Heat Pump vs Gas Furnace Running Costs in BC (2026 Rates)
"Will a heat pump save me money over gas?" is the question I get most. The honest answer in 2026: against electric baseboard, by a lot. Against a modern gas furnace, it's close. It depends on how efficient your furnace is and how efficient the heat pump is in your climate.
BC removed the consumer carbon tax on April 1, 2025, which made natural gas noticeably cheaper. Any comparison written before then overstates heat pump savings for gas homes. The numbers below use the rates posted by BC Hydro and FortisBC as of October 2026.
The Rates Used
BC Hydro residential (posted October 2026):
| Plan | Energy charge | Basic charge |
|---|---|---|
| Tiered | 11.87¢/kWh up to the Tier 1 threshold (about 675 kWh/month), 14.08¢/kWh above it | 23.44¢/day |
| Flat | 12.70¢/kWh | 25.00¢/day |
Heating is extra electricity on top of your normal use, so most of it lands in Tier 2 at 14.08¢/kWh on the tiered plan. That's the rate used below.
FortisBC natural gas, Mainland and Vancouver Island including the Interior (effective July 1, 2026):
| Charge | Rate |
|---|---|
| Delivery | $8.469/GJ |
| Storage and transport | $2.472/GJ |
| Cost of gas | $1.660/GJ |
| Total per GJ | $12.60/GJ |
| Basic charge | $0.4216/day (about $154/year) |
Taxes are left out. GST applies to both gas and electricity, so it doesn't change the comparison. The cost of gas is reviewed every three months, so this part of your bill can move up or down. FortisBC Electric customers in parts of the Southern Interior pay different electricity rates. Use your own bill if that's you.
The Problem: Comparing Different Units
Gas is billed in gigajoules (GJ) and electricity in kilowatt-hours (kWh). To compare them fairly, convert both to the cost of one GJ of heat actually delivered into your house. One GJ equals 277.8 kWh.
- Gas: divide the gas price by the furnace efficiency (AFUE).
- Heat pump: divide the electricity price per GJ by the heat pump's seasonal COP, which is how many units of heat it delivers per unit of electricity, averaged over the winter.
Cost per GJ of Delivered Heat
| System | Efficiency | Cost per GJ of heat |
|---|---|---|
| Electric baseboard | 100% (COP 1.0) | $39.11 |
| Heat pump, colder Interior/North | seasonal COP ~2.0 | $19.56 |
| Older gas furnace | 80% AFUE | $15.75 |
| Heat pump, Okanagan/Thompson | seasonal COP ~2.5 | $15.64 |
| High-efficiency gas furnace | 95% AFUE | $13.26 |
| Heat pump, coastal BC | seasonal COP ~3.0 | $13.04 |
The seasonal COP values are typical ranges for a properly sized cold-climate heat pump. Your actual figure depends on the equipment, sizing, ductwork, and how much backup heat runs. Ask your contractor for the expected seasonal performance at your location.
Break-even points at these rates:
- Against a 95% furnace, a heat pump needs a seasonal COP of about 2.95, which is reachable on the coast and hard in the colder Interior.
- Against an 80% furnace, it needs about 2.5, which is achievable in much of southern BC.
Worked Example: A Typical Home
Assume a house that needs 60 GJ of delivered heat per year. That's in the range of a typical detached BC home; check your own gas bills for a better number (annual GJ used × furnace efficiency).
| System | Energy used | Annual heating cost |
|---|---|---|
| Electric baseboard | 16,667 kWh | $2,347 |
| Heat pump, COP 2.0 | 8,333 kWh | $1,173 |
| Older 80% gas furnace | 75 GJ | $945 |
| Heat pump, COP 2.5 | 6,667 kWh | $939 |
| 95% gas furnace | 63 GJ | $796 |
| Heat pump, COP 3.0 | 5,556 kWh | $782 |
What this means:
- Electric baseboard homes save about $1,170–$1,570 a year in this example. This is where a heat pump pays off clearly, and where BC Hydro's rebate of up to $4,000 applies.
- Older gas furnace homes are roughly even in the Okanagan and slightly ahead on the coast.
- New 95% furnace homes are roughly even on the coast and pay more with a heat pump in the colder Interior.
If a heat pump lets you disconnect gas entirely (no gas range, water heater, or fireplace), you also drop the gas basic charge, about $154 a year.
Technical detail: how the numbers are calculated
Gas: $8.469 + $2.472 + $1.660 = $12.60 per GJ of gas. Divided by furnace efficiency: $12.60 ÷ 0.95 = $13.26 per GJ of heat; $12.60 ÷ 0.80 = $15.75.
Electricity: 14.08¢/kWh × 277.8 kWh/GJ = $39.11 per GJ at COP 1.0 (baseboard). Divided by seasonal COP: $39.11 ÷ 2.5 = $15.64; ÷ 3.0 = $13.04; ÷ 2.0 = $19.56.
Annual example: 60 GJ of heat ÷ efficiency = energy purchased. For the heat pump, 60 GJ × 277.8 kWh/GJ ÷ COP = kWh purchased, × $0.1408.
What's left out: basic charges (unless you disconnect gas), taxes, the gas used for water heating and cooking, and any backup heat energy beyond what the seasonal COP already includes. Dual-fuel systems, where the furnace takes over below a set outdoor temperature, sit between the gas and heat pump rows and can be tuned to run whichever is cheaper.
Beyond the Heating Bill
Running cost isn't the only reason people switch:
- Cooling. A heat pump also air-conditions the house. If you'd otherwise buy an AC, the heat pump's extra cost is small.
- Rate risk. The cost of gas is reset every quarter, and electricity rates change annually. Neither is guaranteed to stay where it is.
- Furnace age. If your furnace is near the end of its life, you're buying equipment anyway. That changes the payback math.
- Rebates. Income-qualified households can get much of the upfront cost covered through the CleanBC Energy Savings Program, or up to $8,000 through FortisBC's income-qualified dual-fuel rebate. These can't be combined.
Frequently Asked Questions
Is a heat pump cheaper to run than gas in BC?
Against a modern high-efficiency furnace, it's close to break-even on the coast and usually costs somewhat more in the colder Interior at 2026 rates. Against an older 80% furnace it's roughly even to slightly cheaper in southern BC. Against electric baseboard, a heat pump is far cheaper everywhere.
Did the carbon tax removal change the math?
Yes. BC removed the consumer carbon tax on April 1, 2025, which lowered the price of natural gas. Comparisons from before then overstate the savings for gas-heated homes.
Does time-of-day pricing help a heat pump?
A little, if you can pre-heat overnight. BC Hydro's optional time-of-day pricing takes 5¢/kWh off overnight use (11 p.m. to 7 a.m.) and adds 5¢/kWh from 4 to 9 p.m. Heat pumps run most on cold evenings and mornings, so check whether your use pattern would save or cost you before switching.
What's dual fuel and does it save money?
A heat pump paired with a gas furnace. The heat pump heats in milder weather, where its COP is highest, and the furnace takes over in the cold. Setting the switchover temperature near your break-even point lets you use whichever fuel is cheaper at the time.
Next Steps
- Heat pump vs air conditioner in BC — if you're adding cooling anyway
- Dual fuel vs all-electric in the Interior — keeping the furnace for cold snaps
- HSPF2 and COP explained — how to compare real cold-weather efficiency between models
- BC heat pump rebates (2026) — what you qualify for
A heat pump adds a large electrical load. Check whether your panel can carry it before you get quotes: