How Much Could I Save by Switching to an Electric Heat Pump? UPDATED: April 2026 It's one of the first questions most people ask when they start thinking about a heat pump, and it's a great one. The short answer is: quite a bit. But the fuller answer depends on what you're currently heating your home with. Watch the video below for a quick breakdown, and we've added some helpful context underneath. Why Your Current Fuel Source Makes Such a Big Difference As the video explains, heat pump savings typically range from 20% to 50% or more on your heating and cooling costs, but where you land in that range really comes down to what you're replacing. Here's a rough idea of what Canadian homeowners are seeing: Switching from oil or propane: tends to deliver the biggest savings, often in the range of 40% to 60%, since both fuels are expensive to run and heat pumps are dramatically more efficient by comparison Switching from electric baseboards: also very significant, typically 50% or more, because baseboards convert electricity to heat at a one-to-one ratio while a heat pump produces multiple units of heat for every unit of electricity it uses Switching from natural gas: savings are generally more modest, in the 20% to 40% range, since gas tends to be one of the lower-cost fuels in Canada, though savings grow as carbon costs rise The bottom line is that heat pumps don't generate heat the way traditional systems do. They move it, and that's what makes them so much more efficient. If you'd like to understand a bit more about the mechanics behind that, our article on how a heat pump works explains it really clearly. On Top of the Savings, There Are Rebates The savings on your energy bills are just one part of the picture. Depending on your province and what system you're replacing, there are also government rebates and incentives available right now that can significantly reduce what you pay upfront. Our incentives page has all the current programs listed by province. If you're currently on oil heating in particular, the combination of annual energy savings and available federal support makes switching to a heat pump one of the most financially compelling home upgrades you can make right now. We go into more detail on that in our guide on switching from oil to a heat pump. Want to Know What You'd Save Specifically? Every home is a little different, and the best way to understand your own potential savings is to get a proper assessment. Take our three-minute home quiz to get a personalized recommendation or get a fixed price so you can see exactly what the numbers look like for your situation.
