How much does it cost to heat and cool a 2,000 sq ft home in Ontario?

In Ontario (17¢/kWh via Hydro One / Toronto Hydro (OEB)), a 2,000 sq ft home averages $1,014/year ($85/month) with a high-efficiency heat pump, $937/year with a natural gas furnace and central AC, and $3,088/year with electric baseboards.

Are heat pumps cheaper to run than gas furnaces in Ontario?

At Ontario's natural gas rate of $1.35/therm, the economic break-even electricity price for a COP 3.1 heat pump is 15.5¢/kWh. Comparing this against Ontario's residential electricity rate of 17¢/kWh determines annual operating savings.

Ontario Heating & Cooling Cost Calculator (2026)

2,000 Sq Ft Heat Pump Bill

$85/mo

ON Electricity / Gas Rate

17¢ / $1.35

15-Yr Savings vs Baseboard

+$27,510

Ontario Annual Heating & Cooling Bills by Home Size

In Ontario, a 2,000 sq ft home averages $1,014/year ($85/mo) using a cold-climate heat pump ($972/yr winter heating + $42/yr summer cooling), compared to $937/year with a natural gas furnace and $3,088/year with electric baseboards.

Home Size	Heat Pump (COP 3.1)	Gas Furnace + AC	Baseboard + Window AC	15-Yr Heat Pump Savings
1,000 Sq Ft	$507/yr ($42/mo)	$469/yr ($39/mo)	$1,544/yr ($129/mo)	+$11,955
1,500 Sq Ft	$760/yr ($63/mo)	$703/yr ($59/mo)	$2,316/yr ($193/mo)	+$19,740
2,000 Sq Ft	$1,014/yr ($85/mo)	$937/yr ($78/mo)	$3,088/yr ($257/mo)	+$27,510
2,500 Sq Ft	$1,267/yr ($106/mo)	$1,172/yr ($98/mo)	$3,860/yr ($322/mo)	+$35,295
3,000 Sq Ft	$1,521/yr ($127/mo)	$1,406/yr ($117/mo)	$4,632/yr ($386/mo)	+$43,065
3,500 Sq Ft	$1,774/yr ($148/mo)	$1,641/yr ($137/mo)	$5,405/yr ($450/mo)	+$50,865

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