Last updated: May 2026
A heat pump is an electrically powered heating and cooling system that works by transferring heat rather than burning fuel to create it. In summer it moves heat out of your home; in cooler months it reverses to draw heat in from the outdoor air. Most Canadian homeowners pair a heat pump with a furnace in a hybrid heating system so the furnace takes over during the coldest days. Heat pumps come in ducted models that connect to existing ductwork and ductless mini-split models for homes without ducts.
On this page:
- Heat Pump Basics
- Efficiency and Performance
- Heat Pumps in Canadian Climate
- Installation and Maintenance
- Costs and Rebates
Heat Pump Basics
What is a heat pump?
A heat pump is an air conditioner that can run in reverse. In summer, it transfers heat from inside your home to the outside, reversing this on cool fall and spring days to move heat from the outside back into your home.
The technology is the same as your refrigerator. Your fridge is a heat pump – it transfers heat from inside the unit, out. That is why the top and back emit heat.
There are two kinds of heat pumps – air-source transfers heat from the air, and ground-source transfers heat from the ground. Reliance® focuses on air-source heat pumps.
Heat pumps come as units that work with your furnace in a ducted home or as ductless splits. They look just like AC units – the only difference is the outside condenser needs to be off the ground on a stand or wall bracket.
What is a hybrid heating system?
A hybrid heating system has a heat pump and a furnace working together to heat the home. The heat pump provides heat until it is too cold outside to run efficiently and then is switched over automatically to the furnace.
What is the difference between air-source and ground-source (geothermal) heat pumps?
Same concept, different equipment. Air-source transfers heat from the air and ground-source or geothermal transfers heat from the ground. The ground-source heat pump is very expensive and complicated to install.
What is the difference between a heat pump and a ductless split system?
One and the same! An air-source heat pump can come in two forms – one that works with a furnace in a house with ducts or as ductless split units for homes that don’t have ducts. They are also very convenient for spaces like an addition that people want to heat or cool.
Does a heat pump look different than an air conditioner?
No – on the outside they look just like an AC, however they have some internal differences. The main difference is the condenser needs to be off the ground on a stand to help with the shedding of ice.
How does a heat pump get heat from cold air?
Here’s some simplified science! Heat pump technology works on the same basic principles which also govern how most air conditioners, refrigerators, deep freezers and other cooling equipment works.
The refrigerant in a heat pump can move in both directions – in and out. When it is cold out, the refrigerant flows through an expansion valve, where it evaporates into a gas and becomes colder than the outside air. Heat energy naturally wants to move to a colder place. That is how the refrigerant can absorb the heat energy from cold air – because the refrigerant is colder. The refrigerant then moves back inside where it condenses back to a liquid and releases the heat energy into your home. Fluid absorbs heat when it evaporates into a gas and likewise gives off heat when it condenses back into a liquid. Pretty cool, huh?
Heat pump vs. furnace: which is better?
Neither is universally better. A heat pump heats and cools using electricity and is highly efficient in moderate temperatures. A furnace burns fuel (typically natural gas) and excels in extreme cold. Many Canadian homeowners get the best of both with a hybrid heating system, where the heat pump handles milder weather and the furnace takes over during the coldest days.
Efficiency and Performance
What do SEER, HSPF, and CoP mean for heat pumps?
SEER (Seasonal Energy Efficiency Ratio) applies to cooling efficiency. Heat pumps have a SEER rating because they also operate as air conditioners. SEER is like km/litre for your car – the higher, the better.
HSPF (Heating Season Performance Factor) is the heating version of SEER and measures the heat pump’s efficiency when it is in heating mode.
CoP (Coefficient of Performance) is a ratio of how much heat is added to the home compared to the power used by the heat pump at a given temperature.
Do heat pumps use the same amount of electricity as electric heating?
No. Heat pumps transfer heat rather than creating it. Transferring heat uses less electricity than an electric heater that produces heat, for example.
Heat Pumps in Canadian Climate
What temperature can a heat pump operate in?
Modern air-source heat pumps can operate in temperatures as low as -15°C to -20°C, depending on the equipment. They can work at these temperatures, but the colder it is outside, the harder it is for the heat pump to warm the home. The amount of heat a heat pump can emit decreases with the lowering temperatures outside.
Can I use a heat pump all year round in Canada?
All homeowners should have a backup heat source. However, homeowners in warmer parts of BC and possibly areas of Southern Ontario in milder climate zones like Niagara could benefit from heat pumps for the majority of the year.
What happens when a heat pump ices over?
If the temperature dives outside, your heat pump condenser may accumulate some ice. The heat pump has an easy automatic way to deal with this – it will go into defrost mode. It temporarily reverses itself, working as an air conditioner to send heat to the condenser coils and melt the ice. It will switch back into heating mode once the ice melts.
Installation and Maintenance
Is a heat pump installation different from an air conditioner installation?
The installation is similar, however there are some differences. The heat pump must be installed on a stand to raise it off the ground for ice accumulation. There are also some additional setup requirements as you have to set changeover set points.
What size heat pump do I need?
Heat pump sizing must be based on a proper load calculation performed by a licensed technician. Factors include your home’s insulation levels, window area, layout, ceiling height, and local climate zone. Sizing by square footage alone is not accurate and can lead to an oversized or undersized system, both of which cause comfort and efficiency problems. Learn more in our guide to sizing HVAC equipment.
How long does a heat pump last?
A well-maintained heat pump typically lasts 15 to 20 years. Regular maintenance, including annual tune-ups and keeping the outdoor unit clear of debris, helps maximize its lifespan and efficiency.
Costs and Rebates
How much does a heat pump cost in Canada?
Heat pump costs in Canada vary depending on system type, efficiency rating, and installation requirements. For a full breakdown of pricing for central heat pumps and ductless mini-splits, including how they compare to traditional air conditioning, visit our Central AC vs. Heat Pump Costs guide.
Are there rebates or incentives for heat pumps in Canada?
Yes. Federal and provincial rebate programs are available for qualifying heat pump installations in Canada. Programs and amounts change frequently, so check our rebates page for the latest incentives available in your area.
Still Have Questions?
Talk to a knowledgeable Reliance® Home Comfort Advisor. We’re available 24/7/365 and offer as-soon-as same day service.

