Furnace Replacement Ottawa: Costs, Rebates, Heat Pumps

A new heat pump can earn you a rebate and a new gas furnace usually cannot, so the order of your phone calls matters more than the brand on the box.

Furnace replacement in Ottawa costs thousands of dollars, and a heating guide published on September 24, 2026 puts an Ontario furnace replacement at $4,900 to $8,000 before HST, installation included. Ontario's Home Renovation Savings program pays up to $2,000 toward a heat pump in a gas-heated home, but its pages list nothing for a standard furnace. A federal heat pump rebate was announced on October 8 and has not opened yet. Below: what repair and replacement cost, which programs are open, who may legally install a gas furnace, and what to do when the heat quits in January.

Key Highlights

Most Ottawa houses keep the furnace in the basement, where a planned replacement is far easier than a January emergency.

TL;DR: Plan a furnace replacement before it fails, because the rebates that exist are for heat pumps and need approval before the work starts. Check any gas contractor in the TSSA's public registry. In Ontario, a salesperson cannot sell you a furnace or air conditioner at your door unless you invited them. If you smell gas, leave and call 1-866-763-5427 or 911.

Repair or Replace Your Furnace in Ottawa

A heating check in the fall covers the burner, gas pressure and heat exchanger, the parts that matter most for safety.

Age alone rarely settles it. Natural Resources Canada (NRCan) puts the service life of an air-source heat pump at 15 to 20 years, and an Ontario installer's guide published in September 2026 gives a gas furnace a similar 15 to 20, with sizing, installation and maintenance deciding where a given unit lands. The September 24 cost guide adds that a 15-year-old furnace does not automatically need replacing. It says to weigh condition, efficiency, budget, energy costs and the price of the repair.

The installer's guide offers a rule of thumb: multiply the furnace's age by the repair quote, and replacement usually wins once the answer passes $5,000. By its own example, a $400 repair on an eight-year-old furnace comes to $3,200, while the same bill on a 15-year-old furnace comes to $6,000. Treat that as a prompt to ask for a second opinion, not a verdict.

Safety counts for more than the arithmetic. NRCan says a dirty burner or a cracked heat exchanger can make a furnace run less safely, which is why a fall check covers gas connections, gas pressure, burner combustion and the heat exchanger. If a technician reports a cracked heat exchanger, ask for the finding in writing and read the carbon monoxide section below before you decide.

Timing is the other half. The federal government says about one million Canadian households replace a heating system every year, and CBC reports that government data puts 80 per cent of those replacements after a breakdown. A planned replacement gives you time to compare written quotes. The Home Renovation Savings program says installations done before approval are not eligible for rebates, and the City of Ottawa's loan program covers only costs incurred after its Notice to Proceed, with 7 to 8 weeks to process an initial payment. A January breakdown leaves no room for either.

Furnace Replacement Cost in Ottawa: Price Ranges and Running Costs

A written quote should name the model, the efficiency rating and what is excluded, not just a total.

A new furnace. The September 24, 2026 guide, published by a company that sells heating equipment, puts the average Ontario replacement at $4,900 to $8,000 before 13% HST, installation included. It breaks down Greater Toronto Area prices by efficiency: $5,000 to $7,500 or more for a furnace rated 92 to 95 per cent AFUE, and $8,000 to $10,000 or more for one rated 96 to 98 per cent. Those are Toronto-area figures from a seller, so use them to sanity-check an Ottawa quote, not as a quote.

The same guide says a proper quote names the make, model, capacity and AFUE rating, says whether the furnace is single-stage, two-stage or modulating, states whether removing the old unit, permits and cleanup are included, lists both the equipment and labour warranties, shows the HST and spells out exclusions. Its red flags are worth copying:

• No model number or heat-loss calculation. A furnace sized only by square footage can short-cycle, which wastes energy and wears the equipment.
• Pressure to sign. A large unexplained discount, or a price that changes with no documented change in the work, belongs in the same category.
• No written, itemized quote. Get at least two or three, and compare the same equipment and scope.

A heat pump, which also cools. An Ottawa installer's guide dated February 4, 2026 gives installed ranges of $3,500 to $5,500 for a single-zone ductless unit, $10,000 to $18,000 for a cold-climate ducted unit, and $13,000 to $20,000 for a hybrid (a heat pump plus a new gas furnace). It lists extras of $500 to $2,500 for an electrical upgrade, $300 to $600 for a snow stand or wall bracket, and $500 and up for ductwork changes. These are also a seller's own estimates.

NRCan explains the extras. An all-electric air-source heat pump normally needs a 200-ampere electrical service, so a home moving off gas may need a new panel, and heat pumps move more air than furnaces, so ducts sometimes need changes. For cooling, NRCan says the extra cost of a heat pump over a cooling-only air conditioner is often quite low when you are replacing the air conditioner anyway, because the same equipment cools in summer. The City of Ottawa lists air conditioner and heat pump installation among the projects that do not need a building permit, though the work must still meet the Ontario Building Code. Our home renovation guide for Ottawa covers permits in more detail.

Running costs. Natural gas supply is set by the Ontario Energy Board (OEB). Its table for October 1, 2026 shows a supply charge of 9.1080 cents per cubic metre for Enbridge Gas Inc., the row that matches Enbridge's Rate 1, which its own page says covers Toronto, Ottawa and Niagara. That is the gas itself. Delivery and a fixed customer charge come on top, rates are reviewed in January, April, July and October, and Enbridge says the federal carbon charge came off customer bills on April 1, 2025.

Electricity prices are reset each November 1. The OEB page shows the November 1, 2025 prices: time-of-use at 9.8, 15.7 and 20.3 cents per kilowatt-hour (off-peak, mid-peak, on-peak), ultra-low overnight at 3.9 cents from 11 p.m. to 7 a.m. but 39.1 cents on weekdays from 4 p.m. to 9 p.m., and tiered at 12.0 cents for the first 1,000 kWh a month in winter and 14.2 above that. Which plan you are on changes what a heat pump costs to run, so ask any installer for an estimate on your own plan.

How much a heat pump saves depends on what it replaces. NRCan says air-source heat pumps typically deliver 2.0 to 5.4 units of heat per unit of electricity at 8°C, falling to 1.1 to 3.7 at -8°C, and that savings depend on the price of electricity relative to other fuels. The federal government's own backgrounder quotes average savings of more than $1,400 a year for homes heating with oil, propane or electric resistance. It gives no such figure for natural gas homes. The Ontario Clean Air Alliance, an advocacy group, offers a free 15-year calculator, but it uses Toronto prices, assumes 270 per cent seasonal efficiency, holds prices flat and calls its own result a rough estimate.

Heat Pump Rebates and Loans in Ottawa: What Is Open and What Is Not

An outdoor unit has to sit above the snowline, which is one reason installation costs more in Ottawa than the box alone suggests.

Home Renovation Savings (Enbridge Gas and Save on Energy). The heat pump stream needs no home energy assessment. The amount depends on what heats your home now:

A ton is 12,000 Btu/h, according to NRCan. The program also lists $500 per ton, up to $2,000, for renting an air-source heat pump, whatever the current heating fuel. You must own the home, and it must be a detached, semi-detached, row house, townhome or mobile home on a permanent foundation. New builds occupied six months or less do not qualify. The unit has to appear on NRCan's qualified products list.

The sequence is strict: fill in the eligibility form, choose a participating HVAC contractor from the program's list, and let the contractor submit the pre-installation application. Install only after approval, because the program says pre-approval is mandatory and earlier installations are not eligible. After the contractor files the post-installation application, the cheque should arrive by mail within 60 days. The program pages show no end date. Some third-party guides say November 30, 2026, which we could not confirm, so ask the contractor and check the program page before you sign. The pages we read list no rebate for a replacement gas furnace, and the September 24 guide says the same.

Better Homes Ottawa Loan (City of Ottawa). It is a loan, with a heat pump incentive attached. The terms: 20 years at a fixed 4.33 per cent, a 4 per cent administration charge, a $10,000 minimum, and a maximum of $125,000 or 10 per cent of the home's assessed value, whichever is less. It is repaid through the property tax bill and stays with the property if you sell. An EnerGuide assessment is required, and only costs after the Notice to Proceed count.

The heat pump incentive is $700 per ton for a central or ductless cold-climate air-source heat pump that is on NRCan's cold-climate list, keeps at least 80 per cent capacity in the cold, has at least 12,000 Btu/h rated heating capacity and is rated 55 dB or less in cooling. Ground-source units get $1,000 per ton plus $5 per metre of well depth or loop. The program does not fund natural gas furnaces. The City's page does not say whether the incentive can be combined with the provincial rebate, so ask both before you sign. For a limited time it also takes $600 off an approved loan for people who are not receiving the $600 assessment rebate from Home Renovation Savings.

