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Heat Pump vs Oil Heater: Which Is Best for Toronto Homes?

Toronto winters are no joke, so picking the right heating system matters—a lot. If you’re debating between a heat pump and an oil heater (oil furnace or oil-filled radiator), this guide from Temperature Care will help you make the right call for your comfort, savings, and the planet.

How Do They Work?

Oil Heater (Oil Furnace or Oil-Filled Radiator):

Oil furnace: Burns heating oil to produce hot air, distributed through ducts
Oil-filled radiator: Electric unit that heats oil inside a sealed case, radiating warmth into a room
Both options rely on burning fossil fuels (directly or via hydro)

Heat Pump:

Uses electricity to transfer heat from outside to inside (works in reverse for cooling)
No fuel burned—just moves heat efficiently
Can heat (and cool) your whole home with a single system

Learn more: ENERGY STAR – Heat Pumps vs Oil Heating

Efficiency & Cost Comparison

Feature	Heat Pump	Oil Heater
Heating Area	Whole home or multiple zones	Whole home (furnace) or one room (radiator)
Efficiency	200–350% (COP 2–3.5)	60–85% (oil furnace), 100% (oil radiator)
Cooling	Yes	No
Operating Cost	Much lower (especially long-term)	Higher, subject to oil prices
Emissions	Very low	High (burns fossil fuels)
Air Quality	Filters, humidity control	Can dry air, fumes possible

Heat pumps are ultra-efficient and use Ontario’s clean electricity.
Oil heaters are costly, polluting, and becoming less common in Toronto homes.

Compare: Clean Energy Canada – Heat Pump Advantages

Comfort & Air Quality

Heat pumps:
- Provide gentle, even heating throughout the home
- Built-in air filtration improves indoor air quality
- Cools your home in summer as well!
Oil heaters:
- Furnaces can deliver strong heat, but may create dry air or uneven temps
- Oil radiators are portable but slow and suitable only for small spaces
- Burning oil can produce fumes or odors, especially in older equipment

Installation & Rebates

Heat pumps:
- Professional installation (ducted or ductless mini-split)
- Eligible for major rebates:
  - Canada Greener Homes Grant
  - Enbridge Home Efficiency Rebate Plus
Oil heaters:
- Oil furnaces require annual service and oil deliveries
- No rebates for oil-based systems

See Temperature Care’s heat pump services

Environmental Impact

Heat pumps:
- Ultra-low emissions—especially with Ontario’s clean electricity
- Qualify for government incentives to help you upgrade
Oil heaters:
- High carbon emissions and pollution
- Phasing out in many Canadian regions

US DOE: Home Heating Systems

Which Should You Choose?

Choose a heat pump for maximum efficiency, low bills, and environmental responsibility—plus cooling for summer!
Choose an oil heater only if you have no other option (rural property), or for portable, spot heating.