter temperatures, electrical and natural gas rates in your area, and the condition of your existing ductwork and heating system.

Full replacement is likely if

Oftentimes, a full heat pump replacement is a good choice when your home:

Replacing a furnace with a heat pump requires more work than simply swapping out one piece of equipment for another. A proper installation process will begin with a detailed assessment of your home, comfort needs, and budget, followed by the selection of your new appliance. Working with a professional and reputable HVAC company during this time is absolutely necessary to ensure your new heat pump system is properly chosen to fit your needs, before being correctly installed in your home. That way, you can maximize your indoor comfort levels, improve your energy efficiency, and ensure your investment remains protected for years to come.

Assessment and load calculation

As briefly mentioned, a successful heat pump installation will begin with understanding the heating requirements of your home. Rather than choosing your new equipment based on factors like your home's square footage or the size of your existing furnace, a professional HVAC technician will perform a professional heat load calculation. This calculation is designed to determine how much heat your home will require during the coldest winter temperatures.

During this assessment, a technician will evaluate numerous factors, including the following:

• The size and layout of your property

• The insulation quality throughout your home.

• The efficiency levels of your windows and doors.

• Whether there is any air leakage around your interior.

• The quality and functionality of your existing ductwork.

• The current electrical system and the capacity of your electrical panel.

• Your existing furnace (if applicable), should you be considering a hybrid system.

The goal of this assessment is to help professionals determine whether a full heat pump replacement is practical or whether a dual fuel system would provide better performance levels and savings for your property. HVAC technicians will also look at your existing ductwork to determine whether they can deliver consistent airflow. If your current ducts are undersized, poorly balanced, or leaking air, they may require modifications before your new heat pump is installed.

Furthermore, your electrical system will also be evaluated. Some homes may require a larger electrical panel or new dedicated circuits to ensure safe functioning of your appliance.

Model selection and rebate paperwork

Once your home's heating requirements are determined, an HVAC technician will recommend new equipment for your property. When comparing heat pump models, there are several factors you should consider:

• Cold-climate performance ratings

• Heating capacity

• Indoor and outdoor sound levels

• Peak efficiency levels

• Warranty coverage

• Compatibility with your existing system and ducts

Below is a heat pump comparison table:

Replacing your furnace with a cold-climate heat pump is a big investment that can deter homeowners from moving forward. Luckily, there are numerous rebates available and lowering operating costs over time can make the investment worthwhile.

Incentive programs across Canada will vary based on the province or territory you reside in. You can also find rebates through municipal governments and local HVAC companies. Note that eligibility requirements will also vary between programs. Another thing to note is that incentive programs will change throughout the year. Therefore, it's important that you confirm availability and requirements before purchasing a unit. When working with a professional HVAC company, they'll be able to help you identify any applicable programs and explain the entire process to you.

Furthermore, installation costs will vary depending on several factors, including:

Similar to all heating and cooling systems, a heat pump will only operate efficiently if it undergoes regular maintenance. Routine maintenance will help you maintain lower operating costs, avoid unexpected repairs, and ensure you and your loved ones remain comfortable through every heating and cooling season. Additionally, it allows technicians to identify any minor issues with your appliance before they develop into more expensive issues down the road.

Most maintenance tasks are easy to perform. And luckily, homeowners can do a lot of the upkeep themselves, while annual service performed by a professional will ensure the system remains optimal.

During the year, it's important to: