Your HVAC system plays a crucial role in how comfortable your home feels all year long. It helps ensure your home stays warm in the winter and cool in the summer. If you’ve ever wondered about the differences between various heating systems, read on! In this article, we’ll help you choose the best HVAC system for your home and give you an idea of what you can expect to spend on installation costs.
What’s an HVAC system?
HVAC is short for heating, ventilation, and air conditioning. In other words, it refers to equipment used to heat or cool your home, and to help with ventilation as well.
Due to our climate, all Canadian HVAC systems have a heating component, but not all homes have air conditioning here.
What are the different types of heating, ventilation, and air conditioning systems?
You might be wondering what a new HVAC system costs. The truth is, prices can vary a lot depending on the system you choose. So before we tackle the financial side of things, let’s take a look at the different kinds of HVAC systems available. Here are some popular options.
Forced air heating system
Forced air systems are one of the most common heat sources in Quebec. They work like a central air blower. The air is heated in a unit (usually a furnace that runs on electricity, oil or gas or powered by a heat pump) and distributed throughout the home via a network of air vents and ducts.
In simple terms, it draws in air from the home, filters it, heats it and sends it back out into each room. These systems are often combined with a heat pump or an outdoor conditioning unit that handles both heating and cooling, depending on the season.
Hot water heating system
Hot water heating, often found in older homes, works with a boiler that heats water. Once the water reaches a certain temperature, the liquid travels through a system of pipes and radiators around the home. The result is a nice, subtle, consistent heat source.
Since these systems don’t use ventilation, they can’t be used to cool the home. A separate cooling system can be added to improve the home’s comfort during the summer months (a wall-mounted air conditioner, for example).
Portable or window air conditioner
Portable and window units can be a more affordable solution for homes without central air conditioning.
Window units, which are installed directly in the window opening, can be used to cool a single room, like a bedroom or a small living room. A lot of people like these because they’re effective and tend to be quieter than portable models.
Portable air conditioners have one thing that window units don’t have, though: you can move them from one room to another. All you have to do is ensure the hot air can escape through the exhaust pipe (usually through a window or sliding door). The drawback of portable models is they tend to be less effective than window units. They can be louder, too.
All in all, these options are interesting, but they’ll never match the capacity or consistency of a central air conditioning system.
Central heat pump
Heat pumps are gaining popularity in Canada, and you can use them to both heat and cool your home.
A heat pump is an electric appliance that moves air from one area to another. In the summer, it draws warm air from inside the home and transfers it outside, which helps make your space more comfortable. In the winter, it does the opposite by extracting the heat that’s present in the air outside (even in cold weather!) and moving it inside.
Gas furnace
Gas furnaces burn natural gas to heat your home. The combustion effect warms the heat exchanger. A ventilation system (the blower) takes air from the home so that it can make contact with this hot surface. The air then travels through the duct system to heat different rooms.
Good to know: Currently, there are no laws preventing homeowners from using or maintaining an existing gas furnace. However, the Quebec government plans on banning the use of almost all fossil fuel heat sources in residential structures by the year 2040. For this reason, we can expect a phasing out of natural gas heat sources in residential buildings.
Ductless air conditioning
Also known as ductless split air conditioners, these systems are comprised of an outdoor unit and one or more indoor diffusers. Air is drawn in from the outside and passed through coils filled with coolant, then released into the home.
The heat that’s extracted is then sent back to the outdoor unit for evacuation. The diffusers can be mounted on the wall or ceiling, depending on what works best with the home’s layout.
Central air conditioning (ducted)
Designed to cool the entire home, central air conditioning is usually combined with a forced air heating system, which uses the same ducts.
Outside, there’s a unit made up of a compressor and a coil. Inside, the central heating system is equipped with an evaporator. The hot air is cooled by passing over the evaporator before being redistributed throughout the home via the existing ductwork.
How much does an HVAC system cost?
Based on internal data, installing a central HVAC system costs between $8,500 and $20,000 on average. Compact units (like wall-mounted heat pumps and ductless air conditioners) typically cost upwards of $4,000 including installation.
That said, the total cost will ultimately depend on several factors, such as:
The type of system you choose (ducted or ductless)
The home’s layout and surface area
The location of the home
Whether any additional elements are required (new ductwork, electrical upgrades, etc.)