Free upgrades for lower-income households. Enbridge Gas's Home Winterproofing Program and the Save on Energy Energy Affordability Program share one application. They offer free insulation, draft proofing, a smart thermostat, appliances and LED lighting, not a furnace. Eligibility is by household income before tax, for example under $48,220 for one person or $96,439 for four, or by receiving certain benefits. Renters need the landlord's permission, and for Ottawa postal codes starting with K the program's delivery agent is EnviroCentre.

Hydro Ottawa. Its programs page points customers to the Save on Energy and Better Homes Ottawa programs above. It lists no heat pump rebate of its own.

Not yet open or closed: the federal National Heat Pump Rebate Program. The Government of Canada announced it on October 8, 2026: $2 billion over eight years for up to 820,000 homeowners installing eligible electric cold-climate air-source heat pumps. The rebate is up to $10,000 for households below the median income and $2,000 for others, with no energy audit required. CBC reports the program covers replacing natural gas, propane, diesel and electric systems. Homeowners apply online when their heating system breaks down or nears the end of its life, get approval within 24 hours, then upload receipts after installation, with payment approved within five days.

It has not opened. CBC reports the government expects to launch it early in 2027 and is eyeing making it retroactive to the fall, which is not confirmed. The Prime Minister said it can be combined with provincial rebates. If you replace a system this winter, keep every quote, contract and invoice with its date, and watch the federal government's "One million home energy retrofits" page for the portal. Never leave a house cold to wait for a rebate.

The Canada Greener Homes Affordability Program. It provides no-cost retrofits, including insulation and heat pumps, to low-to-median-income homeowners and tenants. NRCan's page, updated August 31, 2026, lists British Columbia, Manitoba, Nova Scotia, Prince Edward Island and Quebec as provinces where residents can now apply. Ontario is not on the list, and the Government of Canada is not accepting applications from households directly. NRCan also warns that it never solicits by phone, email or door to door.

The Canada Greener Homes Loan. It is closed. NRCan's page, updated April 17, 2026, says funding is fully committed and new applications cannot be approved, though already-approved loans continue.

Hiring a TSSA-Registered Gas Contractor in Ottawa

Registration is a public record, so you can check it before anyone opens the furnace panel.

The Technical Standards and Safety Authority (TSSA) says Registered Fuels Contractors are the only businesses legally authorized to do fuels-related work in Ontario. That covers installing or servicing natural gas, fuel oil and propane equipment. Its public registry at tssa.org/fuels-contractor lets you search by company name or authorization number, by city or postal code, and by fuel: natural gas, fuel oil, liquid propane or chimney liner.

Four details from the registry page save time. The city listed is the contractor's main office, and the business may serve other areas. The registry is updated at the start of each month, so a very new registration may not show yet. Appearing there is not an endorsement. And if a contractor takes a job and subcontracts it, both businesses must be registered. TSSA also says contractors must make sure their technicians are properly trained and certified, and it publishes a Qualified Contractor Checklist you can read before you sign.

For a heat pump on its own, there is no fuel to register. NRCan still says a qualified contractor should size, install and maintain it, and Home Renovation Savings requires a participating contractor from its list. A hybrid system, a heat pump paired with a gas furnace, involves both. Our Heating & Cooling directory page lists 57 businesses, drawn from OpenStreetMap, which is not a check of anyone's registration. Look each one up yourself.

Ontario's Door-to-Door Rules for Furnaces and Air Conditioners

In Ontario, a furnace or air conditioner cannot be sold at your door unless you started the conversation.

Since March 1, 2018, the Consumer Protection Act has barred businesses from offering or selling certain products at your home unless you initiated the transaction, for example by calling and asking them to come and sign a contract. The restricted list includes furnaces, air conditioners, air cleaners, air purifiers, water heaters, water treatment devices, water filters, water softeners and duct cleaning, plus anything that performs those functions, such as an HVAC system.

Ontario's guidance adds that if you call a business for a repair, maintenance or an energy assessment, it cannot sign you to a new contract for these items during the visit. It can only leave information. If you already have a written contract with a business, it can visit for any reason you request, but it must tell you before the visit that it plans to make an offer, and you must agree to hear it. A contract signed because of restricted door-to-door marketing is void, and you can keep the goods without obligation.

