Heating, ventilation and air conditioning (HVAC) systems are the unsung heroes keeping us warm during cold Toronto winters. When it comes to the battle of the heating heavyweights, we often hear the words "heat pump" and "furnace." But what is the difference between the two? A heat pump is an all-in-one system that cools and heats, while a furnace's only function is warming your home.

Let's explore these systems in more detail. We'll weigh the pros and cons of heat pumps versus gas furnaces to see which is better for your home.

What Is a Heat Pump?

Contrary to its name, a heat pump does more than heat — think of it as an air conditioner and heater in one.

This clever system uses electricity to transfer warm air in or out of your home.

Different heat pumps use different fuel sources, including:

Air-source: A coil transfers air from outside or inside your home to heat or cool. These are the most popular heat pumps and come in ducted and ductless versions.
Ground-source: The heat pump draws thermal energy from underground sources to achieve set temperatures throughout your space.

During winter, the heat pump transfers warm air into a refrigerant (a compound that absorbs heat) and pumps it to a coil. It then circulates the hotter air around your home. In the summer, this process works in reverse, pulling warm air from your house and dispelling it outside for cooling purposes.

What Is a Furnace?

A furnace generates heat using fuel, such as natural gas or oil. An electric igniter or a pilot light ignites a burner to create heat that is transferred to a heat exchanger. A fan circulates the warm air around your home, dispelling any gas contaminants through a venting system.

Furnaces come in different types categorized by their fuel source:

Gas furnace: Gas furnaces are very popular and generate higher temperatures than electric models. Carbon monoxide is a by-product of this type of furnace, so it's essential to have vents around the house.
Electric furnace: These furnaces provide an alternative to combustion models. A heat bank warms the air using electricity and distributes it through the premises.
Propane furnace: Like gas furnaces, this option burns propane instead of natural gas. They can be a more energy-efficient option, but propane prices are often higher. Carbon monoxide is also a concern with this furnace type.

The Difference Between Heat Pumps and Furnaces

While both heat pumps and furnaces serve the same core function — heating the home — there are significant differences to consider when deciding on the ideal system for your home's unique needs:

Unit Design

Aesthetics can play a part in which option you prefer. Heat pumps and furnaces differ in the looks department:

Heat pump: These systems look similar to an air conditioning unit. A heat pump typically requires a large box-like unit outside the house. If your home doesn't have ductwork, you may need to install a mini-split system with a smaller external unit and wall-mounted interior units.
Furnace: A furnace has less of a visual impact on your home than a heat pump. The most noticeable components are ventilation pipes extending out of the house. The main unit can often hide in an attic, basement or utility room.

Cost

The price of these systems depends on various factors. Access to fuel sources, existing HVAC infrastructure and home design play a part. Explore common cost considerations for both:

Heat pump: The cost depends on the size and layout of your home, existing ductwork and system type. For example, ductless mini-splits may be more cost-effective than a ducted system. You can offset this cost with a rebate. Programs like Home Efficiency Rebate Plus offer incentives for switching to energy-efficient devices.
Furnace: If you can access natural gas lines in your home, installing a furnace may be more affordable. Without easy access to gas lines, installation can be pricey. Furnace operating costs also tend to be higher than heat pumps. Unless powered by electricity, fluctuating fuel costs can impact your ongoing expenses.

Durability

With proper maintenance, both are durable systems that last many years. Furnaces have the edge on heat pumps with a longer life span:

Heat pump: A heat pump system's typical life span is around 10 years, but it may last up to 15 years. You may need to replace components such as refrigerants or pumps during this time.
Furnace: If you care for your furnace, it can last between 15 and 30 years. After the 10-year mark, furnaces may start to lose efficiency. Switching to a newer model reduces energy consumption and operating costs.

Energy Efficiency

When it comes to energy consumption, heat pumps come out on top:

Heat pump: Heat pumps use minimal energy to transfer rather than generate heat. However, there is a caveat here. Heat pumps need to work harder in cooler climates to warm a room — in this case, a furnace may be more efficient.
Furnace: Furnaces use fuel, making them less efficient than heat pumps. Natural gas is the most energy-efficient fuel option. Since they generate rather than transfer heat, furnaces are a better choice for locations with colder winters.

Installation

When retrofitting your home, installation depends on what is already available:

Heat pump: For homes with an existing air conditioning system and ductwork, it's a simple swap to a heat pump. Mini-split systems are the least costly method in a house without ductwork.
Furnace: Furnaces require ductwork, a fuel supply and an exhaust. Fitting new ductwork typically involves cutting into your home's walls.

Using a qualified HVAC technician to ensure proper installation is crucial for either option.

Maintenance

Like any HVAC system, regular maintenance assures optimal performance and longevity. Learn about the typical requirements for each option:

Heat pump: Maintenance is more involved for a heat pump than a furnace. To prevent blockages, you'll need to remove debris, snow or ice that collects around the pumps. Change air filters once a month to promote airflow and clean the coils when dirty.
Furnace: Change the filters every few months and clean the unit to keep your furnace in top shape. It's also a good idea to clean the flame sensor in the colder seasons before starting it up.

HVAC providers offer service and maintenance plans to keep your heating system in top condition. Routine maintenance saves money on repairs and identifies minor issues before they escalate.

Heat Pumps vs. Furnaces in Canada: Which Is Best for You?

You've weighed the pros and cons of heat pumps versus gas furnaces. Now, you want to know which is the right choice for your home. Is a heat pump better than a furnace because of its energy efficiency? Or is a furnace better at generating warmth than a heat pump? It depends on many factors, like the climate, your home's layout and your budget. A furnace may be the best choice in colder climates with severe winters. The multi-functional heat pump works better in moderate regions that benefit from cooling.

Choose Greater Toronto's Heat Pump and Furnace Experts

Trust the HVAC experts at Boss Mechanical when deciding between a heat pump versus a gas furnace in Ontario or the surrounding areas. We've helped homeowners in Greater Toronto keep their spaces comfortable since 2010. Our expert team can recommend the best heating solution for your home.

We offer high-quality heat pumps and furnace installation and repair services. Ask us about our financing and rebate program assistance options. We're so sure you'll be happy with our service, we offer a 100% satisfaction guarantee.

Contact Boss Mechanical to request a quote or learn more about our full suite of services today.

Heat Pump vs. Furnace: Everything You Need to Know