Cost of installing an HVAC system in a new home
These are the ballpark costs of installing an HVAC system in a newly built home:
Low end: $7,000 (electric baseboards and wall-mounted AC)
Mid-range: $10,000 (electric baseboards and wall-mounted heat pump)
High end: $16,000 (central heat pump with heat recovery unit)
Installation including ductwork
The cost of installing an HVAC system with ductwork is based on the unit’s capacity, which is expressed in tons. For example, a 1,000 to 1,500 sq. ft. home usually requires a unit with a 2- to 3-ton capacity, which can cost from $8,500 to $20,000. This is another case where price is influenced by multiple factors, such as the unit’s capacity, the number of units to be installed and the condition of the property.
Types of systems:
Forced air heating (furnace and ductwork)
Central air conditioning
Central (or ducted) heat pump
Comprehensive central HVAC system (heating and cooling)
Installation without ductwork
Usually, the cost of installing an HVAC system that doesn’t require ductwork comes down to the purchase price and installation fees for the outdoor and indoor units. The price you’ll pay depends on the model you choose.
Types of systems:
Wall-mounted heat pump (mini split/ductless)
Wall-mounted air conditioner (split unit)
Ductless air conditioning system (single- or multi-zone)
Central heat pump pricing
The cost of buying and installing a central heat pump can range from $8,500 to $20,000. Prices can vary depending on multiple factors, such as brand, unit capacity and special installation requirements.
Cost of installing a wall-mounted heat pump or air conditioner
Installing a wall-mounted air conditioner usually costs around $3,500 to $5,500. Wall-mounted heat pumps can cost even more.
What do air exchangers cost?
Air exchangers can cost around $2,500 to $3,500 depending on the model and features you want.
Installation with extras
If extra work is involved, your new HVAC system may cost even more, depending on the unit. Note that the amounts presented in this article are approximate.
A central humidifier can cost between $500 and $1,500, plus installation.
An axial fan (with propeller) typically costs $500 to $1,500, depending on its options and capacity, plus installation.
An air exchanger can cost between $2,500 and $3,500.
These charges don’t include the cost of the main system and can vary depending on the home and complexity of the work to be done. For example, installing a central heat pump may require additional air ducts, which can cost around $6,500 plus finishing work such as putting up drywall.
Thinking of renovating?
How much does replacing an HVAC system cost?
The cost of replacing an HVAC system is similar to installing a new one. Prices can vary depending on what equipment has already been installed, and current Quebec Construction Code standards.
How often do HVAC systems need to be replaced?
Modern HVAC systems typically last between 10 and 20 years. Their longevity often depends on the quality of the system’s components, the brand and how much maintenance was done over the years. Central air conditioners and heating systems tend to show signs of wear after a decade of use, whereas electric baseboards typically last much longer—up to 20 years or so.
“Heating and air conditioning units require regular maintenance in order to maximize their lifespan,” explains Tristan Lacelle, service and sales coordinator at RenoAssistance. “Removing dust and debris helps improve their performance, prevent costly breakdowns and reduce the amount of energy they use. Ultimately, it improves indoor air quality, creating a healthier environment for everyone.
Government grants to help homeowners replace a gas or oil HVAC system with an electric one
If your home has an older gas or oil heating system, you could be eligible for grants to help you cover the cost of installing an electric system. These government programs were created to encourage homeowners to upgrade their systems with more efficient equipment that’s less harmful to the environment.
In Ontario, Enbridge Gas has programs for clients who meet eligibility criteria, including:
Up to $250 for a new furnace
Up to $1,000 for a new boiler
Up to $400 for a new water heater
In Quebec, Énergir has a number of grants available to help reduce the cost of installing a new boiler, furnace, hot water heater or smart thermostat. Hydro Québec also has funding available for certain heat pump models under its LogisVert Efficient Homes Program.
Dual-energy systems (gas and electric heating)
Some owners opt for a dual-energy system. For example, they might use oil to heat their home, while relying on electricity for air conditioning.
These set-ups aren’t as eco-friendly or clean as using a fully electric system or natural gas furnace. That said, they present a more affordable solution for homeowners who would like to improve their system without replacing everything.