Even a legitimate contract has a 10-day cooling-off period that starts the day you receive a written copy. Ontario's list of questions to get answered in writing includes the contract's length, whether the company will register a lien on your title, whether it renews automatically, the cost of cancelling, and fees for removing existing equipment. The province also says not to rely on a salesperson's opinion that your water heater is unsafe or should be replaced, and that utilities, municipalities and government agencies do not send salespeople door to door.

Enbridge Gas says it does not endorse door-to-door sales, and its authorized program agents never show up unannounced. For concerns, call Consumer Protection Ontario at 1-800-889-9768. Our guide to door-to-door construction scams in Ottawa covers the sales tactics in detail.

Annual Maintenance, Cooling Checks and Carbon Monoxide Alarms

Alarms are required next to each sleeping area and, since January 1, 2026, on every storey in homes with fuel-burning equipment.

NRCan recommends hiring a licensed and insured contractor for annual pre-season check-ups: heating in the fall, cooling in the spring. For a gas furnace the fall visit covers gas connections, gas pressure, burner combustion and the heat exchanger. Electrical connections, moving parts, the condensate drain and the controls are checked too. In spring, the contractor cleans the air conditioner's coils, checks refrigerant and adjusts the blower. You handle the filter: NRCan says to inspect, clean or change it regularly because a dirty one raises energy costs and can damage the system, and for heat pumps it suggests every three months. The City also advises an annual inspection of all fuel-burning appliances, including furnaces, fireplaces, gas stoves, gas dryers and chimneys.

Ontario's carbon monoxide rule changed on January 1, 2026. The TSSA and the City say an alarm is required in any home with a fuel-burning appliance (a furnace, water heater or stove using gas, propane, oil or wood), a fireplace or an attached garage. It must sit next to each sleeping area and now also on every storey, including storeys with no bedroom. By that list, a fully electric home with no fireplace and no attached garage would not be covered, but a home that switches to a heat pump and keeps a gas stove or water heater still is.

The City says to test alarms monthly, replace batteries yearly unless the battery is sealed, and replace the alarm every seven to 10 years or as the maker says, looking for CSA-6.19 or UL 2034 on the label. Landlords must make sure working alarms are installed. In winter the City also says to keep vents, intakes and exhaust pipes clear of snow and debris. A carbon monoxide alarm does not detect a natural gas leak, according to Enbridge, so it does not replace the gas rules below. Our carbon monoxide alarm guide has the full rules.

What to Do When the Heat Goes Out in January

Start with the safe, simple checks, and treat any gas smell or alarm as an emergency before anything else.

Safety first. If you smell rotten eggs or sulphur, hear hissing near a gas line or appliance, leave the building at once, leaving doors and windows open behind you if you can do so without delay. From a safe place, call Enbridge's 24-hour emergency line at 1-866-763-5427 or 911. Do not use phones or light switches inside, and do not try to find the leak. If a carbon monoxide alarm sounds, the City says it is a warning to evacuate.

Then the basics. Check that the thermostat is set to heat, that the furnace has power, and that the filter is not clogged, since NRCan notes a dirty filter can damage the system. If that does not fix it, call a contractor and check the TSSA registry while you wait. Ask for the call-out fee and any emergency rate before anyone is dispatched, and keep the written invoice. If you are tempted to buy a heat pump in the middle of the emergency, remember the pre-approval rule above: an installation done before approval is not eligible for the provincial rebate.

Stay warm without creating a worse problem. The City is clear that you should not heat your home with a gas stove, oven, barbecue or camping equipment unless the device is designed for indoor use, and that generators belong outside, far from windows, doors and vents. Keep any room with water pipes above 8°C and leave doors open so heat can circulate, as the City of Ottawa advises in our frozen pipes guide for Ottawa. If you cannot keep the house warm, staying with family or friends beats risking a burst pipe.

If you rent. Under the City's Heat By-law, a landlord who normally heats the unit, or pays for the heat, must maintain at least 20°C between 6 a.m. and 11 p.m. and at least 16.67°C between 11 p.m. and 6 a.m. in the centre of each reasonably ventilated room. Tell the landlord in writing, with the date. The by-law is enforced by the City's By-law and Regulatory Services, and 3-1-1, the City's main line, is the place to ask how to report a problem. If the landlord ignores a notice, the City can do the work and add the cost to the property's tax bill. Our Ottawa rental guide covers who to call for other problems in a unit.

