Heat pump or gas furnace in Alberta: what a unit of heat costs

What does a unit of heat cost in my town?

The furnace column uses an assumed efficiency. AFUE is the share of fuel energy delivered as heat over a season. The standard furnace regulation sets this minimum. Minimum AFUE is 95 percent for gas furnaces without integrated cooling, with input up to 225,000 BTU per hour and single-phase power, manufactured on or after July 3, 2019 (read 22 October 2026) [source]. Its exclusions include relocatable buildings and replacement non-condensing furnaces.

The energy conversion is 1.0 Gigajoules (GJ) 277.7778 Kilowatt-hours (kW.h) (read 21 October 2026) [source]. Divide gas cost by furnace efficiency. Divide electricity cost for the same energy by COP.

See the separate furnace burner and fan costs and cost of extra electricity use.

What is COP, and why does it matter in an Alberta winter?

COP means coefficient of performance. It is heat delivered divided by electricity used. A higher COP means less electricity for the same heat. A heat pump moves heat from outside, even when the air feels cold.

NRCan gives two air-source ranges. At 8°C, air-source heat pumps typically have COPs between 2.0 and 5.4 (read 30 October 2026) [source]. At -8°C, air-source COPs can range from 1.1 to 3.7 (read 30 October 2026) [source]. COP falls as the outdoor temperature drops.

Do not apply a mild-weather COP to every winter hour. Seasonal ratings also need context: NRCan’s HSPF estimates use a climate similar to Ottawa (read 30 October 2026) [source].

Do heat pumps work in Alberta winters?

NRCan says Cold climate heat pumps can operate at temperatures as low as -30°C (read 30 October 2026) [source]. That describes cold climate equipment, rather than every heat pump. Check the model’s heat output and electricity use at your winter temperatures.

NRCan gives a range for other air-source equipment. Newer air-source models can have minimum operating temperatures between -15°C and -25°C (read 30 October 2026) [source]. Below the minimum operating temperature, supplemental heat must supply the home. Backup heat can be a gas furnace or electric resistance heat. Its running cost belongs in the winter total.

The lowest temperature a system works at is not the price-based switch point. The economic balance point is where supplemental heating becomes less costly than heat-pump operation (read 30 October 2026) [source]. Use your equipment’s instructions and your own plan prices when setting controls.

Is there a rebate today?

The Canada Greener Homes Grant: Closed. December 31, 2025, was the last day to submit your documents. (read 21 October 2026) [source]. The Canada Greener Homes Loan: Closed. Funding is fully committed. New loan applications cannot be approved. Homeowners with an approved loan still have funding available. (read 21 October 2026) [source].

For Alberta, the Oil to Heat Pump Affordability Program: Application intake is closed. July 31, 2026, was the last day to apply. Applicants had to heat their home with oil. Applications submitted before the deadline continue to be processed. (read 21 October 2026) [source].

The National Heat Pump Rebate is upcoming: Applications are due to open in early 2027. Eligible installations from November 1, 2026 can qualify retroactively once applications open. (read 30 October 2026) [source]. The announced amounts are conditional: Eligible households can receive $2,000, or up to $10,000 for low- to median-income households. (read 30 October 2026) [source]. Read the government’s current eligibility and application rules before counting on a payment.

See home energy rebates for other programme details.

What does this table leave out?

Purchase and installation prices are separate. So are financing costs, maintenance and your home’s heat loss. The table uses default rates rather than your plan’s price.

It prices heat delivered, rather than the hours a system runs. Furnace fan electricity is separate. Backup heat changes the total when it runs. A heat pump also cools the home, which adds value and electricity use outside the heating comparison.

For a monthly estimate, work out how much heat your home needs. Split that heat among the furnace, heat pump and backup system. Use the COP for each part of the winter, then add the fixed bill charges.

Does my plan change the answer?

Yes. Both the gas price per GJ and the electricity price per kWh move the comparison. Keep usage-based delivery, town fees and GST in each calculation. Use your own bill when your plan differs from the default rate.

Read fixed and floating plans before comparing energy prices.

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