Key takeaways
- Running cost = the price of your energy ÷ how efficiently your system turns it into heat.
- Seasonal efficiency matters more than peak ratings — a whole winter averages mild and cold days.
- Use the all-in rates from your bills (delivery, fees and taxes included), not just the commodity price.
The one formula you need
Every heating system turns some energy into heat. To compare them, work out the cost of delivering the same amount of heat — say, 1,000 kWh of heat into your home.
Try it with your rates
Your home needed about 19,665 kWh of heat. A heat pump would cost about $194 more per year to run than your furnace at these rates — before rebates, cooling and fixed gas charges. Heating only; defaults are placeholders, not current prices.
Defaults are placeholders, not current prices. Replace them with the all-in rates from your own bills for a real comparison.
What moves your bill the most
- Right-sizing: an oversized unit short-cycles and wastes energy
- Backup heat: fewer hours on electric strips means lower bills
- Steady thermostat settings instead of deep night setbacks
- Air sealing and attic insulation
- Annual maintenance and clean filters
If you’re replacing an old AC, a modern heat pump usually cools more efficiently too — so summer bills can drop as well.
Common questions
What seasonal COP should I use?
For a cold-climate heat pump in Toronto, a seasonal average around 2.5–3 is a reasonable planning number. Ask your installer for an estimate based on your home and model.
Should I use time-of-use or tiered rates?
Use the average all-in cost per kWh from your recent winter bills — total electricity charges divided by kWh used.