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Heat Pump vs Oil Furnace: Which Should Toronto Homeowners Choose?

If you live in an older Toronto home or a suburban property, you might have an oil furnace for heating. But with rising fuel prices, environmental concerns, and new government rebates, more homeowners are considering switching to a heat pump. Which system is better for comfort, savings, and the environment? Here’s a thorough guide from Temperature Care.

How Do They Work?

Oil Furnace:

Burns heating oil to create heat
Distributes heat via ductwork or radiators
Known for powerful, fast heating but comes with high fuel costs and regular maintenance needs

Heat Pump:

Uses electricity to move heat from outside to inside (reverses for cooling)
Offers both heating and air conditioning
High efficiency, especially with Ontario’s clean power grid

More: Natural Resources Canada – Home Heating Systems

Efficiency & Running Costs

Feature	Oil Furnace	Heat Pump
Efficiency	70–85%	200–300% (or more)
Fuel/Energy Source	Heating oil (delivered)	Electricity (grid)
Heating Only	Yes	No—also provides cooling
Operating Cost	High (volatile oil prices)	Lower (especially with rebates)

Heat pumps can cut heating bills by 50% or more if you’re switching from oil.
Oil furnaces require regular tank fills, chimney cleaning, and annual tune-ups.

Learn more: Clean Energy Canada – Affordability of Heat Pumps

Environmental Impact

Oil furnaces: High carbon emissions and environmental risk from oil storage tanks.
Heat pumps: Minimal direct emissions, much greener with Ontario’s clean electricity.

Compare heating system emissions: US DOE – Home Heating Systems

Comfort & Convenience

Heat pumps provide gentle, even heating and year-round cooling. Modern models work in Toronto’s cold winters—even at -25°C!
Oil furnaces can heat up a home fast but may create dry air and require more frequent repairs as they age.

Government Rebates and Upgrade Incentives

Toronto homeowners upgrading from oil furnaces to heat pumps can access thousands in rebates:

Ask Temperature Care for help securing all rebates you’re eligible for!

Installation Considerations

Switching from oil to a heat pump may require removing the old oil tank and updating electrical systems.
Ductless options are available for homes without existing ducts.

Read: ENERGY STAR – Ductless Heating & Cooling

Which System Is Right for You?

Choose a heat pump if you want lower bills, cooling, and a smaller carbon footprint.
Stick with oil only if you cannot upgrade your power supply or are in an area with no access to the grid.
Ask about hybrid setups: Sometimes, a backup oil or gas furnace is kept for extreme cold snaps.