“Less expensive heating solutions can seem like a good deal at the time of purchase, but often wind up costing more over the years,” says Tristan Lacelle. “These units tend to be less efficient and more energy-intensive—meaning they use more energy to create the same amount of heat. That translates into higher gas and electricity bills.”
6 factors that can influence the cost of your HVAC system
We can’t stress this enough: Many factors that can influence the cost of buying and installing a new HVAC system. Here are a few examples.
1. The weather
Your region’s climate plays a major role in which HVAC system you should choose. If you live in an area with extreme temperatures, it’s best to choose an energy-efficient system with a strong output.
For example, a home in Northern Quebec will typically be fine with a heat pump. On the other hand, residents of Southern Ontario may want to prioritize a system with strong, energy-efficient air conditioning to help make the summer months more comfortable.
2. Construction
Construction costs depend on a number of factors, like the scope of the work to be done, the type of system already in place, the presence or absence of ducts (when needed) and the cost of labour in your area. All of these factors will have a direct impact on the cost of installing or replacing an HVAC system, and therefore need to be evaluated as a whole.
3. HVAC systems – Cost per ton
You should budget around $2,000 to $2,500 per ton if you need to build the ductwork as well. You’ll also need to factor in the cost of the system itself, plus the installation fees—which can vary depending on your home’s layout and the complexity of the work involved.
4. Seasonal energy efficiency ratio (SEER)
The seasonal energy efficiency ratio (SEER) indicates the average energy efficiency of a unit over an entire season. It’s a way to compare models and identify which ones offer more stable performance throughout the year. A higher SEER means the unit is more energy efficient. Conversely, higher-efficiency units also tend to be more expensive, since they require more advanced components. That said, the higher upfront cost can lead to long-term energy savings.
5. Energy efficiency
Energy efficiency (including SEER) has an impact on unit prices. Higher efficiency units usually cost more up front, but they offer better performance. In other words, they use less energy than a cheaper unit would to heat or cool the air to the same extent.
The efficiency ratio is obtained by comparing the unit’s output capacity with its energy requirements. This is the principle on which energy efficiency standards and certifications are based.
The ENERGY STAR program lets consumers identify the most energy-efficient products on the market. For air conditioners, furnaces, heat pumps and boilers, only products that meet strict energy performance specifications can be ENERGY STAR certified.
6. Cost efficiency ratio
The cost efficiency ratio can help you figure out if a product’s higher purchase price is justified by energy savings down the road. A high-performance system with a strong SEER and high energy efficiency may not need to stay on as long. This is important because the less power it uses, the lower your monthly energy bills will be. Homeowners are generally seeking the right balance between purchase price and long-term savings.
A home that feels comfortable to you
Are you thinking of installing a new heating, ventilation, and air conditioning system? Whether you’re looking to replace your old HVAC system or have questions about the installation process and general costs, our team of renovation advisors will be happy to guide you through all the steps.
FAQ
How do I know if I need a new HVAC system?
If your HVAC system seems inefficient or unusually noisy, you could have someone evaluate it and/or start thinking about replacing it soon. Once your HVAC system is more than 10 years old, it’s generally time to replace it.
Do you really need to replace your air conditioning system and furnace at the same time?
No, not necessarily. That being said, if both components were installed at the same time, it’s a good idea to have a heating, ventilation, and air conditioning specialist inspect the entire system. They can tell you if it would be more cost-effective to replace just one of the units, or both at the same time.
How often does an HVAC system need to be replaced?
You should have your HVAC system inspected once a year to ensure it’s in good working condition and help it stay that way. Some maintenance tasks can be done on your own, like cleaning the filters or outdoor unit. More complex technical verifications should be done by specialists, though.
What are the pros and cons of installing a heat pump system?
Heat pumps are great for homes in regions with a temperate or hot climate, and for northern climates as well. The drawback being that, during periods of extreme cold, you might need a backup heating system such as electric baseboards or a furnace.
Can you replace an oil furnace with an electric heating system?
Absolutely! This transition is even encouraged, because electric systems are safer and more eco-friendly. They’re also cheaper over the long term.
Reduce your heating costs and get your home ready for winter without changing your heating system!
The prices included in this article are provided for information purposes only. The total cost of your project may vary based on the type of work required, labour, materials, safety measures, demolition costs, structural adjustments and unforeseen issues.