FAQ

Q: Is there a rebate for a new gas furnace in Ottawa?

Not through the programs we checked. Home Renovation Savings pages list heat pump rebates but nothing for a standard gas furnace, and the Better Homes Ottawa Loan says it does not fund natural gas furnaces. Free upgrades for lower-income households cover insulation, draft proofing and a thermostat. Confirm current terms with each program before signing.

Q: How much does a heat pump rebate pay in Ontario?

Home Renovation Savings pays up to $2,000 for a cold-climate air-source heat pump in a gas-heated home, or up to $7,500 if the home heats with electricity, oil, propane or wood. Ground-source units pay $3,000 or up to $12,000. The contractor must get pre-approval before installing, and the unit must be on NRCan's qualified products list.

Q: When does the federal heat pump rebate start?

It has not opened. The Government of Canada announced the National Heat Pump Rebate Program on October 8, 2026, and CBC reports the launch is expected early in 2027. Rebates are up to $10,000 for households below the median income and $2,000 for others. The government is reportedly considering making it retroactive to the fall, which is not confirmed.

Q: How do I check that a gas contractor is registered in Ontario?

Search the TSSA's public registry of Registered Fuels Contractors at tssa.org/fuels-contractor by company name or authorization number, and choose natural gas as the fuel. The registry updates monthly and is not an endorsement. Ask the contractor for the registration number and confirm that any subcontractor is registered too before work begins.

Q: Can a salesperson sell me a furnace or air conditioner at my door?

No, not in Ontario unless you initiated the contact. Furnaces, air conditioners, water heaters and duct cleaning cannot be offered or sold at your home on the business's initiative. A contract signed after restricted door-to-door marketing is void. If you did sign a valid contract, you have a 10-day cooling-off period starting when you receive a written copy.

Q: Do I need a carbon monoxide alarm if I switch to a heat pump?

Only if something else in the home triggers the rule. Ontario requires alarms in homes with a fuel-burning appliance, a fireplace or an attached garage. A gas stove, gas water heater or attached garage still counts after a heat pump goes in. Alarms must be next to each sleeping area and on every storey.

Final Thoughts

Furnace replacement in Ottawa is easiest when it is a decision, not an emergency. The calendar this year is unusual: Ontario's heat pump rebates are open today but need approval before work starts, the Better Homes Ottawa Loan takes weeks, and a federal rebate has been announced but not opened. Anyone with an ageing furnace can use the fall to get written quotes, check registrations and decide whether a heat pump, a hybrid or a like-for-like furnace suits the house.

If the heat does fail, safety comes before price: gas smell, alarm, then the basics, then a registered contractor and a written quote. Browse our Heating & Cooling directory page, then check each business in the TSSA registry yourself.

Source: Home Renovation Savings, Heat pumps (Enbridge Gas and Save on Energy)

Source: Better Homes Ottawa, Better Homes Ottawa Loan Program

Source: Government of Canada, Backgrounder on the National Heat Pump Rebate Program, October 8, 2026

Source: CBC News, What we know about Ottawa's $2B rebate plan for heat pumps

Source: CBC News, Ottawa to provide $2B in rebates for homeowners who install heat pumps

Source: Natural Resources Canada, Canada Greener Homes Affordability Program

Source: Natural Resources Canada, Canada Greener Homes Loan

Source: Natural Resources Canada, Heating and cooling with a heat pump

Source: Natural Resources Canada, Guide to maintaining your home heating and cooling system

Source: TSSA, Authorized Heating Fuel Contractors

Source: TSSA, Contractor Registration and Certification

Source: TSSA, Changes to Ontario Fire Code: New Requirements for CO Alarms

Source: Ontario.ca, Door-to-door sales and home service contracts

Source: Ontario.ca, Rules for businesses entering into contracts at a consumer's home

Source: City of Ottawa, The law is changing for carbon monoxide alarms

Source: City of Ottawa, Heat (By-law No. 2010-210)

Source: City of Ottawa, Projects not requiring building permits

Source: Enbridge Gas, Residential rates and charges

Source: Enbridge Gas, Smell natural gas

Source: Enbridge Gas, Home Winterproofing Program

Source: Ontario Energy Board, Natural gas rates

Source: Ontario Energy Board, Electricity rates

Source: Hydro Ottawa, Programs and incentives